Singapore Exchange Launched As The First Demutualised, Integrated Exchange In Asia-Pacific

Singapore Exchange was officially launched yesterday as the first demutualised, integrated securities and derivatives exchange in Asia-Pacific. It is the result of the successful merger of the Stock Exchange of Singapore (SES) and the Singapore International Monetary Exchange (SIMEX). Singapore Exchange unveiled its new corporate logo, and its strategy - a strategy that has been developed jointly with the Monetary Authority of Singapore, in consultation with leading members of the financial community and with the advice of consultants over the past year-and-a-half. Commenting on the strategy of Singapore Exchange, Mr. J Y Pillay, Chairman of Singapore Exchange said, "Demutualisation and open access provide an enormous opportunity for growth. We will seize the initiative by combining the respective strengths of SES and SIMEX, offering comprehensive solutions for our customers, and utilising leading-edge technology." The strategy developed is ambitious. It aims to develop the infrastructure of Singapore Exchange to serve regional capital markets, and support the continued growth of Singapore as a leading international financial centre. The strategy has three sets of initiatives. First, "Bolster" the current Singapore-based business, and reinforce Singapore's trading and clearing infrastructure by fostering open and vibrant market participation, developing products that utilise synergies between securities and derivatives markets and enhancing Singapore Exchange's customer services. Second, "Grow" the business across borders through strategic alliances and focusing on creating integrated access to trading and clearing across instruments and markets. And third, "Extend" the new Exchange's business portfolio by entering additional exchange-related businesses. Singapore Exchange also unveiled its new corporate logo today. The new logo combines a contemporary type treatment of the brand name with a dynamic monogram "E". This design expresses the concept of "Exchange" through the sense of movement, as suggested by the five interlocking bands in vibrant colours. More than being just symbolic artwork, it is a visual metaphor of the new company's positioning. Singapore Exchange is committed to sustainably positioning itself as a leading Asia securities and derivatives exchange by developing a superior, customer-focused and efficient capital markets infrastructure. In recent times, competition has intensified globally - not only among exchanges, but also with alternative trading systems. Exchanges will have to adjust quickly in order to compete and survive. In many cases, exchanges have had to fundamentally re-examine their business proposition and associated organisational structures and business processes. Derivatives exchanges, besides stock exchanges, around the world have moved, or are in the process of moving, to new electronic trading platforms. Stock exchanges, which were previously domestically focused, are now providing direct access to global investors, who are more sophisticated and often want to trade directly across markets. "Other important trends are the demutualisation, merger and listing of for-profit exchanges, the extension of trading hours, the entry of new classes of competitors and the level of intensified competition within and across markets," Mr. Lim Choo Peng, former President of SES and one of the Presidents of Singapore Exchange said. "The objective of the merger is to enable the new Singapore Exchange to compete efficiently on the world stage." Singapore Exchange will adopt a structure, which consists of market divisions as well as service divisions. The market divisions are structured as Securities Trading; Derivatives Trading; Securities Clearing and Depository; Derivatives Clearing and IT Solutions. The five service divisions are Corporate Strategy and Marketing; Finance and Administration; Human Resources; Information Technology; and Risk Management and Regulation. "This structure maximises strategic flexibility and minimises risk contagion between the different business lines. As one of Asia's leading integrated exchange, we enable Asian products to trade globally, and global products to trade in Asia. We will develop sustainable differentiation, and to enhance customer service and benefits," said Mr. Ang Swee Tian, former President of SIMEX and the other President of the integrated exchange. Mr. Pillay said, "This is the dawn of a new era. We are confident that Singapore Exchange will not only position itself as a leading exchange in this region, but be able to contribute effectively to Singapore's objectives of expanding financial services to 18-20% of GDP and becoming a dynamic financial centre."