14% of the high yield bond market is from oil/energy producers, and that part is undergoing stress currently with the large correction in crude oil prices. Lower grade bond issuers with lower ratings are not going to be able to issue fresh bonds unless oil prices rebound. There are many highly leveraged oil/energy producers and service providers to the shale oil industry, and they are hit the hardest.
Financial Technologies (FT) Group’s Singapore Mercantile Exchange (SMX) has received final approval from Singapore authorities to operate as an international commodity and currency derivatives exchange there.
SMX is the first pan-Asian multi-product commodity and currency derivatives exchange. The Monetary Authority of Singapore (MAS) granted ‘Approved Exchange’ status to SMX to operate out of Singapore as a regulated and licensed exchange, a company release said here. SMX has announced four products, which will be traded when the exchange goes live:
- Gold futures contract with physical delivery
- West Texas Intermediate (WTI) Crude Oil
- Brent-Euro Crude Oil and
- Euro-US Dollar futures contracts
“SMX will create a new generation international commodity and derivative trading platform at par with best global exchanges in New York and London,” Financial Technologies Group CEO and SMX’s Vice Chairman, Jignesh Shah said. SMX is a wholly-owned subsidiary of Financial Technologies Group.