SGX adds Trayport hosted clearing link to aid post-trade process

19 April 2012

The Singapore Exchange (SGX) has added Trayport’s hosted Clearing Link solution to its roster of clearing options for its community of traders. The aim is to support real-time straight through processing (STP) for over the counter (OTC) cleared markets.

The link-up should reduce complexity for brokers on SGX and eliminate the need for them to host and configure multiple clearing links, although of course some brokers may choose to do so for competition’s sake if STP is not threatened by the duplication.

The STP Clearing Link incorporates Trayport’s gold mapping service, which the connectivity provider says will reduce administration duties for users and improve post-trade workflows including reconciliation acts, while enhancing reporting accuracy.

SGX is a multi-asset class Asian clearing house offering a suite of 45 OTC commodity products, covering bulk commodities, freight, energy and physical rubber. It has the world’s most active iron ore swaps cleared market accounting for over 90% of global cleared volume.

“True STP for OTC cleared products is an important part of our strategy. We are happy to provide traders and brokers with more choices in the way they connect to our clearing service,” said Julie Heng, head of commodities at SGX, when discussing the partnership.

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