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.
- Customer Protection \ Segregation