The adoption of CCO will bring strong benefits to the Singapore marketplace
SWIFT announces today that Singapore Exchange (SGX) has adopted its CSD Community Offering (CCO) to lower costs for trading and clearing members and encourage market standardisation with universal adoption of international ISO standards for financial messaging.
In the current model, both participants and CSDs pay the standard pricing per message, which decreases with their volume growth on SWIFT. The new community offering will provide cheaper message pricing for smaller market participants, while the largest members will continue to benefit from their advantageous SWIFT Global tier price. In the future, cross-border members will pay the CCO domestic tariffs instead of the cross-border international SWIFT message fees.
In summary, small and medium, domestic or cross-border participants on SGX will benefit from the same low SWIFT message price, irrespectively of their traffic volumes or locations.
Additionally, participants will be able to include their CSD traffic as a contribution towards their overall SWIFT Global Tier, thus allowing all business lines to benefit from lower messaging prices.
Nico Torchetti, Head of Market Services, Equities & Fixed Income, SGX, said: “Securities market infrastructures across the globe are enhancing domestic and cross-border connectivity and messaging. With the adoption of CDS Community Offering, our market participants will have the opportunity to enjoy more competitive pricing, while adhering to international communication standards and protocols.”
We are delighted to see SGX adopting our CSD Community Offering. With the creation of these Closed User Groups, communities are able to reduce messaging costs by up to 50%, while reaching a higher level of standardisation, which in turn allows participants to reuse their SWIFT connectivity for other markets.