Singapore Exchange (SGX) has cleared more than USD 3 billion notional worth of Malaysian Ringgit (MYR) and Thai Baht (THB) Non-Deliverable Interest Rate Swaps (NDIRS) since its launch a month ago on 7 April 2014.
This new asset class, with net interest payment settled in US dollars, has been actively traded in the Over-the-Counter (OTC) markets in Singapore and in the region. The clearing of both MYR and THB NDIRS, with trade maturities of up to 10 years, further strengthens SGX’s suite of OTC Financial Derivatives which includes Interest Rate Swaps (IRS) in Singapore Dollar (SGD) and US Dollar as well as Non-Deliverable Forwards (NDF) in seven Asian currencies.
Benefits of Central Clearing Service
Customers have been tapping on SGX’s clearing services and straight-through-processing to ease possible counterparty and operational risks, particularly in today’s environment. In addition, customers, who clear via SGX, enjoy lower capital requirements for their trades and default fund exposures as SGX is a recognized Qualified Central Counterparty (QCCP). By clearing with SGX, customers have direct access to transparent clearing services, greater operational efficiency and cost savings.
SGX is Asia’s pioneering and leading multi-asset class Central Clearing House covering commodity and financial markets. SGX is also the first and only CCP clearing NDIRS in these currencies.
