SINGAPORE, May 16 (Xinhua) -- The Singapore Exchange (SGX) launched Asia's first Over-the-Counter (OTC) Clearing Facility forenergy and freight derivatives Tuesday.

    The facility, called SGX AsiaClear, will offer a total of 18 oil and Freight Forward Agreements (FFAs) products for the time being, such as clearing for bunker derivatives and wet and dry FFAs.

    It will start when the Tokyo market opens and end when the New York market closes.

    "The first facility of its kind in Asia offering global clearing services, it will enable companies seeking clearing facilities to participate in the trade of energy and freight derivatives on a growing Asian market," said Minister of State forFinance and Transport Lim Hwee Hua at the launching ceremony.

    The Asian energy derivatives market has much growth potential as the oil derivatives trade between Asian companies was about 300billion U.S. dollars in 2005, as compared to the global trade of 14 to 16 trillion U.S. dollars, Lim noted.

    She added that the freight derivatives market has grown by 50 percent on average annually in the past five years, "fueled by both an increase in volumes of physical freight and more end-usersusing freight derivatives as a hedging tool."

    So far, SGX AsiaClear has had 15 General Clearing Members, six oil trading desks and companies to provide daily settlement prices,as well as oil trading and shipping companies which have committedto participate in trading here, according to the minister. Enditem