Singapore Exchange Prepares to Bring Crypto Perps to US Institutions

SGX (Singapore Exchange) is preparing to offer its cryptocurrency perpetual futures to US institutions. The exchange filed with the Commodity Futures Trading Commission (CFTC) last month and can offer the contracts if it receives no objection within 10 days.

This move gives SGX access to a deeper pool of hedge funds, asset managers, and proprietary trading firms. Perpetual futures, or 'perps', have become a popular choice among crypto traders as they allow for leveraged bets without expiry dates.

SGX's contracts will trade 22.5 hours a day, five days a week, with members required to post 35% margin and use fiat collateral. The exchange does not use automatic deleveraging mechanisms found on some crypto platforms.

According to SGX's head of crypto derivatives, KC Lam, the exchange is targeting institutional investors who are not trading on weekends. He expects the move to help grow volumes and attract more liquidity.