Singapore Exchange to consult public on continuous all-day trading

The public will be consulted on a proposal for an all-day continuous trading on its securities market, the Singapore Exchange (SGX) said.

In a statement, the exchange said Singapore, as an international financial center, is already serving the wider Asian region.

As the Asian Gateway, international issuers contribute more than 40% of SGX’s market capitalisation on its securities market.

SGX is the leading exchange in Asia with widest range of securities, providing exposure into Asia, Europe and other emerging markets as well as a variety of asset classes. In developing a more vibrant securities market, SGX will quote and trade American Depositary Receipts starting this week, on 22 October. The potential introduction of continuous all-day trading could further entrench Singapore’s capital market as most international exchange and increase regularity of cross border trading activities.

With the market open continuously from 9.00am to 5.00pm Singapore time, SGX trading hours will overlap more with other Asian exchanges, notably those in North and South Asia. Investors will therefore have new opportunities to trade SGX-listed international securities while the underlying markets are open. In addition, investors will be able to respond timely to news flow on the stocks and changing market conditions, thereby increasing their ability to hedge and manage price risk.

Continuous all-day trading is a feature on major markets such as NYSE Euronext, NASDAQ, London Stock Exchange, Deutsche Börse and the Australian Stock Exchange.

The consultation paper on the proposal for all-day continuous trading on SGX securities market will be available on the SGX website www.sgx.com from today. Market participants and members of the public can send in their comments and suggestions on the proposed contract from today until November 9, 2010 via email rules@sgx.com and either by post/courier to the Singapore Exchange, 2 Shenton Way, SGX Centre 1#19-00, Singapore 068804 or fax to +65 6534 2207.