SGX's Baltic bid: great prize comes at a price

THE entry by Singapore Exchange (SGX) into exclusive talks with the Baltic Exchange represents another step towards building out its commodity derivatives business.

While not yet a done deal, an acquisition of the maritime information provider would cement the foothold SGX has gained in commodity derivatives thus far. But the journey there, it seems, might not be all smooth-sailing.

SGX's recent announcement comes three months after it said it had made a non-binding bid for the Baltic, which has also attracted many other suitors, including larger exchanges such as Chicago Mercantile Exchange Group.