What is the Stock Exchange of Singapore (SGX)?
(SGX) is a full-service stock, bond, derivative, commodity and currency exchange. The exchange was created in 1999 as a result of the Stock Exchange of Singapore, the Singapore International Monetary Exchange, and the combination of three separate entities: the Stock Exchange and a computer services company.
In 2000, the Stock Exchange of Singapore listed its shares on the public investor and completed the acquisition of the Stock Exchange of Singapore in 2008.
- The Stock Exchange of Singapore (SGX) is Singapore’s leading asset exchange.
- Since the acquisition of the Stock Exchange of Singapore in 2008, SGX has listed forex and commodities, as well as equities, fixed income and options contracts.
- Although SGX is located in Singapore, it owns several regional exchanges around the world and operates globally.
Understand the Stock Exchange of Singapore
The Stock Exchange of Singapore (SGX) provides trading, clearing, settlement, storage and market data services for thousands of securities. According to the 2017 Annual Report, it operates the largest stock exchange in Southeast Asia. As of the end of June 2017, the market capitalization of listed shares has exceeded S $ 1 trillion and nearly 40% of issuers are based outside Singapore. Some exchanges are facilitating new financing through Catalyst, a platform for start-ups seeking equity financing to fund rapid growth. The Stock Exchange of Singapore also prides itself on being the world’s most liquid offshore market for equity index derivatives covering the major economies of Asia.
The exchange is expanding its global reach through its partnership with Bombay Stock Exchange shares and Nasdaq OMX, and has had serious discussions with the Australian and London Stock Exchanges in the past regarding the merger. As e-commerce becomes more globalized, active management of exchanges continuously aims to expand its business through partnerships or cross-shareholdings.
Listed on the Stock Exchange of Singapore
Real estate, banks, shipping and oil and gas companies dominate the exchange’s mainboard list (excluding catalysts) in terms of numbers, but they have important representatives in the consumer staple and healthcare sectors. As of the end of 2017, there are about 750 listed companies. Prudential, a member of the Jardine Group, Development Bank of Singapore, Singtel, Global Logistics, OCBC Bank, and Hong Kong Land are among the top companies in terms of market capitalization.
In 2018, SGX announced partnerships with Nasdaq, Deloitte and the Monetary Authority of Singapore (MAS) to consider implementing blockchain technology to increase the efficiency and fidelity of tokenized assets. In a press release, the SGX Chair said: “This initiative introduces blockchain technology to effectively link money transfers and securities transfers, eliminating the risk of both buyers and sellers in the DvP process. This is a reality that benefits the ecosystem. It’s a joint innovation that brings together multiple players to pursue world opportunities. “ SGX later partnered with HSBC and Temesek to issue Asia’s first Olam International public syndicated digital bond in August 2020.