|Singapore Exchange Limited|
|Key people||Chew Choon Seng (Chairman)
Magnus Böcker (CEO)
Low Check Kian (Lead Independent Director)
|Currency||Singapore dollar, US dollar|
|No. of listings||776|
Singapore Exchange Limited (SGX, SGX: S68) is an investment holding company located in Singapore and providing different services related to securities and derivatives trading and others. SGX is a member of the World Federation of Exchanges and the Asian and Oceanian Stock Exchanges Federation.
Singapore Exchange trades continuously from 9 am to 5 pm. From 1 August 2011, Singapore Exchange introduced continuous all-day trading for the securities market. As a result, the lunch break, between 12:30 pm to 2.00 pm, was scrapped.
SGX operates several different divisions, each responsible for handling specific businesses.
- SGX ETS (Electronic Trading System): provides global trading access to SGX markets where 80 percent of the customers are from outside Singapore.
- SGX DT (Derivatives Trading): provides derivatives trading.
- SGX ST (Securities Trading): provides securities trading.
- SGX DC (Derivatives Clearing): subsidiary for clearing and settlement operations.
- SGX AsiaClear: offers clearing services for over-the-counter (OTC) oil swaps and forward freight agreements.
- SGX Reach: an electronic trading platform.
- Central Depository Pte Ltd: subsidiary responsible for securities clearing, settlement and depository services.
- Asian Gateway Investments Pte Ltd: wholly owned subsidiary
- Singapore Exchange IT Solutions Pte Ltd: provides computer services and maintenance as well as software maintenance
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 fulfillment of any additional conditions.
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.
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.
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 (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.
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. However, this joint venture was cancelled 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.
In August 2009, SGX formed a joint venture with Chi-X Global, called Chi-East. At the beginning of October 2010, this joint venture received approval from the Monetary Authority of Singapore to operate a dark pool trading platform.
On 15 June 2007, Tokyo Stock Exchange, Inc. announced that it had acquired a 4.99% stake in SGX. 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.
At the beginning of 2008, SGX reached an agreement to buy at least 95% of Singapore Commodity Exchange. On 30 June 2008, SGX completed the acquisition of Singapore Commodity Exchange Ltd (SICOM), which now is a 100% subsidiary.
Representative Office 
On 8 June 2010, SGX announced it has opened an office in London. This is part of SGXs move to invest S$250 million into its Reach initiative. 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. This platform is based on GENIUM, a trading platform developed by NASDAQ OMX.
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.
Dual currency trading 
SGX plan to introduce dual currency trading of securities — Which includes stocks, bonds and other listed investments in two different denominations, the Singapore and US dollar on 2 April 2012.
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).
Merger Talks 
Merger talks with ASX 
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". TSE chief Atsushi Saito fears isolation of the Tokyo Stock Exchange as a result of the takeover.
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.
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.
Cooperation and merger talks with LSE 
As of July 2012, SGX is in merger talks with the London Stock Exchange (LSE) and the two exchanges already signed a cross trading agreement. However, on 20 July SGX said there are no plans for a takeover of or merger with LSE.
Companies listed on Singapore Exchange 
The following is a listing of the shareholders of Singapore Exchange Ltd holding at least 5 percent as of 31 July 2012:
- SEL Holdings Pte Ltd – 23.41%
- Citibank Nominees Singapore Pte Ltd – 10.62%
- DBS Nominees Pte Ltd – 7.50%
- DBSN Services Pte Ltd – 5.65%
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- SGX market statistics
- "Statistics of Shareholdings", The Asian Gateway Singapore Exchange Annual Report 2012 July 2011 - June 2012, Annual Report, Singapore Exchange Ltd, 2012, p. 163
Further reading 
- Banks, E. (2003). Exchange-traded derivatives. Chichester, West Sussex: John Wiley & Sons Ltd. pp. 157–160. ISBN 978-0-470-84841-8.
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