SGX aims for faster trade set­tle­ment

The Star Malaysia - StarBiz - - Foreign News -

SIN­GA­PORE: Sin­ga­pore Ex­change Ltd (SGX) plans to speed up clear­ing and set­tle­ment of se­cu­ri­ties to re­duce sys­temic risks and bring the is­land na­tion’s mar­ket in line with global stan­dards.

The ex­change wants to shorten the set­tle­ment cy­cle to two days from three, in­tro­duce si­mul­ta­ne­ous set­tle­ment of se­cu­ri­ties and cash, and en­sure pay­ments of Sin­ga­pore dol­lar trans­ac­tions will be car­ried through MAS Elec­tronic Pay­ment Sys­tem in­stead of com­mer­cial banks, it said on Wed­nes­day.

The moves, which were pre­sented in a con­sul­ta­tion pa­per, will bring SGX in line with ex­changes in Hong Kong, the United States, Europe and Aus­tralia, which op­er­ate on a two-day set­tle­ment cy­cle.

Indonesia and Thai­land are con­tem­plat­ing sim­i­lar moves.

SGX is plan­ning to in­tro­duce the changes in the sec­ond half of next year, af­ter orig­i­nally propos­ing the same switch in 2014 with an in­ten­tion to start in 2016.

Nico Torchetti, head of mar­ket ser­vices, said it took longer than ex­pected to shift mem­bers from the ex­change-op­er­ated client ac­count­ing sys­tem to their own back of­fice plat­forms.

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