SGX becomes CFTC's first Asian derivatives clearing organisation

SINGAPORE Exchange (SGX) has become the first in Asia to be authorised as a derivatives clearing organisation (DCO) by US derivatives regulator Commodity Futures Trading Commission (CFTC).

New and existing US customers can now clear their derivatives contracts through SGX Derivatives Clearing (SGX-DC), SGX's derivatives clearing house, in compliance with the latest US laws and regulations such as the Dodd-Frank Act, the Commodity Exchange Act and CFTC's regulations.

"To serve US clients, Singapore's over-the-counter (OTC) clearing infrastructure requires DCO authorisation. This requirement applies to all OTC clearing houses, whether based in the US or not," Michael Syn, SGX head of derivatives, told The Business Times.