A third Singapore-based commodity exchange is being planned by Financial Technologies (FinTech), the Indian firm which is one of the major shareholders in both Multi Commodity Exchange (MCX) and Dubai Gold and Commodities Exchange (DGCX).

Although FinTech has not confirmed its plans, market sources in Singapore have told FO Week they understand that a proposal has been lodged with the city state’s regulatory, Monetary Authority of Singapore. No timescale has yet been suggested for the new exchange – to be called Singapore Mercantile Exchange (SMX) – to open for business, though there has been speculation that launch could follow quickly behind regulatory approval.

Although both MCX and DGCX offer a product range targeted at local users, there is hope in Singapore that SMX could list Indian-based contracts. “The new exchange could well be successful if it offers Indian products,” one Singapore-based trader told FO Week. “People generally want access to Indian commodities but with restrictions on foreign usage it is tough to go directly to that market without setting up in India itself.”

FinTech, which is expected to take a 49% stake in SMX, has been very active in establishing new exchanges with both MCX and DGCX less than a decade old; it is also planning to launch Global Board of Trade in Mauritius, targeting a pan-African market, in the coming months.

Singapore already has two commodity futures platforms, with Singapore Commodity Exchange (Sicom) recently joined by Singapore Exchange (SGX) when the latter took over the contracts of the failed Joint Asian Derivatives Exchange. Both Sicom and SGX list rubber futures, with the former also offering coffee and the latter crude palm oil contracts.