Singapore Exchange seeks high-frequency traders

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SGX1Singapore Exchange Ltd. (SGX), Southeast Asia’s biggest bourse operator, wants to lure more high-speed traders onto its stock market as it grapples with lower volume, Bloomberg reported.

Computerised trading firms, which execute transactions in fractions of a second, account for a negligible share of volume on Singapore Exchange’s cash equities market, according to bourse spokeswoman Loh Wei Ling, while they contribute 30 percent of revenue from derivatives. Singapore Exchange will seek to change that once it introduces safeguards, Chief Executive Officer Magnus Bocker said at a briefing.

High-frequency traders facilitate the majority of US equity transactions, where computerised firms have ample opportunity to profit from fleeting price discrepancies because transactions take place on more than 50 venues. Singapore isn’t as fragmented, which keeps computer traders away.

Bocker is seeking more business with the daily average value of equity trades down to about $1.2 billion in 2013, a 36 per cent plunge from 2007. He has been building the infrastructure and regulatory framework to attract high-speed traders. The bourse rolled out a $220 million trading platform in August 2011 that can execute transactions in 90 microseconds.

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Reading Time: 1 minute

Singapore Exchange Ltd. (SGX), Southeast Asia’s biggest bourse operator, wants to lure more high-speed traders onto its stock market as it grapples with lower volume, Bloomberg reported.

Reading Time: 1 minute

SGX1Singapore Exchange Ltd. (SGX), Southeast Asia’s biggest bourse operator, wants to lure more high-speed traders onto its stock market as it grapples with lower volume, Bloomberg reported.

Computerised trading firms, which execute transactions in fractions of a second, account for a negligible share of volume on Singapore Exchange’s cash equities market, according to bourse spokeswoman Loh Wei Ling, while they contribute 30 percent of revenue from derivatives. Singapore Exchange will seek to change that once it introduces safeguards, Chief Executive Officer Magnus Bocker said at a briefing.

High-frequency traders facilitate the majority of US equity transactions, where computerised firms have ample opportunity to profit from fleeting price discrepancies because transactions take place on more than 50 venues. Singapore isn’t as fragmented, which keeps computer traders away.

Bocker is seeking more business with the daily average value of equity trades down to about $1.2 billion in 2013, a 36 per cent plunge from 2007. He has been building the infrastructure and regulatory framework to attract high-speed traders. The bourse rolled out a $220 million trading platform in August 2011 that can execute transactions in 90 microseconds.

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