Singapore Exchange’s launches MEG and SM contracts in market as an alternative tool to over-the-counter deals. With the launch, SGX is the first exchange to offer clearing of petrochemical swaps and futures that reference the ICIS MEG CFR China Main Ports Index and ICIS SM CFR China (weekly price range) Index, the exchange said in an earlier statement.
“With the launch of these styrene monomer and monoethylene glycol swaps and futures we are providing the market with an exchange-traded and centrally cleared tool, which is important given that they have traditionally been traded on an over-the-counter (OTC) basis,” said William Prajogo, an associate director at SGX Commodities.
Prajogo said that the contracts will also give participants reduced counterparty risk, an elimination of delivery risk, as well as margin offsets with other SGX petrochemical products.
