The Uzbek Commodity Exchange (UZEX) and Singapore-based Phillip Capital have signed a Memorandum of Cooperation aimed at advancing futures trading, introducing modern commodity derivatives, and connecting Uzbekistan’s exchange infrastructure with global commodity markets.

The agreement marks a new practical stage in Uzbekistan’s broader efforts to develop a modern futures market and strengthen the country’s integration into the global financial and commodity-market system. The initiative is intended to expand access to international derivatives markets, enhance Uzbekistan’s exchange infrastructure, and facilitate the adoption of internationally recognized practices and standards.

The cooperation comes as Uzbekistan’s efforts to establish a domestic derivatives market move from the development of the regulatory and institutional framework toward practical implementation. To support this process, the joint venture UZEX Global has been established by UZEX and Phillip Capital. The company is expected to serve as a key institutional platform for the development of Uzbekistan’s derivatives market, facilitating access to international futures markets and supporting the introduction of modern trading, clearing, settlement, and risk-management practices.

A significant element of the project is the use of Singapore’s extensive experience in financial and commodity markets. Singapore has developed into one of the world’s leading financial and trading hubs, supported by sophisticated market infrastructure, established clearing and settlement mechanisms, and advanced risk-management practices. This experience provides a valuable reference point for Uzbekistan as it develops the institutional and technological foundations of its own derivatives market.

Phillip Capital brings extensive international experience across global financial and derivatives markets. Its expertise, market access, and technological capabilities are expected to support the development of a transparent, competitive, and internationally aligned futures market in Uzbekistan.

The development of the futures market will create new opportunities for domestic producers, exporters, importers, and other market participants to manage exposure to commodity-price volatility and hedge financial risks. Access to internationally traded derivatives can provide businesses with greater predictability when planning revenues, costs, production, and investment.

Beyond individual market participants, the project has broader implications for Uzbekistan’s economic development. The availability of modern risk-management instruments can strengthen the resilience of the real economy, support more efficient allocation of capital, improve the investment environment, and contribute to the further development of market-based financial infrastructure.

The cooperation between UZEX and Phillip Capital therefore represents more than the introduction of a new financial instrument. It is part of the broader evolution of Uzbekistan’s commodity-market infrastructure — from a market focused primarily on spot trading toward an integrated system capable of connecting domestic businesses with global derivatives markets and providing them with modern tools to manage the risks of an increasingly interconnected global economy.

 

Source: DEPARTMENT OF MASS COMMUNICATIONS AND FOREIGN ECONOMIC ACTIVITY