Singapore: The Singapore Mercantile Exchange (SMX) is mulling launch of futures contract in two Asian currencies -- Indian rupee and Chinese renminbi (RMB) -- to expand its product offerings, a top official said Tuesday.
"We need to add niche contracts to expand offerings on SMX," Chief Executive V Hariharan told reporters here, adding that the rupee and RMB are expected to be most sought after Asian currencies, given the increasing role of India and China in the global markets.
But Hariharan did not disclose the launch date for the two Asian currency contracts, given the global economic crisis and the rupee and RMB volatility.
He also spoke on the success of E-Gold (or East Gold), the contract based on Indian gold prices in US dollar terms.
The cash-contract hit a high of USD 120 million on July 24, 2012 within one month of its launch.
It was launched last month for foreign financial players who were keen on taking a call on the Indian gold but they were not allowed to participate due to regulatory restriction, he said.
Investors were especially awaiting Indian Parliament to pass the Forward Contract Regulation Act (FCRA) that will open such trades to foreigners, he said.
Speaking on the growth of SMX, which was launched in 2010, he said, "It has been a challenge in building SMX as an international exchange out of Singapore over the past two years because the city state is a financial and physical commodity market".
SMX has recorded a turnover of USD 100 billion in the second year of operation with growth seen across all commodity contracts, he said adding that overall volumes have grown eight fold on the year to 3.12 million lots from nearly 400,000 lots in the first year.
First Published: Tuesday, August 21, 2012, 21:15