Singapore Exchange To Go Fully Electronic From October

by Mary Swire, for LawAndTax-News.com, Hong Kong

02 August 2006

Singapore Exchange Ltd (SGX) announced last week that it will consolidate all trading of the SGX Euroyen (TIBOR and LIBOR) futures and options on SGX QUEST from Monday, 2 October 2006.

Accordingly, the open outcry trading facility at SGX Centre will be closed on Friday, 29 September 2006 at the end of the business day.

In a statement, SGX explained that:

"We will also take this opportunity to close the open outcry pit for SGX Eurodollar futures and options. These contracts will continue to be available via the Negotiated Large Trade facility. The mutual offset arrangement (MOS) with the Chicago Mercantile Exchange will continue for all MOS designated contracts, namely Eurodollar, Euroyen (TIBOR and LIBOR) and Nikkei 225 futures contracts."

"The closure of the open outcry trading facility marks the successful conclusion of the electronic migration campaign that SGX started in November 2004. This brings to a close of almost two years of concerted effort by SGX and our market participants to synchronise the pace of our floor trading with the development of the electronic marketplace."

The shift from open outcry to electronic trading was undertaken in response to the changing market dynamics.

SGX CEO Hsieh Fu Hua observed that:

"The success of our electronic migration campaign has been made possible, in no small part, by our trading community. We thank all market participants for their support in embracing electronic trading. This represents the way forward for us to enhance global participation and to build a more competitive and enduring marketplace."

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