Singapore Exchange (SGX) has cleared more than USD3 billion notional worth of Malaysian Ringgit (MYR) and Thai Baht (THB) non-deliverable interest rate swaps (NDIRS) since its launch on 7 April 2014.
This new asset class, with net interest payment settled in US dollars, has been actively traded in the over-the-counter (OTC) markets in Singapore and in the region.
The clearing of both MYR and THB NDIRS, with trade maturities of up to 10 years, further strengthens SGX’s suite of OTC financial derivatives which includes interest rate swaps (IRS) in Singapore Dollar (SGD) and US Dollar as well as non-deliverable forwards (NDF) in seven Asian currencies.
Customers have been tapping on SGX’s clearing services and straight-through-processing to ease possible counterparty and operational risks, particularly in today’s environment. In addition, customers, who clear via SGX, enjoy lower capital requirements for their trades and default fund exposures as SGX is a recognised qualified central counterparty (QCCP).