SGX Launches BRL FX Trading

Singapore Exchange says it has launched FX futures trading in Brazilian real, in association with Brazilian exchange B3, marking, SGX, says, a “significant” expansion into emerging markets currencies beyond Asia.

SGX Group and B3 will jointly promote the contract and facilitate trading across venues. The new contract will also benefit from margin offsets against other SGX derivatives, enhancing capital efficiency for market participants, the exchange group says. The move will deepen liquidity during Asian hours, and provide “round-the-clock” trading, it adds.

SGX observes that as a major trading partner with Brazil, Asia requires efficient tools to hedge both currency and commodity exposures. It says the new contract complements its FX and commodity derivatives franchises, both of which are connected to global trade and capital flows. 

“SGX Group is building new bridges across more markets,” states Michael Syn, president of SGX Group. “Together with B3, we have established an FX linkage that brings BRL futures to SGX and into the Asian trading day. We are providing liquidity during Asian hours when the Brazilian market is closed for trading, giving global investors a seamless tool to manage BRL exposure around the clock. As interest in Brazilian markets grows, this launch is a meaningful step in SGX Group’s strategy to offer diverse and globally relevant investment opportunities.” 

Gilson Finkelsztain, CEO, B3, adds, “This new contract bridges the two leading international hubs of Asia and Latin America. The SGX BRL/USD Futures contract is an attractive and efficient trading instrument for Asian investors.”