Hsieh Fu Hua comments on increasing defaults at Sicom

ERJ staff report (DS)

Singapore -- Hsieh Fu Hua, Chairman Of Singapore Commodity Exchange commented on the increase in rubber trade defaults when speaking at a dinner last week held by the Rubber Trade Association of Singapore.

he said, "As the arbitration centre for physical rubber, SICOM has seen more default cases in the physical market requiring our arbitration assistance. This is perhaps, symptomatic of how market players are unprepared for the unprecedented price volatility." He continued, " The good old days of trading amongst a small number are fast disappearing, as the trade extends to large emerging markets which we cannot afford to ignore. Indeed, they are essential to the continual growth of the trade. In recent months, SICOM has seen the entry of a number of new participants who have been contributing to volumes and open interest. New business usually comes with new challenges and risk which market players must prepare themselves for."

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Transcript of speech