SGX to Review Post-Trade Structure for Banks

The Singapore Exchange (SGX) is considering scrapping its current post-trade structure for the securities market by introducing position accounts for clearing members of its Central Depositary (CDP).

SGX has launched a public consultation which will give clearing members the choice of back-office systems to manage their own post-trade activities, instead of subscribing to the Client Accounting System offered by the exchange.

From late-2015, foreign clearing members, that already have an in-house system they use globally, will be able to connect to the CDP directly for their post-trade activities, while local members will have the flexibility to customize features and services for their customers.

If approved, the Client Accounting System will be scrapped following the introduction of the Position Accounts for clearing and settlement with the CDP.

The consultation on the proposal will end on April 13.