Singapore Mercantile Exchange (SMX) today said 'SMX E-Silver', a precious metal futures contract based on India delivered prices quoted in US dollars, will go live from Thursday.
The SMX E-Silver futures contract is benchmarked against the most liquid Silver futures contracts globally, said SMX.
Market participants would be able to hedge their exposure based on one of the most liquid precious metals futures market globally, it added.
In addition, the market participants could also avail spread margin benefits between the SMX E-Silver futures (SMESILVER) and the existing SMX Silver futures (SMSILVERCS) leading to considerable savings in their collateral cost.
The SMX E-Silver contract offers a convenient trading unit of 30 kgs 999 fineness Silver, and is based on the India delivered Silver prices quoted in US dollars.
Trading would be conducted in March, May, July, September and December with five contracts being listed for trading at any time, SMX said.
The contract would be available for trading across multiple time zones, allowing participants in Asia, Europe and the US to trade the contract during their respective trading hours.
V Hariharan, CEO of SMX, said: “With the launch of E-Silver futures, SMX has expanded its basket of precious metal contracts, which offers an efficient hedging tool to physical players who have exposure to one of the largest precious metals markets globally.”
SMX is backed by the world's leading creator of exchanges, Financial Technologies (India) Limited, which has successfully established 10 exchanges across India, Dubai, Singapore, Africa, Mauritius and Bahrain.
SMX went live on August 31, 2010 and its trading sessions span Asian, European and US business hours, with central counterparty clearing performed by SMXCC.