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SGX to implement all-day trading from March 1

SGX to implement all-day trading from March 1

SINGAPORE: Market operator Singapore Exchange (SGX) will remove the 90-minute lunch break and will introduce continuous all day trading from 9am to 5pm from March 1.

SGX said in a statement that this will enhance access to companies listed on the exchange and its trading hours will also overlap more with those of other Asian exchanges.

The exchange added that this will allow investors, especially those who trade pan-Asian securities, to respond to regional market movements and news flow.

Analysts said this will translate into higher daily turnovers for the stock exchange.

With continuous trading hours, SGX said investors can react quickly to market news and price movements. It added with an extra 90 minutes of trading, daily trading volumes could rise by up to 12 per cent.

SGX is the latest stock exchange to do away with the lunch break. The SGX derivatives market is already trading continuously.

In Asia, the Korea Exchange, India’s National Stock Exchange and ASX have already embraced continuous all-day trading.

Other international exchanges such as New York Stock Exchange, NASDAQ and London Stock Exchange also operate non-stop all-day trading.

More recently, the Tokyo Stock Exchange and Hong Kong Exchanges and Clearing have announced plans to increase their trading hours.

The two exchanges cited the need to strengthen competitiveness and enhance convenience for investors.

SGX chief executive officer Magnus Bocker said that Singapore’s leading position as an international financial centre depends on its ability to stay nimble and meet customers’ needs.

Mr Bocker added that the continuous all-day securities trading will provide more avenues for participants to invest, hedge and arbitrage their investments.

He said: “This will make Singapore the most accessible market in Asia. And it will make us one of the most accessible markets in the world.”

To build a global capital market, SGX said that the move towards continuous trading is timely.

It added that based on the feedback received through public consultation, there is broad-based support from investors and the brokerage community.

Meanwhile, Securities Investors’ Association of Singapore (SIAS) welcomed SGX’s initiative to extend its trading hours over the lunch hour.

SIAS president and CEO David Gerald said that retail investors here will not have to sit and wait until lunch is over to manage their portfolio or risk, especially if they have invested in foreign-based products or shares.

SGX said it is working closely with the brokerage community to facilitate a smooth transition.

adapted from CNA/ac/al

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