SGX proposes collateral segregation for clearing member affiliates

8 November 2015


Singapore Exchange is seeking feedback on proposed rules that would ease the capital requirements for banks that are affiliated with SGX clearing members. Under the proposed rules, collateral of an affiliate would be segregated from a clearing member’s own funds, providing a degree of protection if a clearing member defaults on its own contracts. Segregation also would make it possible to transfer an affiliate’s positions to another clearing member. SGX said the proposed Affi liate Segregation arrangement would be optional and would complement arrangements that members may have in place to help their bank affiliates achieve greater capital efficiency under Basel III by reducing their exposures to central counterparties.

  • MarketVoice
  • Clearing
  • Customer Protection \ Segregation