SMX gets regulatory clearance

The Singapore Mercantile Exchange has received “in-principle” regulatory clearance from the central bank to start commodity derivatives trading in 2010.

Undecided yet on which products to offer first, the exchange will be trading precious metals, base metals, energy, agriculture, currency pairs and commodity indexes, according to a Bloomberg report. The commodity derivatives trading, expected to commence in the first quarter of 2010, will be done via an electronic platform developed by Financial Technologies India Ltd.

Chief Executive Officer Thomas McMahon said SMX "continues to work on satisfying the Monetary Authority of Singapore on an agreed set of conditions, so it may commence operations in the New Year."