important initiative is strengthening the market
infrastructure for commodity derivatives. The growth
in commodity derivatives in Asia is creating a
demand for a central counterparty clearing facility.
Such a facility would mitigate counterparty risks
and bring about operational efficiencies for the
The SGX has taken the lead in developing and
implementing an OTC clearing facility, initially
covering a product range of two wet forward freight
agreements (FFAs), nine dry FFAs, and seven energy
derivatives. The facility was officially launched
on 16 May 2006.