SINGAPORE, Mar 22, 2012 - (ACN Newswire) - Singapore Exchange (SGX) today introduced dual currency trading which enables listed securities to be traded in two different currencies. This additional functionality on its trading engine aims to deliver greater cost efficiency to investors as they are able to trade foreign-denominated securities in their local currency.
With dual currency trading, a company can now choose for its listed security to be traded in any two different currency denominations. The securities will be fungible, i.e. an investor can buy and/or sell the security in any currency regardless of the currency in which it was first bought and/or sold.
Dual-currency listed shares will be consolidated in investors' Central Depository (CDP) accounts so that the total number of shares can be viewed at a glance - for example, 1,000 US$-denominated shares and 2,000 S$-denominated shares will be reflected as 3,000 shares in the CDP account.
"Dual currency trading can also apply to other listed securities such as exchange traded funds. It will benefit investors who can now choose to trade in their preferred currencies while companies and issuers can enjoy the flexibility and potential added liquidity of having its securities trading in two currencies. As the Asian Gateway, SGX will continue to find new ways to assist our issuers in fund raising, and investors in trading and risk management," said Mr Magnus Bocker, CEO of SGX.
Hutchison Port Holdings Trust is the first listed security to launch dual currency units, in US$ and S$. It will start trading on 2 April 2012.
For more information, visit www.sgx.com/dualcurrency or call CDP hotline at +65 65357511.
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.
Loh Wei Ling
Tel: +65 6236 8157
Email: [email protected]
Tel: +65 6236 8139
Email: [email protected]
Mar 22, 2012 09:00 HKT/SGT
Source: Singapore Exchange (SGX)
Topic: General Announcement
Sectors: Daily Finance, Daily News
From the Asia Corporate News Network
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