Singapore Exchange Limited SGX: S68 (SGX) is the stock exchange in Singapore.
SGX was formed on December 1, 1999, following the merger of two established and well-respected financial institutions - the Stock Exchange of Singapore (SES) and the Singapore International Monetary Exchange (SIMEX).
It is the Asia-Pacific's first demutualised and integrated securities and derivatives exchange.
The revenues of Singapore Exchange are mainly from the securities market (72%) and derivatives market (28%).
Singapore Exchange Limited has achieved the highest quarterly profit since its listing in 2000. SGX posted a profit of over $200 million which represents more than double growth of 2007 corresponding period. The strong results were achieved on the back of robust securities trading driven by high volatility and liquidity in the markets. Its Futures and Options market saw also another record year in 2007. SGX™s derivatives volume exceeded 44 million contracts, surpassing its previous annual record volume in 2006 by 21%. The strong increase in overall volumes was fuelled by soaring growth in some of its key contracts including the Nikkei 225, MSCI Taiwan and the MSCI Singapore Index Futures contracts, which also hit new record highs this year.
Bombay and Tokyo Stock Exchange
Singapore Exchange already acquired a strategic investment in Bombay Stock Exchange (5%) for US$42.7m. It is consistent with the strategy of building an Asian Gateway for securities and derivatives. A collaboration was also signed with Abu Dhabi Securities Market in order to benefit from the Singapore and United Arab Emirates. Besides, the SGX has a 50-50 joint venture with the Chicago Mercantile Exchange to list commodity futures on a Singapore-based platform called Jade, which aims to tap a fragmented but fast-growing market for derivatives. Moreover,Tokyo Stock Exchange is looking for some partners in Asia. On June 15, 2007, TSE announced that it had purchased a 4.99% stake in SGX for 37.4 billion yen (US$303 million).Tokyo Stock Exchange (TSE) is considering to rise in Singapore Exchange and is currently discussing with Singapore Exchange to develop jointly traded products. They plan to develop joint equity and interest-rate products, though analysts said the main lure for the TSE was SGX's expertise in futures and clearing services.
London Stock Exchange
After the London Stock Exchange (LSE) rejected a £2.4bn takeover approach from Nasdaq in 2006, LSE showed that it is fighting to retain its independence and preferred to establish a Euro-Asian Gateway for securities and derivatives. LSE is currently collaborating with Singapore Exchange (SGX) - calling it a major strategic partner in Asia - and is planning to take a large stake in SGX at the beginning of 2008. Some rumors are even pointing out that a take over SGX by LSE is in preparation.
Companies listed on Singapore Exchange
As at 29 June 2007, there were 722 listed companies on the Singapore Exchange with a market capitalisation of SGD$773 billion.
The performance of the stocks listed on the Singapore Exchange has traditionally been measure by the Straits Times Index. In January 2008, the SGX scrapped its existing index methodology and chose FTSE to manage its index business. The introduction of such indices has been poorly implemented in the indices themselves are no longer displayed on the SGX web site, and they are no longer supplied on their live data feeds to brokers. This has resulted in the most active brokers being unable to supply any index prices to their trading customers. Even the SGX are confused since they announced live values for the new indices would be reported on their web site but are nowhere to be found.
- Singapore Exchange Limited Annual Report 2007
- New Singapore stock index hitch frustrates traders,Reuters,January 10, 2008.
- STI relaunched, but where's the data?, Cheow Xin Yi and Esther Fung, Channel NewsAsia, January 11, 2008.
- SPH, SGX and FTSE launch revamped Straits Times Index and new FTSE ST Index series, Singapore Exchange announcement,January 10, 2008
- SGX Real-time Live Index values, Singapore Exchange