SGX acquires HC to boost price discovery of physical rubber

Rick Steves

SGX and HC will work closely to develop pricing indices based on the benchmark SICOM prices to reflect a range of origins and grades of rubber.

The Singapore Exchange (SGX) has taken a strategic stake in HeveaConnect (HC) as it aims to strengthen its role as a price discovery center for physical rubber.

HC provides pricing granularity of various grades and origins of rubber traded in the physical market, by publishing basis indices over the SICOM benchmark.

Founded in 2018, HC digitalizes the natural rubber supply chain while providing data-backed services for the industry. The solution allows customers to link key information regarding quality, traceability and sustainability to the physical rubber that is traded on the platform.

As of end 2021, 15 unique participants comprising of producers, traders and consumers have transacted over 450,000 MT of natural rubber of Indonesian, Malaysian and Thai origin on the platform.

Pricing indices based on the benchmark SICOM

Trading on HC is bilateral and confidential. SGX provides market neutrality by providing confidentiality, guardianship and performs a custodian role by being the sole and independent owner of trade data on HC.

SGX will maintain the complete set of trade data on the HC Platform for a minimum of 7 years as per the SGX’s data retention policy.

Trade data will be transferred to SGX on a daily basis, while still being available on the HC Platform for a limited period of 13 months for the purpose of allowing participants to complete transactions and review their own historical data before it is entirely removed from the HC Platform.

Parties outside of the trade and other HC shareholders will not have access to the trade data. While the data exists on the HC Platform, access to this data by HC staff is strictly limited to authorised persons, and any such access is logged.

SGX will thus provide greater transparency of robust pricing for various grades and origins of rubber. As a provider of global pricing benchmark for natural rubber, SGX will introduce indices that enable granularity in rubber pricing that is integral to the management of basis risks in physical rubber trading.

SGX and HC will work closely to develop pricing indices based on the benchmark SICOM prices to reflect a range of origins and grades of rubber.

The index methodology will incorporate data from anonymized trades registered on the HC Platform. Data cannot be reverse-engineered to a specific participant or trade, the exchange explained. The price index may allow players to gain insights into market pricing and to more accurately price long-term contracts (LTCs).

  • Read this next

    Podcasts, Women of the Industry

    FF Podcast delves into the rise of prop trading as Brokeree releases Prop Pulse

    In the latest FinanceFeeds Podcast, Tatiana Pilipenko discusses Prop Pulse, Brokeree Solutions’ platform for prop firms and retail brokers aiming to delve into prop trading. Offering a flat fee structure, Prop Pulse emerges as a scalable solution in an era where successful traders increasingly prefer prop firms over traditional retail brokers.

    Inside View

    Scalping or day trading?

    Among the many popular trading styles with both beginners and experienced traders are scalping, which allows you to extract small portions of profit from each price movement, and day trading, which aims to trade over a single day. In this article, you will learn what scalping and day trading are and their differences and peculiarities. Ultimately, you will learn what to look for to understand which trading style is right for you.

    Crypto Insider

    Unveiling Plasma Next: INTMAX’s Solution to Scale Ethereum with Stateless Layer

     INTMAX has launched Plasma Next on the mainnet α, a groundbreaking Layer 2 zkRollup, revealed by co-founder Leona Hioki at ETH Denver. This innovation offers scalability with constant costs per block, merging Plasma’s scalability goals with zkRollups’ security.


    Nuam selects Vermiculus for clearing system in Chile, Colombia, and Peru

    “We are proud to deliver a system that plays an integral role in the core of this historical merger, empowering one of Latin America’s most crucial markets with VeriClear’s state-of-the-art technology, together with our deep market expertise.”

    Retail FX

    Moomoo launches super app in Malaysia

    “As an investment platform connecting 21 million retail investors globally, we envision collaborating with exchanges, regulatory bodies, and partners in the visible future to become the gateway, connecting Malaysia’s investment products to global capital and investors.”

    Executive Moves

    FXPA elects Joe Hoffman as new Chair in its 10th anniversary

    “The opportunity to serve as Chair of the FXPA is truly an honor, and I am committed to upholding the exceptional work of a FXPA. Given the recent market fluctuations due to global tensions, inflationary pressures, shifts in monetary policy, as well as the outcome of the US election and the risk of recession, brings the potential for more FX volatility in 2024. I am dedicated to expanding the FXPA’s membership and I’m excited about collaborating with all members to echo the unified voice of the FX market.”

    Market News

    Eurozone Fights Stagnation Whilst Stock Indices Rally

    European stock markets are defying economic gloom as they continue to soar to all-time highs, showcasing resilience amidst broader economic challenges.


    Lisk Partners with Indonesia’s Communications Ministry to Boost Web3 Startup Ecosystem

    Discover the strategic partnership between Lisk and the Indonesian Ministry of Communications and Informatics, aimed at propelling local Web3 startups to new heights through comprehensive support and education.

    Executive Moves

    Admirals appoints founder Alexander Tsikhilov as CEO

    “Striking the right balance between sourcing new talent and developing and harnessing the strength and capabilities of our current workforce, is key to achieving our vision.”