SINGAPORE, July 20 (Xinhua) -- The Singapore Mercantile Exchange will introduce Euro-U.S. dollar futures contracts when it goes live next month, local media reported on Tuesday.

It said the launch of the new contract leverages off the global shift of foreign exchange trading from over-the-counter to exchange traded derivatives with central counterparty clearing, local media Channel NewsAsia reported.

SMX said this is a gap it expects to fill in a fragmented Asian marketplace. It added that the announcement of the new product is aimed at empowering market players to hedge their foreign exchange risk.

CEO of SMX, Thomas McMahon, said the latest offering is timely as the region is witnessing a continuous increase in market share for forex trading.

He also said it is a strategic decision as Singapore is now the fifth largest trading center in the world for global currency trading.

Other than the euro-U.S.-dollar contract, SMX will also offer trade in three other products, namely Gold, Brent-Euro Crude and WTI Crude Oil futures. ( Xiong Tong)