Brazilian stock exchange B3 has partnered with SGX Group ( Singapore Exchange ) to launch Brazilian real futures contracts in the Asian market. The product, which is subject to approval from local regulators, is expected to be available later this year.

The announcement was made by SGX Group on Monday ( March 10 ) during the FIA Boca, an annual international event that brings together exchanges, investors and regulators in Boca Raton, Florida.

The product addresses the demand from global investors in Asia looking to manage risks with the Brazilian real during their local time zone, B3 says in a statement. This marks SGX Group's first foray into emerging market currency futures outside Asia and signifies the strengthening of B3’s presence across the continent.

The partnership is not limited to the launch of Brazilian real futures contracts but also paves the way for long-term cooperation between the two exchanges, creating new opportunities for Brazilian and global investors.

“With growing interest in Brazilian markets, our collaboration with B3 will enable global investors to manage [Brazilian real] risks round the clock – essential in today’s dynamic markets. We look forward to bringing more diverse investment opportunities to global investors,” says SGX Group chief executive officer Loh Boon Chye.

"We are building a bridge between the Asian market and Latin America, and we intend to expand the connection between these two regions through this partnership from Singapore, which is a strategic financial hub in Asia," adds B3 CEO Gilson Finkelsztain.