[By NBC-1TV H. J Yook]Singapore Exchange (SGX) today said it is well positioned to meet the latest international regulatory and risk management standards set by the International Organisation of Securities Commissions (IOSCO)1 and Committee on Payment and Settlement Systems (CPSS)2. This has been achieved after an extensive review and sharpening of SGX's risk management and operational processes, and the addition of new rules and procedures to enhance the safety and efficiency of its subsidiaries.

“Recognising our robust regulatory framework and financial strength, customers have increased the use of SGX's clearing services to manage their market exposures. In meeting the latest global regulatory requirements, we assure our customers that they can continue to efficiently expand their businesses and confidently manage their risks via SGX. Our standing as the clearing house and exchange of choice in Asia is further validated and made more secure,” said Mr Magnus Bocker, CEO of SGX.

Over the past two years, IOSCO, the standard setting body of securities regulators, has issued new standards on trading and clearing with the objectives of protecting investors, ensuring that markets are fair, efficient and transparent, and reducing systemic risk. Together, CPSS and IOSCO also published the Principles for Financial Market Infrastructures (PFMI) in April 2012, which established the global regulatory standards for clearing, payment and settlement.

SGX, which operates in line with current IOSCO standards, will by January 2013, observe all the new3 CPSS-IOSCO PFMI Principles. SGX will be among the earliest exchanges and clearing houses globally to meet these standards. Improvements effected will include: