Legal News & Analysis – Asia Pacific – Singapore – Capital Markets

On 31 March 2014, the Singapore Exchange (“SGX”) issued a Consultation Paper on the Proposed Launch of Electricity Futures. The last day for feedback was 21 April 2014.

 
The SGX proposes to introduce SGX Uniform Singapore Energy Price (“USEP”) Quarterly Base Load Electricity Futures contracts for trading on the Singapore Exchange Derivatives Trading Limited (“SGX-DT”) trading platform and for clearing on Singapore Exchange Derivatives Clearing Limited. The listing of the SGX USEP Quarterly Base Load Electricity Futures on SGX-DT is subject to the approval of the Monetary Authority of Singapore. Subject to approval, the SGX proposes to commence trading in the fourth quarter of 2014.

 
The proposed features of the contracts are as follows:

• They will be standard, cash-settled futures contracts listed as contract quarters (i.e., January to March, April to June, July to September, and October to December).
• The proposed position limit will be 1,000 lots net long or net short in all contract quarters combined.
• Unless otherwise prescribed by the SGX, there will be no price limits.
• The Final Settlement Price will be the arithmetic average of all half-hourly USEP prices in the expiring contract quarter, rounded to two decimal places.
• The final settlement will be in cash.

For further information, please contact:

Rosabel Ng, Partner, WongPartnership

[email protected]

WongPartnership Capital Practice Markets Profile in Singapore

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