Singapore Exchange (SGX) 2025: Comprehensive Overview, Key Features, and Market Insights
Explore the Singapore Exchange (SGX), Southeast Asia's leading trading platform for equities, fixed income, derivatives, and commodities. Discover how SGX operates, its global partnerships, and latest innovations in blockchain technology.
What is the Singapore Exchange (SGX)?
The Singapore Exchange (SGX) stands as Singapore’s premier financial marketplace, facilitating seamless trading across equities, fixed income, derivatives, commodities, and foreign exchange products. Established in 1999 through the merger of the Stock Exchange of Singapore, the Singapore International Monetary Exchange, and Securities Clearing and Computer Services Pte, SGX has grown into a comprehensive, full-service exchange.
In 2000, SGX went public, offering its shares to investors worldwide. The acquisition of the Singapore Commodity Exchange in 2008 further expanded its product offerings, solidifying its position as a multi-asset exchange.
Key Highlights of SGX
- SGX is the leading asset exchange in Singapore, providing extensive market access.
- It lists a diverse range of instruments including stocks, bonds, options, forex, and commodities.
- With strategic stakes in regional exchanges, SGX boasts a significant global footprint.
Understanding the Operations of SGX
SGX delivers a comprehensive suite of services including trading, clearing, settlement, custody, and market data for thousands of securities. According to its 2021 annual report, SGX operates the largest stock exchange in Southeast Asia, with a market capitalization surpassing S$900 billion and an average daily trading volume of S$1.35 billion.
The exchange supports emerging companies through Catalist, a platform designed to facilitate capital raising for fast-growing enterprises. SGX also markets itself as the world’s most liquid offshore market for equity index derivatives focused on major Asian economies.
Expanding its global reach, SGX holds equity in the Bombay Stock Exchange (BSE) and maintains a strategic partnership with Nasdaq, Inc. It has engaged in merger discussions with the Australian Securities Exchange (ASX) and London Stock Exchange (LSE), reflecting its commitment to global integration and growth.
Listings and Market Composition on SGX
The mainboard listings on SGX are dominated by sectors such as real estate, banking, shipping, and oil & gas, with notable representation from consumer staples and healthcare. As of 2021, SGX hosted 735 listed companies, including market leaders like DBS, Singtel, CapitalLandInvest, UOB, and YZJ Shipbuilding SGD.
In 2018, SGX partnered with Nasdaq, Deloitte, and the Monetary Authority of Singapore (MAS) to pioneer blockchain technology aimed at enhancing the efficiency and security of tokenized asset transfers. This initiative reduces risks in delivery versus payment (DvP) processes by integrating funds and securities transfers on a secure blockchain platform.
Furthering its innovation drive, SGX collaborated with HSBC and Temasek to successfully issue Asia’s first public syndicated digital bond for Olam International in August 2020, marking a significant milestone in digital finance.
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