Singapore Exchange (SGX) has appointed a new post-trade head as it continues to position itself ahead of changes to Asia's clearing and settlement environment.
Nico Torchetti will take the role of head of post-trade services from August, spearheading the exchange's plans to expand its post-trade business, including building SGX's Central Depositary (CDP). But his duties may become increasingly international.
The CDP will be a specific focus for Torchetti as SGX develops its capabilities across currencies and asset classes to appeal to global customers.
Torchetti has worked in front- and back-office management of banking and brokerage operations, including equity and derivatives clearing and joins from HSBC in Hong Kong where served as global head of product development for sub-custody and clearing.
He will report directly to SGX president Muthukrishan Ramaswami, who indicated the post-trade role would become increasingly outwardly-focused.
"His knowledge of both the European and Asian securities and derivatives markets and customer base will help us deliver on SGX's business strategy and commitment to being an Asian Gateway and facilitating connectivity to and from Asia," Ramaswami said.
Global intent
SGX has openly stated its intention to becoming a global clearing centre for the OTC derivatives market through its SGX Derivatives Clearing (SGX-DC) business, rivaling dominant players, such as Anglo-French clearing house LCH.Clearnet.
In January, the exchange announced that SGX-DC had applied for a clearing licence from the Commodity Futures Trading Commission (CFTC) as the US Dodd-Frank Act mandates central clearing of many OTC derivatives. CFTC registration was also sought for the SGX's derivatives exchange, SGX-DT, which has shown recent growth in the global, US$630 trillion OTC derivatives market.
In Q4 last year, SGX posted record daily average derivatives volumes, which grew 30% year-on-year and 17% from the previous quarter.
The strategy to attract foreign OTC derivatives flow and clearing business has also led the exchange to pursue registration with the European Securities and Markets Authority for both SGX-DC and SGX-DT.
SGX has introduced further efficiencies for clearing members with an OTC portfolio compression service for Singapore dollar interest rate swaps.
In March, the exchange announced a series of initiatives designed to build its derivatives business and solidify its stronghold across Asia.
Memorandums of understanding were signed with the Korea Exchange and Philippines Stock Exchange in Q2, the latter of which will benefit from the development of Philippines futures and options to facilitate international investment.