SGX's Clearing And Settlement Infrastructure Assessed To Be Sound, Efficient And Effective

Singapore Exchange’s (SGX) clearing and settlement infrastructure has been independently assessed under the International Monetary Fund’s Financial Sector Assessment Programme (FSAP) as sound and efficient with an effective risk management framework.

Both SGX Derivatives Clearing and The Central Depository (CDP) have high levels of compliance with the Principles for Financial Market Infrastructures (PFMI), which are the latest international standards for payment, clearing and settlement.

The FSAP review of SGX Derivatives Clearing and CDP are part of a broad assessment of Singapore’s financial system. The Committee on Payment and Settlement Systems and the International Organisation of Securities Commissions, international regulatory bodies responsible for setting global standards, published the PFMI in April 2012, to strengthen core financial market infrastructure.

“SGX is committed to the highest global standards and the FSAP assessment confirms our adherence to the new and more demanding requirements of the PFMI. This assures investors that our operations, legal framework and risk management are robust and rigorous,” said Yeo Lian Sim, Chief Regulatory & Risk Officer of SGX.

The FSAP review also made some recommendations for Singapore’s financial market infrastructure. SGX will work on the relevant areas with the support of the Monetary Authority of Singapore.