The Agricultural Futures Exchange of Thailand (AFET) has inked a memorandum of understanding (MOU) with the Singapore Mercantile Exchange (SMX), to work on various regulatory matters to boost capabilities on the international stage.
Under the terms of the contract, both exchanges will jointly build or revise terms and conditions for futures contracts, strategic direction, regulatory system, and procedures for handling high-priority contracts.
Additionally, they have agreed to work collectively to create new technologies that decrease the complexity of trade procedures and share their expertise through training programs focusing on specific commodity types or the strengths of each market.
Both exchange operators will also incorporate strategies to better address the demands and needs of market participants in China and Singapore.
AFET president Chartri Sahavejjabhand said, "Together, AFET and SMX will be able to develop their knowledge and expertise together and jointly develop strategies and regulations that advance the capability of futures exchanges in this region."
SMX claims to be the first pan-Asian multi-product commodity and currency derivatives exchange, which provides a platform for trading diversified commodities including futures and options contracts on precious metals, base metals, agriculture commodities among others.