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In January, the Singapore Stock Exchange (SGX) came to the fore when the Covid-19 pandemic began to burst in China. With some Asian markets closed by Chinese New Year, investors rushed to go there. “SGX was the only open market for proxy control threats in China and we have noticed an effect on our derivatives range,” said Michael Syn, senior ceo of SGX.
Operating throughout the period, SGX, which has the longest trading hours in Asia, has not only recorded record trade volumes, but has also become a benchmark for investors to perceive how to assess the effect of coronavirus on the market. “The total delight of Covid-19 was not just about serving our ecosystem of Asian markets. In a sense, it was at the service of global markets at a very important historical moment,” Syn says.
Its strategy has been to provide a foreign market infrastructure for Asian assets. “There are no restrictions on an institutional consumer’s possible request to rely on access to countries or assets in which they are not fully familiar,” Syn explains. “The ultimate purpose of each exchange is to become a one-stop shop, and to do so, it wants a steady momentum ahead and constantly wonders what will continue. “
For SGX, this means evolving to offer linking and expanding common money funds. For example, last year SGX saw that the time had come to announce and expand a futures gateway on land and abroad to Vietnam.
The inventory exchange has also accumulated liquidity in its new FTSE Taiwan futures. “Taiwan is of global importance because it is an indicator of the generation sector and a beneficiary of the 24-hour tensions between us-China money markets,” Syn says.
SGX also took advantage of the willingness of institutional investors to reduce their exposure to Asia. To do this, he invested in Scientific Beta, an independent index provider that specializes in smart beta methods and things solutions. “The next frontier of things is the ESG: environmental, social and governance,” Syn says. “In Asia, facet “G” has been an alpha engine. “
SGX will continue to adapt its technique as its product line evolves to reflect investor conversion needs, whether in ESG or other areas. “Our supply of derivatives will have to reflect this new lens that consumers want,” Syn says.
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