Singapore Exchange (SGX) will introduce continuous all day trading from 9am to 5pm (no more lunch break from 12:30pm to 02:00pm) in the third quarter of this year instead of Mar. 1, 2011 as earlier announced. In January, the SGX said that the 90-minute trading break between 12.30pm and 2pm would be scrapped on March 1.
SGX is pushing back the deadline so it can ensure that investors are prepared for a change that will significantly impact the way stockbroking is done. The bourse opearator did not specify exactly when during the Jul. 1 to Sept. 30 third quarter the change will kick in.
The implementation will allow investors, especially those who trade pan-Asian securities, to respond to regional market movements and news flow.
Meanwhile, the SGX derivatives market is already trading continuously.
In Asia, the Korea Exchange (KRX), India's National Stock Exchange (NSE) and Australia Stock Exchange (ASX) have already embraced continuous all-day trading.
More recently, the Tokyo Stock Exchange (TSE) and Hong Kong Exchanges and Clearing Ltd. have already announced plans to increase trading hours. Hong Kong Exchanges and Clearing Ltd., operator of Asia’s third-biggest stock market, said it will extend its trading hours from March 7, 2011 tentatively.
Effective Mar. 7, 2011 (Monday), Hong Kong Exchange will implement new trading hours as follows:
Current Effective Mar. 7, 2011
Pre-opening Session 09:30 to 10:00am 09:00 to 09:30am
Morning Session 10:00 to 12:30pm 09:30 to 12:00pm
Afternoon Session 02:30 to 04:00pm 01:30 to 04:00pm
The Tokyo Stock Exchange (TSE) and Hong Kong Exchanges and Clearing Ltd. cited the need to strengthen competitiveness and enhance convenience for investors.
The continuous all-day securities trading will provide more avenues for participants to invest, hedge and arbitrage their investments.
As for Indonesia Stock Exchange (JSX), JSX is seeking approval from the country’s regulators to begin market trading hours an hour earlier around July 2011 to align itself with other Asian markets.
To build a global capital market, Singapore Exchange (SGX) said that the move towards continuous trading is timely.
It added that based on the feedback received through public consultation, there is broad-based support from investors and the brokerage community.
Meanwhile, Securities Investors' Association of Singapore (SIAS) has already welcomed SGX's initiative to extend its trading hours over the lunch hour.
SGX said it is working closely with the brokerage community to facilitate a smooth transition.
