Leading technology firm's end-to-end post-trade solution to be used by derivatives exchange in Singapore
Asia Pacific Exchange Pte (APEX), confirms today that it will launch a new and customized clearing system delivered by Cinnober. Based on TRADExpress RealTime Clearing, a comprehensive real-time clearing system for OTC and exchange-traded markets, APEX and their new derivatives marketplace will provide a complete end-to-end solution for the post-trade value chain.
This follows the news that APEX has received licenses from the Monetary Authority of Singapore to operate a derivatives exchange and clearinghouse. APEX, backed by Chinese investors, is scheduled to open during the second quarter of 2018 with USD-denominated physically-delivered palm olein futures as its first contract.
APEX will be Singapore's third derivatives exchange after Singapore Exchange Ltd and Intercontinental Exchange. Cinnober was chosen by APEX in February last year to deliver a sophisticated real-time clearing solution for the new derivatives exchange. The original agreement with Cinnober was announced in February 2017 and covers long-term cooperation on delivery of a customized real-time clearing solution to the new derivative exchange. The cooperation began to generate revenue in 2017, and is considered to be a medium-sized deal for Cinnober.
“We’ve been working in close cooperation with APEX for the past year and share their vision of building a new and prosperous derivatives market in the region,” says Veronica Augustsson, CEO of Cinnober. “Based on our proven track record, extensive post-trade knowledge, and real-time technology, APEX will have one of best post-trade offerings available when launching later on in the second quarter.”
The exchange intends to also offer futures and options contracts covering both commodity and financial derivatives products, including agriculture, energy, petrochemical, metal, interest rates and stock indices.
“APEX's vision is to establish itself as an exchange that will be the Asian center for price benchmarks to be referenced by global market participants,” said Eugene Zhu Yuchen, the company's founder and CEO. “Singapore is an ideal hub for derivatives trading and an important and strategic partner to China. We’ve prepared well and worked hard. After receiving final approvals we’re now looking forward to the upcoming launch. By working closely with Cinnober as our strategic partner, APEX is able to provide a seamless operational environment for derivatives clearing.”
Mr. Zhu was a former CEO of the Dalian Commodity Exchange and president of the China Financial Futures Exchange. Lim Hwee Hua, who was formerly a Singapore Minister in the Prime Minister's Office and the Second Minister for Finance and Transport, chairs APEX's board. Major shareholders of APEX include Chinese conglomerate CEFC China Energy, Chinese futures commission merchant Xinhu Group, Chaos Investment Ltd and other international investment funds.
Palm oil is the world’s most widely consumed vegetable oil, found in goods such as ice cream, instant noodles and lipstick. Indonesia and Malaysia are the world’s top producers of the agricultural commodity, and futures on crude palm oil are most actively traded at Bursa Malaysia Derivatives. There are no major futures derivatives on refined palm oil.
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Head of Corporate Communications
Cinnober Financial Technology
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About Cinnober Financial Technology
Cinnober provides solutions and services to leading trading and clearing venues, including exchanges, clearinghouses, banks and brokers. Cinnober’s solutions are largely based on the TRADExpress™ Platform, incorporating everything needed for mission-critical solutions in terms of performance, robustness and flexibility. The portfolio of offerings includes price discovery and matching, real-time risk management, clearing and settlement, index calculation, data distribution and surveillance. Cinnober’s customers include the Australian Securities Exchange, B3, Dubai Gold & Commodities Exchange, Euronext, Japan Exchange Group, Johannesburg Stock Exchange, the London Metal Exchange, LME Clear, NYSE and the Stock Exchange of Thailand. Using its extensive experience in financial technology, Cinnober has broadened its reach through the establishment of highly specialized and competitive subsidiaries. Today, three such subsidiaries exist within trade reporting and transparency, post-trade and client clearing and trade surveillance and analytics. For additional information, please visit www.cinnober.com.
Cinnober’s shares are traded on the Nasdaq First North exchange and the company’s Certified Advisor is Avanza. To help the market to assess the value of the deals won by Cinnober, the following definitions have been established. A major deal is one for which the order value over a period of five years is estimated to exceed SEK 100 million. A smaller deal is one for which the order value over a period of five years is estimated to be less than SEK 30 million. A medium-sized deal is one for which the order value over a period of five years is estimated to be in between that of a smaller deal and a major one. In writing moment, the signed agreement mentioned above is considered a medium-sized deal from this perspective.
Asia Pacific Exchange Pte. Ltd. (APEX) is a derivatives exchange incorporated in Singapore. APEX lists commodity and financial derivatives traded by global market participants and currently lists a USD denominated palm olein futures contract as its first contract.
Recognizing the demand that global market participants have for products closely related to the Chinese economy, APEX aims to provide a robust platform with such exposure for international market participants. The platform also serves Chinese and international market participants seeking to manage their price risk.
APEX’s clearing house, APEX Clear, offers innovative clearing and settlement services across asset classes for all of its exchange traded derivatives.