Established on December 1, 1999, the Singapore Stock Exchange (SGX) is one of the newly established stock exchanges around the world. Stock exchanges have existed in Singapore since the early 1900s. Yet, the Singapore Stock Exchange was a result of the merger of two well-established financial institutions. These institutions were the Singapore International Monetary Exchange (SIMEX) and the Stock Exchange of Singapore (SES).
The SIMEX was established in 1984 as a futures exchange. On the other hand, the SES traded stocks. In 1998, the SES had almost S$300 billion worth of market capitalization, with 307 companies listed in the exchange.
The Singapore Stock Exchange, though newly established, was the first demutualized and integrated derivatives and securities exchange in the whole Asia-Pacific. In Asia, it was also the first stock exchange that traded equity index futures.
In 2000, it became the first exchange in Asia-Pacific to be listed through the public offer and private placement. Most of the revenues of the SGX come from the securities market and derivatives market.
The goal of the SGX is to build an Asian Gateway for the trading of securities and derivatives. Some years after the merger, the SGX acquired strategic investment in the Bombay Stock Exchange and Abu Dhabi Securities Market. The SGX also has a joint venture with the Chicago Mercantile Exchange. It has also formed good business relations with the Tokyo Stock Exchange.
There are two main indices used the SGX. These are the Strait Times Index and the MSCI Singapore Free Index.
Fully automated, the SGX trade several types of products on the exchange. These include warrants, real estate investment trusts, equities, exchange traded funds, bonds, debentures and loan stocks, depository receipts and infrastructure funds.
Derivative products traded on the International Market include structured warrants, short term interest rate futures and options on futures, long term interest rate futures and options on futures, single stock futures and equity index futures and options on futures.
If you want to know more about the SGX, you should check their official website and read more about Singapore's stock market.
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