The Uzbek Republican Commodity Exchange (UZEX) and Singapore-based Phillip Capital have signed a memorandum of cooperation aimed at developing Uzbekistan’s futures market and expanding the use of commodity derivatives instruments.
The agreement focuses on introducing modern futures trading mechanisms, developing exchange-traded derivatives, and integrating Uzbekistan’s exchange infrastructure with international commodity markets.
According to UZEX, the memorandum forms part of ongoing efforts to establish a domestic futures market and expand access to financial instruments used for risk management in commodity trading.
Commenting on the agreement, UZEX Information Department Head Khikmatullo Tillaboev said:
"This document marks another important stage in the reforms being implemented in the country to establish a modern futures market. This initiative paves the way for integrating the national economy into the global derivatives market, elevating the exchange system to a new level, and implementing international best practices."
The signing comes as work on launching futures trading in Uzbekistan enters its implementation phase. As part of these efforts, a joint venture known as UZEX Global has been established to develop a market for commodity futures and other derivative instruments.
According to the project framework, UZEX Global will serve as the main institutional platform for the country's derivatives market. Its responsibilities will include organizing futures trading, implementing clearing operations, and introducing risk management mechanisms designed for exchange-traded derivatives.
The cooperation also includes the application of international experience from Singapore, which is recognized as a major global financial and trading hub. Singapore’s derivatives market infrastructure, clearing systems, and exchange management practices are expected to serve as reference models during the development of Uzbekistan’s futures market.
Phillip Capital, which operates across international financial markets and participates in global exchange trading activities, is expected to contribute technical expertise, market experience, and technological solutions to the project.
The initiative is intended to provide new financial tools for businesses operating in commodity markets. Producers, exporters, importers, and investors are expected to gain access to instruments that can be used to hedge against price fluctuations and manage market risks.
According to project participants, the development of a domestic futures market is also expected to support broader efforts to strengthen market infrastructure, improve investment conditions, and expand the range of financial instruments available to participants in Uzbekistan’s economy.
