FRANKFURT, Sept 11 Deutsche Boerse
and the Singapore Exchange (SGX) plan to jointly offer
securities management to customers, as the German stock exchange
operator seeks to expand its business in Asia.
The two exchanges said in a statement on Wednesday that the
SGX and Deutsche Boerse's custody and settlement unit
Clearstream will work together to help banks and investors
manage their collateral in the face of increasingly stringent
regulation aimed at preventing future financial crises.
The agreement initially applies to Singapore but the two
companies are looking to roll out the service elsewhere.
"High quality collateral is scarce and increasingly
expensive; making it available is also a top industry priority
in Asia," said Clearstream Chief Executive Jeffrey Tessler in
SGX President Muthukrishnan Ramaswami said: "We will work
with Clearstream to expand this offering to other markets in the
Clearstream is already providing its collateral management
service in Brazil and plans to launch it in Australia, South
Africa and Spain this year.
In February, Deutsche Boerse Chief Executive Reto Francioni
said the group would focus on growth in Asia and Latin America
but was unlikely to make acquisitions, following its failed
attempt to buy NYSE Euronext.
(Reporting by Jonathan Gould; Editing by Louise Heavens)