Singapore's SMX WTI contracts seen struggling against NYMEX and ICE

oil barrels

The Singapore Mercantile Exchange's (SMX) decision to launch West Texas Intermediate (WTI) crude futures contracts in August has bemused market participants unsure of the benefits of the move.

The exchange, formed in 2008, hopes to compete with the New York Mercantile Exchange (NYMEX) and the IntercontinentalExchange (ICE) by offering WTI contracts during the Asian time zone trading hours.

The SMX had earlier stated that the launch was "an important milestone for the trading community" in Asia,