FRANKFURT, Sept 11 (Reuters) - 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 the statement.
SGX President Muthukrishnan Ramaswami said: “We will work with Clearstream to expand this offering to other markets in the region.”
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)