Singapore Mercantile Exchange (SMX) will go live in August 2010 on its electronic trading platform, to provide a wide range of commodity derivatives generic to Asian trade flows.

In the preceding months of June and July, SMX will be conducting conformance testing with the independent software vendors (ISV) and industry wide testing with member firms prior to commencing trading operations in August.

SMX, as a Singapore-based entity, will be regulated by the Monetary Authority of Singapore (MAS).

SMX will offer variety of commodities including bullion, base metals, energy, grains and soft agricultural produce, commodity indices, currencies and oil, as well as other financial instruments on its trading platform.

Thomas McMahon, CEO of SMX, said: “With the much anticipated advent of the launch of the exchange, SMX will look to create an Asian liquidity pool by facilitating trading on a single exchange. The global financial markets will reap the benefit of efficient use of collaterals in a centralised trading and clearing structure.

“SMX, being a pan-Asian exchange based in the reputed international financial center of Singapore will enable efficient cross-border markets and price discovery in the Asian time zone and will look to establish benchmark pricings in the East.”