Leading derivatives and futures exchange operator, CME Group, has just announced that the Monetary Authority of Singapore (MAS) has granted Recognised Clearing House (RCH) status for CME Clearing – a division of its Chicago Mercantile Exchange Inc. business.
CME Clearing will now be able to onboard clearing members in Singapore for exchange-traded futures and options as well as over-the-counter (OTC) derivatives, as its new RCH status is effective from May 18th 2016, as per the corporate announcement just released this Friday morning in Asia.
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The news follows after CME Europe revealed a new FX liquidity creation program earlier this week. CME Clearing becomes the second RCH authorized by MAS, after LCH.clearnet obtained the status earlier this year as reported by Finance Magnates in February.
We are delighted to be granted the status of Recognised Clearing House by the MAS.
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Ability to onboard clearing members
“This is an important milestone in our growth strategy in Asia Pacific,” said Christopher Fix, Managing Director, and Head of Asia Pacific, CME Group, commenting in a company statement regarding the news.
“Singapore is a key international financial centre, and we are excited to be able to play a crucial role working in close partnership with market participants and further support our member firms in meeting their clearing obligations.”
Ahead of proposed mandate
The RCH status in Singapore will also help position CME Clearing for the expected mandate for Interest Rate Swaps (IRS) to be cleared later this year, based on MAS’ proposal being implemented, and will include the ability for local market participants to clear swaps that are denominated in either Singapore dollars (SGD) or United States dollars (USD).
Sunil Cutinho, Senior Managing Director and President of CME Clearing, added in the statement: “We are delighted to be granted the status of Recognised Clearing House by the MAS. This complements the Automated Trading Services (ATS) status granted to our clearing house by the SFC in Hong Kong in August 2015, and we are pleased to be able to provide our clients and members access to clearing services across multiple asset classes and jurisdictions.”