SGX Enhances Derivatives Clearing Fund Structure
Singapore Exchange (“SGX”) announced March 8 changes to the structure of the SGX-Derivatives Clearing (DC) Clearing Fund and the SGX-DC Clearing Rules, which will take effect from 10 May 2010. This follows an extensive public consultation exercise in 2009. SGX has incorporated feedback from the market participants and received broad support from its derivatives clearing members in enhancing the Clearing Fund Structure.
The remodeled Clearing Fund is designed to be scalable, catering to market growth and development. The changes also reinforce the robustness of the Clearing System.
The new structure more closely links members’ clearing contributions to the volume of risks they bring to the clearing house. Clearing members’ security deposits will begin at a minimum amount of US$500,000. The previous cap on further assessments of S$8 million per member is now revised to a maximum of three times the member’s security deposit.
The revised SGX-DC Clearing Rules will be available on the SGX website on 10 May 2010.