Marex joins SGX as it ramps up presence in Asia Pacific
Commodities brokerage firm Marex has taken another step in its Asia Pacific expansion by becoming a trading and clearing member of the Singapore Exchange Group (SGX). This membership means Marex can now offer direct trading and clearing services to its clients via SGX.
Marex’s move into SGX is in line with its strategy to widen its client services in the Asia Pacific region. This expansion aims to tap into more growth opportunities by connecting its clients to the region’s key markets.
The firm’s clearing business provides infrastructure services to a varied clientele, including banks, hedge funds, asset managers, and trading groups. Marex offers on-exchange liquidity through market making and agency and execution services. Additionally, its over-the-counter derivatives are available through its hedging and investment solutions segment.
Ian Lowitt, CEO of Marex, said: “Our strategy is to increase our capabilities to connect clients to markets in new ways across more geographies. This new membership allows us to both increase our clearing capabilities and our footprint in Asia Pacific. Singapore is a strategically important financial hub where we will continue to enhance our offering in line with our clients’ evolving needs.”
Pol de Win, Senior Managing Director, Head of Global Sales and Origination, SGX Group, said, “Marex’s scale and vast experience in the cleared derivatives markets is a great complement to our fast-growing derivatives franchise. We are excited to have Marex come onboard as a Derivatives Trading and Clearing Member given their specialised knowledge and expertise, that will help further deepen and diversify the derivatives ecosystem.”
This month also saw Marex join the Australian Securities Exchange (ASX) as a futures clearing and trading participant. With this addition, the ASX market, which typically has a limited number of participants, is expected to experience improved counterparty risk management and a broader market depth.
The ASX’s futures clearing landscape has traditionally been dominated by a limited number of players. Marex’s inclusion on the ASX clearing registry now provides its clients with direct, unhindered access to the ASX.
This strategic move by Marex aligns with its overarching global clearing growth ambition, positioning the company to harness further opportunities. Leveraging its diverse range of services, Marex aims to seamlessly connect clients to worldwide markets.
On the financial front, in the first half of 2023, Marex reported holding over $11.8 billion in client assets, clearing on 57 exchanges. Both Fitch and S&P have given Marex stable outlooks, with ratings of BBB and BBB- for Marex Financial and Marex Group, respectively. Notably, Marex saw its net revenue in the Asia Pacific grow by 89% in the first half of 2023 compared to the same period the year before.