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SHOCKING ANNOUNCEMENT FROM SGX! (19/09/07)

I really wouldn't call it shocking. If  you have been following news, this was out in the first qtr of 2007. ie almost half a year ago.

 

So like singaporegal said, this provides more liquidity => more trxn => higher turnover => better profit for SGX

 

Know which counter to vest now? (to avoid misunderstanding, Sgpgal did NOT say this sentence)

 

This will increase liquidity in the stock market and volumes will also increase. Will be good for SGX - more liquidity, more profits.

 

This is to make ppls to trade more on penny stocks.....

In turn will make all the > dollar stock to tumble easily...... Good for short selling .....

So PENNY STOCKS will take over the BLUE CHIPS in term of Quantities trade..........

 

Like that more buying n selling transactions if want to push up a >Dollar counter...

  SGX Bao Jiak 包吃 liao

 

QUICKER kopi $ and SMALLER cut loss $ since the bid size is now thinner.  E.g. If one buys 5.00 securities, instead of waiting for 5.05 or 5.10 to take a profit, one can make and take profit at 5.02, 5.03 5.04 etc (depending on the size of the lots you buy of course).  Downside is the share MAY go up slightly slower because of the bid size, esp for the 3 SGD securities upwards.  Thats my view.

 

Hullo,

Can someone explain to me the significance of this announcement? How will it affect us? 

 

So basically more difficult to contra liao!

 

 

SGX FINALISES CHANGES TO MINIMUM BIDS SCHEDULE FOR SECURITIES MARKET


Singapore Exchange Limited (SGX) is pleased to announce the final changes to the minimum bids schedule for the securities market. The new schedule, which will be implemented by January 2008, seeks to improve trading efficiency and market liquidity.

Mr Gan Seow Ann, Senior Executive Vice President and Head of Markets at SGX said, "With a narrower bid-ask spread, market participants can expect greater efficiency in trade execution. The changes will enhance the overall competitiveness of our securities market. I would like to thank our market participants and the public for their valuable response to our public consultation."

The final changes include:

1) Reducing the minimum bid sizes for securities¹ priced above $3.00;
2) Customising the minimum bid structures for Exchange Traded Funds (ETFs), bonds, debentures, loan stocks; and Hong Kong Dollar as well as Japanese Yen denominated securities traded on SGX; and

3) Widening the threshold for member firms' forced orders key from the current +/- 6 bids to +/-10 bids for the main securities products²

¹ 'securities' exclude ETFs, bonds, debentures, loan stocks and those securities traded in Japanese Yen and Hong Kong Dollar.

² 'main securities products' exclude ETFs, bonds, debentures and loan stocks.

The details of the final changes are shown in Appendix 1, as attached.

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