SINGAPORE Jan 8 Singapore Exchange Ltd
said on Tuesday that it has tightened its risk
management systems so it is in line to meet new global
regulatory standards and make it easier for U.S. and European
banks to continue to be members of its clearing houses.
The exchange said that it has deployed more capital to
support its two clearing houses and made its risk management
systems more transparent.
As more derivative trades are put through central clearing
houses, global regulators have set tough new standards for
clearers so they can handle the anticipated heavier demand.
Regulation in the U.S. and Europe means that banks from
those countries may not be able to be members of clearing houses
that do not meet those standards. Those rules have prompted
concerns that banks would have to retreat from some derivative
markets in Asia.
The Singapore exchange said it is now going to seek formal
recognition from the U.S. Commodity Futures Trading Commission
for its derivative exchange and clearing house, which will
ensure U.S. banks can continue to be members.
"In meeting the latest global regulatory requirements, we
assure our customers that they can continue to efficiently
expand their businesses and confidently manage their risks via
SGX," said chief executive Magnus Bocker in a statement.
The exchange added that it will also be seeking recognition
from the European Securities and Markets Authority in due
(Reporting by Rachel Armstrong; Editing by Simon Cameron-Moore)