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SGX consults on margin for clearing
31 July 2012
Singapore Exchange asks industry to comment on proposed introduction of margining for central clearing of securities
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Singapore Exchange
margin
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Singapore Exchange (SGX) has released a consultation on proposed rules to introduce margining for securities cleared by the central depository (CDP).
The proposals are part of plans to enhance risk management practices at the CDP and ensure they are aligned with new international standards for central counterparties set up in April by the Committee on Payment and Settlement Systems (CPSS) and the International Organisation of Securities Commissions (Iosco).
SGX is consulting on the margin framework as well as the methodology for maintenance margin and determination of the margin rate. The consultation period is open until August 21.
On a separate level, the exchange will also consult over the next few months on tweaking of its clearing rules in order to make them more aligned with CPSS-Iosco standards for securities and derivatives clearing.