SGX in talks to buy stake in LCH.Clearnet - FT
February 5, 2013 3:35 PM EST
Singapore Exchange Ltd (SGX), Asia's second-largest bourse operator by market capitalisation, is in talks to buy a stake in transatlantic clearing house LCH.Clearnet, betting on an increase in trading volumes for derivatives, the Financial Times reported on Monday.
The three parties are discussing the structure of the deal, the daily added. The LSE last month agreed to pay 366 million euros (314.8 million pounds) for a majority stake in LCH.
"As the Asian Gateway, SGX is open to partnerships and alliances for the benefit of shareholders, the company and our customers. However, we do not comment on media reports or speculation," SGX spokeswoman Carolyn Lim said in an emailed statement.
Clearing houses sit between trading firms and ensure trades of securities such as stocks, bonds and derivatives are completed, holding cash to refund firms left out of pocket by a counterparty default.
Exchanges are trying to expand into central clearing following a regulatory overhaul of the over-the-counter derivatives market by the Group of 20 leading economies (G20).
Regulators want trades in derivatives, such as interest rate swaps, to be put through a clearing house in order to reduce the level of systemic risk posed by the market and make it more make transparent.
SGX already has its own clearing service, AsiaClear, which handles trades in commodities and financial derivatives, including interest rate swaps and foreign exchange forwards.
LSE won approval from the UK's competition watchdog in December for its planned acquisition of LCH, the transatlantic clearing house.
(Reporting by Rachel Armstrong in Singapore and Karen Rebelo in Bangalore; Editing by Tim Dobbyn and Richard Pullin)
Most Popular Slideshows
- Still The World Champions: Team USA Overpowers Serbia, 129-92 To Win 2014 FIBA World Cup [PHOTOS]
- Pope Francis: World War III Has Started On Piecemeal
- After Win Over Maidana, Mayweather Says He Is Prepared To Negotiate A Fight With Pacquiao
- From Fat To Fit: Celebrities Who Were Overweight Before They Became The Beauties That They Are
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- iOS 8 Release Date Of Sept 17 Has Arrived: Update Begins At 10AM Pacific Time, Upgrade Your iDevices With iOS 7.1.2 First To Install iOS 8
- Pregnant Kate Middleton May Call Off Malta Trip Due To Sickness: Royal Couple Will Move To Anmer Hall Residence
- iPhone 6 Plus vs Xiaomi Mi4 – The iPhone Killer Certainly Can Battle Well With The New Apple Phablet
- Ukraine Crisis: Poland Denies Supplying Weapons To Kiev
- Google Nexus 8 Release Date Countdown Begins Oct 8: 8 Killer Specs and Features to Expect
- Malaysia Airlines Flight MF 370: Indonesian Police Chief Claims He Knows What Happened To Missing Jet
- HTC Desire 820 (Octa-Core) vs. Sony Xperia Z3 Compact – Specifications, Features, Release Date And Price Showdown