Singapore Exchange Limited (SGX) will admit banks as Clearing Members of its securities market with effect from 1 July 2008.
New rules will allow banks in Singapore licensed by MAS under the Banking Act to become SGX Securities Clearing Members.
Banks who wish to become Clearing Members will have to satisfy SGXs admission criteria. The membership allows them to offer clearing services to SGX Trading Members and their customers.
With the new rules, banks no longer need to incorporate a separate company in order to apply for SGX clearing membership. As a consolidated entity, banks can manage their capital centrally and utilise their resources more efficiently. With banks as an independent third party clearing service provider, exchange participants have more flexibility in their business operations.
“The rule amendments will help widen the pool of market participants to include banks as Clearing Members and grow our customer base to build a more vibrant securities market. The non clearing participants can thus choose to focus on their core business and save cost arising from clearing and settlement operations,” says Rama Pillai, senior vice president, head of Intermediaries and Market Access, SGX.