Published On: Tue, Jan 18th, 2011

SGX Enhances Market Access With Continuous All-day Trading

Singapore Exchange (SGX) is enhancing access to companies listed on SGX by introducing continuous all-day trading from 9.00am to 5.00pm. SGX trading hours will therefore overlap more with those of other Asian exchanges, allowing investors who trade pan-Asian securities to respond to regional market movements and news flow.

Subject to regulatory approval, the SGX securities market is expected to begin trading on a continuous basis from 1 March 2011. The SGX derivatives market is already trading continuously.

In Asia, Korea Exchange, India’s National Stock Exchange and ASX have already embraced continuous all-day trading. Other international exchanges such as New York Stock Exchange, NASDAQ and London Stock Exchange also operate non-stop all-day trading.

More recently, Tokyo Stock Exchange and Hong Kong Exchanges and Clearing have announced plans to increase trading hours, citing the need to strengthen competitiveness and enhance convenience for investors.

“Singapore’s leading position as an international financial centre depends on its ability to stay nimble and meet customers’ needs. Investors are constantly seeking trading opportunities and continuous all-day securities trading will provide more avenues for participants to invest, hedge and arbitrage their investments,” said Mr Magnus Bocker, CEO of SGX.

Commenting on the move is Securities Association of Singapore’s Chairman, Mr Esmond Choo.

He said, “As we live in a global marketplace, for strategic purposes, SGX has to make these changes. As some of our clients will require such access to the exchange, SAS understands the rationale for this initiative and will work closely with SGX and all other stakeholders to make the transition a smooth one for all market constituents.”

To build a global capital market, SGX recognises that the move towards continuous trading is timely. Based on feedback received via public consultation, there is broad-based support from investors and the brokerage community.

Securities Investors’ Association of Singapore welcomes SGX’s initiative to extend its trading hours over the lunch hour. Mr David Gerald, President and CEO of SIAS said, “Retail investors here will not have to sit and wait until lunch is over to manage their portfolio or risk, especially if they have invested in foreign-based products or shares. The needs of retail investors are evolving and we are of the view allowing investors more opportunities to actively manage their investments is a step in the right direction.”

SGX is working closely with the brokerage community to facilitate a smooth transition.

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