About Singapore Exchange (SGX)
SGX or Singapore Exchange is an investment holding company that provides different securities and derivatives. Apart from trading products, the exchange also provides market statistics and regulates brokerage firms to ensure that there are no rule breaches concerning the disbursement of funds or internal policies.
As one of the main exchanges, SGX has also won the Asia Risk Awards 2022, derivatives exchange of the year, and most recently, the exchange of the year at the FOW Global Investor Awards 2022. This has positioned the exchange in a positive light to launch energy metals as a new product to support the global environmental movement.
To provide clients with full access to SGX, Orient Futures Singapore works in collaboration with SGX as a clearing member of SGX-DT(Derivatives Trading) and SGX DC (Derivatives Clearing). This means that the firm can act as a third-party clearing party, offering greater flexibility and tailored services for traders.
Orient Futures Singapore has also won the emerging FCM of the year at the FOW Global Investor Awards 2022.
Released Products – Energy Metals
On September 26, Monday SGX announced the launch of 4 energy metal’s/battery metal derivatives contracts. The products are:
-
SGX FM Cobalt Metals IN-WHS Rotterdam (Standard Grade) COM/COMF
- SGX FM Lithium Hydroxide CIF CJK (Battery Grade) LIH/LIHF
Due to the global decarbonization movement, more nations and corporations are turning to the electric vehicle and battery industry.
This shift in priority and environmental awareness has led to a rapid increase in demand. Hence, the new release of these 4 energy metal products provides an opportune moment for traders to leverage price fluctuations and manage their price exposures to energy metals.
Price of Energy Metals
Based on an article by Bloomberg, this increased demand for lithium has led to a surge in lithium prices, pushing prices almost 500% in a year, however, the shortage of lithium is so acute that it has become difficult for supply to meet demand expectations.
To add to the increased demand, at last year’s COP26 climate talks, 30 governments said they would stop sales of new petrol and diesel models by 2040, including Singapore, the United Kingdom, China, Canada, European Union, and several other countries.
While the supply for lithium remains low, its complementary good, the electric car remains ambiguous. Foley reports that it is not clear that increases in prices will slow the growth of electric vehicle sales, the increased price of lithium has also not directly affected the price of vehicles currently for sale.
Trading Hours for Energy Metals
The trading hours for energy metal products are:
7:10 am to 8:00 pm for T Session,
8:00:01 pm to 5:15 am or T + 1 Session and,
7:25 am to 8:00 pm for the Last Trading Day.
For more information on the contract specifications, refer to the upcoming posts on these energy metals.
Advantages Of Trading With SGX
Through trading with SGX, traders can enjoy reduced counterparty risk through daily mark-to-market positions, up to 21.5 hours of clearing, and enjoy trade with an internationally recognized clearing house.
Additionally, the energy metals futures (EV Metals) will allow various hedging benefits from the supply side such as managing price volatilities, inventory and procurement planning, pricing transparency, and budgeting for costs of raw materials.
To access these benefits, Orient Futures Singapore is authorized to provide access to the markets after the necessary validations and risk checks. Clients that are cleared by SGX via Orient Futures Singapore can then proceed to set positions and credit thresholds. Do note that like other products, on the last trading day, open positions are settled based on the final settlement price.
Start Trading With Orient Futures Singapore
Being an Overseas Intermediary of Shanghai International Energy Exchange (INE), Dalian Commodity Exchange (DCE), and Zhengzhou Commodity Exchange (ZCE), when foreign clients participate in internationalised futures contracts in these Chinese markets with us, they have direct access to trading, clearing, and settlement. Our parent company, Shanghai Orient Futures, is the largest broker in terms of aggregated volume across the five regulated exchanges in China.
Orient Futures Singapore also currently holds memberships at the Singapore Exchange (SGX), Asia Pacific Exchange (APEX), and ICE Futures Singapore (ICE SG).
We provide premium customer service at an affordable cost to all our clients. Our team will be there for you 24 hours on trading days to provide a one-stop portal for all your trades, with simple processes and an intuitive user interface that has low or near-to-zero latency.
