SGX to exit swaps clearing business

Decision will leave some contracts without a CCP from next April

Singapore Exchange (SGX) will stop clearing over-the-counter interest rate swaps from April 2019, leaving users without a home for some of their cleared contracts – thought to be an unprecedented event for an OTC product.

Monthly swaps volumes at the central counterparty have been showing year-on-year declines for most of the past 12 months. SGX competes with CME and LCH in Singapore dollar swaps, and with Hong Kong Exchanges and Clearing (HKEx) in Thai baht. SGX is the only CCP offering