Singapore stock traders may eventually get their lunch break back.
PICTURE: ST FILE
Singapore Exchange Ltd, which runs the equity marketplace in the city, is contemplating reinstating the noon intermission, based on individuals familiar with the topic. SGX in 2011 trashed the rest, which continued from 12.30pm to 2pm every day, in an attempt to foster trading.
The bourse is expected to really have a public consultation on the matter in the forthcoming weeks, the people said, asking not to be identified as the info is private. SGX may also propose a test that will widen the cost increment at which shares are quoted to bring back, in line with the folks.
When SGX cut the noon rest, then-chief executive officer Magnus Bocker said in January 2011 the move would make Singapore “one of the very accessible markets in Asia and in the world”. Having constant trading from 9am to 5pm could improve volume by as much as 10 per cent, Mr Bocker said.
Many Asian stock markets have a noon rest, including mainland China, Hong Kong and Malaysia.
The daily average value of shares traded on SGX this year has increased 6.4 per cent, to US$809 million, compared with the average for 2016, according to data compiled by Bloomberg. While upward from this past year, it is down from the US$1.12 billion-a-day the marketplace found in 2013, the data reveal. SGX said in an emailed reply to queries that it does not comment on conjecture.
The exchange’s tick-size suggestion would reward agents for making markets in less liquid stocks by widening the spread when purchasing and selling shares, the folks said they bring in. Trading could support in small cap businesses, they said.
In the event the plan goes ahead, it’d be the third time in a decade that stock spreads have been tweaked by SGX. In 2011, it cut tick sizes to offer what it called “one of Asia’s most price-competitive trading surroundings”.
A similar move was made by it in 2007.
The US in October began a two-year evaluation that increased ticks amid criticisms from exchanges for small-firm stocks that liquidity has dried up.
Japan Exchange Group in December 2014 said it was backtracking on tick wounds for a number of the greatest firms because it neglected to get the increase it sought less than six months after it was executed.
SGX in 2015 cut trading unit, or the board lot size, investors needed to purchase from 1,000 to help to 100 make higher-priced shares simpler to more easy. This past year, it consulted on having at least 10 per cent of shares in the initial public offering of firms on its primary site to foster retail involvement.