SINGAPORE'S FIRST GOLD FUTURES CONTRACT WITH PHYSICAL DELIVERY

SINGAPORE, May 21 (Bernama) -- The Singapore Mercantile Exchange (SMX)
Friday announced, it will launch Singapore's first gold futures contract, that
will be physically settled.

SMX, a commodity derivatives exchange, said in a statement here, this will
be the first product to be launched when it moves into pilot testing and
subsequently goes live.

It said the gold contract would be delivered at high security vault
facilities in Singapore. It includes the new state-of-the-art vault facility,
which would be operated by JP Morgan, in Singapore's first round-the-clock free
trade zone.

Thomas J. McMahon, Chief Executive Officer of SMX said: "The launch of the
gold futures contract is an important milestone for both SMX and Singapore as it
will be physically delivered in the island republic."

He also said Singapore is the major crossroad for gold producing regions of
South Africa, Australia and South America.

"Within the backdrop of a global flight to investment safety and the trend
of a migration of Asian capital and investment back to Asia, the ability to
price, make or take delivery of physical gold in Singapore was a compelling
proposition," he added.

The futures contract will be traded every working day from 9.00 am to 10 pm
Singapore time, in units of 32 ounces per unit, for the months of February,
April, June, August, October, and December.

The delivery unit is a 1-kilo bar of minimum 995 fineness.

The Last Trading Day for every contract will be the fifth to the last
Singapore business day of the delivery month.

SMX announced earlier this month that it would go live in August
on its state-of-the-art electronic trading platform.
-- BERNAMA


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