Deutsche Bourse to build new clearing business in Singapore

Deutsche Bourse to build new clearing business in Singapore

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)