SGX to boost derivatives in multi-asset strategy
Singapore Exchange (SGX) aims to add products to its lucrative derivatives business and offer South-east Asian unicorns a platform to list shares and bonds, in a multi-asset strategy aimed at sustaining growth, its chief executive said.
"There's always the focus around IPOs and associated capital markets but today, participants on our exchange look beyond just the stock market," said Mr Loh Boon Chye.
"They think about us as a derivatives, foreign exchange, commodities and freight market and also increasingly a fixed income market."
SGX's multi-asset strategy comes as the bourse is overshadowed by Chinese-led multi-billion-dollar fund-raising at Hong Kong Exchanges and Clearing (HKEX).
Average daily securities turnover at SGX was US$791 million (S$1.1 billion) last month while the figure was US$12.4 billion for HKEX, data from Refinitiv shows.
"IPO is not a destination, it is only a process. Our secondary fund-raising typically is three to four times of the IPO market," said Mr Loh.
Bond listings are also a key part of SGX's offerings, he said.
SGX's revenue from the trading of equities, commodities and foreign exchange derivatives jumped 30 per cent in June-March, making up 50 per cent of the total. Revenue from its equities and fixed income segment fell 16 per cent and accounted for 39 per cent.
"We will be looking to launch single stock futures. We have that on India and will look to launch more, not just on our Singapore market..." said Mr Loh. - REUTERS
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