Singapore Exchange (SGXL.SI), Asia’s second-largest listed bourse operator, said on Monday it has begun its new clearing service for over-the-counter (OTC) traded financial derivatives, starting with interest rate swaps.

Governments globally have been pressing banks to settle their trades over regulated exchanges following the collapse of Lehman Brothers in a bid to reduce default risks that could affect the entire financial system.

 

SGX said nine banks have to-dated signed up as clearing members for OTC-traded derivatives: Barclays (BARC.L), Citigroup (C.N), DBS (DBSM.SI), Deutsche (DBKGn.DE), HSBC (HSBA.L), Oversea-Chinese Banking Corp (OCBC.SI), Royal Bank of Scotland (RBS.L), Standard Chartered (STAN.L) and United Overseas Bank (UOBH.SI).