Market infrastructure - Singapore

15.02.2019

Institutions and organisation

Singapore Exchange (SGX)

Formed in 1999 by the merger of the Stock Exchange of Singapore (SES) and the Singapore International Monetary Exchange Ltd. (SIMEX), the SGX is the only stock exchange in Singapore.

SGX provides trading, clearing and depository services for

  • Securities (equities, equity options, company warrants, covered warrants,exchange trade funds (ETFs), Real estate investment trusts (REITs), Business trusts, American Depository Receipts (ADRs), stapled securities
  • Fixed Income (Corporate Bonds, SGS bonds)
  • Derivatives

SGX operates:

  • Singapore Exchange Securities Trading Ltd (SGX-ST);
  • The Central Depository (Pte) Ltd (CDP);
  • Singapore Exchange Derivatives Trading Ltd (SGX-DT);
  • Singapore Exchange Derivatives Clearing Ltd (SGC-DC).

Trading takes place daily from Monday to Friday from 09:00 to 12:00 and 13:00 to 17:00.
The pre-open routine starts from 08:30 to 08:59. The pre-close routine starts from 17:00 to 17:04 or 17:05 and the non-cancel routine starts from 17:04 or 17:05 to 17:06.

Note: All times in this document are Singapore time unless otherwise stated.

CSD - The Central Depository (Pte) Ltd (CDP)

CDP provides depository, clearing and computerised book-entry settlement services.

Book-entry settlement is mandatory for all immobilised securities traded on SGX. Physical scrips cannot be used to settle a market transaction. Every deposited certificate is registered in CDP’s name and held in safekeeping with CDP’s designated custodian bank.

The account structure is, as follows:

  • Holdings of foreign investors may be kept in an omnibus account and/or segregated accounts;
  • Holdings of Singaporean citizens and residents must be kept in segregated accounts.

Central Bank - Monetary Authority of Singapore (MAS)

MAS is the de-facto central bank and administers the Banking Act, which governs the financial institutions that operate in Singapore.

Depository Agents

Custodian banks act as Depository Agents (DAs) for their clients. DAs must open one account with the CDP in the name of each of its clients. Such accounts are therefore not at final beneficiary level, but at the level of the custodian bank’s customer.

Regulatory structure

The Monetary Authority of Singapore (MAS)

The Singapore financial market is regulated by the Securities Industry Act (SIA) 1986.

MAS is responsible for the administration of the Securities Industry Act and sets the regulations provided in this act.

The Securities Industry Council (SIC)

SIC was established 1973 under the Securities Industry Act as an advisory and consultative body to the Ministry of Finance. The Minister of Finance appoints representatives from both the private and the public sectors as council members to advise on all matters concerning the securities industry.

The SIC administers and enforces the Singapore Code on Takeovers and Merger, which was introduced in 1992 to provide guidance on the principles of good business practice in these areas.