Deutsche Börse Plans Asian Exchange to Follow Clearing House

Eurex has submitted an application to launch an exchange in Singapore following the full regulatory approval of its clearing house.

Deutsche Börse Group has been looking to increase its presence in Asia in recent years, deeming the region a lucrative spot for growth considering the evolution of its derivatives market.

Both the new trading venue Eurex Exchange Asia and Eurex Clearing Asia will aim to give Asian market participants access to its suite of European benchmark derivatives listed which are traded during Asian market hours.

The German exchange group said it will extend that range to include listed derivatives based on Asian underlying assets over time.

Eurex rival Intercontinental Exchange has also set plans in motion to launch its own exchange and clearing house after acquiring the Singapore Mercantile Exchange back in November 2013.

“More than anything this shows that there is room in Asia for growth and that it is a viable market. People are looking at it as a solid place, as opposed to in the past where it was more of an outpost,” Bill Herder, CEO of the Futures Industry Association Asia, told theTRADEnews.com, Global Custodian’s sister publication.

“Singapore has become a hub because of the security, safety and the connectivity that is available here. There is growth potential, especially on the OTC side because it is such a huge market. Whether it is non-deliverable forwards or commodities, Asia is still largely bilateral.”

Eurex has also announced that Roland Schwinn will assume the role of CEO at Eurex Clearing Asia, while Christoph Kraus will become COO.

Eurex said it submitted its application for an exchange license at the end of May with the Monetary Authority of Singapore (MAS).