SGX Seeks to Change Clearing Rules for Derivatives and Securities

[kreslik.news]

Singapore Exchange (SGX) proposed amendments to the clearing rules for derivatives and securities on Thursday. The suggested changes, which are now open for public feedback, aim to enhance the default management capabilities of both clearing houses.

Part of the proposed changes concern the Central Depository (CDP) Clearing Rules for securities trading. The amendments aim to give the CDP the power to write off defaulted members’ unsettled buy trades, at a loss to the CDP, if those securities are not force-sold within seven days of the default being declared.

Modifying default waterfalls

Another change includes introducing an auction protocol for liquidating a ... (read more)