SGX consults public on introduction of position accounts for CDP clearing members

SINGAPORE Exchange (SGX) is consulting the public on the proposed introduction of position accounts for clearing members of the Central Depository (CDP) as an operational step to further improve the post-trade environment of the Singapore securities market.

This will give individual clearing members a choice of back-office system to manage their own post-trade activities instead of subscribing to the client accounting system offered by SGX.

From late-2015, foreign clearing members who already have an in-house system they use globally will be able to connect to CDP directly for their post trade activities while local members will be able to customise features and services for their customers using their new systems.

After clearing members have moved to using their own back-office systems, the client accounting system will be discontinued and the position account will replace the account structure in the client accounting system for clearing and settlement with CDP.

SGX seeks views and comments on the following:

- Structure of Position Account in relation to obligations of clearing and trading Members

- Proposed amendments to the SGX-Securities trading rules and CDP clearing rules in relation to Position Accounts and contract notes.

The public consultation is open till April 13 and is available at www.sgx.com.