Initiative comes on the heels of Singapore Exchange’s failed merger with the Australian Stock Exchange
Singapore Exchange (SGX) has announced it will cut trading costs for investors in a bid to increase liquidity.
SGX says it will reduce the minimum bid size for securities on July 4. The move is expected to result in a tightening of bid-ask spreads by up to 80 percent, the exchange says in a statement.
‘Tighter spreads will encourage investors to increase their participation in SGX, the best market for accessing fast-growing Asia,’ comments Chew Sutat, head of securities at SGX, in the statement. ‘This will in turn enhance liquidity here in Singapore.’
The initiative follows the failure in April of SGX’s proposed merger with the Australian Stock Exchange, which was blocked by Australia’s Treasurer Wayne Swan on national interest grounds.
