Euroclear is set to become the first non-indigenous settlement system to service the Singapore Government Securities (SGS) market.
Launch of the new service will involve the creation of a link to the Monetary Authority of Singapore's Electronic Payment System (Meps), which will be operated by Euroclear's local agent DBS Bank.
The link - the first for SGS between MAS and any national or international central securities depository - is expected to further boost the liquidity of these instruments by making them accessible to a wide range of international trading counterparties. The total value of SGS at the end of September 2003 was S$61.95 billion outstanding.
Euroclear Bank first began servicing Singaporean securities in 1991, when it created a link for equities - operated by DBS Bank - to the Central Depository Private Ltd.