SGX closed its old trading floor in mid September and relocated its Euroyen and Eurodollar pits into a single pit in the SGX building. A source close to the exchange said Locals "want to show that there's still life on the floor" and have been actively trading the Euroyen contract. Average daily floor volumes are around 14,000 lots, though 20,000 lots have recently been traded while, in contrast, Euroyen screen volumes and Eurodollar pit remain low.
However, SGX has been planning to implement improved screen functionality in late 2005 to make the Euroyen contract, its last floor product, switch to electronic trading.
Jeremy Brown, regional CEO for Asia for UOB Schneider, agreed that the Euroyen was an interesting product but said it would be a waiting game to see if liquidity can remain at SGX rather than in Tokyo.
Sources expect competition to be intense amongst the new...