Singapore, 4 February 2010

Singapore Commodity Exchange ( SICOM), a company of Singapore Exchange ( SGX), signed an agreement with China's Sino Rubber Electronic Trading Market Co., Ltd (Sino Rubber) to collaborate on the launch of an OTC Rubber Forward Clearing Service with final settlement by physical delivery in China. China has become one of the largest importers and users of rubber with its economic growth. The introduction of an OTC clearing facility for rubber forwards will complement the physical rubber trade in Asia and contribute to better mitigation of counterparty and settlement risks.

Under the agreement, Sino Rubber will facilitate the delivery of the OTC rubber forwards that are cleared in SICOM. Mr Jeremy Ang, Chief Executive Officer of SICOM said, “This clearing service will provide participants with a larger pool of counterparties and facilitate trading with multiple counterparties under a single contract. The partnership with Sino Rubber, China’s largest market for natural rubber trading, will anchor SICOM as the pricing benchmark for physical rubber.”

Mr Li Ming Quan, Chairman of Sino Rubber Trading Market Co., Ltd said, "China and Singapore has a long standing relationship. With Asia, particularly China, becoming more prominent in the international arena, this collaboration with SICOM will further support our strategic goal of extending our market to international players. "

The SICOM OTC Rubber Forward Clearing Service is expected to launch by the second quarter of 2010.

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