The Singapore Exchange said on Wednesday it will launch a physically deliverable gold contract to meet demand in Asia, the top consumer of the precious metal.
The contract, expected to be launched in September, is the first wholesale 25 kilobar gold contract to be offered globally and comprises a series of six daily contracts, the company said in a statement.
"SGX's market place will enable the trading and clearing of the Singapore kilobar gold contract and establish a fully transparent price discovery mechanism for gold in this region," Muthukrishnan Ramaswami, president of SGX said in a statement.
The contract will introduce centralized trading and clearing of a physically-delivered gold contract in Singapore.
The contract launch is also seen as a step by Singapore to provide a viable price benchmark in the region.