HSBC Securities Services launches third party clearing in Singapore
27 August 2013
News, Asia, Singapore
By Asia Asset Management
HSBC Securities Services (HSS) has launched third party clearing (TPC) services in Singapore. The Hongkong and Shanghai Banking Corporation Limited (HSBC) has been admitted as a bank clearing member for securities by Singapore Exchanges Limited (SGX), enabling HSBC to offer SGX trading members an expanded suite of broker clearing services in Singapore, including TPC.
Colin Brooks, global head of sub custody and clearing, said: “We are excited to be registered with the SGX as a bank clearing member. Singapore is a key market for our broker-dealer strategy and is pivotal for the development of our industry-leading solutions for this client group. We already provide on-exchange clearing to brokerage clients in Asia Pacific, which also includes collaboration with exchanges on account operator (AO) and TPC services in Australia, Hong Kong, Japan, Malaysia and Thailand.”
SGX registered trading members can now appoint HSBC in Singapore under the TPC model for clearing and settlement of their trades on the exchange. Once trades are executed, HSBC will clear and settle transactions on behalf of these broker-dealer clients. HSBC will also arrange to credit their end client’s or proprietary accounts after exchange settlement.
As well as eliminating the liabilities associated with a clearing membership, HSBC’s broker-dealer clients can benefit from a significant reduction in their expenditure on the systems, infrastructure and people required to support these operations in-house.
Tony Lewis, head of HSBC Securities Services Singapore, said: “HSBC’s admission as a bank clearing member of the SGX allows us to deploy our comprehensive and complimentary set of back office products and services to our clients in Singapore. HSBC has played a central role in the development of Singapore's securities industry over many decades. This latest advance demonstrates HSBC's continued commitment to, and investment in, this very important market. The clearing membership enables us to offer a fully integrated proposition to our clients, relieving them of the cost challenges associated with post-trade settlement and allowing them to focus on their core business of trading and execution.”
As an alternative to TPC, broker-dealer clients can also choose to appoint HSBC in Singapore under the Account Operator model. Under this arrangement, HSBC acts as the client’s agent to perform their clearing activities on the exchange using the client’s own SGX clearing membership.
The launch of TPC services in Singapore follows close behind HSBC Securities Services’ launch of its Broker Outsourcing Securities Services (BOSS) in July this year. These services give broker clients the option to outsource either a part or the whole of their middle and back office operations to HSBC. Both TPC, AO and BOSS can be offered in combination with HSBC’s in-market sub-custody service and are designed to provide a fully integrated solution for broker clients.
More News >