SGX launches new derivatives clearing system

Singapore Exchange Limited launched its new clearing system SGXClear on 7 December 2009, which will allow it to clear more complex and diverse products.

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.

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. Extensive testing and certification involving 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.

SGXClear is another 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.