On 23 January 2015, the Singapore Exchange Limited (the “SGX”) issued a press release announcing that it has received approval as a registered Foreign Board of Trade (the “FBOT”) from the US derivatives regulator, the Commodity Futures Trading Commission (the “CFTC”).
The SGX’s status as a registered FBOT provides legal certainty to US customers with direct access to the SGX’s suite of Asian equity derivatives and commodities offerings and trading infrastructure.
Receiving the FBOT approval endorses the SGX as an established and well-regulated derivatives exchange which is subject to continued oversight by the local regulator, the Monetary Authority of Singapore (the “MAS”). The MAS provides comprehensive supervision and regulation comparable to the CFTC’s practices and standards.
The SGX (SGX Derivatives Clearing) was the first Asian clearing house to receive the Derivatives Clearing Organization (the “DCO”) status from the CFTC in 2013. With both the FBOT and DCO statuses, US participants are able to trade and clear their derivatives contracts efficiently in compliance with the latest US laws and regulations, including the US Dodd-Frank Act.