SGX Clears First Asian FX Forwards
Singapore Exchange (SGX) successfully launched its clearing service for OTC traded Asian Foreign Exchange (FX) Forwards (non-deliverable) with Deutsche Bank, DBS Bank and OCBC Bank clearing their first Asian FX Forwards with the Exchange on October 24.
A world’s first, this initiative is aligned with global developments toward central counterparty clearing (CCP)
of OTC derivatives to promote systemic stability in financial markets. The clearing of Asian FX Forwards
covers non-deliverable Asian currencies, namely Chinese Yuan, Indian Rupee, Korean Won, Indonesian
Rupiah, Malaysian Ringgit, Philippine Peso and Taiwanese Dollar.
Mr. Muthukrishnan Ramaswami, President, SGX, said: “SGX is committed to offer clearing solutions to
meet the growing needs of OTC market participants in Asia. Launched in close collaboration with our
members, the Asian FX Forwards clearing service will accord our members capital and operational
efficiencies. This service is well aligned with global regulatory reform and will encourage the adoption of
CCP clearing of OTC traded products in Asia.”
Mr. Clifford Cheah, Head of Global Finance and Foreign Exchange, Asia, Deutsche Bank, said: “Helping
our Asia focused clients prepare for significant regulatory changes in FX markets is a key priority for
Deutsche Bank. As the world’s largest foreign exchange bank, we are committed to new derivatives
clearing initiatives including SGX’s efforts that will make a positive contribution to the transparency and
growth of Singapore’s financial markets.”
The launch of FX Forwards by SGX follows the November 2010 clearing service for Interest Rate Swaps
denominated in Singapore and US dollars.
The 11 SGX Clearing Members eligible to clear FX Forwards are Barclays Bank Plc, Citibank N.A., Credit
Suisse AG, DBS Bank Limited, Deutsche Bank AG, The Hong Kong and Shanghai Banking Corporation
Ltd, Oversea-Chinese Banking Corporation Ltd, Standard Chartered Bank, The Royal Bank of Scotland
Plc, UBS AG, and United Overseas Bank Ltd. SGX expects the membership