Singapore Exchange

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"SGX" redirects here. For other uses, see SGX (disambiguation).
Singapore Exchange Limited
Type Public (SGX: S68)
Industry Stock exchange
Founded Singapore (1 December 1999)
Headquarters Singapore
Key people Chew Choon Seng (Chairman)[1]
Magnus Böcker (CEO)
Low Check Kian (Lead Independent Director)
Website http://www.sgx.com

Singapore Exchange Limited SGX: S68 (SGX) is an investment holding company located in Singapore and providing different services related to securities and derivatives trading and others. [2] SGX is a member of the World Federation of Exchanges[3] and the Asian and Oceanian Stock Exchanges Federation[4]

Starting in a few months, Singapore Exchange will have continuous trading from 9am to 5pm. [5]

Contents

[edit] Structure

SGX operates several different divisions, each responsible for handling specific businesses.

[edit] Listing

The companies listed on SGX belong to one of two groups: the companies listed on the SGX Mainboard and the companies listed on SGX SESDAQ. In order to be listed on the mainboard, a company has to fulfill some requirements set forth by SGX, while a listing a SESDAQ is not tied to the fullfillment of any additional conditions.[12]

[edit] Trading system

The exchange launched SGX QUEST (SGX Quotation and Execution System) in August 2004. The system is used by the exchange for derivatives and securities trading.[13]

[edit] History

[edit] Formation of SGX

SGX was formed on 1 December 1999 as a holding company. The share capital of some former exchange companies, namely Stock Exchange of Singapore (SES), Singapore International Monetary Exchange (Simex) and Securities Clearing and Computer Services Pte Ltd (SCCS) was cancelled and new shares issued in these companies were fully paid up by SGX. In this way, all assets previously owned by these three companies were transferred to SGX. The shareholders previously holding shares in SES, Simex and SCCS received newly issued SGX shares.[14]

[edit] Second Listed Exchange in Asia-Pacific

On 23 November 2000, SGX became the second exchange in Asia-Pacific to be listed via a public offer and a private placement[citation needed] (Australian Securities Exchange was listed in 1998). Listed on its own bourse, the SGX stock is a component of benchmark indices such as the MSCI Singapore Free Index and the Straits Times Index.

[edit] Joint Venture

On 25 September 2006, the Joint Asian Derivatives Exchange (JADE), a joint venture between SGX and Chicago Board of Trade (CBOT) became operational.[15] However, this joint venture was canceled in November 2007, with CME Groups selling of its 50% stake in the joint venture to SGX. The contracts previously traded on JADE were transferred to SGX's QUEST trading platform.[16]

In August 2009, SGX formed a joint venture with Chi-X Global, called Chi-East.[17] At the beginning of October 2010, this joint venture received approval from the Monetary Authority of Singapore to operate a dark pool trading platform.[18]

[edit] Acquisition

In March 2007, SGX bought a 5% stake in Bombay Stock Exchange for 42.7 million dollars.[19]

On 15 June 2007, Tokyo Stock Exchange, Inc. announced that it had acquired a 4.99% stake in SGX.[20] Since then the value of the shares has declined and the Tokyo Stock Exchange, Inc. has made a decision to sell the shares it holds in SGX to its parent company, the Tokyo Stock Exchange Group, Inc.[21]

On 31 January 2008, SGX acquired a 20% stake in Philippine Dealing System Holdings Corp, which has become an associated company of SGX.[22]

On 30 June 2008, SGX completed the acquisition of Singapore Commodity Exchange Ltd (SICOM), which now is a 100% subsidiary.[23]

[edit] Representative Office

On 18 April 2008, SGX opened a representative office in Beijing.[24][25]

On 8 June 2010, SGX announced it has opened an office in London.[26][27][28] This is part of SGXs move to invest S$250 million into its Reach initiative.[29] By implementing this initiative, SGX plans to create the world's fastest trading engine and a data centre as well as further connecting trading communities in the world to Singapore. The new trading platform, SGX Reach, will be delivered to SGX by NASDAQ OMX, Voltaire and HP.[30] This platform is based on GENIUM, a trading platform developed by NASDAQ OMX.[31]

[edit] Partnership

SGX has entered a partnership with NASDAQ OMX. Together they will provide a suite of tools and solutions for companies, which is designed to support listed companies in Asia.[32]

[edit] Financial Performance

As of 31 January 2010, SGX had 774 listed companies with a combined market capitalisation of S$650 billion. The revenues of SGX are mainly from the securities market (75%) and derivatives market (25%).

SGX reported a net profit of $165.8 million for the first half of its financial year 2010. Excluding non-recurring items, net profit was 7% higher compared to 1H FY2009 ($159.2 million). In the second quarter of the financial year 2010, excluding the non-recurring items, net profit of $77.0 million was 3% higher than a year ago. Operating revenue increased 6% to $324.0 million (1H FY2009: $304.9 million).[citation needed]

[edit] Merger Talks With ASX

SGX was in a merger talks with Australian Securities Exchange (ASX), which will create a bourse with a market value of US$14 billion had the deal been successful.[33][34]

The Australian Competition and Consumer Commission said on 15 December 2010 that it would not oppose SGXs takeover of ASX.[35]

[edit] Criticism from Tokyo Stock Exchange

SGX's plans to buy ASX have drawn criticism from the Tokyo Stock Exchange, which is the second largest shareholder in SGX. A representative of the TSE said SGX's bid for ASX "would flag off a race to consolidate".[36] TSE chief Atsushi Saito fears isolation of the Tokyo Stock Exchange as a result of the takeover.[37]

[edit] Revision of takeover proposal

SGX revised its initial takeover proposal in an attempt to overcome some of the opposition to the plans. This would have decreased the number of Singaporean citizens on the board of the combined company and would have given addition seats to Australians.[38]

[edit] Rejection of merger

However, on 8 April 2011, the Australian Treasurer and Deputy Leader of the Australian Labor Party, Wayne Swan, made the decision to block the merger between the two exchanges. Upon the announcement that the federal government would block the merger, SGX retracted its bid for ASX shares and decided to seek growth opportunities elsewhere.[39]

[edit] Companies listed on Singapore Exchange

See also: Companies listed on the Singapore Exchange

As of 31 Jan 2010, there were 774 listed companies on the Singapore Exchange with a market capitalisation of SGD$650 billion.[40]

Jan 2010
Domestic Listings 461
Foreign Listings

(excluding China)

 160
China Listings 153
Total listings 774

[edit] Major shareholders

The major shareholders of Singapore Exchange Ltd as of November 3, 2010 are:[41]

Shareholder[Note 1] Percentage held
SEL Holdings Pte Ltd 23.45
Citibank Nominees Singapore Pte Ltd 15.81
DBS Nominees Pte Ltd 7.85
DBSN Services Pte Ltd 5.99
HSBC (Singapore) Nominees Pte Ltd 5.06

[edit] See also

[edit] Notes

1.^ Only shareholders with a stake of at least 5 percent are listed.

[edit] References

  1. ^ "J Y Pillay to step down as SGX chairman at year-end". Channel NewsAsia. http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1079455/1/.html. Retrieved 14 September 2010. 
  2. ^ Singapore Exchange Ltd, reuters.com, http://www.reuters.com/finance/stocks/companyProfile?symbol=SGXL.SI, retrieved 21 September 2010 
  3. ^ Singapore Exchange, WFE, http://www.world-exchanges.org/member-exchanges/member-exchanges/singapore-exchange, retrieved 21 September 2010 
  4. ^ Member Directory & Profile, AOSEF, http://www.aosef.org/profile/, retrieved 21 September 2010 
  5. ^ Raghuvanshi, Gaurav (19 January 2011). "Singapore Exchange Ratchets Up Competition". The Wall Street Journal. http://online.wsj.com/article/SB10001424052748704590704576091572403414468.html. 
  6. ^ Exchanges Around the World - Singapore Exchange Ltd (SGX) - Home of Asian Index Futures, Interactive Brokers Group, http://www.interactivebrokers.com/en/p.php?f=exchangesEdu&p=asia5, retrieved 12 October 2010 
  7. ^ SGX Offers Derivatives Trading Via Internet, Internetnews.com, http://www.internetnews.com/bus-news/article.php/741101/SGX-Offers-Derivatives-Trading-Via-Internet.htm, retrieved 12 October 2010 
  8. ^ Exchange: Singapore Exchange Securities Trading Limited (SGX-ST), emoney.co.ir, http://www.google.de/url?sa=t&source=web&cd=4&ved=0CDEQFjAD&url=http%3A%2F%2Fwww.emoney.co.ir%2Ffiles%2Fproducts%2Fcfd_sgx.pdf&rct=j&q=singapore%20exchange%20securities%20trading&ei=XvfsTKPbFI3usgby1ZWQDw&usg=AFQjCNGHGPARQFGHJb9hUOwGIymnu9FUPQ&cad=rja, retrieved 24 November 2010 
  9. ^ About SGX AsiaClear, Singapore Exchange Ltd, http://www.asiaclear.com.sg/about/aboutus.shtml, retrieved 12 October 2010 
  10. ^ SGX to invest $250m in new trading platform technology, bobsguide, http://www.bobsguide.com/guide/news/2010/Jun/4/SGX_to_invest_$250m_in_new_trading_platform_technology.html, retrieved 12 October 2010 
  11. ^ The American Stock Exchange and Singapore Exchange Begin Trading ETFs in Singapore, Farlex Inc, http://www.thefreelibrary.com/The+American+Stock+Exchange+and+Singapore+Exchange+Begin+Trading+ETFs...-a074087208, retrieved 12 October 2010 
  12. ^ Singapore Exchange (SGX), ADVFN, http://de.advfn.com/StockExchanges/about/SGX/SingaporeExchange.html, retrieved 15 April 2011 
  13. ^ Singapore Exchange adopts Financial Information eXchange Protocol to strengthen position in global financial markets, ASIA PAC, http://www.google.de/url?sa=t&source=web&cd=2&ved=0CB4QFjAB&url=http%3A%2F%2Ffixglobal.com%2Fback_issues%2FQ4%2FASIA%2520PAC%2FSing%2520Ex%2520adopts%2520FIX.pdf&rct=j&q=singapore%20exchange%20quest&ei=iTO0TIC7PIrLswbH5Lm1CA&usg=AFQjCNGBtJIKcE2YlrRhWv7YxiUXT3JhNw&cad=rja, retrieved 12 October 2010 
  14. ^ Shaw, A., Singapore Stock Exchange - Demutualization and Listing of the Singapore Exchange Limited, http://www.google.de/url?sa=t&source=web&cd=2&ved=0CBwQFjAB&url=http%3A%2F%2Fwww.adb.org%2Fdocuments%2Fbooks%2Fdemutualization_stock_exchanges%2Fchapter_15.pdf&rct=j&q=singapore%20exchange%20listing%20on%20own%20exchange&ei=7YXATM-IJYXEswaCn6TiCA&usg=AFQjCNGkMPggAh3VxxFuw4wGvE_C3cjAuw&cad=rja, retrieved 21 October 2010 
  15. ^ JADE Begins Trading With TSR 20 Rubber Futures Contract, CME Group, http://cmegroup.mediaroom.com/index.php?s=43&item=464&pagetemplate=article, retrieved 1 October 2010 
  16. ^ CME gives up on JADE with SGX sell-up, FOW, http://www.fow.com/Article.aspx?ArticleID=1697012, retrieved 1 October 2010 
  17. ^ Ex-BlocSec CEO to lead Chi-East dark pool, The Trade News, http://www.thetradenews.com/asset-classes/equities/4056, retrieved 10 October 2010 
  18. ^ Chi-East receives MAS approval to operate dark pool trading platform, ChannelNewsAsia, http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1085106/1/.html, retrieved 10 October 2010 
  19. ^ Timmons, Heather (7 March 2007), Bombay Stock Exchange sells 5% stake to Singapore Exchange, The New York Times, http://www.nytimes.com/2007/03/07/business/worldbusiness/07iht-exchange.4824769.html?_r=1, retrieved 1 October 2010 
  20. ^ Acquisition by TSE of SGX shares, Tokyo Stock Exchange Group, Inc., http://www.tse.or.jp/english/news/200706/070615_a.html, retrieved 11 October 2010 
  21. ^ Board Report for March 2009 - 1. Handling of Shares in Singapore Exchange Ltd., Tokyo Stock Exchange Group, Inc., http://www.tse.or.jp/english/about/b_report/0903.html, retrieved 13 October 2010 
  22. ^ Philippine Dealing System Holdings Corp Becoming Associated Company Of Singapore Exchange Limited, Singapore Exchange Limited, http://www.finanznachrichten.de/pdf/20080131_171516_S68_4C20C53F9F9AC43A482573E10030B5C4.1.pdf, retrieved 1 October 2010 
  23. ^ Singapore Exchange Limited Completes Acquisition Of Singapore Commodity Exchange Limited, Thomson Reuters, http://in.reuters.com/finance/stocks/keyDevelopments?symbol=SGXL.SI&pn=3, retrieved 1 October 2010 
  24. ^ Singapore Exchange opens Beijing representative office, Finextra, http://www.finextra.com/news/announcement.aspx?pressreleaseid=20972, retrieved 2 October 2010 
  25. ^ Singapore: The Singapore Exchange opens Beijing representative office, Asia Legal Business, http://asia.legalbusinessonline.com/law-firms/singapore-the-singapore-exchange-opens-beijing-representative-office/1019/25384, retrieved 2 October 2010 
  26. ^ SGX expands in London, Singapore Exchange Limited, http://www.google.de/url?sa=t&source=web&cd=5&ved=0CC0QFjAE&url=http%3A%2F%2Fwww.finanznachrichten.de%2Fpdf%2F20100608_170447_S68_E98011ED1B1069404825773C00319A5E.1.pdf&rct=j&q=sgx%20london%20office&ei=G0PATPTBJsrHswaBwP3hCA&usg=AFQjCNFM2I18Ax9-iLs8WsjxfclAp8oh5Q&cad=rja, retrieved 21 October 2010 
  27. ^ SGX expands in London, The Trade News, http://www.thetradenews.com/trading-venues/exchanges/4671, retrieved 21 October 2010 
  28. ^ SGX establishes London office to better serve European customers, MediaCorp Pte Ltd, http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1061854/1/.html, retrieved 21 October 2010 
  29. ^ SGX to boost trading speeds, global links, Singapore Press Holdings Ltd, http://www.asiaone.com/News/The%2BBusiness%2BTimes/Story/A1Story20100604-220283.html, retrieved 21 October 2010 
  30. ^ SGX invests $250 million to offer fastest access to Asia, WFE, http://www.world-exchanges.org/news-views/news/sgx-invests-250-million-offer-fastest-access-asia, retrieved 21 October 2010 
  31. ^ Gateway to Asia, The NASDAQ OMX Group, Inc., http://www.nasdaqomx.com/whatwedo/markettechnology/marketview/MarketView_2009_1/Gateway_to_Asia/, retrieved 21 October 2010 
  32. ^ Singapore Exchange Partners With NASDAQ OMX to Offer Innovative Corporate Solutions to Asian Companies, DGAP News Service, http://www.dgap.de/news/corporate/singapore-exchange-partners-with-nasdaq-omx-offer-innovative-corporate-solutions-asian-companies_187832_660430.htm, retrieved 12 April 2011 
  33. ^ "SGX, Australian stock exchange in merger talks". Channel NewsAsia. http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1088705/1/.html. Retrieved 22 October 2010. 
  34. ^ Singapore stock exchange bids $8.3bn for Australian ASX
  35. ^ "ACCC clears proposed acquisition of ASX by Singapore Exchange". Commonwealth of Australia. http://www.accc.gov.au/content/index.phtml/itemId/962113. Retrieved 7 January 2011. 
  36. ^ "Singapore's bid to buy stock exchange stings Australia's prestige". The China Post. http://www.chinapost.com.tw/commentary/dpa/2010/10/28/277776/Singapores-bid.htm. Retrieved 19 March 2011. 
  37. ^ "Tokyo fears stock exchange merger plan". http://australianetworknews.com/stories/201010/3049862.htm. Retrieved 19 March 2011. 
  38. ^ Raja, S.; Sarah Jones (2011-02-15). "Singapore Exchange Recasts ASX Bid to Fight Lawmaker Opposition". Bloomberg L.P.. http://www.businessweek.com/news/2011-02-15/singapore-exchange-recasts-asx-bid-to-fight-lawmaker-opposition.html. Retrieved 18 April 2011. 
  39. ^ "SGX eyes other opportunities". ChannelNewsAsia. http://www.channelnewsasia.com/stories/afp_singapore_business/view/1121452/1/.html. Retrieved 10 April 2011. 
  40. ^ SGX market statistics
  41. ^ Singapore Exchange Annual Report 2010, Singapore Exchange, http://info.sgx.com/listprosp.nsf/ecc29375f0fc9231482575da000f2c9e/7ed4fc537e9dce13482577a000178734/$FILE/SGX%20Annual%20Report%202010.pdf, retrieved 24 November 2010 

[edit] External links

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