SINGAPORE: Singapore Exchange (SGX) announced a new organization structure that capitalises on its strength as an international multi-asset exchange, to pursue growth opportunities and build scale in multiple asset classes.
Effective 1 July 2019, four business and client units will report to the CEO –Fixed Income, Currencies and Commodities; Equities (Cash & Derivatives); Data, Connectivity and Indices; and Global Sales and Origination.
Fixed Income, Currencies and Commodities (FICC): Over the last decade, the Fixed income, Currencies and Commodities businesses in SGX have been on a path of considerable growth. They have now emerged as a sizable set of asset classes and will be combined to form a new business unit.
The rising convergence of OTC and listed FX markets, coupled with SGX standing as Asia’s fastest growing and largest Asian FX Futures venue, presents with opportunities to serve the market with innovative and differentiated products.
In Commodities, SGX will deepen leading position in Asian industrial commodities and continue to drive synergies between global trade and transport market places. Baltic Exchange and Energy Market Company (EMC), both wholly-owned subsidiaries of SGX, will report into FICC as important anchors to the physical market in the Commodities value chain.
The unit will be led by Lee Beng Hong, who brings over 16 years of international banking experience in global markets, specialising in Asian FICC products, sales and coverage. He will be joining SGX on 1 August 2019. In the interim, the CEO will have oversight of the unit.
Equities: In an environment of abundant global liquidity, platform superiority will determine market participants’ choice of trading and clearing venues.
SGX cash equities and equity derivatives businesses will merge to form an enlarged platform where retail and institutional clients can access a continuum of equities products, including all trading, clearing, post-trade and research services.
SGX expertise and market leadership in equity derivatives will be leveraged to internationalise cash equities proposition through the introduction of new derivatives products, structured products and offshore risk management capabilities. Michael Syn, currently Head of Derivatives, is appointed as the Head of Equities.
Data, Connectivity and Indices (DCI): The Market Data & Connectivity (MDC) unit is renamed Data, Connectivity and Indices (DCI) in acknowledgement of full suite of data-related product and services. With the global shift towards passive investing, SGX will build the index business capabilities to cater for future growth. Ng Kin Yee will continue to lead DCI.
Global Sales and Origination (GSO): The Global Sales and Origination (GSO) unit combines the equities and debt capital market teams with SGX’s nine international offices and specialist sales teams. This consolidation enables deeper international presence to facilitate capital-raising in key markets and creates an integrated client facing group that will serve all segments with the full spectrum of SGX products and services across asset classes. Chew Sutat, currently Head of Equities & Fixed Income, will head GSO.
SGX CEO Loh Boon Chye said, “These changes will further SGX’s future growth as a leading international exchange, fluent in multiple asset classes. We look forward to building new capabilities in growth areas, achieving scale and efficiency in established markets and enhancing customer-centric delivery of investment, risk management and capital formation solutions to the marketplace.”