Acquiring full control of BidFX will enable SGX to unlock vast potential of FX OTC market

ABOUT seven years ago, the Singapore Exchange (SGX) was not in the foreign exchange (FX) futures space.

In fact, when it decided to launch its Indian Rupee futures in November 2013, it was late to the game - six years behind the incumbent Dubai Gold and Commodity Exchange (DGCX) where monthly volumes hovered around US$30 billion. Fast forward to present day, SGX has more than 60 per cent market share of the Indian Rupee offshore futures contract - a tool which offshore investors can use to manage currency risks associated with their exposure to the Indian market.

Similarly, when it launched its offshore Chinese Renminbi futures (CNH) a year after the Indian Rupee contract, SGX was two years behind the Hong Kong Exchanges and Clearing Market (HKEx) and the Chicago Mercantile Exchange (CME). Today, SGX has a dominant 80-plus per cent share of the listed futures market for CNH.