SMX posts USD 134-bn trading volume in 2012

The Exchange which added two products to its suite of offerings, the world's first black pepper futures and the E-Gold futures (based on the Indian gold prices) in 2012 has seen an annual turnover of over USD 71 billion in 2012, an exchange statement said here.

Mumbai: Singapore Mercantile Exchange (SMX), the first pan-Asian multi-product commodity and currency derivatives exchange, on Wednesday announced that their cumulative volumes since launch propelled from USD 63 billion a year ago to 134 billion USD by 2012-end.

The Exchange which added two products to its suite of offerings, the world's first black pepper futures and the E-Gold futures (based on the Indian gold prices) in 2012 has seen an annual turnover of over USD 71 billion in 2012, an exchange statement said here.

With over 4 million contracts traded on the exchange since its launch in August 2010, the end of 2012 saw a cumulative turnover of over USD 134 billion since SMX went live. During 2012, the average daily volumes have been over 8,200 contracts with a peak volume of 30,075 contracts.

SMX membership has increased by over 25 percent in the past year and the exchange witnessed a broader participation from within the region and beyond, attributed to the new membership categories introduced last year.

On the products front, the newly launched contacts have been consistently gaining momentum. The Exchange has seen five successful delivery cycles of black pepper with over 150 MT of the Exchange specified grade of black pepper delivered ex- approved bonded warehouse in Vietnam.

The E-Gold futures contract which was launched in June 2012 has seen a gradual but sustained increase in trading with interest in the product increasing over the past few months.

Anchor products at the Exchange such as the EUR-USD currency futures, the Copper futures and the world's first Iron ore futures based on the Metal Bulletin Iron Ore Index have continued to gain momentum as well. The Exchange also introduced spread contracts with the first set based on the copper contract, the release said.

"The past year has been a challenging yet interesting time globally. For SMX, the past 12 months have been a time to consolidate and adapt to market requirements and feedback. While we have seen growth in some areas, we are still committed to overcoming the challenges we face in others.

"We hope the new products in the pipeline will complement the existing offerings on the Exchange and SMX will continue to maintain its pan Asian appeal with Asia centric contracts available for trading in the Asian time zones," SMX CEO V Hariharan said.

SMX is backed by the Financial Technologies (India) Ltd - which has also established 9 exchanges across India, Dubai, Singapore, Africa, Mauritius and Bahrain.

PTI