Singapore Exchange's new fuel oil futures contract kicked off to a good start on its first day of trading with 29 trades reported within its first two hours of operation yesterday.
A total of about 13,717 tonnes of 380-centistoke (cst) for April were traded from $472 to $474 a tonne during the two-hour spell, which started at 0630GMT, with trades also seen at $472.90, $473.50 and $473.60.
Bids/offers were last seen at the Asian market's close, by 0830 GMT, at $471.30/$472.50 a tonne, as the market traded downwards, in line with falling crude benchmarks.
The May and June contracts also saw active bids/offers but no trades were seen.
"It's a good start and it would seem that the liquidity in the 380-cst market has migrated from the swaps market into the SGX contract," a derivatives trader said. "It's too early to declare the contract a success."
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