SGX to clear FX forwards despite possible Treasury exemption

Singapore Exchange (SGX) could expand its clearing service for over-the-counter derivatives to cover additional asset classes, and intends to start with foreign exchange forwards, perhaps as early as June.

The move into clearing FX forwards might coincide with a determination by the US Department of the Treasury to exempt foreign exchange forwards and swaps from a mandatory clearing requirement under the Dodd-Frank Act. While that only applies to the US market, any such exemption is likely to be