SINGAPORE, Jan 26, 2011 - (ACN Newswire) - Singapore Exchange (SGX) will be introducing pre-trade risk controls to strengthen the marketplace with increased opportunities for direct access to the exchange network. The risk controls will be implemented in the SGX derivatives market by the third quarter of 2011.
Mr Gan Seow Ann, President of Singapore Exchange said, "As we embrace high speed trading and new technology to meet diverse needs of our global trading community, this initiative will strengthen our marketplace by enhancing the capability of our members and their customers to manage risk exposure more effectively. It will further promote direct access to the SGX trading platform, thereby widening our market reach and distribution."
Customers of SGX Clearing Members currently connect their trading systems to their Clearing Member's risk management systems for pre-trade risk checks. With SGX pre-trade risk controls, customers can now connect their order management systems directly to SGX's trading engine. This will help customers reduce infrastructure development costs and speed up time-to-market. Clearing Members will work with their customers to set trading limits.
SGX will be the first exchange in Asia to offer such a service to the trading community. The Futures Industry Association (FIA), the industry representative for exchange-traded derivatives, welcomes this initiative. Mr Peter Johnson, Chairperson, FIA Market Access Working Group said, "We commend SGX for taking a leadership role among Asia exchanges in offering pre-trade risk controls as outlined in the FIA Market Access Risk Management Recommendations."
SGX continuously reviews its trading rules to cater to the diversity in market participants including algorithmic and high frequency traders.
To refer to the FIA Market Access Risk Management Recommendations, please visit: http://www.futuresindustry.org/electronic-trading-and-order-routing.asp.
About Singapore Exchange (SGX)
Singapore Exchange (SGX) is the Asian Gateway, connecting investors in search of Asian growth to corporate issuers in search of global capital. SGX represents the premier access point for managing Asian capital and investment exposure, and is Asia's most international exchange with about 40% of companies listed on SGX originating outside of Singapore. SGX offers its clients the world's biggest offshore market for Asian equity index futures, centred on Asia's three largest economies - China, India and Japan.
In addition to offering a fully integrated value chain from trading and clearing, to settlement and depository services, SGX is also Asia's pioneering central clearing house. Headquartered in Asia's most globalised city, and centred within the AAA strength and stability of Singapore's island nation, SGX is a leading Asian counterparty for the clearing of financial and commodity products. For more information, please visit www.sgx.com.
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Jan 26, 2011 08:30 HKT/SGT
Source: Singapore Exchange (SGX)
Topic: New Service
Sectors: Daily Finance, Daily News
From the Asia Corporate News Network
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