SGX to draw more traders with new market initiatives

Newly-appointed Senior Vice President and Head of Fixed Income, Ms Tng Kwee Lian, will take charge of the proposed trading improvements.

Singapore Exchange (SGX) on Thursday launched its first initiatives to enhance the listing, trading and distribution of fixed income products to build a more vibrant bond market in Asia, an SGX announcement said.

SGX appointed Ms Tng Kwee Lian as Senior Vice President and Head of Fixed Income.

Ms Tng, who hailed from UOB Asset Management where she worked as Head of Asian Fixed Income and has been with the finance industry for more than 15 years, is expected to take full responsibility for driving SGX’s initiatives including the promotion of bond trading to high-net worth and individual investors.

SGX said the initiatives include drawing more Singapore-listed companies and other organisations to issue bonds for listing and trading on SGX.

The listing and trading of fixed income securities such as preference shares and convertible bonds will also be encouraged. Moreover, SGX said it is also planning to halve the time taken to approve bond listings by streamlining the processes involved.

Mr Gan Seow Ann, President of SGX said, “As the Asian Gateway, SGX offers an unparalleled value proposition to issuers and investors of bonds. Issuers can leverage on our international distribution platform while market participants will have access to one of the world’s leading trading venues. We believe that our experience in developing successful stock and derivative markets will serve us well in our bond market efforts.”

SGX said it is expecting to offer an on-exchange secondary market for individual and institutional investors to trade Singapore Government Securities (SGS) by the first quarter of 2011.

SGX’s Central Depository has been a custodian of individual investors’ SGS holdings since 1 April 2010.

A total 1,229 bonds are currently listed on SGX. In FY2010, 200 bonds were listed involving programmes to raise over $100 billion, according to the SGX announcement.