Singapore Exchange (SGX) is enhancing access to listed companies by introducing continuous all-day trading from 9.00am to 5.00pm. SGX trading hours will now overlap more with those of other Asian exchanges, allowing investors who trade pan-Asian securities to respond to regional market movements and news flow.
Subject to regulatory approval, the SGX securities market is expected to begin trading on a continuous basis from 1 March 2011. The SGX derivatives market is already trading continuously.
In Asia, Korea Exchange, India’s National Stock Exchange and ASX have already embraced continuous all-day trading. Other international exchanges such as New York Stock Exchange, NASDAQ and London Stock Exchange also operate non-stop all-day trading.
More recently, Tokyo Stock Exchange and Hong Kong Exchanges and Clearing have announced plans to increase trading hours, citing the need to strengthen competitiveness and enhance convenience for investors.
"Singapore’s leading position as an international financial centre depends on its ability to stay nimble and meet customers’ needs," says Magnus Bocker, CEO of SGX. "Investors are constantly seeking trading opportunities and continuous all-day securities trading will provide more avenues for participants to invest, hedge and arbitrage their investments."
To build a global capital market, SGX recognises that the move towards continuous trading is timely. Based on feedback received via public consultation, there is broad-based support from investors and the brokerage community.
"Retail investors here will not have to sit and wait until lunch is over to manage their portfolio or risk, especially if they have invested in foreign-based products or shares," says David Gerald, President and CEO of the Securities Investors’ Association of Singapore. "The needs of retail investors are evolving and we are of the view allowing investors more opportunities to actively manage their investments is a step in the right direction."
SGX is working closely with the brokerage community to facilitate a smooth transition.