SINGAPORE, Feb. 26 (Xinhua) -- The Monetary Authority of Singapore (MAS) has approved the Asia Pacific Exchange (APEX) to operate the city-state's third derivatives exchange as well as a clearing house, according to a press release from APEX on Monday.
The press release said APEX will launch trading in the second quarter of 2018 and has commenced the process to admit trading and clearing members.
It said APEX will offer futures and options contracts covering both commodity and financial derivatives products, including agriculture, energy, petrochemical, metal, interest rates and stock indices.
The first contract of APEX is a USD-denominated physically-delivered palm olein futures. When launched, the contract will complement Bursa Malaysia Derivatives Exchange's crude palm oil futures contract and Dalian Commodity Exchange's RBD palm olein futures contract. It is expected to provide additional avenues for inter-market hedging opportunities for edible oil hedgers and traders.
Zhu Yuchen, founder and chief executive officer of APEX, said APEX's vision is to establish itself as an exchange that will be the Asian centre for price benchmarks to be referenced by global market participants.
"We believe that as the economies and population of Asia grow, the centre of gravity for global trading in commodities and financial instruments will shift to the region," he said.
Singapore is an ideal location for derivatives trading and an important and strategic partner to China's Belt and Road Initiative, giving him the confidence that APEX will be well positioned for success in years to come, he added.
According to the press release, Zhu previously helmed the Dalian Commodity Exchange and the China Financial Futures Exchange, and also served Vice Chairman and CEO of Shanghai Pudong Development Bank.
Lim Hwee Hua, Singapore's former Minister in the Prime Minister's Office and the Second Minister for Finance and Transport, chairs the board of APEX.
