Singapore Exchange makes bid for London's Baltic Exchange
THE Singapore Exchange (SGX) is seeking to buy Baltic Exchange, the 272-year-old London provider of information on global shipping, reports Bloomberg.
SGX has made a non-binding bid for the Baltic, Southeast Asia's biggest bourse operator said in a statement after Reuters reported that talks were under way.
The Baltic Exchange confirmed in an e-mail that it has received multiple approaches and is now in talks with several firms.
Reuters earlier said the Baltic Exchange had held talks with London Metal Exchange, CME Group Inc, Intercontinental Exchange Inc and Platts. The agency's report cited unidentified people familiar with the matter.
"This acquisition will help SGX strengthen their derivatives business," said Bernard Aw, a strategist at IG Asia in Singapore.
"Their derivatives business has been doing quite well. If equity trading continues to stagnate, derivatives will become increasingly dominant," he said.
Derivatives accounted for about 40 per cent of SGX's most recent quarterly revenue as demand grows for contracts tied to equities and commodities, including iron ore.
The exchange also offers freight contracts tied to shipping costs compiled by the Baltic Exchange.
THE Singapore Exchange (SGX) is seeking to buy Baltic Exchange, the 272-year-old London provider of information on global shipping, reports Bloomberg.
SGX has made a non-binding bid for the Baltic, Southeast Asia's biggest bourse operator said in a statement after Reuters reported that talks were under way.
The Baltic Exchange confirmed in an e-mail that it has received multiple approaches and is now in talks with several firms.
Reuters earlier said the Baltic Exchange had held talks with London Metal Exchange, CME Group Inc, Intercontinental Exchange Inc and Platts. The agency's report cited unidentified people familiar with the matter.
"This acquisition will help SGX strengthen their derivatives business," said Bernard Aw, a strategist at IG Asia in Singapore.
"Their derivatives business has been doing quite well. If equity trading continues to stagnate, derivatives will become increasingly dominant," he said.
Derivatives accounted for about 40 per cent of SGX's most recent quarterly revenue as demand grows for contracts tied to equities and commodities, including iron ore.
The exchange also offers freight contracts tied to shipping costs compiled by the Baltic Exchange.