Singapore Exchange (SGX) has announced a series of executive and structural changes to its organizational framework in a bid to help better service its clientele and foster higher efficiency measures.
More specifically, this includes the dedicated focus of three new business lines, i.e. equities and fixed income, derivatives, and market data and connectivity (MDC). As a result of the new restructuring, SGX will see a consolidation of its offices in China, Hong Kong, India, Japan and UK into a single unified unit, i.e. Membership & International Coverage (MIC).
For starters, SGX will be consolidating its equities and fixed income listing, trading, post-trade businesses and securities product sales in a comprehensive effort for SGX to offer its full services suite to both institutional and retail investors – additionally the offering will more broadly cater to members and corporates. The new equities and fixed income line will report to SGX’s Chief Executive Officer (CEO), Loh Boon Chye, whereby strengthening its securities market capabilities, positions and market liquidity.
Alternatively, SGX is revamping its derivatives structure, which will include rates and currencies, equity indices, commodities, derivatives product sales and SGX’s subsidiary, Energy Market Company Pte. Ltd. Like the equities and fixed income business line, the derivatives arm will also be reporting to Mr. Boon Chye.
Finally, SGX will include the Market Data & Connectivity (MDC) to its business structure, with a focus on data, index services and connectivity solutions, coupled with the inclusion of MDC product sales.
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SGX’s current President, Muthukrishnan Ramaswami, will be assuming a larger role role, whereby assimilating the oversight of the group’s Operations and Technology units, MDC and MIC. Moreover, Chew Sutat, SGX’s current Head of Sales & Clients, will also step into the position of Head of Equities & Fixed Income.
Lastly, Michael Syn, SGX’s Head of Derivatives, will be leading the newly expanded Derivatives unit while Glenn Seah, the group’s Head of Compliance, will become its new Head of Legal, Compliance & Company Secretary.
All of the above moves are slated to take effect only on January 1, 2016.
According to SGX Chief Executive Officer (CEO) Loh Boon Chye in a recent statement on the changes, “The exchange landscape is fast evolving and ever competitive and SGX must stay nimble to ongoing developments.”
“The changes we are taking will create a simpler and flatter structure, making us more efficient and better equipped to take on challenges and opportunities. As we continue to focus on building innovative and sustainable markets, investors and companies can expect from SGX a more solution-driven and customer-centric approach to their investing, risk management and fund-raising needs,” he added.
Last week, the SGX reported its volumes across its derivatives and commodities activities for the month ending November 2015. In terms of securities, the turnover at the SGX during November 2015 came in at $19.4 billion, down -16.0% MoM from $23.1 billion in October 2015.