Central clearing counterparties in Asia were reportedly on the path to eventual consolidation with other regional players, or at risk of buyout from the bigger global CCPs in the mid-to-long-term. A market official said the business model of clearinghouses and the large number of CCPs already in development in Asia will make it hard for CCPs to operate alone. [The end-game has yet to start, but agreements are being forged. The Singapore Exchange last week signed a memorandum of understanding with the Korea Exchange that will see technology shared between the two bourses. Market officials said the move by the more advanced SGX will help the lion city promote itself as Asia’s CCP of choice].
