SGX Launches New Derivatives Clearing System
On December 7 the Singapore Exchange Limited (SGX) successfully launched its new clearing system, SGXClear.
The new clearing system, which is powered by Nasdaq OMX technology, has enhanced capabilities in terms of speed and functionality, and increased capacity to support significant growth in the derivatives business. This platform will also help SGX to clear more complex and diverse products.
One of the key benefits of SGXClear is the introduction of an electronic interface (API¹) for clearing members. This API provides electronic connectivity and enables straight through processing and automation of members’ back-office operations. Significant improvements in members’ operational efficiency will result from these enhancements.
SGX has also upgraded its derivatives trading and data engines in line with the introduction of SGXClear. This project to fully upgrade the derivatives market infrastructure – trading, clearing and data platforms – started in November 2007, and is a significant investment in improved technology by SGX. Extensive testing and certification involving all the market participants was carried out over the last six months.
“SGXClear will help SGX deliver a dynamic and responsive derivatives market place catering to the diverse needs of its global membership, and provide an integrated Asian Gateway, with access to various Asian derivatives products. I would like to thank all our market participants, technology partners and our staff, for their help and cooperation over the course of this project and look forward to building upon our joint success in delivering this project,” said Mr Muthukrishnan Ramaswami, Senior Executive Vice President and Chief Operations Officer of SGX.
Over the past two years, SGX has made significant investments in upgrading its technology infrastructure, providing increased capacity and robustness to the capital markets in Singapore. SGXClear is another example of the continued investments made by SGX, following the upgrading of the securities and derivatives trading engines in July and December 2008, and the SGX website in May 2009.