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Straits Financial Group Obtains Operating License To Set Up Physical Commodity Exchange In Indonesia

BackSep 20, 2016
Announcement Title General Announcement
Announcement Subtitle Straits Financial Group Obtains Operating License to Set Up Physical Commodity Exchange in Indonesia
Securities CWT LIMITED (CWT)
Date & Time of Broadcast Sep 20, 2016 6:36
Submitted By Lye Siew Hong - Lynda Goh
Company Secretary
Description Singapore, September 20, 2016 - CWT Limited (SGX:C14) announced today that its financial services arm Straits Financial Group has obtained regulatory license (the "License") from the Indonesian Regulators (Bappebti) to operate a Physical Commodity Exchange and a dedicated Clearing House in Indonesia. The Physical Exchange will be branded separately as Asia Commodity Marketplace ("ACM").

ACM intends to offer an organised market place for local producers and international market participants to transact directly and negotiate anonymously over an electronic platform. This allows market participants to access a larger pool of counterparties to trade physical commodities and settle the transaction through the Clearing House. Market participants can expect cargoes to be delivered through secured bonded warehousing facilities, both inland and along major seaports in Indonesia, operated by reputable warehouse operators including CWT.

Mr Loi Pok Yen, Group CEO of CWT Limited remarks, "A physical exchange is a natural business extension for Straits and further creates synergies for the CWT Group as a whole as it taps on our commodity logistics competency and expertise in operating physical delivery and warehousing for various commodity exchanges."

"With this License, ACM has the potential to revolutionise traditional practices of physical trading in Indonesia, by connecting buyers directly to the production source; and more importantly, for the transaction to be backed by a central clearing counterparty for risk mitigation," said Mr Arwadi Setiabudi, CEO for ACM. "ACM plans to roll out a suite of agricultural products in 2017 such as Cocoa, Coffee, Rubber, Soybean and Sugar."

Mr Jeremy Ang, Global CEO for the Straits Financial Group adds, "ACM has the potential to develop a thriving commodity ecosystem one that allows commodities to be collateralised for a more competitive and prevalent trade financing industry in Indonesia, through efficient price discovery, trusted quality standards, and credible collateral management. The spillover economic benefits are multifold."



By Order of the Board

Lye Siew Hong - Lynda Goh
Company Secretary
CWT Limited
20 September 2016


About Straits Financial Group
Headquartered in Singapore, Straits Financial Group is the brokerage house under CWT Limited that offers a full spectrum of derivatives & OTC products, including trade facilitation for physical commodities. We have established affiliate offices in Chicago, New Jersey, Shanghai and in Jakarta. Its U.S. subsidiary, Straits Financial LLC, is a full Clearing Member of the Chicago Mercantile Exchange (CME), Chicago Board of Trade (CBOT), New York Mercantile Exchange (NYMEX), the Commodity Exchange (COMEX), CME Clearport, Dubai Mercantile Exchange (DME), and the New Zealand Exchange (NZX). Straits offers clearing access to all major global commodity exchanges. For more information, visit www.straitsfinancial.com.

About CWT
CWT is a leading provider of integrated logistics and supply chain solutions. Our business is about connecting world trade. We move, build and power customers supply chain forward. We combine our logistics capabilities, global network and resources to add value for customers. CWT Group also provides commodity marketing, financial and engineering services ancillary to its core logistics business. For more information, visit www.cwtlimited.com.

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