Published On: Tue, Jan 3rd, 2012

SGX Proposes Removal of Iceberg Order Functionality

Singapore Exchange (“SGX”) is consulting the public on its proposal to remove the engine-level iceberg
order functionality in the securities and derivatives markets.

The iceberg order functionality is utilised primarily by investors who trade large quantities. The
functionality facilitates the execution of large orders in a manner that minimises adverse market impact
by releasing the order gradually into the market. This allows only part of the order to be displayed and
available for execution at any one time. The SGX engine-level iceberg order functionality is little used
by the marketplace, as similar execution functionalities are offered in the order management systems of
brokers and automated execution desks to execute block trades. As such, the continued provision and
maintenance of iceberg order functionality bring little benefit to the marketplace and its removal is
expected to have insignificant effect on the market. The removal of this order functionality will also
enhance transparency in the opening and closing routines, as well as, in the calculation of the
equilibrium price.

The consultation paper on the proposed removal of the engine-level iceberg order functionality is
available on SGX’s website from today. Market participants and members of the public
can send in their comments and suggestions on the proposal from today until 16 January 2012 via email
and either by post/courier or fax to:



Singapore Exchange
2 Shenton Way, #19-00
SGX Centre 1
Singapore 068804
Attn: Chan Hui Min
Development & Regulatory Policy
Fax: +65 6534 22

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