The Monetary Authority of Singapore has issued a consultation on regulatory amendments that would allow clearinghouses based in Singapore to admit overseas clearing firms as members. Under the proposed amendments, MAS would exempt “remote clearing members” from the requirement to hold a capital markets services license. In effect, this would allow clearing firms to clear futures on Singapore-based clearinghouses without needing to have physical operations in Singapore. This would only apply, however, to the clearing of futures on behalf of clients based outside of Singapore.
Singapore Exchange began permitting remote clearing members in October 2013 and admitted its first remote clearing member, Mizuho Securities USA, in January 2015. The proposed amendments would pave the way for broader adoption of remote clearing and would apply not only to the SGX clearinghouse but also to the clearinghouses being established in Singapore by Eurex and Intercontinental Exchange.