SINGAPORE, May 31, 2011 - (ACN Newswire) - Singapore Exchange (SGX) will reduce the minimum bid size for securities on 4 July 2011, leading to lower trading costs for investors.
The initiative is expected to lead to a tightening of bid-ask spreads by as much as 80%. As a result, Singapore will offer one of Asia's most cost-competitive trading environments with an estimated $1.7 billion in annual savings, based on 2010 market turnover.
Mr Chew Sutat, Head of Securities at SGX, said, "This initiative addresses our customers' need for more cost-efficiency and trading opportunities. Tighter spreads will encourage investors to increase their participation in SGX, the best market for accessing fast-growing Asia. This will in turn enhance liquidity here in Singapore."
To cater to the narrowing of the bid sizes, SGX will widen the Forced Order Range for all securities to +/- 20 bids from +/- 10 bids across all price ranges. Forced Order Range is a pre-execution mechanism which helps investors to avoid error trades when entering prices of orders. Any orders outside the Forced Order Range must be confirmed by the use of the Forced Key function before those orders can be submitted.
The revised Minimum Bid Size and wider Forced Order Range will apply to all securities traded on SGX except exchange traded funds, loan stocks and bonds.
About Singapore Exchange (SGX)
Singapore Exchange (SGX) is the Asian Gateway, connecting investors in search of Asian growth to corporate issuers in search of global capital. SGX represents the premier access point for managing Asian capital and investment exposure, and is Asia's most international exchange with about 40% of companies listed on SGX originating outside of Singapore. SGX offers its clients the world's biggest offshore market for Asian equity index futures, centred on Asia's three largest economies - China, India and Japan.
In addition to offering a fully integrated value chain from trading and clearing, to settlement and depository services, SGX is also Asia's pioneering central clearing house. Headquartered in Asia's most globalised city, and centred within the AAA strength and stability of Singapore's island nation, SGX is a leading Asian counterparty for the clearing of financial and commodity products. For more information, please visit www.sgx.com.
Tel: +65 6236 8139
Email: [email protected]
Loh Wei Ling
Tel: +65 6236 8157
Email: [email protected]
May 31, 2011 13:00 HKT/SGT
Source: Singapore Exchange (SGX)
Topic: New Service
Sectors: Daily Finance, Daily News
From the Asia Corporate News Network
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