Global clearinghouse LCH.Clearnet has been granted the status of recognised clearinghouse by the Monetary Authority of Singapore (MAS).
The recognition applies to LCH.Clearnet’s EnClear freight division, and the ForexClear and SwapClear services. It means firms affected by Singapore’s proposed clearing mandates will be able to meet their obligations by clearing through LCH.Clearnet.
LCH.Clearnet currently clears any Singapore dollar-denominated interest rate swaps through Cleartrade Exchange, which is regulated as a trading venue by MAS.
It also clears commodities futures such as freight, iron ore and steel in this way, and has several Singapore-based clients that clear interest rates derivative and commodities through clearing brokers.
According to LCH.Clearnet, the recognition reflects its commitment to the Singapore market and the Asia pacific region in general.
CEO Martin Pluves said: “Singapore is an established international hub for finance and we continue to see tremendous demand for our services in the region. Singapore’s proposal to introduce a mandate for the clearing of US dollar and Singapore dollar-denominated interest rate swaps in the future is a significant development and we look forward to supporting firms in meeting their clearing obligations.”
“Achieving recognition status in Singapore is an important part of our growth strategy in Asia Pacific and complements other licenses we have already and those we are applying for in the region. As a global central counterparty, we provide open access to clearing for members and clients across many asset classes and in multiple jurisdictions, offering greater efficiencies for their business.”
