The derivatives arm of the Singapore Exchange (SGX) will soon allow financial institutions to trade perpetual futures, one of the most popular products in the cryptocurrency market.
SGX Derivatives announced Bitcoin launch on Monday BTC$95,789.16 and ether Ethereum$3,204.60 Perpetual futures are scheduled to go live on November 24th and promise to provide the structure and confidence of a global derivatives market combined with the flexibility of the most traded product in cryptocurrencies.
“Digital assets are making their way into institutional investor portfolios,” said Michael Singh, president of SGX Group. “We have taken the next logical and intentional step to apply the same institutional discipline that underpins global markets to the most traded interests in cryptocurrencies.”
Perpetual futures are futures with no expiry date and represent the wild side of cryptocurrency trading. The ability to hold positions indefinitely makes them popular among cryptocurrency enthusiasts who seek flexibility without the pressure of rollover operations ahead of looming expiration, which is common with traditional futures.
These products are typically traded 24 hours a day in unregulated venues, mostly offshore, and still generate more than $187 billion in daily trading volume around the world. These contracts utilize a funding rate mechanism that involves periodic payments between the buyer and seller to keep the contract price close to the actual market price of the underlying asset.
SGX perpetual futures reference the iEdge CoinDesk Crypto Indices, ensuring alignment with benchmarks widely used for institutional price discovery.
“More than two-thirds of all cryptocurrency trades are derivatives, and perpetual futures offer unique features and benefits that are gaining in popularity. We are excited that SGX Derivatives is bringing perpetual futures onshore with traditional margin and clearing, and we are pleased to support benchmark rates for this innovative contract,” said Andy Baer, Head of Product and Research at CoinDesk Index.
iEdge CoinDesk Cryptocurrency Index is a series of indexes covering real-time benchmarks and reference rates for Bitcoin and Ether. The reference rate is published every day, including holidays and weekends, at 4:00 PM SGT (8:00 AM Coordinated Universal Time) and tracks the performance of cryptocurrencies across liquid and reliable exchanges over a predefined time frame of 3:00 PM to 4:00 PM SGT (Coordinated Universal Time).
Real-time indices are published every second, 24 hours a day, including holidays and weekends.
Industry participants welcome the launch
Key industry players, including DBS Bank and centralized exchange OKX, welcomed SGX’s new service, describing it as a timely and strategic step to provide financial institutions with access to the crypto market.
“As a pioneer in this space, we are committed to sharing our expertise and insights to foster a robust and responsible digital asset ecosystem in Singapore,” said Patrick Yeo, Head of Global Financial Markets Digital Assets at DBS Bank.
Mr. Yeo explained that perpetual will help institutional investors gain exposure to cryptocurrencies without owning them, and will help traders improve accuracy and capital efficiency in portfolio management compared to spot trading, where real assets are bought and sold instantly.
Gracie Lin, CEO of OKX Singapore, said the growing demand for regionally based benchmarks reflects a broader institutional trend towards having diversified portfolios that blend crypto exposure with traditional assets.
“This is a natural step in the evolution of the Singapore market, and this deeper reference point will help provide transparency and confidence to institutional investors and support the long-term growth of the ecosystem,” said Mr Lin.
