Annual Report 2001/2002

Enhancement of Exchange Infrastructure

Significant enhancements to SGX’s infrastructure have been made over the last year.

In March 2001, SGX launched SGXAccess that provides global access to the Singapore securities market. This is an open interface trading facility based on a universally adopted messaging standard that enables SGX’s member firms to trade from anywhere in the world.

Last year, SGX also started an initiative to bring the Singapore securities market and its institutional participants to a Straight-Through-Processing (STP) environment, from trade execution to final settlement. An Industry Working Group (IWG), comprising members from various securities market sectors was set up to represent the market sector interests and to promote the implementation of STP within the securities industry. The IWG has completed the STP business case report and is proceeding with the implementation of the facility that will lower operating costs, reduce settlement risks and provide more timely risk management information.

In January 2002, SGX introduced its Securities Lending Facility. This facility gives market participants access to a ready source of lendable securities, and also provides investors with an avenue to earn additional fee income from their securities holdings. The establishment of the Securities Lending Facility will provide greater flexibility for investors who may wish to engage in a range of trading strategies. This will expand the breadth of trading activities and enhance the vibrancy of the capital markets in Singapore.

SGX is in the process of enhancing the facility to better meet market demand, and building up a wider and deeper pool of securities for lending.

On 1 July 2002, SGX has also announced plans to introduce an enhanced market data feed service for the securities market. This service will enable data vendors and other market participants to receive market data feed at higher speeds, as well as increase the depth of order book dissemination to third parties. The availability of more comprehensive price information will enable investors to get a better picture of market depth, and of market reaction to their transactions. This improves market transparency and efficiency.

[Liberalisation] [Liberalisation of Stockbroking Industry] [Equity and Derivatives Markets] [Debt Market] [E-Financial Services and E-Commerce] [Recent Developments in Electronic Payments] [Financial Services Development Fund] [Enhancement of Exchange Infrastructure] [Dialogue Sessions with Industry] [Technology in Finance Dialogue Sessions]

[Regulatory Initiatives] [Developmental Initiatives] [Market Infrastructure]

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