Under the NLT facility, SGX-DT Members and their customers will be able to trade large-sized futures, options and spreads with each other and amongst institutional participants, through direct and private negotiation. These NLT trades are then reported to the exchange for clearing. Subsequently, the positions thus established can be traded on SGX-DT as regular contracts.
The NLT facility will be restricted to Members and customers who are "accredited investors" as defined in the Futures Trading Act Cap 116. By ensuring that strict participation and reporting requirements are in place, the NLT facility will complement SGX-DT's existing open outcry and electronic markets in offering an enhanced alternative to the unregulated OTC markets.
Thomas Kloet, CEO of SGX, commented, "Introducing the NLT facility is in line with our strategy to develop new products and services that target end-users' needs. It is a significant enhancement for our derivatives market as it offers professional market participants a more efficient execution facility for large-sized trades, with a more comprehensive clearing infrastructure than the OTC markets. We are therefore confident that the facility will successfully deepen our contracts' liquidity and attract more large orders to our marketplace."
