OREANDA-NEWS. Singapore Exchange (SGX) has retained the accolade of “Derivatives Exchange of the Year” and has been named central counterparty “CCP of the Year” by Asia Risk at the annual Asia Risk Awards, held in Singapore for the first time on 9th September.

The Asia Risk Awards was established by Asia Risk magazine in 2000 to recognise best practices and innovation in derivatives and risk management in Asia Pacific.

The diversity of SGX’s derivatives offering was cited as a key strength and differentiator that ensured the “Derivatives Exchange of the Year” award was retained for the second year running.  SGX offers a diverse portfolio of risk management products and has seen strong growth across its products including Rupee futures, MSCI India, Iron Ore and the FTSE China A50 futures.  It maintains its position as Asia’s most liquid offshore market for pan-Asian listed derivatives offering a single access point to almost 90% of Asian GDP. SGX is also a leader in driving the adoption of centralised clearing and risk management for regionally important commodity contracts such as iron ore, rubber, electricity, freight and petrochemical derivatives.

The achievement of being named “CCP of the year” is testament to SGX’s continued commitment to robust risk management and the resilience of the clearing system.  This was demonstrated earlier this month with the announcement of an increase in SGX’s contribution to the Clearing Fund, meaning that SGX’s significant ‘skin-in-the-game’ provides more protection for its clearing members in the event of a member default than leading global CCPs. This also helps to further align incentives between SGX, clearing members and market participants.

Loh Boon Chye, CEO of SGX, said, “We are honoured to receive these continued endorsements that reinforce SGX’s position as the risk management centre of choice in Asia and the leading exchange for clearing of financial and commodity derivatives.  As capital markets become increasingly connected and dynamic, risk management plays a growing role across both SGX and our global customer base as they utilise our products to manage exposure against volatile markets.  We remain committed to innovating across our products and strengthening our infrastructure and we would like to thank our partners and customers for their continued support and trust in SGX.”