What Is the Singapore Exchange (SGX)?

The (SGX) is a full-service equities, fixed income, derivatives, commodities, and foreign currency exchange. The exchange came into formation from the 1999 combination of three separate entities — Stock Exchange of Singapore, Singapore International Monetary Exchange and Securities Clearing and Computer Services Pte. In 2000, the Singapore Exchange listed its shares for public investors and in 2008 it completed the acquisition of Singapore Commodity Exchange.

Understanding Singapore Exchange (SGX)

The Singapore Exchange (SGX) provides trading, clearing, settlement, custody and market data services for thousands of securities. According to its 2017 annual report, it operates the largest stock market exchange in Southeast Asia; the total market capitalization of listed equities exceeded S$1 trillion as of the end of June 2017, with close to 40% of issuers based outside Singapore. Part of the exchange promotes new capital raisings through Catalist, a platform for emerging companies that seek equity financing to fund their fast growth. The Singapore Exchange also bills itself as the world's most liquid offshore market for equity index derivatives covering major Asian economies. The exchange extends its global reach through an equity stake in the Bombay Stock Exchange and a partnership with Nasdaq OMX and has had serious discussions in the past with the Australian Securities Exchange and London Stock Exchange regarding mergers. With the increasing globalization of electronic exchanges, the proactive management of the exchange continuously looks to expand its business via partnerships or cross-ownership.

Major Listings on the Exchange

Real estate, banks, shipping, and oil & gas companies dominate the mainboard listings (excluding Catalist) on the exchange in terms of numbers, though there is significant representation in the consumer staples and healthcare sectors. As of the end of 2017, there was a total of around 750 listed companies. Prudential, Jardine Group members, Development Bank of Singapore, Singtel, Global Logistics, OCBC Bank and HongKong Land are among the top companies in terms of market capitalization.