SGX Proposes Additional Amendments To Minimum Bids Schedule

Singapore Exchange Limited (SGX) is inviting comments on additional proposed amendments to the minimum bids schedule for the SGX securities market. These amendments follow from the first public consultation paper issued on 20 February 2006.

The proposal aims to lower transaction costs and enhance market liquidity. This is in line with SGX’s efforts to improve market efficiency and foster a vibrant investing community.

In its proposal, SGX recommends the following revisions:

1. A reduction in the minimum bid sizes for securities¹ priced above $3.00, which reduces the bid-ask spread and transaction costs; and

2. An increased single tier forced order schedule for securities¹ to reflect the reduction in the minimum bid sizes.

¹ ‘securities’ exclude ETFs, bonds, debentures, loan stocks and those securities traded in Japanese Yen and Hong Kong Dollar.

The minimum bids schedule for the remaining SGX securities products will be implemented as stated in this consultation paper.

The consultation paper, which explains the rationale and proposed revisions in detail, will be available on SGX website at www.sgx.com from 18 May 2007. Market participants and members of the public can forward their feedback and suggestions on the above proposed revisions from today to 8 June 2007 via email and either by post/courier or fax:

ConsultationPaper_Amendment to MBS_180507_.pdf

Appendix A_PubConsult_Amendment to Minimum Bids Schedule_2?.pdf

Appendix B_Amendment to Rule 8.3.3_180507_.pdf