ROBUST, TRUSTED, AND
PURPOSEFUL FINANCIAL CENTRE
- A DYNAMIC AND PURPOSEFUL FINANCIAL CENTRE
- Attracting Institutional Investors
- Enhancing Risk Management Ecosystem
- Box 1: Insurance Vision 2020
- Box 2: Ongoing Efforts to Develop a Robust RMB Ecosystem
- Enhancing the RMB Ecosystem
- Strengthening Capital Market Linkages and Increasing Product Diversity
- Box 3: Growth of Singapore's International Financial Centre
- Developing Globally Competitive Talent for the Future
- Harnessing Technology and Innovation for Future Growth
A DYNAMIC AND PURPOSEFUL FINANCIAL CENTRE
STRENGTHENING CAPITAL MARKET LINKAGES AND INCREASING PRODUCT DIVERSITY
Corporate Debt Market
Singapore's corporate debt market registered 13% growth in 2014. The market attracted a diverse range of issuers across a broad range of bond issuance, including Lion City bonds, BASEL III-compliant Tier 1 securities and Islamic sukuks. In 2014, the total issuance of RMB bonds in Singapore exceeded RMB 35 billion, more than double from the year before.
Foreign Exchange and Listed Derivatives Markets
Singapore continued to grow strongly as a trading hub for FX, and financial and commodity derivatives. Average daily FX turnover volume in Singapore grew by 40% to US$478 billion in October 2014 according to the Singapore Foreign Exchange Market Committee survey, compared to US$344 billion in October 2013. Total futures and options volume on SGX in 2014 also increased 7.4% to hit a new high of 120 million contracts over the same period. Notably, SGX AsiaClear iron ore futures volume was 2 million contracts, more than 30 times the number of contracts a year earlier. FTSE China A50 futures volume almost doubled to 41 million contracts from 22 million contracts in 2013 and INR/USD FX futures trading totalled almost 600,000 contracts in 2014, following its launch in November 2013.
To serve investment and risk management needs in the Asian time zone, SGX launched a suite of Asian FX futures (USD/CNH, CNY/USD, THB/USD, USD/JPY) and a series of new commodity derivatives (electricity and gold futures). SGX's equity index futures also did well, with turnover in the China A-50 futures hitting new highs. The MSCI Malaysia Index futures was also launched in Q1 2015, adding to a suite of 14 regional equity derivatives indexes available for trading on SGX.
In 2014, MAS, in conjunction with ASEAN securities regulators, central banks and exchanges, developed a blueprint for the establishment of post-trade (i.e. clearing, depository and settlement) linkages. The vision is to build linkages between ASEAN exchanges that will reduce post-trade costs and counterparty risks arising from the current practice of using multiple brokers for cross-border ASEAN trades. With these linkages, an investor can use a single domestic account to invest in stocks listed on other ASEAN exchanges. The blueprint was welcomed by the ASEAN Finance Ministers at the 18th ASEAN Finance Ministers' Meeting in April 2014. The ASEAN Capital Markets Infrastructure (ACMI) Taskforce was also formally set up at the ASEAN Capital Market Forum (comprising the various ASEAN securities commission heads) in September 2014 to implement the post-trade linkages.
Strengthening the Real Estate Investment Trust Market
In October 2014, MAS published a consultation paper on proposals to strengthen the transparency and corporate governance of Singapore's real estate investment trust (REIT) market and instil greater investor confidence in the REIT market. The final proposals took into account views and suggestions from industry stakeholders.