On the 30th Anniversary of the SIMEX
With apologies that circumstances made it impossible for me to attend this celebration, I have asked my dear friend, Phupinder Gill, the CEO of the CME Group, to represent me and offer the following remarks:
In my 1984 Annual Report to the CME membership, I wrote the following. It was entitled “Old Values, New Directions:”
The establishment of a trading relationship between the Chicago Mercantile Exchange and the Singapore International Monetary Exchange (SIMEX) is perhaps the single most revolutionary development in the futures industry since the introduction of financial futures at the International Monetary Market (IMM) more than a decade ago, an event that showed the world the vital role our markets could play in assisting the economic planning of businesses and governments and in cushioning the impact of changing prices on both producers and consumers.
The key in mutual offset, is that it offers the important and unique ability to assume or liquidate positions on entirely different trading floors. Mutual offset in futures will, for the first time in a very tangible way, bridge two different markets separated by no less than fourteen time zones. As such, the CME/SIMEX link represents a giant step in efforts to facilitate world trade and promote cost-effective risk management.
Those I believe were prescient words. Similarly, in my congratulatory remarks to the members of the SIMEX, I stated:
The unique and revolutionary Mutual Offset system between the CME and SIMEX is testimony of the trust we at the CME have placed in the members of the Singapore financial community, many from the Gold Exchange. But in particular I want to recognize the seminal work by some of the leadership within Singapore’s government, beginning of course with Prime Minister, Li Quan Yew, former chief of the Monetary Authority of Singapore (MAS), Lim Ho Kee, and the man who I would put front and center in the creation of the SIMEX with me, my very good friend and former chief of the MAS, Ng Kok Song.
To put it as succinctly as I can, it is my fervent belief that not only will our revolutionary innovation prosper, not only will it be a model for the world to follow, it will prove to be the foundation upon which Singapore can build a financial infrastructure as it assumes a pivotal role in the markets of Southeast Asia.
It is with great pride that I can today offer this congratulatory message to the leaders and citizens of Singapore and offer my applause for achieving your ambitious destiny.
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