SGX to Admit Banks as Clearing Members for its Derivatives Market

Singapore Exchange Limited (SGX) is pleased to announce that it will admit banks as Clearing Members for its derivatives market with effect from 10 August 2007.

The new rules will enable Singapore licensed banks regulated under the Banking Act to become SGX Derivatives clearing members.

Mr Gan Seow Ann, Senior Executive Vice President and Head of Markets said, “We aim to provide suitable business infrastructure and a robust regulatory framework to cater to the needs of our market participants. This new policy allows a wider base of financial institutions, in particular banks, to be directly involved in our derivatives market. It will also help to attract new customer segments to contribute to a more vibrant marketplace.”

With the new policy, banks are no longer required to incorporate a separate company in order to apply for SGX clearing membership. Banks can therefore better utilise their capital and resources, resulting in operational efficiencies.

Following feedback from market participants, SGX has plans to revise its SGX Futures Trading Rules to enable banking entities to take up SGX Derivatives Trading Membership in the near future.

Amendments to SGX-DC Clearing Rules