Singapore Exchange To Build Market Portals In Chicago, London
14 March 2012 - 6:19AM
Dow Jones News
Singapore Exchange (S68.SG) said Tuesday that it plans to lure
far-flung computer driven traders to its markets, setting up local
connection points for firms in Chicago and London.
The trading hubs will enable electronic trading firms to access
Singapore-based markets through local data centers and are the
first in a series of such portals that the exchange operator is
considering, according to its chief executives.
"We want to see some volume first," said Magnus Bocker, CEO of
Singapore Exchange, speaking at an event on the sidelines of the
Futures Industry Association conference in Boca Raton.
A well-rounded offering of stock listings, derivatives markets
and trade-processing services has elevated the SGX into the top
tier of exchange companies globally. It has sought to position
itself as a gateway to Asian markets, leveraging Singapore's
more-flexible regulatory regime and the nation's position as a
regional center for risk management.
About 85% of SGX's trading volumes come from outside Singapore's
borders, according to Rama Pillai, deputy head of sales and clients
for the company. The figure is roughly split between Asia and the
western hemisphere, with the U.S., UK and Japan representing the
most business.
The new electronic trading portals, seen opening in April, are
aimed at foreign-based firms interested in trading SGX products but
wary of the cost of forging their own high-speed connections. They
come as part of a $250 million technology investment pushed by SGX,
which also includes a new data center and faster trading
engine.
Additional trading SGX trading hubs could be built in New York,
Tokyo, Hong Kong and Frankfurt, should the initial efforts prove
successful, Bocker said.
The SGX effort mirrors similar campaigns by U.S.-based rivals
like CME Group Inc. (CME) and NYSE Euronext (NYX), which have built
their own market portals designed to funnel trading from
overseas.
-By Jacob Bunge, Dow Jones Newswires; 312 750 4117;
jacob.bunge@dowjones.com
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