Singapore continues to be the hub for OTC commodities trading in the region, capturing more than 10% of global OTC commodities. In May 2006, SGX launched a central counterparty clearing facility, SGX AsiaClear, to mitigate counterparty risks and create operational efficiencies for the marketplace.
By December 2006, seven months after its launch, SGX AsiaClear had secured a diversified pool of over 60 counterparty accounts on its OTC trading and clearing network. It is supported by 16 SGX OTC Clearing Members and 14 participating OTC Brokers. There are currently ten Oil Swaps, nine dry Forward Freight Agreements (FFAs) and three wet FFAs available. The OTC Fuel Oil complex of products has been the most actively traded and cleared. This includes the Fuel Oil 180cst and 380cst Contracts and also the recently launched Balance-of-Month Fuel Oil and Gas Oil Contracts.