SGX sets joint venture for metals indexes with Shanghai Ganglian E-Commerce

Signage at the SGX building on Shenton Way in Singapore; taken October 2018.Signage at the SGX building on Shenton Way in Singapore; taken October 2018.

Singapore Exchange said on Monday that its wholly owned subsidiary, Asian Gateway Investments (AGI), entered a joint venture with Shanghai Ganglian E-Commerce Holdings (SGEH) to create metals indexes.

The 50:50 joint venture will be for creating indexes measuring normalized prices of iron ore, steel and other ferrous metals, with the indexes to be licensed for data distribution, research, analysis and the creation of derivatives products, it said in a filing to SGX after the market close on Monday.

“The JVCo will leverage the strength of SGEH’s extensive data and indexing business, and SGX’s expertise in creating reliable and regulatory-compliant indices, to develop new indexation and product opportunities for both SGEH and SGX,” the statement said.

Singapore Exchange Derivatives Trading will be given an exclusive license to create derivative products based on the joint venture’s indexes outside of China, it said.

AGI and SGEH will each pay S$100,000 into the joint venture for the initial issued share capital, it said. SGX will fund its portion with available cash on hand, it said.

The deal is expected to be completed within 60 days, the statement Monday said.

Get the Shenton Wire morning briefing in your inbox