merge history subsections, move a few sections to independent sections. replace dead link
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The '''Singapore Exchange Limited''' ('''SGX''') is a [[Singapore]]an investment holding company. It provides a range of listing, trading, clearing, custody and other services related to securities, derivatives, and other products.<ref name="SGX invests 250 million">{{Citation | publisher = [[World Federation of Exchanges|WFE]] | title = SGX invests $250 million to offer fastest access to Asia | url = http://www.world-exchanges.org/news-views/news/sgx-invests-250-million-offer-fastest-access-asia | access-date=21 October 2010|archive-url=https://web.archive.org/web/20110717174625/http://www.world-exchanges.org/news-views/news/sgx-invests-250-million-offer-fastest-access-asia|archive-date =17 July 2011|url-status=dead}}</ref> SGX is also a member of the [[World Federation of Exchanges]]<ref name="World Federation of Exchanges">{{Citation |publisher=WFE |title=Singapore Exchange |url=http://www.world-exchanges.org/member-exchanges/member-exchanges/singapore-exchange |archive-url=https://web.archive.org/web/20110717174536/http://www.world-exchanges.org/member-exchanges/member-exchanges/singapore-exchange |archive-date=17 July 2011 |access-date=21 September 2010 |url-status=live }}</ref> and the [[Asian and Oceanian Stock Exchanges Federation]].<ref name="SGX invests 250 million"/> |
The '''Singapore Exchange Limited''' ('''SGX''') is a [[Singapore]]an investment holding company. It provides a range of listing, trading, clearing, custody and other services related to securities, derivatives, and other products.<ref name="SGX invests 250 million">{{Citation | publisher = [[World Federation of Exchanges|WFE]] | title = SGX invests $250 million to offer fastest access to Asia | url = http://www.world-exchanges.org/news-views/news/sgx-invests-250-million-offer-fastest-access-asia | access-date=21 October 2010|archive-url=https://web.archive.org/web/20110717174625/http://www.world-exchanges.org/news-views/news/sgx-invests-250-million-offer-fastest-access-asia|archive-date =17 July 2011|url-status=dead}}</ref> SGX is also a member of the [[World Federation of Exchanges]]<ref name="World Federation of Exchanges">{{Citation |publisher=WFE |title=Singapore Exchange |url=http://www.world-exchanges.org/member-exchanges/member-exchanges/singapore-exchange |archive-url=https://web.archive.org/web/20110717174536/http://www.world-exchanges.org/member-exchanges/member-exchanges/singapore-exchange |archive-date=17 July 2011 |access-date=21 September 2010 |url-status=live }}</ref> and the [[Asian and Oceanian Stock Exchanges Federation]].<ref name="SGX invests 250 million"/> |
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== Structure == |
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⚫ | SGX operates several different divisions, each responsible for handling specific businesses. |
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* SGX ETS (Electronic Trading System): provides global trading access to SGX markets where 80 percent of the customers are from outside Singapore.<ref>{{cite book | |
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⚫ | * SGX DT (Derivatives Trading): provides derivatives trading.<ref name="SGX invests 250 million"/> |
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* SGX ST (Securities Trading): provides securities trading.<ref name="SGX-ST">{{Citation | |
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⚫ |
* SGX DC (Derivatives Clearing): subsidiary for clearing and settlement operations.<ref name="SGX-DC">{{Cite book | |
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| year = 2005 | location = Singapore | page = 248 | url = https://books.google.com/books?id=lAChksdNj0MC&q=singapore+exchange+derivatives+clearing&pg=PA274 | isbn = 978-9971-69-314-5}}</ref> |
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* SGX AsiaClear: offers clearing services for over-the-counter (OTC) oil swaps and forward freight agreements.<ref name="About SGX AsiaClear">{{Citation | |
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⚫ | * SGX Reach: an electronic trading platform.<ref name="SGX invests 250 million"/> |
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⚫ | * Central Depository Pte Ltd: subsidiary responsible for securities clearing, settlement and depository services.<ref name="SGX invests 250 million"/> |
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⚫ | * Asian Gateway Investments Pte Ltd: wholly owned subsidiary |
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* Singapore Exchange IT Solutions Pte Ltd: provides computer services and maintenance as well as software maintenance<ref>{{Citation | |
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The companies listed on SGX belong to one of two groups: the companies listed on the SGX Mainboard and the companies listed on SGX [[Nasdaq|NASDAQ]]. In order to be listed on the mainboard, a company has to fulfill some requirements set forth by SGX, while a listing on NASDAQ is not tied to the fulfillment of any additional conditions.<ref name="SGX invests 250 million"/> SESDAQ was replaced on 26 November 2007 by the SGX Catalist after an extensive study of other market models and a public consultation in May 2007.<ref name="auto">{{Cite web |
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The exchange launched SGX QUEST (SGX Quotation and Execution System) in August 2004. The system is used by the exchange for derivatives and securities trading.<ref name="SGXadopts">{{Citation | |
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== History == |
== History == |
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On 23 November 2000, SGX became the third exchange in Asia-Pacific to be listed via a public offer and a private placement after Australian Securities Exchange; which listed in 1998 and Hong Kong Stock Exchange earlier in 2000.<ref>{{cite web |url=https://eresources.nlb.gov.sg/newspapers/Digitised/Article/today20001123-1.2.8.4 |title=Singapore Exchange shares expected to make shining debut |website=Today (retrieved from NLB) |date=23 November 2000 |access-date=2 October 2019}}</ref> Listed on its own bourse, the SGX stock is a component of benchmark indices such as the [[MSCI]] Singapore Free Index and the [[Straits Times Index]]. |
On 23 November 2000, SGX became the third exchange in Asia-Pacific to be listed via a public offer and a private placement after Australian Securities Exchange; which listed in 1998 and Hong Kong Stock Exchange earlier in 2000.<ref>{{cite web |url=https://eresources.nlb.gov.sg/newspapers/Digitised/Article/today20001123-1.2.8.4 |title=Singapore Exchange shares expected to make shining debut |website=Today (retrieved from NLB) |date=23 November 2000 |access-date=2 October 2019}}</ref> Listed on its own bourse, the SGX stock is a component of benchmark indices such as the [[MSCI]] Singapore Free Index and the [[Straits Times Index]]. |
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On 25 September 2006, the Joint Asian Derivatives Exchange (JADE), a joint venture between SGX and [[Chicago Board of Trade]] (CBOT) became operational.<ref name="JADE begins trade">{{Citation|publisher=CME Group |title=JADE Begins Trading With TSR 20 Rubber Futures Contract |url=http://cmegroup.mediaroom.com/index.php?s=43&item=464&pagetemplate=article |access-date=1 October 2010 |url-status=dead |archive-url=https://web.archive.org/web/20110714065322/http://cmegroup.mediaroom.com/index.php?s=43&item=464&pagetemplate=article |archive-date=14 July 2011 }}</ref> However, this joint venture was cancelled in November 2007, with CME Groups selling of its 50% stake in the joint venture to SGX. The contracts previously traded on JADE were transferred to SGX's QUEST trading platform.<ref name="SGX invests 250 million"/> |
On 25 September 2006, the Joint Asian Derivatives Exchange (JADE), a joint venture between SGX and [[Chicago Board of Trade]] (CBOT) became operational.<ref name="JADE begins trade">{{Citation|publisher=CME Group |title=JADE Begins Trading With TSR 20 Rubber Futures Contract |url=http://cmegroup.mediaroom.com/index.php?s=43&item=464&pagetemplate=article |access-date=1 October 2010 |url-status=dead |archive-url=https://web.archive.org/web/20110714065322/http://cmegroup.mediaroom.com/index.php?s=43&item=464&pagetemplate=article |archive-date=14 July 2011 }}</ref> However, this joint venture was cancelled in November 2007, with CME Groups selling of its 50% stake in the joint venture to SGX. The contracts previously traded on JADE were transferred to SGX's QUEST trading platform.<ref name="SGX invests 250 million" /> |
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In March 2007, SGX bought a 5% stake in [[Bombay Stock Exchange]] for 42.7 million dollars.<ref name="BSE sells stake">{{Citation |last=Timmons |first=Heather |title=Bombay Stock Exchange sells 5% stake to Singapore Exchange |date=7 March 2007 |url=https://www.nytimes.com/2007/03/07/business/worldbusiness/07iht-exchange.4824769.html?_r=1 |work=The New York Times |access-date=1 October 2010 |archive-url=https://www.webcitation.org/6AOgZqnKB?url=http://www.nytimes.com/2007/03/07/business/worldbusiness/07iht-exchange.4824769.html?_r=2 |url-status=dead |archive-date=3 September 2012}}</ref> |
In March 2007, SGX bought a 5% stake in [[Bombay Stock Exchange]] for 42.7 million dollars.<ref name="BSE sells stake">{{Citation |last=Timmons |first=Heather |title=Bombay Stock Exchange sells 5% stake to Singapore Exchange |date=7 March 2007 |url=https://www.nytimes.com/2007/03/07/business/worldbusiness/07iht-exchange.4824769.html?_r=1 |work=The New York Times |access-date=1 October 2010 |archive-url=https://www.webcitation.org/6AOgZqnKB?url=http://www.nytimes.com/2007/03/07/business/worldbusiness/07iht-exchange.4824769.html?_r=2 |url-status=dead |archive-date=3 September 2012}}</ref> |
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On 21 January 2020, Singapore Exchange (SGX) was listed in the Bloomberg Gender-Equality Index (GEI) for the first time in recognition of [[gender equality]], as well as its commitment to diversity and board representation.<ref>{{cite web |last1=Seow |first1=Joanna |date=21 January 2020 |title=5 Singapore firms make it to global stock index recognising good gender equality data, policies |url=https://www.straitstimes.com/singapore/manpower/5-singapore-firms-make-it-to-global-stock-index-recognising-good-gender-equality |access-date=23 July 2020 |website=The Straits Times}}</ref> |
On 21 January 2020, Singapore Exchange (SGX) was listed in the Bloomberg Gender-Equality Index (GEI) for the first time in recognition of [[gender equality]], as well as its commitment to diversity and board representation.<ref>{{cite web |last1=Seow |first1=Joanna |date=21 January 2020 |title=5 Singapore firms make it to global stock index recognising good gender equality data, policies |url=https://www.straitstimes.com/singapore/manpower/5-singapore-firms-make-it-to-global-stock-index-recognising-good-gender-equality |access-date=23 July 2020 |website=The Straits Times}}</ref> |
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== |
=== Merger talks === |
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⚫ | SGX was in merger talks with [[Australian Securities Exchange]] (ASX), which would have created a bourse with a market value of US$14 billion had the deal been successful.<ref>{{cite web |title=SGX, Australian stock exchange in merger talks |url=http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1088705/1/.html |url-status=live |archive-url=https://archive.today/20101025025713/http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1088705/1/.html |archive-date=25 October 2010 |access-date=22 October 2010 |publisher=[[CNA (TV network)|Channel NewsAsia]]}}</ref><ref>[https://www.bbc.co.uk/news/business-11617113 Singapore stock exchange bids $8.3bn for Australian ASX] {{webarchive|url=https://web.archive.org/web/20110519185721/http://www.bbc.co.uk/news/business-11617113|date=19 May 2011}}</ref> The [[Australian Competition & Consumer Commission]] said on 15 December 2010 that it would not oppose SGXs takeover of ASX.<ref>{{cite web |title=ACCC clears proposed acquisition of ASX by Singapore Exchange |url=http://www.accc.gov.au/content/index.phtml/itemId/962113 |url-status=live |archive-url=https://web.archive.org/web/20110622003011/http://www.accc.gov.au/content/index.phtml/itemId/962113 |archive-date=22 June 2011 |access-date=7 January 2011 |publisher=[[Australian Competition & Consumer Commission]]}}</ref> |
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⚫ | As of 31 January 2010, SGX had 774 listed companies with a combined market capitalization of S$650 billion. The revenues of SGX are mainly from the [[securities market]] (75%) and [[derivatives market]] (25%). |
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⚫ | SGX's plans to buy ASX have drawn criticism from the [[Tokyo Stock Exchange]], which is the second largest shareholder in SGX. A representative of the TSE said SGX's bid for ASX "would flag off a race to consolidate".<ref>{{cite web |title=Singapore's bid to buy stock exchange stings Australia's prestige |url=http://www.chinapost.com.tw/commentary/dpa/2010/10/28/277776/Singapores-bid.htm |url-status=live |archive-url=https://web.archive.org/web/20120929215729/http://www.chinapost.com.tw/commentary/dpa/2010/10/28/277776/Singapores-bid.htm |archive-date=29 September 2012 |access-date=19 March 2011 |website=[[China Post]]}}</ref> TSE chief Atsushi Saito fears isolation of the Tokyo Stock Exchange as a result of the takeover.<ref>{{cite web |title=Tokyo fears stock exchange merger plan |url=http://australianetworknews.com/stories/201010/3049862.htm |url-status=dead |archive-url=https://web.archive.org/web/20120314104131/http://australianetworknews.com/stories/201010/3049862.htm |archive-date=14 March 2012 |access-date=19 March 2011}}</ref> |
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⚫ | SGX reported a net profit of $165.8 million for the first half of its financial year 2010. Excluding non-recurring items, net profit was 7% higher compared to 1H FY2009 ($159.2 million). In the second quarter of the financial year 2010, excluding the non-recurring items, net profit of $77.0 million was 3% higher than a year ago. Operating revenue increased 6% to $324.0 million (1H FY2009: $304.9 million). {{Citation needed|date=September 2010}} |
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⚫ | SGX revised its initial takeover proposal in an attempt to overcome some of the opposition to the plans. This would have decreased the number of Singaporean citizens on the board of the combined company and would have given addition seats to Australians.<ref>{{cite web |author=Shani Raja |author2=Sarah Jones |date=15 February 2011 |title=Singapore Exchange Recasts ASX Bid to Fight Lawmaker Opposition |url=http://www.businessweek.com/news/2011-02-15/singapore-exchange-recasts-asx-bid-to-fight-lawmaker-opposition.html |url-status=dead |archive-url=https://www.webcitation.org/5zEEPFKW3?url=http://www.businessweek.com/news/2011-02-15/singapore-exchange-recasts-asx-bid-to-fight-lawmaker-opposition.html |archive-date=6 June 2011 |access-date=18 April 2011 |publisher=Bloomberg}}</ref> However, on 8 April 2011, the [[Treasurer of Australia]], [[Wayne Swan]], made the decision to block the merger between the two exchanges. Upon the announcement that the federal government would block the merger, SGX retracted its bid for ASX shares and decided to seek growth opportunities elsewhere.<ref>{{cite web |title=SGX eyes other opportunities |url=http://www.channelnewsasia.com/stories/afp_singapore_business/view/1121452/1/.html |access-date=10 April 2011 |publisher=Channel NewsAsia}}</ref> |
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== Corporate governance code == |
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⚫ | Numerous guidelines are set to be shifted to SGX Listing Rules. At least one-third of the board members are to be independent directors. The shareholding threshold for assessing director independence has been lowered to 5% from 10%. A director will no longer be independent if he or any immediate family member is a substantial shareholder with a 5% stake or more. Relationships between chairman and CEO must be disclosed if they are immediate family members. There will be a proposed 9 year limit on independent directors as a hard limit, or the appointment of independent directors who have served more than nine years to be put to an annual vote requiring approval from majority of all shareholders and majority of non-controlling shareholders, with a transition period of three years to be provided regardless of the option adopted. Directors must be submitted for renomination and reappointment at least once every three years. If dividends are not paid, companies must state the reason. |
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⚫ | As of July 2012, SGX was in merger talks with the [[London Stock Exchange]] (LSE)<ref>{{cite news |last1=Mangan |first1=S. |last2=Armstrong |first2=R. |date=19 July 2012 |title=LSE, Singapore exchange in merger talks: report |agency=Reuters |url=https://www.reuters.com/article/us-lse-sgx-merger-idUSBRE86I1NA20120720 |url-status=live |access-date=30 August 2012 |archive-url=https://web.archive.org/web/20120725000945/http://www.reuters.com/article/2012/07/20/us-lse-sgx-merger-idUSBRE86I1NA20120720 |archive-date=25 July 2012}}</ref> and the two exchanges already signed a cross trading agreement.<ref>{{cite web |date=11 July 2012 |title=SGX and LSE Sign Cross Trading Agreement |url=http://www.finanznachrichten.de/nachrichten-2012-07/24016388-sgx-and-lse-sign-cross-trading-agreement-011.htm |url-status=dead |archive-url=https://web.archive.org/web/20150102072010/http://www.finanznachrichten.de/nachrichten-2012-07/24016388-sgx-and-lse-sign-cross-trading-agreement-011.htm |archive-date=2 January 2015 |access-date=30 August 2012 |publisher=FinanzNachrichten.de}}</ref> However, on 20 July, SGX said there are no plans for a takeover of or merger with LSE.<ref>{{cite news |date=20 July 2012 |title=Singapore exchange denies LSE merger talks |agency=Reuters |url=https://www.reuters.com/article/us-lse-sgx-idUSBRE86J09E20120720 |url-status=live |access-date=4 September 2012 |archive-url=https://web.archive.org/web/20120723001804/http://www.reuters.com/article/2012/07/20/us-lse-sgx-idUSBRE86J09E20120720 |archive-date=23 July 2012}}</ref> |
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⚫ | The Corporate Governance Council of Singapore is proposing to force a "nine-year rule" that will reassess whether long-serving independent directors of listed companies will qualify as independent after being in that role for so long. The proposal was made in an effort to encourage companies to refresh and introduce more diversity into their boardrooms. The Singapore Exchange is seeking public feedback on whether it should be written into the Listing Rules, and public consultation will close on 15 March.<ref>{{Cite web |url=https://www.straitstimes.com/singapore/new-corporate-governance-rules-proposed |title=New corporate governance rules proposed |website=The Straits Times |access-date=18 October 2019 |date=17 January 2018}}</ref> |
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== Structure == |
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⚫ | SGX operates several different divisions, each responsible for handling specific businesses. |
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⚫ | * SGX ETS (Electronic Trading System): provides global trading access to SGX markets where 80 percent of the customers are from outside Singapore.<ref>{{cite book |last=Tan |first=Chwee Huat |url=https://books.google.com/books?id=KV72O4mQ-WwC&pg=PA140 |title=Singapore Financial and Business Sourcebook |publisher=Singapore University Press |year=2002 |isbn=978-9971-69-256-8 |page=140}}</ref> |
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⚫ | * SGX DT (Derivatives Trading): provides derivatives trading.<ref name="SGX invests 250 million" /> |
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⚫ | * SGX ST (Securities Trading): provides securities trading.<ref name="SGX-ST">{{Citation |title=Exchange: Singapore Exchange Securities Trading Limited (SGX-ST) |url=http://www.emoney.co.ir/files/products/cfd_sgx.pdf |access-date=24 November 2010 |publisher=emoney.co.ir}}{{dead link|date=January 2013}}</ref> |
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⚫ | * SGX DC (Derivatives Clearing): subsidiary for clearing and settlement operations.<ref name="SGX-DC">{{Cite book |last=Tan |first=Chwee Huat. |url=https://books.google.com/books?id=lAChksdNj0MC&q=singapore+exchange+derivatives+clearing&pg=PA274 |title=Financial markets and institutions in Singapore |publisher=Singapore University Press / NUS Publishing |year=2005 |isbn=978-9971-69-314-5 |edition=11th |location=Singapore |page=248}}</ref> |
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⚫ | * SGX AsiaClear: offers clearing services for over-the-counter (OTC) oil swaps and forward freight agreements.<ref name="About SGX AsiaClear">{{Citation |title=About SGX AsiaClear |url=http://www.asiaclear.com.sg/about/aboutus.shtml |access-date=12 October 2010 |archive-url=https://web.archive.org/web/20090529105910/http://www.asiaclear.com.sg/about/aboutus.shtml |publisher=Singapore Exchange Ltd |archive-date=29 May 2009}}</ref> |
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⚫ | * SGX Reach: an electronic trading platform.<ref name="SGX invests 250 million" /> |
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⚫ | * Central Depository Pte Ltd: subsidiary responsible for securities clearing, settlement and depository services.<ref name="SGX invests 250 million" /> |
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⚫ | * Asian Gateway Investments Pte Ltd: wholly owned subsidiary |
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⚫ | * Singapore Exchange IT Solutions Pte Ltd: provides computer services and maintenance as well as software maintenance<ref>{{Citation |title=The Asian Gateway Singapore Exchange Annual Report 2012 July 2011 – June 2012 |page=122 |year=2012 |series=Annual Report |chapter=Investments in Subsidiaries |chapter-url=http://info.sgx.com/listprosp.nsf/6c6be9506be8679f482574e4002cb6b3/d09f33151072886048257a690025b278/$FILE/ATTBW58T.pdf/Singapore%20Exchange%20Annual%20Report%202012.pdf |publisher=Singapore Exchange Ltd}}{{dead link|date=October 2017|bot=InternetArchiveBot|fix-attempted=yes}}</ref> |
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=== Merger talks with ASX === |
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⚫ | The companies listed on SGX belong to one of two groups: the companies listed on the SGX Mainboard and the companies listed on SGX [[Nasdaq|NASDAQ]]. In order to be listed on the mainboard, a company has to fulfill some requirements set forth by SGX, while a listing on NASDAQ is not tied to the fulfillment of any additional conditions.<ref name="SGX invests 250 million" /> SESDAQ was replaced on 26 November 2007 by the SGX Catalist after an extensive study of other market models and a public consultation in May 2007.<ref name="auto">{{Cite web |title=SGX Unveils Catalyst, Sponsor-Supervised Listing Platform For Fast-Growing Companies – Corporate/Commercial Law – Singapore |url=http://www.mondaq.com/x/56908/Company+Formation/SGX+Unveils+Catalist+SponsorSupervised+Listing+Platform+For+Fast+Growing+Companies |access-date=7 June 2018 |website=www.mondaq.com}}</ref> The word "Catalist" is an amalgamation of the words "Catalyst" and "List", to reflect the idea that the Catalist board could be used as a catalyst to propel growth upon listing.<ref name="auto" /> Catalist differs from SESDAQ primarily in its use of a sponsor system to determine a prospective company's suitability to list and as a corporate advisor to advise on listing and corporate governance issues.{{Citation needed|date=March 2023}} |
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⚫ |
SGX was in merger talks with [[Australian Securities Exchange]] (ASX), which would have created a bourse with a market value of US$14 billion had the deal been successful.<ref>{{cite web|title=SGX, Australian stock exchange in merger talks|url=http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1088705/1/.html |
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The [[Australian Competition & Consumer Commission]] said on 15 December 2010 that it would not oppose SGXs takeover of ASX.<ref>{{cite web |title=ACCC clears proposed acquisition of ASX by Singapore Exchange |url=http://www.accc.gov.au/content/index.phtml/itemId/962113 |publisher=[[Australian Competition & Consumer Commission]]|access-date=7 January 2011 |archive-url=https://web.archive.org/web/20110622003011/http://www.accc.gov.au/content/index.phtml/itemId/962113 |archive-date=22 June 2011 |url-status=live }}</ref> |
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⚫ | The exchange launched SGX QUEST (SGX Quotation and Execution System) in August 2004. The system is used by the exchange for derivatives and securities trading.<ref name="SGXadopts">{{Citation |title=Singapore Exchange adopts Financial Information eXchange Protocol to strengthen position in global financial markets |url=http://fixglobal.com/back_issues/Q4/ASIA%20PAC/Sing%20Ex%20adopts%20FIX.pdf |access-date=12 October 2010 |archive-url=https://web.archive.org/web/20081011050821/http://fixglobal.com/back_issues/Q4/ASIA%20PAC/Sing%20Ex%20adopts%20FIX.pdf |publisher=ASIA PAC |archive-date=11 October 2008}}</ref>Financial Performance |
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⚫ | As of 31 January 2010, SGX had 774 listed companies with a combined market capitalization of S$650 billion. The revenues of SGX are mainly from the [[securities market]] (75%) and [[derivatives market]] (25%). |
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==== Criticism from Tokyo Stock Exchange ==== |
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SGX's plans to buy ASX have drawn criticism from the [[Tokyo Stock Exchange]], which is the second largest shareholder in SGX. A representative of the TSE said SGX's bid for ASX "would flag off a race to consolidate".<ref>{{cite web |title=Singapore's bid to buy stock exchange stings Australia's prestige |url=http://www.chinapost.com.tw/commentary/dpa/2010/10/28/277776/Singapores-bid.htm | |
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⚫ | SGX reported a net profit of $165.8 million for the first half of its financial year 2010. Excluding non-recurring items, net profit was 7% higher compared to 1H FY2009 ($159.2 million). In the second quarter of the financial year 2010, excluding the non-recurring items, net profit of $77.0 million was 3% higher than a year ago. Operating revenue increased 6% to $324.0 million (1H FY2009: $304.9 million). {{Citation needed|date=September 2010}} |
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==== Revision of takeover proposal ==== |
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SGX revised its initial takeover proposal in an attempt to overcome some of the opposition to the plans. This would have decreased the number of Singaporean citizens on the board of the combined company and would have given addition seats to Australians.<ref>{{cite web |title=Singapore Exchange Recasts ASX Bid to Fight Lawmaker Opposition |url=http://www.businessweek.com/news/2011-02-15/singapore-exchange-recasts-asx-bid-to-fight-lawmaker-opposition.html | |
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== Corporate governance code == |
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⚫ | Numerous guidelines are set to be shifted to SGX Listing Rules. At least one-third of the board members are to be independent directors. The shareholding threshold for assessing director independence has been lowered to 5% from 10%. A director will no longer be independent if he or any immediate family member is a substantial shareholder with a 5% stake or more. Relationships between chairman and CEO must be disclosed if they are immediate family members. There will be a proposed 9 year limit on independent directors as a hard limit, or the appointment of independent directors who have served more than nine years to be put to an annual vote requiring approval from majority of all shareholders and majority of non-controlling shareholders, with a transition period of three years to be provided regardless of the option adopted. Directors must be submitted for renomination and reappointment at least once every three years. If dividends are not paid, companies must state the reason. |
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However, on 8 April 2011, the [[Treasurer of Australia]], [[Wayne Swan]], made the decision to block the merger between the two exchanges. Upon the announcement that the federal government would block the merger, SGX retracted its bid for ASX shares and decided to seek growth opportunities elsewhere.<ref>{{cite web|title=SGX eyes other opportunities|url=http://www.channelnewsasia.com/stories/afp_singapore_business/view/1121452/1/.html|publisher=Channel NewsAsia|access-date=10 April 2011}}</ref> |
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⚫ | The Corporate Governance Council of Singapore is proposing to force a "nine-year rule" that will reassess whether long-serving independent directors of listed companies will qualify as independent after being in that role for so long. The proposal was made in an effort to encourage companies to refresh and introduce more diversity into their boardrooms. The Singapore Exchange is seeking public feedback on whether it should be written into the Listing Rules, and public consultation will close on 15 March.<ref>{{Cite web |url=https://www.straitstimes.com/singapore/new-corporate-governance-rules-proposed |title=New corporate governance rules proposed |website=The Straits Times |access-date=18 October 2019 |date=17 January 2018}}</ref> |
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=== Cooperation and merger talks with LSE === |
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As of July 2012, SGX was in merger talks with the [[London Stock Exchange]] (LSE)<ref>{{cite news |last1=Mangan |first1=S. |last2=Armstrong |first2=R. |title=LSE, Singapore exchange in merger talks: report |url=https://www.reuters.com/article/us-lse-sgx-merger-idUSBRE86I1NA20120720 | |
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== Companies listed on Singapore Exchange == |
== Companies listed on Singapore Exchange == |
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The Singapore Exchange headquarters
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Type | Stock exchange |
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Location | SGX Centre, Singapore |
Founded | 1 December 1999; 24 years ago (1999-12-01) |
Key people | Koh Boon Hwee (Chairman)[1] Loh Boon Chye (CEO)[2] |
Currency | Singapore dollar & US dollar[3] |
No. of listings | 776 |
Market cap | SGD$9.87 billion[4] |
Website | sgx.com |
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SGX: S68 | |
Headquarters | |
Website | corp |
The Singapore Exchange Limited (SGX) is a Singaporean investment holding company. It provides a range of listing, trading, clearing, custody and other services related to securities, derivatives, and other products.[5] SGX is also a member of the World Federation of Exchanges[6] and the Asian and Oceanian Stock Exchanges Federation.[5]
SGX was formed on 1 December 1999 as a holding company. The share capital of some former exchange companies, namely Stock Exchange of Singapore (SES), Singapore International Monetary Exchange (SIMEX) that was founded in 1984 and Securities Clearing and Computer Services Pte Ltd (SCCS) was cancelled and new shares issued in these companies were fully paid up by SGX. In this way, all assets previously owned by these three companies were transferred to SGX. The shareholders previously holding shares in SES, SIMEX and SCCS received newly issued SGX shares.[7]
On 23 November 2000, SGX became the third exchange in Asia-Pacific to be listed via a public offer and a private placement after Australian Securities Exchange; which listed in 1998 and Hong Kong Stock Exchange earlier in 2000.[8] Listed on its own bourse, the SGX stock is a component of benchmark indices such as the MSCI Singapore Free Index and the Straits Times Index.
On 25 September 2006, the Joint Asian Derivatives Exchange (JADE), a joint venture between SGX and Chicago Board of Trade (CBOT) became operational.[9] However, this joint venture was cancelled in November 2007, with CME Groups selling of its 50% stake in the joint venture to SGX. The contracts previously traded on JADE were transferred to SGX's QUEST trading platform.[5]
In March 2007, SGX bought a 5% stake in Bombay Stock Exchange for 42.7 million dollars.[10]
On 15 June 2007, Tokyo Stock Exchange, Inc. announced that it had acquired a 4.99% stake in SGX.[11] Since then the value of the shares has declined and the Tokyo Stock Exchange, Inc. has made a decision to sell the shares it holds in SGX to its parent company, the Tokyo Stock Exchange Group, Inc.[5]
On 31 January 2008, SGX acquired a 20% stake in Philippine Dealing System Holdings Corp, which has become an associated company of SGX.[5]
On 18 April 2008, SGX opened a representative office in Beijing.[5]
At the beginning of 2008, SGX reached an agreement to buy at least 95% of Singapore Commodity Exchange. On 30 June 2008, SGX completed the acquisition of Singapore Commodity Exchange Ltd (SICOM), which now is a 100% subsidiary.[12][13][14][15]
In August 2009, SGX formed a joint venture with Chi-X Global, called Chi-East.[16] At the beginning of October 2010, this joint venture received approval from the Monetary Authority of Singapore to operate a dark pool trading platform.[17]
On 8 June 2010, SGX announced it has opened an office in London.[18][19][20] This is part of SGXs move to invest S$250 million into its Reach initiative.[21] By implementing this initiative, SGX plans to create the world's fastest trading engine and a data centre as well as further connecting trading communities in the world to Singapore. The new trading platform, SGX Reach, will be delivered to SGX by NASDAQ OMX, Voltaire and HP.[5] This platform is based on GENIUM, a trading platform developed by NASDAQ OMX.[22]
In November 2016 the Singapore Exchange (SGX) acquired the Baltic Exchange, headquartered in London.
In February 2011, SGX has entered a partnership with NASDAQ OMX to provide a suite of tools and solutions for companies, which is designed to support listed companies in Asia.[23]
SGX plan to introduce dual currency trading of securities — Which includes stocks, bonds and other listed investments in two different denominations, the Singapore and US dollar on 2 April 2012.[3]
In October 2013, excessive speculation led to the sharp price fall of three mainboard stocks, Blumont Group Ltd, Asiasons Capital Ltd. and LionGold Corp.[24] SGX and the Monetary Authority of Singapore (MAS) launched a review of activities around the three stocks, and in February 2014 jointly issued a consultation paper setting out a number of enhancements to strengthen the securities market and protect investors from speculative and market manipulative behavior.[25] Enhancements included implementing a minimum trading price for mainboard listed issuers, requiring reporting of short positions and the creation of three independent regulatory bodies.
On 6 February 2018, the Singapore Exchange (SGX) and Bursa Malaysia announced a proposed stock market trading link which will be operational by end-2018. The new link will allow investors to conduct trading of shares in an efficient manner. In addition to trading, the link will cover the clearing and settlement of traded stocks, procedures required for post-trading arrangements. Before the launch of the link, cross-border supervisory and enforcement arrangements will be worked upon by the Monetary Authority of Singapore and Securities Commission Malaysia.[26] After the results of the 2018 Malaysian general election, plans for the stock market link were put on hold.[27]
On 21 January 2020, Singapore Exchange (SGX) was listed in the Bloomberg Gender-Equality Index (GEI) for the first time in recognition of gender equality, as well as its commitment to diversity and board representation.[28]
SGX was in merger talks with Australian Securities Exchange (ASX), which would have created a bourse with a market value of US$14 billion had the deal been successful.[29][30] The Australian Competition & Consumer Commission said on 15 December 2010 that it would not oppose SGXs takeover of ASX.[31]
SGX's plans to buy ASX have drawn criticism from the Tokyo Stock Exchange, which is the second largest shareholder in SGX. A representative of the TSE said SGX's bid for ASX "would flag off a race to consolidate".[32] TSE chief Atsushi Saito fears isolation of the Tokyo Stock Exchange as a result of the takeover.[33]
SGX revised its initial takeover proposal in an attempt to overcome some of the opposition to the plans. This would have decreased the number of Singaporean citizens on the board of the combined company and would have given addition seats to Australians.[34] However, on 8 April 2011, the Treasurer of Australia, Wayne Swan, made the decision to block the merger between the two exchanges. Upon the announcement that the federal government would block the merger, SGX retracted its bid for ASX shares and decided to seek growth opportunities elsewhere.[35]
As of July 2012, SGX was in merger talks with the London Stock Exchange (LSE)[36] and the two exchanges already signed a cross trading agreement.[37] However, on 20 July, SGX said there are no plans for a takeover of or merger with LSE.[38]
SGX operates several different divisions, each responsible for handling specific businesses.
The companies listed on SGX belong to one of two groups: the companies listed on the SGX Mainboard and the companies listed on SGX NASDAQ. In order to be listed on the mainboard, a company has to fulfill some requirements set forth by SGX, while a listing on NASDAQ is not tied to the fulfillment of any additional conditions.[5] SESDAQ was replaced on 26 November 2007 by the SGX Catalist after an extensive study of other market models and a public consultation in May 2007.[44] The word "Catalist" is an amalgamation of the words "Catalyst" and "List", to reflect the idea that the Catalist board could be used as a catalyst to propel growth upon listing.[44] Catalist differs from SESDAQ primarily in its use of a sponsor system to determine a prospective company's suitability to list and as a corporate advisor to advise on listing and corporate governance issues.[citation needed]
The exchange launched SGX QUEST (SGX Quotation and Execution System) in August 2004. The system is used by the exchange for derivatives and securities trading.[45]Financial Performance
As of 31 January 2010, SGX had 774 listed companies with a combined market capitalization of S$650 billion. The revenues of SGX are mainly from the securities market (75%) and derivatives market (25%).
SGX reported a net profit of $165.8 million for the first half of its financial year 2010. Excluding non-recurring items, net profit was 7% higher compared to 1H FY2009 ($159.2 million). In the second quarter of the financial year 2010, excluding the non-recurring items, net profit of $77.0 million was 3% higher than a year ago. Operating revenue increased 6% to $324.0 million (1H FY2009: $304.9 million). [citation needed]
Numerous guidelines are set to be shifted to SGX Listing Rules. At least one-third of the board members are to be independent directors. The shareholding threshold for assessing director independence has been lowered to 5% from 10%. A director will no longer be independent if he or any immediate family member is a substantial shareholder with a 5% stake or more. Relationships between chairman and CEO must be disclosed if they are immediate family members. There will be a proposed 9 year limit on independent directors as a hard limit, or the appointment of independent directors who have served more than nine years to be put to an annual vote requiring approval from majority of all shareholders and majority of non-controlling shareholders, with a transition period of three years to be provided regardless of the option adopted. Directors must be submitted for renomination and reappointment at least once every three years. If dividends are not paid, companies must state the reason.
The Corporate Governance Council of Singapore is proposing to force a "nine-year rule" that will reassess whether long-serving independent directors of listed companies will qualify as independent after being in that role for so long. The proposal was made in an effort to encourage companies to refresh and introduce more diversity into their boardrooms. The Singapore Exchange is seeking public feedback on whether it should be written into the Listing Rules, and public consultation will close on 15 March.[46]
As of February 2022, there were 672 listed companies (excluding GDRs, Hedge Funds and Debt Securities) on the Singapore Exchange with a market capitalisation of SGD 899,124 million (roughly US$700 million).[47]
November 2015 | |
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Domestic Listings | 483 |
Foreign Listings
(excluding China) |
165 |
China Listings | 123 |
GDRs, Hedge Funds, and Debt Securities | 2 |
Total listings | 776 |
The following is a listing of the shareholders of Singapore Exchange Ltd holding at least 5 percent as of 3 August 2015:[48]
Note: Nominees service companies were excluded
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Associates |
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Affiliates |
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Correspondents |
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Previous |
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correct as of 3 January 2022 |
International |
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National |
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Academics |
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