Asian trading venue the Singapore Stock Exchange (SGX) is consulting market participants on a proposal to introduce continuous all-day trading on its securities market.
Under the plans, SGX's securities market would be open for trading from 9.00am to 5.00pm Singapore time, eliminating the current 90-minute lunch break which starts at 12.30pm. The introduction of continuous all-day trading on the exchange is being considered as part of efforts to make SGX the most active international exchange in the region.
Other major exchanges such as NYSE Euronext, NASDAQ, the London Stock Exchange, Deutsche Börse and the Australian Stock Exchange already have continuous all-day trading. In July, the Tokyo Stock Exchange released proposals for lengthening its trading day. SGX extended the opening hours of its derivatives market in August.
SGX's proposed new opening hours would increase overlap with other Asian exchanges, potentially providing investors with additional opportunities to trade SGX-listed international securities while the underlying markets are open, as well as the ability to respond to news flow on changing market conditions in a more timely fashion. International issuers currently contribute more than 40% of SGX's market capitalisation on the securities market.
The exchange recently announced its intention to quote and trade American depositary receipts from 22 October. Earlier this year, SGX unveiled a S$250 million (US$195 million)
technology investment that will reduce roundtrip times to below 250 milliseconds.
The consultation paper on the proposal for all-day trading on SGX is open until 9 November 2010 and can be accessed via the exchange's website.