SGX to use SWIFT messaging for matching system

Exchange working towards real-time settlement files

Published on 18 September 2008
Left to right: M Ramaswami, Senior Executive Vice President, CEO & Head, Operations & Technology, Singapore Exchange Limited. Terry Gibson, Senior Vice President, Head, Processing Services, Singapore Exchange Limited. Ian Johnston, Chief Executive, Asia Pacific, SWIFT
The Singapore Exchange (SGX) has signed a memorandum of understanding with SWIFT to use SWIFT ISO 15022 messages to enable depository agents to send settlement messages to its new pre-settlement matching system in real time.

SGX is developing a pre-settlement matching system, which will go live in October. In this first phase of the launch, the system will still depend on batch files uploaded by depository agents, but in the second stage, when SWIFT will get involved, the exchange plans to move to real-time messaging.

“We want to enable the settlement agents to upload the files in real time so settlement can take place on a continuous basis rather than at the end of each day using ISO 15022 messages,” says M. Ramaswami, senior executive vice president, chief operations officer and head, operations & technology at SGX. “This allows you to know more quickly how many trades have been settled, and how many are still at risk or fails.”

The project has been designed to mitigate risk. “The quicker you know whether a trade has settled, the more robust the market,” says Ramaswami. “It allows us to have more certainty on settlement early in the game.”