Singapore Exchange Limited (SGX) is pleased to announce that it has approved Barclays Bank PLC as a Clearing Member for its derivatives market. Barclays Bank PLC is the first bank to receive this approval since new rules to admit banks as Clearing Members took effect on August 10th 2007, and commenced operations today.
Rama Pillai, SGX senior v.p. and head of Intermediaries and Market Access said, "SGX is pleased to welcome Barclays Bank PLC as the first bank clearing member for our derivatives market. As a very reputable financial institution with a vast network of branches and clientele, we look forward to their direct involvement in our derivatives market to contribute to the growth of our marketplace."
"I am delighted that Barclays Bank PLC has been admitted as the first bank clearing member of the Singapore Exchange for futures and options clearing. Our customers will continue to receive a first rate service with the knowledge that their futures and options transactions will be cleared by one of the world’s largest financial services companies with a AA long-term credit rating, a balance sheet of over £1.1 trillion and over 300 years of banking expertise and history," said Quek Suan Kiat, Singapore Country Manager of Barclays Bank PLC.
The new rules effective from August 10th, 2007 enable Singapore licensed banks regulated under the Banking Act to become SGX Derivatives Clearing Members. With the new policy, banks are no longer required to incorporate a separate company in order to apply for SGX clearing membership. Banks can therefore better utilize their capital and resources, resulting in operational efficiencies.
Following feedback from market participants, SGX has plans to revise its SGX Futures Trading Rules to enable banking entities to take up SGX Derivatives Trading Membership in the near future.