Singapore Exchange to upgrade its derivatives trading and clearing platforms

Singapore Exchange announced on Monday it will upgrade its derivatives trading and clearing platforms to improve risk controls, increase efficiency and lower costs for market participants. -- PHOTO: ST FILE
Singapore Exchange announced on Monday it will upgrade its derivatives trading and clearing platforms to improve risk controls, increase efficiency and lower costs for market participants. -- PHOTO: ST FILE

Singapore Exchange announced on Monday it will upgrade its derivatives trading and clearing platforms to improve risk controls, increase efficiency and lower costs for market participants.

The upgraded system, based on technology from Nasdaq OMX Group Inc, will also support the growth of its derivatives business, SGX said in a statement.

The upgrade is scheduled for completion at the end of 2016.

Hit by lower securities trading volumes, the exchange is relying increasingly on its derivatives business, where revenue was up 4 per cent in its fiscal first quarter from a year earlier, Reuters reported.

The announcement of the system upgrade comes weeks after SGX was hit by a second technical glitch in two months. SGX delayed the start of securities market trading on Dec. 3 citing a software issue, and in November, a power supply problem halted trading in the securities and derivatives markets for several hours.

SGX said the upgraded platforms, SGX TITAN, will ensure continued agility and innovation in terms of new products and services offered.

"It is designed to increase efficiency and lower trading and clearing costs for market participants. Industry standard access protocols, extensive self-help functionality and improved straight-through-processing will be the significant benefits from the upgraded infrastructure."

SGX said it already offers the longest trading hours of any Asian exchange, and SGX TITAN will strengthen its risk controls and system safeguards to help market participants manage their trading and clearing positions on a 24-hour basis.

SGX also annouced it will extend its engagement with Nasdaq for a further six years to support and maintain the Nasdaq systems in its securities and derivatives markets.

Said SGC chief executive officer Magnus Bocker: "We see strong and continued demand for SGX s Asian derivatives, and aim to provide ever better solutions to fulfil these unique and evolving needs. Innovation continues to drive growth, and our partnership with Nasdaq Technology will be an important pillar of our success."