SGX in early talks to join regional rubber exchange

Singapore

SINGAPORE Exchange (SGX) is in preliminary talks to be part of a regional rubber exchange that would bring together the top three producing nations, industry sources said.

SGX held a meeting late last month with the International Tripartite Rubber Council (ITRC), an industry body comprising Thailand, Indonesia and Malaysia, which together produce 70 per cent of the world's rubber. The meeting came three months after ITRC said it was studying a plan to set up a regional exchange to facilitate hedging and easy trade for the different rubber grades, amid a tumble in prices of the commodity to five-year lows.