Singapore
Exchange Group (SGX) has
partnered with Brazil’s B3 stock exchange to launch Brazilian Real futures
contracts, creating the first Forex (FX) trading corridor between Singapore and
Brazil that enables round-the-clock liquidity for the South American currency.
Singapore Exchange
Partners with B3 to Launch Brazilian Real Futures Trading
The
collaboration allows SGX Group to offer BRL/USD futures during Asian trading
hours when Brazilian markets remain closed, providing global investors with
continuous access to hedge Brazilian Real exposure. This marks SGX Group’s
first expansion into South American currency derivatives beyond its traditional
Asian market focus.
The
partnership addresses growing demand from Asian investors seeking exposure to
Brazilian markets, particularly as trade relationships between Asia and Brazil
continue to strengthen. Asia represents a major trading partner for Brazil,
creating natural demand for currency hedging tools among institutional
investors and corporations with Brazilian exposure.
“SGX
Group is building new bridges across more markets,” said Michael Syn,
President of SGX Group. “Together with B3, we have established an FX
linkage that brings BRL futures to SGX and into the Asian trading day. We are
providing liquidity during Asian hours when the Brazilian market is closed for
trading, giving global investors a seamless tool to manage BRL exposure around
the clock.”
The new
futures contracts will integrate with SGX Group’s existing derivatives
ecosystem, allowing traders to benefit from margin offsets against other SGX
derivatives products. This cross-margining capability enhances capital
efficiency for market participants managing multiple currency and commodity
positions.
Expanding FX Derivatives
Franchise
The
Brazilian Real futures launch builds on SGX Group’s position as operator of the
world’s largest Asian FX futures marketplace. The exchange has experienced
significant growth in its foreign exchange derivatives business, with total FX
futures trading volume surging nearly 40% year-on-year to reach a record $4.5
trillion for the financial year ending May 2025.
“This
new contract bridges the two leading international hubs of Asia and Latin
America,” Gilson Finkelsztain, CEO of B3, added. “The SGX BRL/USD
Futures contract is an attractive and efficient trading instrument for Asian
investors.”
Both
exchanges plan to promote the new contract and facilitate cross-venue trading
capabilities jointly. The collaboration represents part of SGX Group’s broader
strategy to diversify its derivatives offerings beyond traditional Asian
currencies and expand into emerging market currencies with significant global
trade implications.
The
partnership also complements SGX Group’s existing commodity derivatives
franchise, as many Asian companies maintain exposure to both Brazilian currency
and commodity markets through trade relationships and investment activities.
In the
meantime, the exchange announced the appointment
of Jean-Philippe Malé as CEO of SGX FX, effective April. The new CEO of the
FX business previously served as Executive and Co-Founder of BidFX, a buyside
Forex platform acquired by the Singaporean exchange 5 years ago.
This marked
another shift in SGX’s FX leadership, following
the October 2024 appointment of Hugh Whelan, former EBS Director and
co-founder of FXSpotStream, to the SGX.
This article was written by Damian Chmiel at www.financemagnates.com.
Source
