Singapore Exchange (SGX)

It is indeed a very valid concern...

(vested)

SGX's success with China A50 futures may be cause for concern

SINGAPORE (April 23): Singapore Exchange reported strong growth in top- and bottom-line numbers for their Q3 FY2015 yesterday, mostly beating market estimates.

It’s no surprise that the derivatives business drove the strong numbers, with the lion’s share coming from the explosive 165% y-o-y increase in trading volume on the FTSE China A50 Index futures.

Quarterly trading volumes on the FTSE China A50 contract are now more than 40% of total derivatives volumes for SGX.

Operating profit margins were a bit of a letdown, as expenses grew faster than the top line, with an increase in salaries and investment in technology.

A key worry for the SGX and their derivative business may be the ‘concentration’ on the China A50 future contract.
...
http://www.theedgemarkets.com/sg/article...se-concern

futures business can be very fleeting. if some other exchanges offer lower trading and clearing fees, liqudity will run there. e.g. Eurodollars futures.

(23-04-2015, 03:17 PM)CityFarmer Wrote: It is indeed a very valid concern...

(vested)

SGX's success with China A50 futures may be cause for concern

SINGAPORE (April 23): Singapore Exchange reported strong growth in top- and bottom-line numbers for their Q3 FY2015 yesterday, mostly beating market estimates.

It’s no surprise that the derivatives business drove the strong numbers, with the lion’s share coming from the explosive 165% y-o-y increase in trading volume on the FTSE China A50 Index futures.

Quarterly trading volumes on the FTSE China A50 contract are now more than 40% of total derivatives volumes for SGX.

Operating profit margins were a bit of a letdown, as expenses grew faster than the top line, with an increase in salaries and investment in technology.

A key worry for the SGX and their derivative business may be the ‘concentration’ on the China A50 future contract.
...
http://www.theedgemarkets.com/sg/article...se-concern

(23-04-2015, 05:25 PM)opmi Wrote: futures business can be very fleeting. if some other exchanges offer lower trading and clearing fees, liqudity will run there. e.g. Eurodollars futures.

In fact, the most concern, is the sustainability of trading volumes on the FTSE China A50 contract. The popularity is highly due to uncertainties in directly owning China stocks, and taxes issues. Once the uncertainties are gone, the demand will be greatly reduced. Hopefully, by then, the securities market able to pick-up and fill the gap.

(vested)

Retail investors to have easier access to ETFs, other investment funds
SGX will waive ETF clearing fees for both institutional and retail investors from Jun 1 to Dec 31 to further promote the use of this investment product, MAS says.
Source: Channel NewsAsia

The 1st S-Chip potential listing, after so many years, a REIT...

China's Kailong REIT plans $151-million IPO in Singapore

SINGAPORE (April 30): China's Kailong REIT is planning a $200 million IPO on the Singapore stock exchange in July, IFR reported on Thursday, citing two sources close to the transaction.

The REIT will be denominated in both Chinese renmimbi and Singapore dollars and will be the first dual currency REIT listing on the Singapore exchange, said IFR, a Thomson Reuters publication.

It will also be the first ever mainland Chinese company to issue a REIT IPO on the Singapore exchange.

IFR said Kailong's REIT assets will comprise business parks in Shanghai. Shanghai-based Kailong is the sponsor of the REIT.

CLSA, Macquarie and Religare are the banks on the transaction. Standard Chartered is the financial advisor.
http://www.theedgemarkets.com/sg/article...-singapore

Analysts are becoming optimistic on the company. The security market seems starting to pick-up in Apr, and hopefully continue in 2nd half of 2015...

(vested)

SGX upgraded to 'outperform', target raised to $10 by Credit Suisse

SINGAPORE (May 6): Credit Suisse has upgraded Singapore Exchange to "outperform" from "neutral" and raised its price target to $10.00 from $8.25.

The revised target, which implies 25 times projected earnings, is based on a 6% to 9% increase in Credit Suisse's earnings per share estimates.

"The key investment case for SGX is the longer-term growth through both existing market growth and success in its strategy to become an Asian regional gateway, with derivatives being the medium-term driver," Credit Suisse analysts Arjan van Veen and Craig Cao wrote in a note today.

"Nearer term, its fortunes are more linked to current market volumes."

While the Singapore stock market was "very subdued" at the start of last year, activity has picked up in recent months, they said.
...
http://www.theedgemarkets.com/sg/article...dit-suisse

This is more on derivative, than equity...

SGX and Zhengzhou Commodity Exchange signs collaboration MoU

SINGAPORE (May 22): Singapore Exchange and Zhengzhou Commodity Exchange have signed a memorandum of understanding (MOU) to jointly develop and expand the commodities markets in China and Singapore.

The agreement was signed in Singapore, between Zhangfan, Chairman of ZCE and Magnus Böcker, CEO of SGX ( Financial Dashboard) today.

The MOU will jointly explore areas of cooperation including development of new commodity derivative products, joint commodity-related events, information sharing, training, member and investor education programmes in both markets.
...
http://www.theedgemarkets.com/sg/article...ration-mou

Will the new liquidity rules, make changes to STI component stocks in near future?

Tighter liquidity rules for STI component stocks

SINGAPORE (May 29): Index partners Singapore Press Holdings ( Financial Dashboard), Singapore Exchange and FTSE Russell today announced tighter liquidity rules governing the selection of index constituents of the Straits Times Index (STI).

The current liquidity rule for the STI tests each security’s liquidity semi-annually in March and September by calculating its median daily trading per month.

To be eligible for inclusion, securities must turnover at least 0.05% of their shares in issue (after the application of any investability weightings) based on their median daily trade per month in 10 of the 12 months prior to the March or September review.

For existing STI constituents, securities must trade at least 0.04% of its shares in issue in 8 of the 12 months.

Under the new rule, securities must turnover at least 0.10% of their shares in issue (after the application of any investability weightings) based on their median daily trade per month in 10 of the 12 months prior to the March or September review.

For existing constituents, securities must trade at least 0.08% of its shares in issue in 8 of the 12 months.

This means STI component stocks will be required to have a higher percentage of their issued shares traded in a given period.

FTSE Russell, SGX and SPH recently undertook a market consultation to examine options to improve liquidity in the index.

A broad range of market participants were consulted from across the investment community, including asset owners and their consultants, asset managers and structured product providers.

“There was widespread support for a higher liquidity requirement for index stocks,” said the index partners in the joint filing.

The tighter liquidity requirement will not be applied to the other indices in the FTSE ST Index Series.

http://www.theedgemarkets.com/sg/article...ent-stocks

SGX performance on month of May.

I have divested at recent high, to rotate the fund into other better quality stocks.

(not vested)

SGX's securities turnover for May down 2% on year to $23 billion

SINAGPORE (June 3): Singapore Exchange reported growth in derivatives and commodities activities in May from a year earlier but securities trading declined.

Securities turnover was $23 billion, down 2% on year and 13% on month.

Daily average value of trading was $1.1 billion, down 2% on year and 9% on month.

May had 20 trading days while April had 21.

Total market capitalisation was $1.05 trillion, up 3% from a year earlier and unchanged month on month.

A total 38 bonds raising $14.6 billion were listed in May, including the $500 million retail bond from Frasers Centrepoint Limited.

The biggest bond listed was Perusahaan Penerbit SBSN Indonesia’s US$2 billion trust certificate.

Derivatives volume was 15.4 million contracts, up 89% from a year earlier but down 4% month on month.
...
http://www.theedgemarkets.com/sg/article...23-billion

haha doing so many bonds and even those from indonesia! did they forget that indonesia company can decide not to honor their bonds?

Wait next crash see the SGX reputation will be jialat liao...