Singapore is making access for foreign investors even easier, with the Singapore Exchange (SGX) introducing dual currency trading.
The new provision allows listed securities to be traded in two different currencies.
SGX said the additional functionality on Reach – its trading engine – aims to deliver greater cost efficiency to investors who can now trade foreign securities denominated in their local currency.
“Dual currency trading can also apply to other listed securities such as exchange traded funds,” said Magnus Bocker, CEO of SGX. “It will benefit investors who can now choose to trade in their preferred currencies while companies and issuers can enjoy the flexibility and potential added liquidity of having its securities trading in two currencies.
Dual-currency listed shares will be consolidated in an investor’s Central Depository (CDP) account so the total number of shares can be viewed at a glance.
“As the Asian gateway, SGX will continue to find new ways to assist our issuers in fund raising, and investors in trading and risk management,” said Bocker.
With dual currency trading, companies can now choose for their listed security to be traded in any two different currency denominations. The securities will be fungible so that an investor can buy or sell the security in any currency, regardless of the currency in which it was first bought or sold.
Beginning trading 2 April, SGX said Hutchison Port Holdings Trust would be the first listed security to launch dual currency units, in US and Singapore dollars.