Derivatives clearing members of Singapore Exchange (SGX) will enjoy greater efficiency and cost-savings at their back office from November 2012. SGX has collaborated with FIA Technology Services Inc. (FIA Tech), a wholly owned subsidiary of the Futures Industry Association (FIA), to implement the Electronic Give-Up Automated Invoicing System (eGAINS[1]) facility. eGAINS enables system-wide efficiency in the billing and payment process related to give-up[2] transactions, and therefore allows automated electronic handling and reconciliation among SGX clearing members on a daily basis, instead of the weeks or months of manual reconciliation in current practice.
Managed by FIA Tech, the eGAINS service establishes a standard billing platform that enables SGX members to easily reconcile the fees payable to each other, thereby increasing operational productivity and reducing discrepancies resulting from manual processing. In addition, SGX members will enjoy timeliness and certainty in accounts receivable, facilitating cash flow management and reducing financial risk.
Mary Ann Burns, President of FIA Tech, said, “Thanks to SGX’s efforts, we are now able to introduce eGAINS to firms in the Asia derivative markets. SGX is the fifth major derivatives exchange to provide eGAINS to its clearing members and the first to launch eGAINS in Asia. By using eGAINS, SGX members will be able to calculate and settle their give-up brokerage electronically, which helps to streamline their brokerage operations. Clearing firms in the U.S. and European derivatives markets that are now using eGAINS will be able to leverage their existing staff and infrastructure to settle SGX brokerage on a global settlement platform. We hope that by introducing eGAINS to derivatives markets in Asia through SGX, we will see a broader adoption of electronic brokerage settlements throughout the region.”
“We are fully committed to delivering solutions which our members can use to achieve greater efficiency and reduce operational risk. Continuous improvement in operational performance allows SGX members to stay ahead in today’s demanding environment. SGX is pleased to pioneer this service in Asia in collaboration with FIA Tech. We continue to invest in initiatives that benefit our membership and boost the quality of our marketplace,” said Mr Michael Syn, Head of Derivatives, Singapore Exchange.
The eGAINS facility is currently in use in Europe and the United States.
