26 November 2014

Deutsche Bourse to build new clearing business in Singapore

20 February 2014  |  2577 views  |  0 Singapore Building 1

Deutsche Börse has earmarked an additional EUR30 million in spending to spur plans for new growth initiatives over the coming year, including the creation of a central counterparty clearing house in Singapore.

In a statement to analysts, chief executive Reto Francioni said the German exchange was intent on growing its business in new overseas territories, with a particular focus on Asian markets.

Francioni described Singapore as the focal point for the Exchange's activities in Asia, confirming that it is in the process of establishing a new clearing house on the island.

"We expect this to have high strategic development potential," he says. "Our objective is to provide long-term, client-oriented products and a robust infrastructure across the entire Asian time zone form this base and thus to contribute to the systemic stability of the region's capital markets."

Clearing subsidiary Clearstream has also signed a letter of intent with the Singapore Exchange to collaborate on the development of a collateral management platform which can be expanded to other markets in the region.

Earlier this year, Deutsche Börse also announced that it intends to take a five percent stake in a new benchmark index in Taiwan that is under development by derivatives subsidiary Eurex in co-operation with local futures exchange Taifex.

The company is also targeting 20%-40% revenue growth in the next four years, after realising 30% in annual savings due to new efficiency initiatives outlined last year, including the merger of its IT and market data units. It plans to achieve another 30% in 2014, and is on course to hit its stated target of EUR70 million in annual savings by 2016.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

12 February, 2014
29 October, 2013
11 October, 2013
30 September, 2013
18 July, 2013
08 July, 2013
02 July, 2013
07 May, 2013
18 September, 2012

Related company news

 

Who is commenting?

Finextra Member Commented on: Discover fires lawsuit...
Finextra Member Commented on: Discover fires lawsuit...

Featured job

to £85k base, double OTE, benefits
London, UK

Find your next job