Singapore Exchange (SGX Derivatives Clearing) is the first Asian clearing house to be authorised as a Derivatives Clearing Organization (“DCO”) by US derivatives regulator, the Commodity Futures Trading Commission (the “CFTC”). This was announced by the Singapore Exchange Ltd (the “SGX”) in its press release issued on 30 December 2013.

Following this development, US customers are able to clear their derivatives contracts efficiently through the SGX’s derivatives clearing house in compliance with the latest US laws and regulations, including the US Dodd-Frank Act, the Commodity Exchange Act and the CFTC’s regulations. As a transitional measure, SGX clearing members which are not registered with the CFTC as futures commission merchants can continue clearing swap contracts for US persons via SGX Derivatives Clearing pursuant to an extension of the “no action relief” from CFTC to 31 March 2014.

Reference material

To read the press release about this development from the SGX website www.sgx.com, please click here.