Singapore Exchange Limited To Launch Open-Dated Securities Lending On 15 January 2003

Singapore Exchange Limited (SGX) today announced that it will offer open-dated loan tenures under the SGX Securities Lending programme from 15 January 2003.

In open-dated lending, the securities borrowed can be held for an undefined period, subject to recall by The Central Depository (CDP), the Securities Clearing and Depository division of SGX. There is no predetermined return date, and the securities can be returned in part or in full. Open-dated lending will provide brokers a ready source of securities from which they can lend to their clients. It will also give borrowers the flexibility of choosing either between an indefinite loan period or the existing loan period of T+3 market days with successive rollovers.

Mr Ang Swee Tian, President of SGX said, "We are pleased with the growing market interest in securities lending. We will continue to work with our brokers to further develop the securities lending business to provide investors with more flexibility in their investment strategies and to facilitate the further development of our capital markets."