Once dubbed a 'zombie' exchange, this Asian stock market is trying European-style trading to reinvent itself
Publishing timestamp: 2023-09-28 01:11:08
Summary
The Singapore Exchange (SGX) has become the first exchange in Asia to offer trading in "structured certificates," which are financial instruments based on underlying assets. Analysts are unsure if these offerings will significantly benefit SGX or boost its trading volumes. However, there has been increased interest from issuers and distributors for structured certificates. SGX sees this as a positive development that broadens the range of investment options available. The structured certificate market in Asia was previously only available over-the-counter and through private banks, but listing them on the exchange allows for broader distribution. The market for structured certificates in Europe is more popular due to a focus on yield, while in Asia, there is a desire for yield-enhanced products. Some structured certificates have an autocall feature, providing a fixed coupon rate upon expiry. Overall, it is too early to determine the demand for specific securities introduced through structured certificates.
Sentiment: NEUTRAL
Tickers: BABA,
Keywords: alibaba group holding ltd, business news, singapore,