The U.S. Commodity Futures Trading Commission (CFTC) has approved Singapore Exchange Derivatives Clearing, a subsidiary of Singapore Exchange (SGX), as a Derivatives Clearing Organization (DCO).
As per the Commodity Exchange Act and new provisions from the Dodd-Frank Act, clearinghouses need to register with the CFTC as a DCO in order to clear for U.S. customers, and SGX Derivatives Clearing is the first Asian clearinghouse to be authorized as a DCO.
The CFTC had previously granted a no action relief to allow SGX clearing members who have not yet registered with the CFTC as a futures commission merchant (FCM) to continue to clear swaps through SGX Derivatives Clearing until March 31, 2014.
In addition, the CFTC has signed a signed a Memorandum of Understanding (MOU) with the Monetary Authority of Singapore (MAS) in order for the two regulatory agencies to exchange information on regulated entities that operate on a cross-border basis in the United States and Singapore.
“Through the MOU, the Commission and MAS express their willingness to cooperate with each other in the interest of fulfilling their respective regulatory mandates regarding derivatives markets. The scope of the MOU includes markets and organized trading platforms, central counterparties, trade repositories, and intermediaries, dealers, and other market participants,” the CFTC says
CFTC Approves Singapore Exchange for Clearing
The U.S. Commodity Futures Trading Commission (CFTC) has approved Singapore Exchange Derivatives Clearing, a subsidiary of Singapore Exchange (SGX), as a Derivatives Clearing Organization (DCO).