Friday March 22 2024
News Source: Global Exchanges
Focus: Clearing & Settlement
Type: General
Country: Singapore
On 22nd March 2024, Singapore Exchange (SGX Group) published a proposal to refine the existing cap on a clearing member’s liability to meet default losses arising from multiple events of default. This cap is imposed on clearing members of SGX Group’s central counterparties (CCPs), namely The Central Depository (Pte) Limited (CDP) and Singapore Exchange Derivatives Clearing Limited (SGX-DC).
Subject to market feedback, the proposal will limit a non-defaulting clearing member’s liability to meet multiple default losses arising within a 30-day period to three times the aggregate of its funded and unfunded clearing fund contributions (Prescribed Contribution) as determined at the start of the 30-day period.
The proposed cap, which is not contingent on the resignation of a clearing member, will provide clearing members with certainty on their potential exposures when multiple defaults occur, and at the same time uphold systemic stability by maintaining SGX Group’s CCPs’ membership in periods of extreme market stress.
The public consultation is open till 24 April 2024.
Click on the above link for further information.
