The Chicago Board of Trade (Cbot) and European derivatives exchange Euronext.Liffe are teaming up to open a new telecoms hub in Singapore in a bid to expand distribution of their products and services into Asia.
Euonext.Liffe said earlier this year that the exchange was considering opening an Asian hub and that it was in talks with Cbot about establishing a joint operation in Singapore, which will also give the US exchange its first hub in Asia.
The telecom hub will be set up in partnership with Euronext.liffe Market Solutions, which provides technology to both Cbot and Euronext.Liffe.
Cbot says the Singapore hub will offer a cost-effective method of accessing its financial, equity, agricultural and metal markets as well as Euronext.liffe's interest-rate, equity and commodity markets.
The hub is expected to be operational in the third quarter of this year, pending approval from the Monetary Authority of Singapore.
Bernard Dan Cbot's president and CEO, says: "The Cbot is launching this initiative as part of its overall strategy to increase distribution of the exchange's products throughout Asia, where demand for liquid risk management tools is on the rise.
"Our customers in Singapore and across the continent have requested an efficient and reliable method to directly access the Cbot's transparent, open and liquid markets, and the joint hub is designed to meet that need."
Last year the Chicago Mercantile Exchange (CME) said it was establishing a telecommunications hub in Singapore to provide customers in the Asia Pacific region with expanded access to its Globex platform. The CME hub was expected to be launched in the second quarter of 2005.