SGX Becomes Asia's First Derivatives Clearing Organization

By Editorial 03 January, 2014

The Singapore Exchange (SGX) has become the first Asian clearing house authorized as a Derivatives Clearing Organization (DCO) by United States derivatives regulator, the Commodity Futures Trading Commission (CFTC).

According to a statement from SGX, new and existing US customers will be able to clear their derivatives contracts efficiently through SGX's derivatives clearing house in compliance with the latest US laws and regulations, including the US Dodd-Frank Act, the Commodity Exchange Act and CFTC's regulations.

SGX Derivatives Clearing and SGX's securities clearing house, The Central Depository (CDP), have also applied to the European Securities and Market Authority for recognition as third country central counterparties under the European Market Infrastructure Regulation in order to continue providing clearing services to European Union customers.

In November, SGX Derivatives Clearing and the CDP were endorsed by the International Monetary Fund's Financial Sector Assessment Program for satisfying high levels of compliance with the Principles for Financial Market Infrastructures (PFMI). The PFMI embody the international standards for payment, clearing and settlement.

Tags: Compliance | Investment | Law | Singapore | Stock Exchanges | United States | Standards | Regulation | Services | Expats | Europe |


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