SMX has promoted a 100% subsidiary Singapore Mercantile Exchange Clearing Corporation
Pte. Limited, (SMXCC) for Clearing and settling the trades done on the Exchange.
SMXCC is an approved Clearing House by Monetary Authority of Singapore (MAS). SMXCC
has in house and robust systems capability for
- Post trade activities
- Risk Management and
- Collateral Management
SMXCC uses CME SPAN for Initial Margining of all open positions on the Exchange.
The system is capable of capturing volatility intraday for effective and efficient
risk management.
SMXCC uses Settlement Banks for affecting funds settlement with Clearing Members
on a daily basis. The interface system with all Settlement Banks is proprietary.
The Settlement Banks of SMXCC are
- Standard Chartered Bank
- ICICI Bank Limited
SMXCC approves Vaults, Warehouses and other storage facilities for facilitating
the physical settlement of commodities as per the Contract Specifications. These
facilities are evaluated for credit worthiness and operational worthiness before
approving and are continuously monitored to ensure fair market practices.