Under the BOC and SGX collaboration, this is an extension of the memorandum of understanding that was first signed in 2013, which enhances cooperation between the two entities to strengthen the renminbi infrastructure in both markets. The enhanced cooperation will include more renminbi-denominated products and solutions, such as the development of renminbi-denominated commodities and derivatives contracts, as well as improving renminbi clearing and settlement services.

 

BOC is SGX’s first Chinese settlement bank for its derivatives market and a pioneer market maker for SGX’s renminbi currency futures. Since the launch in October 2014, SGX renminbi futures has successfully traded a total notional value of 35 billion renminbi.

 

BOC Singapore general manager Guo Ningning, says the bank will work closely with SGX on several aspects, including innovative collaboration, research and development on renminbi-priced commodities contracts and renminbi derivatives, as well as trading and settlement support enhancements to SGX and relevant customers. “These initiatives will further enhance Singapore’s status as the largest offshore renminbi centre after Greater China and bolsters the development of Singapore financial markets,” she adds

 

Under the framework for collaboration between BOCI and SGX, the two parties will provide customers with greater access to growth opportunities in China and Singapore markets through joint marketing. This is BOCI’s first comprehensive collaboration inked with an exchange, and will see BOCI take up SGX memberships and market making arrangements.

 

BOCI CEO Li Tong acknowledges the new era of collaboration between BOCI and SGX, adding that they will further extend their cooperation in capital markets and assist Chinese enterprises in going global, thereby creating multi-win situations.