SGX launches dual currency trading

A firm can now choose for its listed security to be traded in any two different currency denominations.

Singapore Exchange said this additional functionality on its trading engine aims to deliver greater cost efficiency to investors as they are able to trade foreign-denominated securities in their local currency.

The securities will be fungible, according to SGX, i.e. an investor can buy and/or sell the security in any currency regardless of the currency in which it was first bought and/or sold.

“Dual-currency listed shares will be consolidated in investors’ Central Depository (CDP) accounts so that the total number of shares can be viewed at a glance - for example, 1,000 US$-denominated shares and 2,000 S$-denominated shares will be reflected as 3,000 shares in the CDP account,” said SGX.

Hutchison Port Holdings Trust is the first listed security to launch dual currency units, in US$ and S$, and will start trading on 2 April 2012.