Singapore Exchange (SGX) has gone live with SGXClear, its new derivatives clearing system.
The system employs technology from exchange group Nasdaq OMX and offers enhanced speed, functionality and capacity to support growth in SGX’s derivatives trading. The exchange plans to introduce more complex and diverse derivatives products as a result of its new clearing system’s capabilities.
According to SGX, one of the key benefits of SGXClear is the introduction of an application programming interface for clearing members, which will provide electronic connectivity and enable straight-through processing and automation of members’ back-office operations.
“SGXClear will help SGX deliver a dynamic and responsive derivatives marketplace catering to the diverse needs of its global membership and provide an integrated Asian gateway, with access to various Asian derivatives products,” said Muthukrishnan Ramaswami, senior executive vice president and chief operations officer of SGX.
SGX has also upgraded its derivatives trading and data engines in 2008 in line with its plans to introduce SGXClear.
“These technological enhancements offer significant improvements in capacity, latency and performance. They also support our initiatives to attract the growing pool of algorithmic and high-velocity traders, which have doubled in number from the last year,” said SGX CEO Magnus Bocker during his keynote address to the FIA Asia Derivatives Conference earlier this month.
Bocker, who took the reins of SGX from Hsieh Fu Hua on 1 December, also said that the exchange would soon provide further details about its planned clearing service for over-the-counter (OTC) financial derivatives. SGX announced in its results for the quarter ending September 2009 that it would expand its SGX AsiaClear service to include OTC financial derivatives during 2011.