SGX gets US approval for derivatives clearing

The Singapore Exchange (SGX) has been recognised as a derivatives clearing organisation (DCO) by US derivatives regulator Commodity Futures Trading Commission (CFTC).

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

New and existing US customers will be able to clear their derivatives contracts through the exchange’s clearing house “in compliance with the latest US laws and regulations”, the SGX said on Monday December 30.

Earlier in April, the bourse launched its iron ore futures contract in a bid to retain US clients unable to trade over-the-counter (OTC) swaps due to rules set out in the Wall Street reform bill, known as the Dodd Frank Act.

The SGX has been the most popular clearing venue for iron ore swaps. In 2013, it cleared more than 230 million tonnes of iron ore swaps, up from 108.9 million tonnes seen in 2012.

SGX said clearing members which are not registered with the CFTC as futures commission merchants would be able to continue clearing swaps contracts for US clients until March 31 2014, under the extension of the “no action relief” from the commission.

What to read next
Any bolstering effect on US ferrous scrap exports from the up-month in February’s domestic trade will be tempered in the immediate aftermath of two earthquakes in Turkey — the country’s largest importing region — on Monday, February 6
Steel trading and production have come to a halt in the eastern Turkish region of Iskenderun following a devastating earthquake that hit the region on Monday February 6 and put mills in the area under force majeure, sources told Fastmarkets on Tuesday
A 120-day closure of four Illinois dams scheduled for 2023 will disrupt barge shipments and have potentially both negative and positive impacts on scrap and finished steel products from Canada to Texas
Market participants are cautiously optimistic about a rebound in iron ore concentrate premiums, with steelmakers around the world set to ramp-up production in line with an anticipated increase in demand for steel products, Fastmarkets understands
General Motors (GM) is investing $650 million to develop the Thacker Pass mine in Nevada, the largest known source of lithium in the US and the third largest in the world
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed