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Singapore Exchange
Singapore Kilobar Gold Contract
Presentation at LBMA Bullion Market Forum
Shanghai
25 June 2015
An opportunity for a partnership – SBMA, WGC, SGX –to build a Southeast Asian marketplace
WGC
SBMASGX
Contribute to product development Marketing
Category 1 members to be Market Makers
Establish Good Delivery List
Marketing
Provide market platform for trading, clearing, settlement and delivery
Marketing
Exchange-tradedWholesale Kilobar
Gold Contract
SGX – Singapore Exchange Derivatives Trading LtdSBMA – Singapore Bullion Market AssociationWGC – World Gold Council
The LBMA Bullion Market Forum 2015 25 June 2015
Session 3 - Lily Chia 1
The first daily deliverable gold contract under an established regulatory framework
• Onscreen trading provides real-time pricing transparency and comprehensive transaction statistics
• Governed by a robust regulatory frameworkFutures
• Daily physical delivery ensures that pricing is backed by physical delivery
• Listing of 6 daily contracts allows market to trade in further out contracts in times of gold shortage
Daily Expiration
• Deliverable gold is clearly specified within a closed chain of custody
• Each lot of 25 kilobars from the SBMA Good Delivery List is delivered into the Approved Vault at the Singapore Freeport
Physically Delivered
• Pricing process is visible on trading systems, Bloomberg, Reuters, SGX website
• Competitive pricing with Market-Makers committed to max 7 ticks spread – US$0.035/g
• Average premium Jan-Jun 2015 = US$0.64
• Total volume traded (Oct 2014 to date) = 6,725 kg (majority physically delivered)
SGX Gold prices have been competitive
The LBMA Bullion Market Forum 2015 25 June 2015
Session 3 - Lily Chia 2
sgx.com
Thank you
Singapore ExchangeLondon • Tokyo • Beijing • Hong Kong • Mumbai
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© SGX Ltd, September 2014
The LBMA Bullion Market Forum 2015 25 June 2015
Session 3 - Lily Chia 3