SGX joins hands with HKEx

[SINGAPORE] In a surprise announcement yesterday, Singapore Exchange (SGX) and Hong Kong Exchanges & Clearing (HKEx) said they have agreed to cooperate in various areas, including developing yuan-denominated products jointly and working on technology development and regulatory issues.

The landmark collaboration by the two rival exchanges, which are among the largest in Asia, comes as competition heats up in the nascent derivatives market in Asia.

SGX chief executive Magnus Bocker told reporters yesterday: "We're building on the strength of Hong Kong with its pre-eminent position as the renminbi hub of the world, having a lot of different connections with its investor base into renminbi, and building on the strength of Singapore being an FX (forex) hub of the world, at the same time being a gateway for the futures market in Asia.