SGX sticks to smaller deals as blockbuster bourse mergers fall through

The bourse is looking at potential fintech acquisitions.

According to Bloomberg, Singapore Exchange (SGX) is sticking to its incremental acquisition approach in a move that comes after the Hong Kong bourse’s failed bid to acquire the London stock exchange for £32b.

SGX, which tried to buy ASX in a deal rejected by the Australian government in 2011, still wants to strike deals in the form of potential acquisitions in fintech, although another blockbuster expedition is unlikely, its recently appointed equities head told Bloomberg.

Recent SGX deals have included investment in companies such as BidFX and 1exchange, a platform that uses blockchain technology to record trades of private securities.

"It is very difficult to persuade another exchange that you want to buy them and then take up lots of costs, precisely because these are national infrastructures," Michael Syn, who oversees both the stock and futures markets as head of equities, told Bloomberg in an interview.

Syn adds that SGX is aiming to to launch more single-stock futures, introduce derivatives on freight capacity, and set up systems that allow retail clients to trade via social media applications like WhatsApp or WeChat.

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