Singapore Exchange tightens grip on Asian derivatives market

SINGAPORE (REUTERS) - The Singapore Exchange (SGX) has announced two new tie-ups with other Asian bourses and disclosed plans for a number of new trading products, as it tries to strengthen its position as the region's top exchange for derivatives.

South-east Asia's largest exchange said it has signed a deal with the Korea Exchange to explore how they can collaborate on derivative clearing services, a move that comes as Asian countries grapple with how to bring in global reforms to the over-the-counter swaps markets.

The two bourses said they were looking at possible ways their users could take advantage of each others' facilities for over-the-counter derivatives clearing.

Regulatory reforms around the world are trying to push the trillions of dollars in over-the-counter derivatives that are traded every day to be centrally cleared to try to reduce the level of risk they pose to the financial system. Half a dozen Asian exchanges have launched, or are launching, clearing houses, leading to concerns there will be too many such facilities in the region. While the region has some of the world's fastest-growing economies, its derivatives markets are still a fraction of the size of those in Europe and London.