With the launch of Singapore Exchange’s Fuel Oil Futures just days away, market participants have told Futures and Options Intelligence that the Asian bourse could succeed where two others have tried and failed.
SGX unveiled plans to offer Fuel Oil 380 Centistokes futures in December 2009, and confirmed last week that it would list the new product on February 22.
The contract will be physically delivered, at 100 tonnes per lot.
The plans echo previous contracts offered by the now extinct Singapore International Monetary Exchange, predecessor of SGX, and the New York Mercantile Exchange, now part of CME Group.
The Simex contract was for fuel oil with a viscosity of 180 centistokes, widely...