General Announcement::SGX proposes segregation of collateral of derivatives clearing members affiliates

Issuer & Securities

Issuer/ Manager
SINGAPORE EXCHANGE LIMITED
Securities
SINGAPORE EXCHANGE LIMITED - SG1J26887955 - S68
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
20-Aug-2015 17:12:32
Status
New
Announcement Sub Title
SGX proposes segregation of collateral of derivatives clearing members affiliates
Announcement Reference
SG150820OTHR02RM
Submitted By (Co./ Ind. Name)
Carolyn Lim
Designation
VP, Marketing & Comms
Description (Please provide a detailed description of the event in the box below)
Singapore Exchange (SGX) is consulting the public on the proposed introduction of Affiliate Segregation where collateral of an affiliate of an SGX Derivatives Clearing (SGX-DC) member is protected if the member defaults on its own contracts. The affiliate s positions may also be transferred to another SGX-DC member.

The proposed Affiliate Segregation arrangement is optional for SGX-DC members. If an SGX-DC member opts for the arrangement, its affiliates will benefit from a higher level of protection in the event the member defaults.

Affiliate Segregation will complement any arrangement that members may have in place to help their bank affiliates achieve greater capital efficiency under Basel III. Under Basel III, a bank must maintain adequate capital for its exposure to a central counterparty. The amount of capital required depends on the level of protection the bank has from a default or insolvency of its clearing member and the clearing member s other clients.

SGX seeks views and comments on:
-Proposed introduction of Affiliate Segregation
-Proposed amendments to the SGX-DC Clearing Rules and Futures Trading Rules.

The public consultation is open till 4 September 2015 and is available at www.sgx.com. Responses can be sent to:

Email
rules@sgx.com

Mail
Singapore Exchange
11 North Buona Vista Drive
#06-07 The Metropolis Tower 2
Singapore 138589
Attention: Regulatory Development & Policy

Attachments

20150820_SGX_proposes_segregation_of_collateral.pdf
Total size =292K