SGX restructures into four business groups

Signage at the SGX building on Shenton Way in Singapore; taken October 2018.Signage at the SGX building on Shenton Way in Singapore; taken October 2018.

Singapore Exchange announced Thursday it changed its organizational structure into four business units reporting to the CEO: Fixed income, currencies and commodities (FICC); equities, including cash and derivatives; data, connectivity and indexes; and global sales and origination.

“These changes will further SGX’s future growth as a leading international exchange, fluent in multiple asset classes,” Loh Boon Chye, CEO of SGX, said in a statement.

“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,” Loh said.

FICC

FICC, which has “been on a path of considerable growth,” will be combined into one unit, SGX said in a statement, pointing to the rising convergence of OTC and listed foreign exchange markets and the exchange’s status as the largest regional FX futures venue.

SGX also pointed to its bond trading business SGX Bond Pro and efforts to capitalize on the digitization of the fixed income industry.

For commodities, SGX said its wholly owned subsidiaries Baltic Exchange and Energy Market Company (EMC) will report into FICC.

FICC will be led by Lee Beng Hong, who will join SGX on 1 August, and who has more than 16 years of international banking experience specializing in Asian FICC products, sales and coverage, SGX said.

Equities

SGX said it would merge its cash equities and equity derivatives businesses into an enlarged platform to include all trading, clearing, post-trade and research services.

“Our expertise and market leadership in equity derivatives will be leveraged to internationalise our cash equities proposition through the introduction of new derivatives products, structured products and offshore risk management capabilities,” SGX said. “By focusing on equities as a single asset class, product and service innovation can span both cash and derivatives channels to address client needs holistically.”

Michael Syn, who is currently SGX’s head of derivatives, was tapped to lead the equities division, SGX said.

Data, Connectivity and Indicies

SGX renamed its Market Data & Connectivity (MDC) unit as Data, Connectivity and Indicies (DCI).

“With the global shift towards passive investing, we will build our index business capabilities to cater for future growth,” SGX said.

Ng Kin Yee will continue to lead the division, SGX said.

Global Sales and Origination

Global Sales and Origination (GSO) will combine the equities and debt capital markets teams as well as SGX’s nine international offices and specialist sales teams, the exchange said.

That’s to deepen SGX’s international presence to ease capital-raising in key markets and to integrate the client-facing group to offer all of the exchange’s products and services across asset classes, the exchange said.

Chew Sutat, who is currently the head of equities and fixed income, will lead GSO, SGX said.

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