Make room for Japan in SGX's hook-up party

THE exchange business is not always a zero-sum competition, and collaborations can benefit markets even if they are between rivals, leaders of major global derivatives exchanges said on Thursday.

As if to prove a point, Singapore Exchange (SGX) and Japan Exchange Group Inc (JPX) said after the market closed that they will jointly develop and promote their markets on both exchanges.

The letter of intent covers looking into the possibility of new derivatives products based on the Topix index; collaborating on the development of commodities markets; potential co-location of data centres; and promotional activities. Singapore's second-most popular equity index futures products is its Nikkei 225 Index contract, which saw trading volume grow 9 per cent year-on-year in November to 2.6 million contracts.