SGX Launches New Securities Settlement, Depository System

The new system has been in live operation since December 10, 2018.

The London Stock Exchange Group (LSEG) announced this Wednesday that it has successfully implemented Settlement and Central Securities Depository functionality for the Singapore Exchange (SGX).

The new system has been in live operation since December 10, 2018, and it marks the first full end-to-end post-trade transformation to be made within a tier 1 market in recent years, the statement said.

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The new Clearing module is built on the exchange’s technical and hardware framework which was updated towards the beginning of last year. The updated system provides SGX with a complementary set of post-trade solutions, allowing the exchange and its participants to align with global practices.

The exchange operator first announced the changes back in November. As Finance Magnates reported at the time, the key changes include improving SGX’s system, which previously had a securities settlement cycle of three days (T+3). However, the new framework has reduced this settlement cycle down to two days (T+2) and facilitates the simultaneous settlement of money and securities.

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Tinku Gupta the Head of Technology at the Singapore Exchange (SGX)
Tinku Gupta
Source: LinkedIn

Commenting on the technology upgrade, Tinku Gupta, Executive Vice President, Head of Technology at SGX: “SGX’s adoption of the new post trade system which LSEG Technology supported, provides for a more efficient and effective clearing, settlement and depository environment. We expect to build new and emerging services on this platform, thereby enabling SGX and our Members to enhance services for the market.”

SGX Update Was a Whole Market Implementation

The process of applying the new technology was a “whole market implementation” and involved brokers, custodian banks, settlement banks, registrars and retail investors alike. The SGX is the latest exchange operator to use LSEG technology, which is already being utilized the Hong Kong Exchange, London Stock Exchange and the JSE in Africa.

Ann Neidenbach, the CIO as LSEG
Ann Neidenbach
Source: LinkedIn

“LSEG Technology is delighted to have developed a close working relationship with SGX to successfully implement this complete end-to-end post-trade solution. This is a major milestone in which this industry solution is set to meet the broad and diverse needs of the post-trade community,” added Ann Neidenbach, the CIO at LSEG Technology.

“Built upon a common infrastructure to support clearing, settlement and depository modules, LSEG Technology’s Millennium PostTrade solution, delivers true benefit for our customers by improving operational efficiency and reducing the total cost of ownership.” 

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