Singapore Exchange to launch new order types of securities

Meant to improve flexibility and convenience.

The Singapore Exchange (SGX) has announced that it will enhance the types of orders for the stock market from 31 March 2014 with the goal of offering investors more flexibility and convenience.

Among the changes, SGX will make market orders and market-to-limit orders available throughout trading session.

Market orders are buy or sell orders which are executed immediately at current market prices. Market-to-limit orders ensure execution for at least a portion of the order while avoiding the risk of getting the order fully filled at the price that is too far away from the last-traded price for the remaining portion of the order. Previously only available during the market opening and closing routines, these order types will become available throughout the trading session.

SGX also plans to introduce price triggered orders (stop orders and if-touched orders), which are are instructions which will be converted into actual orders in the order book once the target price is reached.

Stop orders are typically used to minimise a loss or protect a profit on an existing long or short position. Meanwhile, if-touched orders provide investors with flexibility to buy and sell at specific price levels without having to constantly monitor market movements.

Jenny Chiam, Head of Securities at SGX, said, “We are pleased to offer these different order types at the exchange level. This builds upon similar features which certain brokers currently offer some customers. By making these order types available to all brokers who can then choose when and who to offer this service to, we enable greater flexibility for investors transacting in the stock market.”