Date Issued: 20 March 2006
Date Closed: 3 April 2006
Status: Consultation Closed
SGX Issues Consultation Paper on Proposed Amendments to SGX-DT Rules to Allow Inter-Exchange Cross Margining

Singapore Exchange Ltd (SGX) is inviting public comments on its proposed amendment to SGX-DT Rule 822 to allow Members to grant margin credit in recognition of reduced exposure to customers who hold risk-offsetting contracts between Singapore Exchange Derivatives Clearing Limited (“the Clearing House”) and other clearing houses (hereafter called “inter-exchange cross margining”).

The contracts eligible for the inter-exchange cross margining arrangement are Nikkei – 225 Index traded on SGX-DT and Osaka Stock Exchange. The applicable margin credit rate stands at 0.99. SGX may revise this margin credit rate from time to time.

The attached consultation paper sets out the proposed amendment to Rule 822 and the conditions pursuant to which such inter-exchange cross margining may be allowed under the revised Rule. These conditions are intended to address the additional funding risks that may arise from such cross margining arrangement. We invite comments from market participants and the public on the key features of this new Rule.

Market participants and members of the public can forward their feedback and suggestions on the proposed changes from today to 3 April 2006 via email and either by post/courier or by fax:

Email:	rules@sgx.com AND
Post/Courier:	Singapore Exchange Limited 2 Shenton Way, SGX Centre 1 #19-00, Singapore 068804
Attn:	Ms Grace Mok, AVP, Member Supervision
Fax:	(65) 6557 2761

SGX Consultation Paper - 20 March 2006
Title	(In PDF)
Consultation on Proposed Amendments to SGX-DT Rule to Allow Inter-Exchange Cross Margining