Singapore Exchange (SGX) Company Overview

　　

Founding Date and Background

　　The Singapore Exchange Limited (SGX) was established on December 1, 1999, through the merger of three entities: the Stock Exchange of Singapore (SES), the Singapore International Monetary Exchange (SIMEX), and the Securities Clearing and Computer Services Pte Ltd (SCCS). This merger aimed to create a more robust and comprehensive financial market platform in Singapore.

　　

Parent Company/Ownership Structure

　　SGX operates as a publicly traded company, listed on its own exchange under the ticker symbol SGX: S68. It is owned by a diverse group of shareholders, with the largest being institutional investors and nominee companies. As of June 30, 2022, the largest shareholders included SEL Holdings Pte Ltd (23.41%) and Citibank Nominees Singapore Pte Ltd (16.09%).

　　

Headquarters Location

　　The headquarters of SGX is located at 2 Shenton Way, #02-02, SGX Centre 1, Singapore 068804.

　　

Global Business Scope

　　SGX serves as a global financial hub, offering a wide range of services, including trading, clearing, settlement, and depository services across various asset classes, including equities, fixed income, derivatives, and commodities. More than 40% of the companies listed on SGX originate outside of Singapore, highlighting its international reach.

　　

Main Regulatory Bodies

　　SGX operates under the supervision of the Monetary Authority of Singapore (MAS), which is the primary regulatory authority for financial institutions in Singapore. Additionally, SGX is a member of the World Federation of Exchanges and the Asian and Oceanian Stock Exchanges Federation.

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Company History and Development

　　

Key Milestones

　　SGX has achieved several significant milestones since its founding:

• 2000: SGX became the third exchange in the Asia-Pacific region to be listed via a public offer.
• 2006: Launched Asia's first over-the-counter (OTC) clearing platform, SGX Asia Clear.
• 2008: Acquired the Singapore Commodity Exchange, expanding its offerings in commodities trading.
• 2016: Acquired the Baltic Exchange, further enhancing its position in the global maritime trading sector.

　　

Business Expansion Journey

　　SGX has continuously expanded its business through strategic acquisitions and partnerships. Notable expansions include the establishment of joint ventures, such as Chi-East with Chi-X Global, and partnerships with global exchanges like NASDAQ to enhance trading technologies and market accessibility.

　　

Customer Base Growth

　　Over the years, SGX has seen significant growth in its customer base, with approximately 80% of its trading customers based outside Singapore. This international clientele underscores SGX's reputation as a leading exchange in Asia.

　　

Platform Development History

　　The trading platform at SGX has evolved significantly, with the introduction of the SGX Reach platform, powered by NASDAQ OMX technology, which provides high-speed trading capabilities and access to a wide range of financial instruments.

　　

Important Awards or Recognitions Received

　　SGX has received various recognitions, including being listed in the Bloomberg Gender-Equality Index in 2020, which acknowledges its commitment to gender equality and diversity in the workplace.

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Trading Services Offered

　　

Forex Trading Options

　　SGX offers a range of forex trading options, allowing investors to trade multiple currency pairs. The exact number of currency pairs available can vary, but SGX provides access to major and minor currency pairs, catering to both retail and institutional traders.

　　

Stock Trading Options

　　SGX lists over 700 companies, providing investors with a diverse range of stock trading options. This includes domestic companies as well as international firms, with significant representation from sectors like finance, real estate, and consumer goods.

　　

CFD Trading Products

　　SGX offers Contracts for Difference (CFDs) on various underlying assets, allowing traders to speculate on price movements without owning the underlying asset. This includes CFDs on stocks, indices, and commodities.

　　

Other Financial Instruments

　　In addition to stocks and CFDs, SGX provides trading in various other financial instruments:

• Cryptocurrencies: SGX has begun exploring the integration of digital assets into its trading ecosystem.
• Commodities: SGX is known for its commodities trading, including futures contracts on rubber, energy, and metals.

　　

Special Services or Unique Advantages

　　SGX offers unique advantages such as:

• Integrated Trading and Clearing Services: SGX provides a seamless experience for trading and clearing, reducing counterparty risks.
• Access to Asia's Largest Offshore Futures Market: SGX is recognized for its extensive range of derivative products, including options and futures on interest rates and equity indices.

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Regulatory and Legal Background

　　

Detailed Regulatory Information

　　SGX is primarily regulated by the Monetary Authority of Singapore (MAS). Other regulatory bodies that oversee aspects of SGX's operations include:

• The World Federation of Exchanges
• The Asian and Oceanian Stock Exchanges Federation

　　

Legal Entity Structure by Region

　　SGX operates as a single legal entity in Singapore, with various subsidiaries that handle specific functions such as clearing (Central Depository Pte Ltd) and derivatives trading (SGX-DT).

　　

Client Fund Protection Measures

　　SGX has implemented various measures to protect client funds, including segregation of client assets and adherence to strict regulatory requirements set forth by MAS.

　　

Countries/Regions Served

　　SGX serves a global clientele, with significant participation from investors in Asia, Europe, and North America. Its international reach allows investors from various regions to access the Singapore market.

　　

Compliance History

　　SGX has maintained a strong compliance record, actively working with MAS and other regulatory bodies to ensure adherence to market regulations and standards.

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Competitive Landscape

　　

3-5 Main Competitors

　　SGX faces competition from several regional and international exchanges, including:

• Hong Kong Stock Exchange (HKEX): A major competitor in the Asian market, offering a wide range of products.
• Australian Securities Exchange (ASX): Competes with SGX for listings and trading volumes in the Asia-Pacific region.
• Tokyo Stock Exchange (TSE): Another significant player in the Asian exchange landscape.

　　

Positioning in the Industry

　　SGX positions itself as a leading exchange in Southeast Asia, emphasizing its international reach and diverse product offerings. It serves as a gateway for companies seeking access to capital markets in Asia.

　　

Market Differentiation Factors

　　SGX differentiates itself through:

• Diverse Product Range: Offering a wide array of financial instruments, including equities, derivatives, and commodities.
• Technological Advancements: Continuous investment in trading technology to enhance market efficiency and accessibility.
• Strong Regulatory Framework: Operating under the supervision of MAS, which instills confidence among investors.

　　In conclusion, the Singapore Exchange (SGX) stands as a prominent entity in the global financial landscape, driven by its commitment to innovation, regulatory compliance, and a diverse range of trading services. As it continues to evolve, SGX remains well-positioned to capitalize on growth opportunities in the dynamic Asian markets.

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　　For more information on SGX, learn more.