Singapore Kilobar Gold Contract

The LBMA Bullion Market Forum 2015
25 June 2015
Singapore Kilobar Gold Contract
Presentation at LBMA Bullion Market Forum
Shanghai
25 June 2015
Singapore Exchange
An opportunity for a partnership – SBMA, WGC, SGX –
to build a Southeast Asian marketplace
 Provide market
platform for
trading, clearing,
settlement and
delivery
 Marketing
SGX
Exchange-traded
Wholesale Kilobar
Gold Contract
SBMA
 Category 1 members to
be Market Makers
 Establish Good Delivery
List
 Marketing
WGC
SGX – Singapore Exchange Derivatives Trading Ltd
SBMA – Singapore Bullion Market Association
WGC – World Gold Council
Session 3 - Lily Chia
 Contribute to product development
 Marketing
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The LBMA Bullion Market Forum 2015
25 June 2015
The first daily deliverable gold contract under an
established regulatory framework
Futures
• Onscreen trading provides real-time pricing transparency
and comprehensive transaction statistics
• Governed by a robust regulatory framework
Daily
Expiration
• Daily physical delivery ensures that pricing is backed by
physical delivery
• Listing of 6 daily contracts allows market to trade in further
out contracts in times of gold shortage
Physically
Delivered
• Deliverable gold is clearly specified within a closed chain of
custody
• Each lot of 25 kilobars from the SBMA Good Delivery List is
delivered into the Approved Vault at the Singapore Freeport
SGX Gold prices have been competitive
•
•
•
•
Pricing process is visible on trading systems, Bloomberg, Reuters, SGX website
Competitive pricing with Market-Makers committed to max 7 ticks spread – US$0.035/g
Average premium Jan-Jun 2015 = US$0.64
Total volume traded (Oct 2014 to date) = 6,725 kg (majority physically delivered)
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The LBMA Bullion Market Forum 2015
25 June 2015
Thank you
Singapore Exchange
London • Tokyo • Beijing • Hong Kong • Mumbai
sgx.com
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© SGX Ltd, September 2014
Session 3 - Lily Chia
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