Monday, October 25

Singapore Exchange Limited, SGX: S68 (SGX)

Singapore Exchange Limited SGX: S68 (SGX) is an investment holding company located in Singapore and providing different services related to securities and derivatives trading and others.  SGX is a member of the World Federation of Exchanges and the Asian and Oceanian Stock Exchanges Federation
Structure

SGX operates several different divisions, each responsible for handling specific businesses.

* SGX ETS (Electronic Trading System): provides global trading access to SGX markets where 80 percent of the customers are from outside Singapore.
* SGX DT (Derivatives Trading): provides derivatives trading.
* SGX AsiaClear: offers clearing services for over-the-counter (OTC) oil swaps and forward freight agreements.
* SGX Reach: an electronic trading platform.
* Central Depository Pte Ltd: subsidiary responsible for securities clearing, settlement and depository services.

Trading system

The exchange launched SGX QUEST (SGX Quotation and Execution System) in August 2004. The system is used by the exchange for derivatives and securities trading.

History of Singapore Exchange Limited,
Formation of SGX

SGX was formed on 1 December 1999 as a holding company. The share capital of some former exchange companies, namely Stock Exchange of Singapore (SES), Singapore International Monetary Exchange (Simex) and Securities Clearing and Computer Services Pte Ltd (SCCS) was cancelled and new shares issued in this companies were fully paid up by SGX. In this way, all assets previously owned by these three companies were transferred to SGX. The shareholders previously holding shares in SES, Simex and SCCS received newly issued SGX shares.

First Listed Exchange in Asia-Pacific

On 23 November 2000, SGX became the first exchange in Asia-Pacific to be listed via a public offer and a private placement. Listed on its own bourse, the SGX stock is a component of benchmark indices such as the MSCI Singapore Free Index and the Straits Times Index.

Joint Venture

On 25 September 2006, the Joint Asian Derivatives Exchange (JADE), a joint venture between SGX and Chicago Board of Trade (CBOT) became operational. However, this joint venture was canceled in November 2007, with CME Groups selling of its 50% stake in the joint venture to SGX. The contracts previously traded on JADE were transferred to SGX's QUEST trading platform.

In August 2009, SGX formed a joint venture with Chi-X Global, called Chi-East. At the beginning of October 2010, this joint venture received approval from the Monetary Authority of Singapore to operate a dark pool trading platform.

Acquistion

In March 2007, SGX bought a 5% stake in Bombay Stock Exchange for 42.7 million dollars.

On 15 June 2007, Tokyo Stock Exchange, Inc. announced that it had acquired a 4.99% stake in SGX. Since then the value of the shares has declined and the Tokyo Stock Exchange, Inc. has made a decision to sell the shares it holds in SGX to its parent company, the Tokyo Stock Exchange Group, Inc.

On 31 January 2008, SGX acquired a 20% stake in Philippine Dealing System Holdings Corp, which has become an associated company of SGX.

On 30 June 2008, SGX completed the acquisition of Singapore Commodity Exchange Ltd (SICOM), which now is a 100% subsidiary.
 Representative Office

On 18 April 2008, SGX opened a representative office in Beijing.

On 8 June 2010, SGX announced it has opened an office in London. This is part of SGXs move to invest S$250 million into its Reach initiative.By implementing this initiative, SGX plans to create the world's fastest trading engine and a data centre as well as further connecting trading communities in the world to Singapore. The new trading platform, SGX Reach, will be delivered to SGX by NASDAQ OMX, Voltaire and HP.[27] This platform is based on GENIUM, a trading platform developed by NASDAQ OMX.

Financial Performance

As of 31 January 2010, SGX had 774 listed companies with a combined market capitalisation of S$650 billion. The revenues of SGX are mainly from the securities market (75%) and derivatives market (25%).

SGX reported a net profit of $165.8 million for the first half of its financial year 2010. Excluding non-recurring items, net profit was 7% higher compared to 1H FY2009 ($159.2 million). In the second quarter of the financial year 2010, excluding the non-recurring items, net profit of $77.0 million was 3% higher than a year ago. Operating revenue increased 6% to $324.0 million (1H FY2009: $304.9 million).


 Merger Talks With ASX

SGX is currently in a merger talks with Australian Securities Exchange (ASX). If the deal is successful, the merger will create a bourse with a market value of US$14 billion.


Companies listed on Singapore Exchange

As of 31 Jan 2010, there were 774 listed companies on the Singapore Exchange with a market capitalisation of SGD$650 billion.
Jan 2010
Domestic Listings 461
Foreign Listings

(excluding China)
160
China Listings 153
Total listings 774

Major shareholders

The major shareholders of Singapore Exchange Ltd as of June 11, 2010 are:
Shareholder Percentage held
HSBC (Singapore) Nominees Pte Ltd 28.43
DB Nominees (Singapore) Pte Ltd 8.32
Citibank Nominees Singapore Pte Ltd 5.67
BNP Paribas Nominees Singapore Pte Ltd 5.49
(source:wikipedia)

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