SINGAPORE & MUMBAI (Commodity Online): Three greenfield International Exchanges of Financial Technologies Group, a leading global player in creating next-generation financial exchanges and ecosystem ventures, will be going live in 2010. SMX (Singapore Mercantile Exchange) will go live in August 2010, GBOT (Global Board of Trade, Mauritius) in September 2010 and BFX (Bahrain Financial Exchange) in October 2010.
In a press statement issued on Monday, Jignesh Shah, Chairman and Group CEO, Financial Technologies Group said: Asia, Middle East and Africa are among the fastest growing regions in the world and expected to continue to grow annually at 6% to 10% over next 25 years. Financial Technologies Group is perhaps the first company in the history of modern civilization to successfully set-up three green field regulated exchanges from ground-up which would go live in the same year.
He said the scale of the vision is based on the 'spice and silk routes' that used to connect trading and financial communities from Africa, Middle East, India and Asia centuries ago with the rest of the world. Singapore, Bahrain and Mauritius are ranked among the top International Financial Centers and are equivalent of „New York and London and Tokyo? of Asia, Middle East and Africa - the fastest growing economies in the world.. Financial Technologies Group is singularly positioned to proxy the growth of these economies, Shah said.
The statement said Financial Technologies Group's leadership in technology and domain expertise centered on financial markets and ecosystems coupled with global talent and management team and a world class competent board, and advisory board enables it to develop green field exchanges in fast growth economies. For new generation financial markets and ecosystem development, the 'Made in India' brand elicits the same global respect and reputation that 'Made in Japan' enjoys in automobiles and consumer electronics in international markets.
SMX, based out of Singapore will be regulated by MAS (Monetary Authority of Singapore), GBOT by FSC (Financial Services Commission, Mauritius) and BFX by CBB (Central Bank of Bahrain). SMX, BFX and GBOT as regulated market platforms will endeavor to be the enablers of financial inclusion through efficient transmission of fiscal and monetary policies of their respective governments and regulators and will democratize 'access' to financial products and services through cost-efficient distribution - ensuring that the benefits of globalization are propagated to the last mile. They aim to propagate inclusive and equitable growth and an investment cult in regions they operate in to further propel economic growth and job creation in their respective local markets
SMX as an international Pan-Asian Exchange will offer a basket of commodities including bullion, base metals, energy, grains and soft agricultural produce, commodity indices, currencies and oil, as well as other financial instruments on its trading platform.
SMX has also incorporated Singapore Mercantile Exchange Clearing Corporation (SMXCC), to be its clearing house to handle clearing, settlement and risk management functions. TOCOM's (Tokyo Commodity Exchange) recently signed up with SMX to explore mutually-beneficial partnerships and expand its market reach is in line with SMX long-term strategy of being a 'one-stop comprehensive product-range exchange' which encompasses all physical and derivative commodity players during pan-Asian trading hours.According to Thomas McMahon, CEO, SMX, the Asian financial markets, though efficient in their own right, are fragmented structures and function in silos. SMX being an pan-Asian exchange from a reputed International Financial Center (Singapore) will enable efficient cross-border markets and price discovery in Asian time zone as well as globally, he said.
BFX will be the first multi-asset exchange offering conventional, and Islamic financial products from the Middle East providing an avenue for global market participants to access alternate investment options in Shariah compliant financial instruments as well as conventional derivatives and cash products. BFX has also set up the BFX Clearing and Depository Corporation (BCDC), through which it will ensure seamless risk management to its end-users. BFX through its alliances with leading organizations like Bursa Malaysia, International Islamic Financial Market (IIFM, Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI) and the General Council for Islamic Banks and Financial Institutions (CIBAFI) is poised to play a key role in deepening and broadening the Islamic Financial Markets.
Arshad Khan, CEO, BFX, said As Islamic Financial Markets continue to grow, there is a need to respond to the challenges of standardization, transparency and risk management faced by global market participants. This calls for a robust Islamic exchange model, which BFX is looking to address in addition to bringing all the conventional financial products on a single trading and clearing platform.
GBOT based out of Mauritius, an International Financial Center, will be the gateway for US and Europe to African and Asian markets. The exchange will offer trading on both currency and commodity derivatives consisting of six major currency pairs, precious metals, base metals, agri-commodities and energy products initially and will provide a platform for global banks and financial intermediaries as well as businesses to tap in to African and Asian opportunities. Africa's regional economic growth has averaged around 6% per year since 2002, making it the second fastest-growing economic region in the world.
Joseph Bosco, DMD and COO, GBOT shared US and Europe needs a single point access to the African and Asian markets and GBOT, being an Exchange from a well established International Financial Center (Mauritius) will provide that platform that will connect the global financial market community to the opportunities in these regions. GBOT aims to level the playing field by offering a viable „Price Setter? platform for the financial and commodity products in the region