Exchange-traded fund (ETF) dual currency trading will be available on the Singapore Exchange (SGX) from 15 June, letting investors trade foreign-currency denominated ETFs in Singapore dollars.
The initiative is part of SGX’s on-going efforts to give investors greater trading flexibility.
The ETFs will be fungible so that investors can trade the instruments in US or Singapore dollars regardless of the currency in which it was first bought or sold.
BlackRock’s iShares and CIMB-Principal Asset Management have agreed to offer cash-based full replication ETFs from their respective ranges, with a secondary trading counter in Singapore dollars.
Instruments available include: CIMB ASEAN 40 ETF, CIMB S&P Ethical Asia Pacific Dividend ETF, iShares Barclays Capital Asia Local Currency 1-3 Year Bond Index ETF, iShares Barclays Capital Asia Local Currency Bond Index ETF, iShares Barclays Capitial USD Asia High Yield Bond Index ETF, and iShares MSCI India Index ETF.
“With this new offering from SGX, investors can enjoy trading flexibility and cost efficiency while benefitting from investing in ETFs,” said Nels Friets, head of securities at SGX. “Issuers will also benefit from a wider pool of investors as those who prefer to trade in Singapore dollars enter the market.”
SGX introduced dual currency trading for securities on 22 March 2012. Hutchison Port Holdings Trust was the first listed company to launch dual currency units.