SINGAPORE, Feb 25 (Reuters) - IntercontinentalExchange Group said on Tuesday it has cancelled all contracts listed on the Singapore Mercantile Exchange (SMX), a bourse it earlier acquired for $150 million and expects to relaunch later in 2014.
The delisted contracts range from iron ore to pepper and metals and currencies, which SMX offered before ICE bought it in a deal that gives it a foothold in trading and clearing in Asia.
“ICE has delisted SMX contracts and a period of business transition is currently in place in order for ICE to implement technology changes in consultation with the market and regulator,” the Atlanta-based exchange said in a statement.
“New product opportunities include the potential for a variety of new cleared contracts to serve the Asian commodity and financial derivatives markets.”
ICE, whose product suite include the Brent crude oil benchmark, completed the acquisition of SMX this month, adding to its network of markets and clearing houses in the United States, Canada, Brazil, the UK and continental Europe.
Chief Executive Jeff Sprecher said in November that ICE was not interested in SMX’s business, but in the infrastructure it gives ICE to tap into the Asian market.
Asia has long been the fastest growing demand region for the raw materials that power economic growth, but has mostly priced the purchases against benchmarks like Brent crude, London Metal Exchange copper or New York cotton.
Many other global exchange are increasing their presence in the region, banking on greater volumes of trade.
Earlier on Tuesday, two Deutsche Boerse-backed companies said they have signed agreements with Indonesia’s top commodity exchange seeking to develop trading platforms, market surveillance and clearing.
Our Standards: The Thomson Reuters Trust Principles.