SGX to charge negative interest to clearing members

Excess euro and yen cash deposits expected to generate 20–40bp charge

Nikkei futures trading leaves SGX with excess yen cash

Singapore Exchange (SGX) will begin passing negative interest rates on excess yen and euro cash collateral to its clearing members, has learned. The exchange estimates the new policy will cost members between 20 and 40 basis points in its first month, adding to the pressure on futures commission merchants (FCMs), which have traditionally relied on interest income for a big chunk of their revenues.

The bourse is understood to have been considering the move for some time, and is said by s

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