News

Straits Financial Group Obtains Operating License to Set Up Physical Commodity Exchange in Indonesia

Feb 16, 2017
Singapore, September 20, 2016 – Straits Financial Group has obtained regulatory license (the “License”) from the Indonesian Regulators (Bappebti) to operate a Physical Commodity Exchange and a dedicated Clearing House in Indonesia. The Physical Exchange will be branded separately as Asia Commodity Marketplace (“ACM”).

ACM intends to offer an organised market place for local producers and international market participants to transact directly and negotiate anonymously over an electronic platform. This allows market participants to access a larger pool of counterparties to trade physical commodities and settle the transaction through the Clearing House. Market participants can expect cargoes to be delivered through secured bonded warehousing facilities, both inland and along major seaports in Indonesia, operated by reputable warehouse operators including CWT.

Mr Loi Pok Yen, Group CEO of CWT Limited remarks, “A physical exchange is a natural business extension for Straits and further creates synergies for the CWT Group as a whole as it taps on our commodity logistics competency and expertise in operating physical delivery and warehousing for various commodity exchanges.”

“With this License, ACM has the potential to revolutionise traditional practices of physical trading in Indonesia, by connecting buyers directly to the production source; and more importantly, for the transaction to be backed by a central clearing counterparty for risk mitigation,” said Mr Arwadi Setiabudi, CEO for ACM. “ACM plans to roll out a suite of agricultural products in 2017 such as Cocoa, Coffee, Rubber, Soybean and Sugar.” 

Mr Jeremy Ang, Global CEO for the Straits Financial Group adds, “ACM has the potential to develop a thriving commodity ecosystem – one that allows commodities to be collateralised for a more competitive and prevalent trade financing industry in Indonesia, through efficient price discovery, trusted quality standards, and credible collateral management. The spillover economic benefits are multifold.”

About Straits Financial Group:


Headquartered in Singapore, Straits Financial Group (“Straits”) is the brokering division of CWT that offers a full spectrum of derivatives & OTC products including trade facilitation for physical commodities. We have established affiliate offices in Chicago, New Jersey, Shanghai, and in Jakarta. The U.S. subsidiary, Straits Financial LLC, is a full Clearing Member of the Chicago Mercantile Exchange (CME), Chicago Board of Trade (CBOT), New York Mercantile Exchange (NYMEX), the Commodity Exchange (COMEX), the CME Clearport, Dubai Mercantile Exchange (DME), and New Zealand Exchange (NZX), as well as FCM Partner of the Nasdaq Futures Exchange (NFX). Straits’ clearing access to all major global commodity exchanges combined with the logistical and warehousing support from CWT is able to deliver a unique blend of integrated services to fulfill the needs of sophisticated customers trading in the commodities space. For more information, visit www.straitsfinancial.com

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