SGX Enhances OTC Clearing of Commodities

Singapore Exchange (SGX) announced Wednesday that its clearing system, SGX AsiaClear, has enhanced access to its clearing process with the linking of OTC broking systems to its OTC Trade Registration System.

The bourse said the linkage will allow trades matched in an inter-dealer broker’s OTC broking system to flow straight through to SGX’s Trade Registration System. “Customers will gain from an improvement in operational efficiency and a reduction in errors,” SGX said.

SGX AsiaClear offers global market participants a one-stop clearing service for a suite of 45 OTC commodity contracts covering agricultural, bulk commodity, energy and freight products.

“This straight-through clearing link will further widen SGX’s distribution network and offer traders and brokers more choices in the way they connect to our clearing service,” said Julie Heng, Head of Commodities at SGX.

Third-party providers of OTC broking systems which have established straight-through connectivity to SGX include Mercari, Tradex and Trayport. Other system-providers in the process of establishing connectivity in the coming weeks include Baltex and Cleartrade, SGX added.