Singapore Exchange Ltd. will use London Stock Exchange Group Plc technology for a new post-trade system to offer multi-currency and multi-asset products as the Asian bourse operator expands cooperation with the U.K. company.
The platform, created with LSE’s MillenniumIT unit, will begin operating in phases from the end of 2015, according to the statement. The system will include clearing, settlement and depository services and support linkages with other markets, depositories and clearinghouses. It will enable retail investors to give their brokers access to information on all their investments held with SGX’s depository.
The agreement marks another link between the exchanges after they introduced trading in the largest and most active stocks on each others’ markets in 2012. LSE, which bought Colombo-based MillenniumIT in 2009, is seeking to increase sales from technology and clearing to offset declining capital-markets revenue.
“Our customers can expect improved access, efficiency and flexibility in the types of products and services we will offer once the system is in place,” Magnus Bocker, chief executive officer of SGX, said in the statement.
MillenniumIT already provides clearing technology for the Argentina Central Securities Depositary and trading systems for Norway’s Oslo Bors, according to statements on its website. LSE is the majority owner of LCH.Clearnet Group Ltd., the world’s largest swap clearinghouse.
SGX earned S$54.4 million ($43.8 million) in revenue from securities clearing in the three months ended Sept. 30, a 17 percent increase from the same period a year earlier, according to a regulatory filing. Derivatives revenue climbed 16 percent to S$51.7 million.