Singapore Exchange (SGX) today acquired the remaining 51% of Singapore-based Energy Market Company (EMC) from the Energy Market Authority (EMA), making EMC a wholly-owned subsidiary of SGX.

This acquisition will allow EMC to leverage SGX’s expertise and operational synergies to provide better services to market participants at more competitive rates. For a start, wholesale electricity market participants will benefit from two percent savings in market fees over the next three years.

It will also enable SGX, a leading operator of securities, commodities and derivatives markets, to integrate development with EMC’s platform for an electricity futures market and related power and gas products for Singapore. 

“Asia’s continued growth and rising consumption translate to strong power and gas demand. SGX is already a hub for the trading and risk management of commodities and financial derivatives. Together with EMC, we intend to become Asia’s price discovery centre for power and gas,” said Magnus Böcker, CEO of SGX. 

SGX is acquiring 51% of EMC for a cash consideration of $23 million. The change in EMC’s shareholding will have no impact on its operation of the wholesale electricity market. The acquisition is not expected to have any material impact on SGX’s net tangible assets and earnings for the financial year ending 30 June 2015. EMC will continue to be regulated by EMA. SGX had in August 2012 bought 49% of EMC, the operator of the National Electricity Market of Singapore (NEMS). NEMS is the first liberalised market in Asia for wholesale buying and selling of electricity.

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About Singapore Exchange (SGX)
Singapore Exchange (SGX) is the Asian Gateway, connecting investors in search of Asian growth to corporate issuers in search of global capital. SGX represents the premier access point for managing Asian capital and investment exposure, and is Asia’s most international exchange with more than 40% of companies listed on SGX originating outside of Singapore. SGX offers its clients
the world’s biggest offshore market for Asian equity index futures, centred on Asia’s three largest economies – China, India and Japan.

In addition to offering a fully integrated value chain from trading and clearing, to settlement and depository services, SGX is also Asia’s pioneering central clearing house. Headquartered in Asia’s most globalised city, and centred within the AAA strength and stability of Singapore’s island nation, SGX is a leading Asian counterparty for the clearing of financial and commodity products.

For more information, please visit www.sgx.com.

About the Energy Market Authority
The Energy Market Authority (EMA) is a statutory board under the Ministry of Trade and Industry. Its main goals are to ensure a reliable and secure energy supply, promote effective competition in the energy market and develop a dynamic energy sector in Singapore. Through its work, the EMA seeks to forge a progressive energy landscape for sustained growth

For more information, please visit www.ema.gov.sg.

About Energy Market Company (EMC)
Energy Market Company (EMC) is the wholesale market operator of the National Electricity Market of Singapore (NEMS). EMC was established in 2001 as a joint venture between the Energy Market Authority (EMA) and M-Co (The Marketplace Company) Pte Ltd (M-Co). Singapore Exchange, through its wholly-owned subsidiary Asian Gateway Investments Pte Ltd (AGI), acquired M-Co’s 49% share in EMC in 2012. EMC provides a transparent and competitive platform for the trading of electricity in Singapore. Its key activities include calculating prices, scheduling generation, clearing and settling market transactions as well as supporting governance of the market.

For more information, please visit www.emcsg.com.