Singapore Exchange Limited (SGX), Asia Pacifics first demutualised and integrated securities and derivatives exchange, is achieving more than 99 percent match rates for its SGX Prime pre-settlement matching service (PSMS), which is underpinned by TradeFlow from Fiserv. Alongside greater operational efficiency, the benefits from the infrastructure change have exceeded expectations that were established when the service went live one year ago.
The partnership with Fiserv has facilitated a major change to the Exchanges core infrastructure. The introduction of SGX Prime PSMS transformed the Singapore market and, supported by the core functionality delivered through TradeFlow, has worked well for us, says Muthukrishnan Ramaswami, senior executive vice president and chief operations officer, SGX. Over 85% of our institutional trades now settle automatically through PSMS and attain matching rates of over 99% on settlement date. The benefits from the project have exceeded our expectations and our customers have been able to achieve greater operational efficiency and reduce their operational risk.
SGX Prime was launched in October 2008 and has delivered important benefits, such as improved visibility and management oversight, as well as greater control to the Exchange and its participants, including brokers, depository agents and agent banks.
Fiserv consultants worked closely with SGX to design and build a highly sophisticated solution to the Exchanges market requirements. TradeFlow’s extensible matching capabilities incorporated the Exchange’s 110 different matching rules as part of the process of validating and enriching a wide range of transaction types and instruments between market participants before they are passed to the Central Depository for settlement.
An example of the companys core competency in processing services, TradeFlow from Fiserv is designed to enable organizations to efficiently manage, monitor and measure the flow of securities and cash transactions across the enterprise and through counterparties and settlement agents, while minimizing operational risk and increasing operational efficiencies.
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