Singapore Exchange (SGX)
The Singapore Exchange (SGX) is the leading international exchange in Asia. Founded in 1985, SGX was the first exchange in the South East Asian region organized and regulated under the laws of Singapore. The exchange is operated by Singapore Exchange Limited, a private company whose shares are traded on the Singapore Exchange.
SGX offers a wide range of services including trading of securities and derivatives, depository services and settlement, and risk management and other services to companies, traders and investors from various countries. SGX is particularly well-suited to investors and traders from the Asian region as it is the only exchange trading both a wide range of securities and derivatives in Asia.
Unlike other exchanges, SGX allows companies listed on its bourse to raise capital in multiple forms such as common stocks, equity-linked bonds, warrants, and convertibles issued both on the exchange and off it. SGX also allows derivatives trading services and the listing of exchange-traded funds. In addition, SGX provides electronic trading systems and depository services, as well as clearing and settlement services.
The main trading securities of SGX are its main board securities, which include stocks and equity linked bonds, warrants and convertibles, followed by its other products, namely derivatives and exchange traded funds. The most popular securities on SGX include DBS, UOB, Singtel, and Keppel Corporation. In addition, SGX also provides clearing and settlement services for transactions made by its clients on the exchange.
SGX’s derivatives market offers options and futures contracts on a broad range of asset classes such as equity, currency, commodities, fixed income and energy. It is Asia’s largest derivatives exchange and its products are aimed at hedging and speculation about the underlying assets. SGX also operates the SGX Commodities Markets, one of the few exchanges to offer comprehensive trading and clearing facilities for a variety of commodities futures contracts.
The SGX also offers a wide range of trading and settlement services to its clients. These services are designed to integrate investors, companies, and other market participants across different exchanges and facilitate the trading, clearing and settlement process. These include electronic trading, real-time information dissemination, risk management, margin management and settlements.
As a leading international exchange in the rapidly growing Asian region, the Singapore Exchange has been instrumental in the development and growth of the financial services sector in the region. The exchange is well positioned to continue to become a preferred exchange for markets in the Asia-Pacific region.
