China-backed Singapore bourse gets nod as third futures exchange

SINGAPORE (Feb 28): Singapore paved the way for a third derivatives exchange in the city, a month after Deutsche Boerse AG called quits on its ambition for a futures venue in the Asian nation.

Asia Pacific Exchange, backed by Chinese investors, has received licenses from the Monetary Authority of Singapore to operate a derivatives exchange and clearinghouse, Chief Executive Officer Eugene Zhu said in an interview on Monday. Apex, which has more than 60 employees, is scheduled to open in May with refined palm oil contracts, he said. Intercontinental Exchange Inc. and Singapore Exchange already run derivatives bourses in the city.

A Chinese-backed offshore venue would dovetail with the mainland government’s drive to lift the country’s status in global financial markets. The Shenzhen and Shanghai stock exchanges have offered to buy a 25% stake in the Dhaka Stock Exchange, and in 2016 teamed up with others to acquire 40% of the Pakistan Stock Exchange.

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