The Singapore Exchange (SGX) has been actively pursuing new initiatives in the past year. It launched the SGX AsiaClear Over-the-Counter (OTC) clearing facility in May 2006, and the Joint Asian Derivatives Exchange (JADE) for commodity futures trading, a partnership with the Chicago Board of Trade, in September 2006. These are new areas of growth for Singapore's capital markets, responding to increased demand from Asian clients for trading and clearing of commodity derivatives and global demand for trading Asian-based commodity derivatives.
As part of MAS' regulatory objectives, MAS reviews such new capital market initiatives to ensure that robust risk management measures are in place to support a safe and efficient capital market. We have issued regulations to strengthen the legal foundation for new initiatives, including prescribing SGX AsiaClear as a clearing facility under the SFA, and provided guidelines to clarify the treatment of specific clearing activities.