Financial infrastructure operators generated S$2.1 billion in revenue in 2024, primarily from clearing, settlement, and custody fees, as Singapore's broader financial sector grew 6.8% and assets under management crossed S$6 trillion for the first time.

Revenue Composition and Growth Drivers

Singapore's financial infrastructure operators—a segment encompassing payment, clearing, settlement, and custody services—generated S$2.1 billion in revenue in 2024, according to industry data cited by the Monetary Authority of Singapore (MAS). The bulk of this revenue derives from clearing and settlement fees across securities, derivatives, and fixed-income markets, along with custody fees charged by central securities depositories and custodian banks.

The infrastructure layer sits beneath a rapidly expanding financial sector. MAS reported on 15 July 2025 that Singapore's financial services sector grew 6.8% in 2024, up from 3.1% in 2023, and now accounts for approximately 14% of Singapore's gross domestic product. Assets under management rose 12.2% year-on-year to S$6.07 trillion—the first time AUM has exceeded S$6 trillion—driven by both traditional and alternative asset classes including private equity, venture capital, hedge funds, and real estate investment trusts. Net inflows into Singapore grew 50% in 2024 from 2023, as fund-raising activities recovered amid improving investment sentiment. The number of fund management companies reached 1,298 by end-2024.

The Institutional Framework

Singapore's clearing and settlement infrastructure is concentrated among entities owned by or operated in conjunction with the state. The key operators are:

• The Central Depository (Pte) Ltd (CDP) – a wholly owned subsidiary of Singapore Exchange Ltd (SGX) that operates as both a central counterparty (CCP) and central securities depository (CSD). CDP clears and settles trades in Singapore equities, corporate debt securities, and other securities.
• Singapore Exchange Derivatives Clearing Ltd (SGX-DC) – also a wholly owned SGX subsidiary, responsible for derivatives clearing and settlement.
• MAS-operated MEPS+ Singapore Government Securities (MEPS+-SGS) – clears and settles Singapore Government Securities trades.
• Banking Computer Services Pte Ltd (BCS) – operates the MEPS+ interbank payment system.

The concentration of clearing and settlement functions within SGX entities means revenue is largely consolidated within the exchange group. CDP maintains a clearing fund financed by member contributions and standby credit lines. In the event of a member default, CDP applies collateral or security deposits, then draws on the clearing fund in a prescribed order.

Revenue Drivers: Volume and Value Effects

The S$2.1 billion figure reflects both increased transaction volumes and higher notional values traded across asset classes. The 50% increase in net fund inflows into Singapore's asset management sector drove higher custody volumes, while the broader AUM growth of 12.2% expanded the asset base requiring settlement and safekeeping. The number of fund management companies—1,298 by end-2024—provides an expanding base of institutional counterparties that generate recurring clearing and settlement fees.

Derivatives clearing, operated exclusively by SGX-DC, has been a particular growth contributor. SGX has invested in expanding its derivatives product suite, including equity index futures and commodity derivatives, which carry higher per-trade clearing fees compared to cash equities.

Regulatory Oversight and Risk Management

MAS regulates and supervises systemically important CCPs and securities settlement systems as designated clearing houses (DCHs) under the Securities and Futures Act. The central bank's oversight extends to ensuring "adequate controls and sufficient financial resources to meet obligations," as documented in the Bank for International Settlements' CPSS framework for Singapore. MAS requires all clearing members to contribute to CDP's clearing fund, with contributions varying in proportion to trade volume. CDP also contributes to the fund and maintains a standby credit line.

In its 2024/2025 Annual Report, MAS Managing Director Chia Der Jiun emphasized the central bank's focus on "strengthening capabilities in digital resilience and security, AI and sustainability," as well as ongoing efforts to bolster defenses against scams. The AMRO Annual Consultation Report for Singapore 2024 noted that MAS should "continue with its efforts to strengthen the resilience of financial institutions' digital infrastructure given the proliferation and rapid transmission of cyber risks."

Value (% or S$ trillion)Source: Orionmano Industries

Outlook: Structural Tailwinds and Risk Factors

The revenue trajectory for Singapore's financial infrastructure operators is supported by several structural tailwinds. The continued net inflow of fund management mandates into Singapore—up 50% in 2024—implies a larger base of assets requiring custody and settlement services. The expansion of the AUM base, particularly in alternatives such as private equity and venture capital, typically generates higher custody fees per dollar managed compared to traditional long-only mandates.

However, MAS Chairman Gan Kim Yong has flagged risks including "an escalation of trade conflict, geopolitical conflict, and heightened concerns from investors over financial and fiscal policy." The AMRO report also cautioned that the neutral fiscal stance is appropriate given the near-zero output gap, but that Singapore needs to "explore additional revenue sources to meet future spending needs." For infrastructure operators, a prolonged global economic slowdown could compress trading volumes and reduce the fee pool.

SGX's capital expenditure plans and the potential introduction of new clearing products will determine whether the S$2.1 billion revenue base can sustain growth rates above GDP. The 6.8% sector growth rate—more than double the 3.1% recorded in 2023—provides a baseline, but the infrastructure operators' revenue sensitivity to trading volumes means quarterly volatility is baked into the revenue profile.