Larger M&As could be on the cards for SGX

As it diversifies its revenue sources.

According to CIMB, Singapore Exchange remains committed to diversifying its revenue streams to reduce reliance on the securities market and key derivatives contracts.

"We would not rule out large M&As, with its unrestricted cash balance of S$395m and room to gear up or raise funds," CIMB said.

The brokerage firm cited four potential M&A areas from which SGX can leverage. These areas include fixed income, foreign exchange, market data, and index businesses.

“We think acquisitions in the latter two categories would provide more meaningful earnings uplift and diversification. Among the leading index businesses, only the MSCI is not currently owned by an exchange or recently acquire,” CIMB said.