sia Pacific Exchange-APEX, is an international derivatives exchange approved by the Monetary Authority of Singapore, the third exchange with the
The vision of APEX is to root itself in Singapore, covering the Asia Pacific region with an international outlook. APEX aims to establish a leading commodity and financial derivatives trading center, providing Asian pricing benchmarks for commodities and a new Asian financial derivatives risk management platform.
Asia is currently the most populous continent, with its 4 billion
the bulk of production and consumption of agricultural, energy, metals and other raw materials is and will continue to be in Asia. With the global economy and trading gravity shifting towards Asia, Asia will become increasingly more influential in the global derivatives markets.
APEX is committed to supporting the “One Belt One Road” initiative and promoting greater connectivity between financial market infrastructures. Singapore continues to develop as a commodity trading hub and remains as the choice location for companies setting up commodity trading operations. Major global commodity trading houses have extensive operations or are headquartered in Singapore, forming a developed spot market, futures market, and OTC market for swaps and forwards. Singapore’s political stability, robust legal system, open access to financial markets, conducive tax incentives, and talented human capital makes Singapore a vibrant and international trading hub that is comparable to London and New York. Leveraging on these strong advantages of Singapore, APEX will provide a new platform for commodity pricing, resource allocation and risk management.
As a strong advocate for the internationalization and pricing power of the Renminbi (“RMB”), APEX will launch futures contracts priced in RMB and accept collaterals denominated in RMB, alongside other major international currencies. These initiatives will expand the avenues for international use of RMB and create an active offshore RMB-denominated derivatives market.
APEX is a firm believer in promoting the development of the local industries in the Asia Pacific region. In our product design, we will build upon the strong fundamentals and characteristics of Asian industries, and provide a fair, transparent and efficient platform for Asian enterprises to compete globally.
In the next five years, APEX will work on building a comprehensive range of commodity and financial derivative products. For commodities, it will focus on energy, agricultural and metal products. In terms of financial derivatives, it will focus on equities, interest rate and RMB-related products, such as the Chinese concept stock indices, USD/RMB futures and options.
APEX is targeting to launch its first product, a refined palm olein futures contract in 2018. The key advantages of palm olein futures are as follows:
By using USD as the pricing currency and accepting RMB and other currencies as acceptable margin collateral, APEX’s Palm Olein futures contract is in line with international trade practices and avoids the risk of currency price fluctuations.
APEX adopts Free On Board (“FOB”) as the physical delivery method, a standardized delivery term commonly used in international trade, saving delivery costs. The designated FOB physical delivery ports are located in Malaysia and Indonesia along the Straits of Malacca. 85% of global palm oil production and 91% of international palm trade takes place in Malaysia and Indonesia. This product meets the needs of industry and provide full service as well as cross border physical delivery mechanism, which allows the direct participation of plantations, refineries and trading companies. The FOB delivery mode will minimize the need storage enabling the lowering of the delivery cost.
Singapore is a palm oil trading hub and many global palm oil trading companies are located or have extensive operations in Singapore. Singapore is also a free trade zone, providing a complete range of financial, information, logistics and support services for palm oil futures trading. This has created an ideal ecosystem for palm oil futures trading in Singapore.
APEX’s trading system connects to global networks, counting amongst its membership base strategic Singapore-based clearing members as well as prominent brokers based in China and other parts of Asia. With their strong presence and market influence in Asia as well as globally, these reputable companies provide world-leading and professional services for global market participants.
Technology, architecture and infrastructure is APEX’s core strength and focus. The technology team at APEX ensures the efficiency, safety and reliability of its system. Besides ensuring APEX’s technological innovation and smooth operations, the international team of talented individuals provides comprehensive support to global market participants. In order to serve the needs of market participants from different regions, APEX uses an integrated global system that adopts internationally recognized risk management procedures and leverages the reliability of Chinese pre-trade risk control systems and its ease of use.
APEX has two T3 level data centers in Singapore, providing customers with colocation and direct market access options. The combination of its high-performance trading system and leading clearing and surveillance system ensures the efficiency and stability of trading operations.
APEX strives to create an innovative and vibrant derivatives exchange and clearing house, abiding by international standards of risk management and corporate governance, and is committed to provide optimal, comprehensive, and customer service-centric trading and clearing solutions that are fair, transparent and efficient.
APEX’s adoption of international market practices blended with Asian insights, will develop unique products and business models suited for the Asia Pacific region. APEX is your bridge to the Asian market and a new platform for your investment and risk management needs.APEX’s adoption of international market practices blended with Asian insights, will develop unique products and business models suited for the Asia Pacific region. APEX is your bridge to the Asian market and a new platform for your investment and risk management needs.