SGX competitors are coming
FT reported that “The Monetary Authority of Singapore is discussing ways of expanding the city-state’s clearing capacity, possibly by allowing international derivatives clearing houses to compete with the two existing Singapore exchange clearers, ”
As the securities trading value stay stagnant,SGX is looking at derivatives for growth, which also leads on its “stable revenue” growth like data services provision.
However,if MAS allows more derivative clearers to enter the oligopoly market,expect keen competiton which will bring down prices and thus damage SGX’s hopes of building a derivatives franchise.
Entry filed under: Watch your step.