SGX to charge negative interest to clearing members

Excess euro and yen cash deposits expected to generate 20–40bp charge

Nikkei futures trading leaves SGX with excess yen cash

Singapore Exchange (SGX) will begin passing negative interest rates on excess yen and euro cash collateral to its clearing members, has learned. The exchange estimates the new policy will cost members between 20 and 40 basis points in its first month, adding to the pressure on futures commission merchants (FCMs), which have traditionally relied on interest income for a big chunk of their revenues.

The bourse is understood to have been considering the move for some time, and is said by

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: