Nybot signs MoU with Sicom to extend into Asia

The New York Board of Trade (Nybot) and the Singapore Commodity Exchange are moving towards a commodity futures joint venture in Asia.

The exchanges will initially collaborate on introducing after-hours trading of Nybot’s cocoa futures contract, as well as developing a new cocoa futures contract to be delivered in Singapore and possibly other centres in Asia. They have agreed to explore the possibility of a joint venture to develop other commodity futures contracts.

With booming commodity markets in Asia and the need for accessible and transparent platforms, there has been great interest in developing commodities derivatives trading in Singapore. The Joint Asian Derivatives Exchange, a joint venture between the Chicago Board of Trade (CBOT) and the Singapore Exchange, started operations earlier this week, electronically trading rubber futures contracts. The New York Mercantile Exchange also opened an office in Singapore in May.

Nybot has recently diversified from its open-outcry platform, by starting to trade its financial products on CBOT's electronic platform from January 2006. Earlier this month, Nybot agreed to merge with the Intercontinental Exchange to further extend its electronic trade offering.