Singapore Exchange (SGX)

I wonder if the low penetration rate is what saved most Singaporeans from the carnage of the 2008 IFC. Might not be a bad thing afterall.

An unsuccessful venture, but a good try...

Singapore Exchange to stop trading, clearing LME Metal futures

Singapore Exchange, Southeast Asia’s biggest bourse, plans to stop trading and clearing futures on three industrial metals after the contracts attracted little interest from customers.

SGX, which started trading the copper, zinc and aluminum futures in a joint venture with London Metal Exchange in February 2011, will make the products “dormant” pending approval from the the Monetary Authority of Singapore, according to an e-mailed statement from SGX in response to queries from Bloomberg News. The LME, the world’s largest metals bourse, will pursue other options for boosting volumes in Asia, according to a separate e-mailed statement from parent company Hong Kong Exchanges & Clearing.
...
http://www.theedgesingapore.com/the-dail...tures.html

(11-01-2014, 12:24 AM)Greenrookie Wrote: I am also not sure about the derivatives business, and if they have to bear the counter-party risk or if the brokers have the bear the risk? If it is the brokerages, at least SGX is actively pursing new revenues of growth.

There is an article in the edge btw

Here is what i understood from SGX AR13 (note 29):
- SGX DC's clearing fund has about 150mil of cash.
- All counterparties have to put up collateral. In 2013, collateral of 5.9bil was required and sufficiently covered by 5.9bil of cash and 1.2bil of quoted Gov securities.
- In the event of default of a single or multiple member/s, resources will be utilized as below sequence to meet obligations:
(1) defaulter's collateral, (2) the higher of '15% of SGX clearing fund or 136mil, (3) non-defaulting members who participate in the same derivative class as defaulter...(the list goes on)

These rules seem to suggest that the brokers pay for it when their customers default (ie. similar to how equity brokers do so). When brokers themselves default, SGX starts paying when the collateral is used up. Of course, these are the rules and frankly, i don't have the expertise to gauge its effectiveness. What i do recall is when MF Global went belly-up in late 2011, creditors had to wait for at least 2years before the first tranch of funds were released.

(16-01-2014, 03:12 PM)CityFarmer Wrote: An unsuccessful venture, but a good try...

Singapore Exchange to stop trading, clearing LME Metal futures

Singapore Exchange, Southeast Asia’s biggest bourse, plans to stop trading and clearing futures on three industrial metals after the contracts attracted little interest from customers.

SGX, which started trading the copper, zinc and aluminum futures in a joint venture with London Metal Exchange in February 2011, will make the products “dormant” pending approval from the the Monetary Authority of Singapore, according to an e-mailed statement from SGX in response to queries from Bloomberg News. The LME, the world’s largest metals bourse, will pursue other options for boosting volumes in Asia, according to a separate e-mailed statement from parent company Hong Kong Exchanges & Clearing.
...
http://www.theedgesingapore.com/the-dail...tures.html

lucky they didnt acquire LME the other time

(17-01-2014, 08:55 AM)toiletsiao Wrote:

(16-01-2014, 03:12 PM)CityFarmer Wrote: An unsuccessful venture, but a good try...

Singapore Exchange to stop trading, clearing LME Metal futures

Singapore Exchange, Southeast Asia’s biggest bourse, plans to stop trading and clearing futures on three industrial metals after the contracts attracted little interest from customers.

SGX, which started trading the copper, zinc and aluminum futures in a joint venture with London Metal Exchange in February 2011, will make the products “dormant” pending approval from the the Monetary Authority of Singapore, according to an e-mailed statement from SGX in response to queries from Bloomberg News. The LME, the world’s largest metals bourse, will pursue other options for boosting volumes in Asia, according to a separate e-mailed statement from parent company Hong Kong Exchanges & Clearing.
...
http://www.theedgesingapore.com/the-dail...tures.html

lucky they didnt acquire LME the other time

Yes, the unlucky one is HKEx...

SGX 2Q profit falls 1.8% as stock trading drops

Singapore Exchange, operator of Southeast Asia’s biggest bourse, said second-quarter profit fell 1.8% as a decline in equity trading volumes overshadowed an increase in derivative transactions.

Profit dropped to $75 million in the three months ended Dec. 31, compared with $76.3 million a year earlier, the bourse operator said in a statement. The company was expected to report a profit of $71 million, according to a median of seven analyst estimates in a Bloomberg survey.
...
http://www.theedgesingapore.com/the-dail...drops.html

Singapore stocks volume has been pretty bad for the entire year. In fact, the whole world's including NYSE volume has been low compared to historical average. It is not surprising that SGX profits were not stellar.

But SGX is effectively a monopoly that is unbreakable in Singapore (even SMRT or Singtel don't have the same degree of monopoly). Looking at the current drop, it does look attractive at the current price.

http://www.stokflok.com/content/what-price-monopoly


Simple valuation by one of a great contributor.

SGX revise fees

http://www.sgx.com/wps/portal/sgxweb/hom...s-revision

Dun have numbers, but nett nett, it should means higher clearing fees received when market is hot. Singapore penetration rate between retail investors are low, it's the institution play that are significant, and is easy to breach 1.5 million contract sum especially when blue chips are concerned. 100 lots of any counter above $15 would beach the cap

(07-02-2014, 08:20 PM)Greenrookie Wrote: SGX revise fees

http://www.sgx.com/wps/portal/sgxweb/hom...s-revision

Dun have numbers, but nett nett, it should means higher clearing fees received when market is hot. Singapore penetration rate between retail investors are low, it's the institution play that are significant, and is easy to breach 1.5 million contract sum especially when blue chips are concerned. 100 lots of any counter above $15 would beach the cap

The revision detail from announcement today. The most concern is the clearing fee, which is one of the major revenues of SGX.

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SGX to revise fees for securities market
Singapore Exchange (SGX) is revising the fee structure for its securities market to make trading more cost-efficient and to facilitate market making and improve liquidity in the market. The revisions to clearing and depository fees will be rolled out from 2 May 2014.
The change will encourage on-exchange trading, thereby enhancing liquidity, transparency and price discovery on the market.
The clearing fee will be reduced by one-fifth from 0.04% to 0.0325% of contract value. The cap of S$600 on this fee for contracts of $1.5 million, or more, will be removed.
Transfers and onward settlement fees, which are mainly levied on brokers and depository agents, will be revised to encourage on-exchange trades, thereby increasing transparency and liquidity, and consequently improving price discovery in the market. Transfers and onward settlements pursuant to on-exchange trades will be charged a fee of $30 and transfers and settlements pursuant to off-exchange trades will be charged a fee of 0.015% of the value of the transaction, subject to a minimum of $75.

Ref: http://infopub.sgx.com/FileOpen/20140207...eID=273778

seems like cheaper for small retailer investors like us?