SGX launches five petrochemical derivatives

It will be launched in two phases.

SGX Petrochemical Derivatives tools that will be launched in two phases.

In the first phase, SGX Platts PX CFR China Swaps and Futures will be launched on 2 December 2014. For the second phase, the following Polyolefin contracts will be launched on 19 January 2015.

This is in response to the increasing demand for more effective risk management solutions for petrochemical industry participants,

The derivatives are the SGX ICIS LLDPE CFR China Swaps and Futures; the SGX ICIS LLDPE CFR S.E. Asia Swaps and Futures; the SGX ICIS PP Flat Yarn (Raffia) CFR China Swaps and Futures; and the SGX ICIS PP Flat Yarn (Raffia) CFR S.E. Asia Swaps and Futures.

These new SGX petrochemical contracts will be the first in the market to be cleared on an exchange. ICIS will be the index provider for the Polyolefin contracts. The PX CFR China contract will be cash settled against the Platts index to complement our existing Benzene contract.

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