Singapore Exchange’s derivatives clearing house is to clear OTC derivatives for US customers, after the Commodity Futures Trading Commission (CFTC) granted it regulatory approval.
Singapore Exchange Derivatives Clearing (SGX-DC) is now the first Asian counterparty authorised to provide clearing services for swaps it already clears and others the CFTC determines it is eligible to clear.
Europe’s LCH.Clearnet was also granted registration as a derivatives clearing organisation last month.
Under the Dodd-Frank Act, market participants are required to clear OTC derivatives trades through a central counterparty. Any clearing house that wants to clear swaps for a US customer needs to be approved by the CFTC.