Jurisdiction - Singapore
Reports and Analysis
Singapore – Dual Currency Trading On The SGX.

30 April, 2012

 

Legal News & Analysis – Asia Pacific – Singapore  Capital Markets

 

On 22 March 2012, the Singapore Exchange (SGX) introduced dual currency trading which enables listed securities to be traded in two different currencies. This additional functionality on its trading engine aims to deliver greater cost efficiency to investors as they are able to trade foreign-denominated securities in their local currency.

 
With dual currency trading, a company can now choose for its listed security to be traded in any two different currency denominations. The securities will be fungible, i.e. an investor can buy and/or sell the security in any currency regardless of the currency in which it was first bought and/or sold.
 
Dual-currency listed shares will be consolidated in investors’ Central Depository (CDP) accounts so that the total number of shares can be viewed at a glance – for example, 1,000 US$-denominated shares and 2,000 S$-denominated shares will be reflected as 3,000 shares in the CDP account.
 
“The ability to trade in two currencies will improve the popularity of the relevant stock and enhance its trading,” said Marcus Chow, Partner, Corporate/Commercial practice group, ATMD Bird & Bird LLP.
 
 
For further information, please contact:
 

Marcus Chow, Partner, ATMD Bird & Bird

marcus.chow@twobirds.com

 

 

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