Published On: Thu, Mar 22nd, 2012

SGX Introduces Dual Currency Trading

Magnus Bocker CEO of SGX

Magnus Bocker CEO of SGX

Singapore Exchange (SGX) introduced March 22 dual currency trading which enables listed securities to be traded in two different currencies. This additional functionality on its trading engine aims to deliver greater cost efficiency to investors as they are able to trade foreign-denominated securities in their local currency.

With dual currency trading, a company can now choose for its listed security to be traded in any two different currency denominations. The securities will be fungible, i.e. an investor can buy and/or sell the security in any currency regardless of the currency in which it was first bought and/or sold.

Dual-currency listed shares will be consolidated in investors’ Central Depository (CDP) accounts so that the total number of shares can be viewed at a glance – for example, 1,000 US$-denominated shares and 2,000 S$-denominated shares will be reflected as 3,000 shares in the CDP account.

“Dual currency trading can also apply to other listed securities such as exchange traded funds. It will benefit investors who can now choose to trade in their preferred currencies while companies and issuers can enjoy the flexibility and potential added liquidity of having its securities trading in two currencies. As the Asian Gateway, SGX will continue to find new ways to assist our issuers in fund raising, and investors in trading and risk management,” said Mr Magnus Bocker, CEO of SGX.

Hutchison Port Holdings Trust is the first listed security to launch dual currency units, in US$ and S$. It will start trading on 2 April 2012.

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