SMX to launch gold, silver contracts based on Indian prices

Another Gold and Silver Exchange?  Looks like Singapore want's to start 'playing' the Gold / Silver trading game. I haven't heard very much about the Pan Asia Gold Exchange lately, but I haven't done any research on it either. Having 'independent' exchanges around the world may not be beneficial to the cartel's stranglehold on the short term prices.  I'm sure they would not want Singapore to start this exchange which may start other countries to do the same.

Singapore Mercantile Exchange (SMX), which is backed by Financial Technologies (India), today said it will launch gold and silver contracts based on Indian prices for the global market next month.

SMX E-Gold would offer a convenient trading unit of one kilogram to be traded based on gold future prices in India but quoted in US dollars, SMX said, adding it would be launched on May 8.

SMX E-Silver would trade in 30-kg lot based on silver future prices in India but quoted in US dollars, said SMX.

Both contracts would be cash settled against the benchmark Gold and Silver futures contracts in the East, it said.

"Both contracts are similar to those traded on Multi Commodity Exchange of India (MCX), the sister exchange of SMX," said SMX, chief executive officer, V Hariharan.

"We are introducing the same contracts from our sister exchange in India to the global market in US dollars," he said.

He said SMX would consider launching MCX's other successful contracts for the global market as part of its expansion plans.

Participants in the SMX E-Gold and SMX E-Silver would be able to use and benefit from pricing in the most liquid Gold and Silver futures contracts in Asia, said SMX.

The participants would be able to hedge their exposure based on one of the most liquid precious metals futures and physical market and link hedging to other similar contracts in the world.

Meanwhile, SMX has launched a campaign to expand its trading members, and increase the membership options.

It has started offering transferable, non-transferable and associate trade membership, replacing its existing single category of trade membership.

Jignesh Shah, Vice-Chairman, SMX said, "The new membership offerings will spur entrepreneurship and are aimed at attracting the new generation physical and OTC commodity traders to the futures market to hedge their risks."