SYS-CON MEDIA Authors: Jayaram Krishnaswamy, Lori MacVittie, Gilad Parann-Nissany, Unitiv Blog, Bob Gourley

News Feed Item

US CFTC Authorises SGX as Asia's First Derivatives Clearing Organization

Source: Singapore Exchange (SGX)


Singapore, Dec 30, 2013 - (ACN Newswire) - Singapore Exchange (SGX Derivatives Clearing) has become the first Asian clearing house authorised as a Derivatives Clearing Organization (DCO) by US derivatives regulator, the Commodity Futures Trading Commission (CFTC).

New and existing US customers will be able to clear their derivatives contracts efficiently through SGX's derivatives clearing house in compliance with the latest US laws and regulations, including the US Dodd-Frank Act, the Commodity Exchange Act and CFTC's regulations.

To allow for an orderly transition, SGX clearing members which are not registered with the CFTC as futures commission merchants (FCMs) can continue clearing swap contracts for US persons via SGX Derivatives Clearing following an extension of the "no action relief" from CFTC to 31 March 2014. More information on the extension of "no action relief" is found at this link: (http://www.cftc.gov/LawRegulation/CFTCStaffLetters/13-74).

"SGX is delighted to be recognised as Asia's first Derivatives Clearing Organization. This reaffirms our commitment to serve our US customers with the necessary regulatory authorisation. It also underscores our position as a leading exchange with the highest international standards and practices which clients can rely on for their business and risk management needs," said Muthukrishnan Ramaswami, President of SGX.

SGX Derivatives Clearing and SGX's securities clearing house, The Central Depository (CDP), have also applied to the European Securities and Market Authority for recognition as third country central counterparties under the European Market Infrastructure Regulation in order to continue providing clearing services to European Union customers.

In November, SGX Derivatives Clearing and the CDP were endorsed by the International Monetary Fund's Financial Sector Assessment Programme for satisfying high levels of compliance with the Principles for Financial Market Infrastructures (PFMI). The PFMI embody the international standards for payment, clearing and settlement.

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 peerless Asian counterparty for the clearing of financial and commodity products. For more information, please visit www.sgx.com.

Source: Singapore Exchange (SGX)

Contact:
Carolyn Lim
Marketing & Communications
Tel: +65 6236 8139
Email: [email protected]

Joan Lew
Marketing & Communications
Tel: +65 6236 8658
Email: [email protected]




Copyright 2013 ACN Newswire. All rights reserved.

More Stories By ACN Newswire

Copyright 2008 ACN Newswire. All rights reserved. Republication or redistribution of ACN Newswire content is expressly prohibited without the prior written consent of ACN Newswire. ACN Newswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.