SGX adopts SWIFT's CSD community offering to bring messaging costs down

SWIFT claims that costs can be cut by up to 50%.

The Singapore Exchange (SGX) has adopted financial messaging services provider SWIFT’s CSD community offering (CCO) in its efforts to enhance operational efficiency and encourage market standardisation with global adoption of international ISO standards for financial messaging, an announcement revealed.

Through the adoption, SGX is hoping to lower the competitive trading prices for its trading and clearing members with a up to 50% reduction in messaging costs. It also aims to provide low SWIFT message prices for smaller market players with resource constraints and SWIFT Global tier prices for larger businesses.

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In the previous model, both participants and CSDs paid the standard pricing per message which decreases their volume growth with SWIFT, the statement revealed.

In the future, cross-border members will pay the CCO domestic tariffs instead of the cross-border international SWIFT message fees, the parties added.

“Securities market infrastructures across the globe are enhancing domestic and cross-border connectivity and messaging,” SGX’s head of market services for equities and fixed income Nico Torchetti said in a statement. “With the adoption of CDS Community Offering, our market participants will have the opportunity to enjoy more competitive pricing whilst adhering to international communication standards and protocols.”