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Speed Gives Way to Safety as SGX Upgrades Derivatives Market

Singapore Exchange Ltd. is shifting its focus from speed to safety as Southeast Asia’s biggest bourse embarks on the latest upgrade to its derivatives-trading technology.

SGX’s matching engine -- the software that puts two sides of a trade together -- already meets customers’ demands for speed, so the exchange has put better execution and risk management at the center of a new project, according to Michael Syn, the bourse’s head of derivatives. Increasing the speed of an Asian exchange makes little difference past a certain point because the signal first needs to cross the vast distances between the region and the rest of the world.