SGX Releases Consultation Paper On Proposed Amendments To SGX-DT Rules To Allow Inter-Exchange Cross Margining

Singapore Exchange Ltd (SGX) is seeking public comment on proposed amendments to the SGX-DT Rules to allow inter-exchange cross margining - where member firms are allowed to grant margin credit in recognition of reduced exposure, to customers who hold risk-offsetting contracts between Singapore Exchange Derivatives Clearing Limited and other clearing houses.

The contracts eligible for the inter-exchange cross margining arrangement are Nikkei 225 Index traded on SGX-DT and Osaka Stock Exchange. The applicable margin credit rate stands at 0.99. SGX may revise this margin credit rate from time to time.

The consultation paper which sets out the proposed amendments to the SGX-DT rule on inter-exchange cross margining will be available on the Exchange’s website at www.sgx.com from 20 March 2006.

Market participants and members of the public can forward their feedback and suggestions on the proposed amendments between now and 3 April 2006 via:

Email: rules@sgx.com
Post/Courier: Singapore Exchange Limited
2 Shenton Way, SGX Centre 1
#19-00,
Singapore 068804
Attn: Ms Grace Mok
Member Supervision
Fax: (65) 6557 2761