The Singapore Exchange (SGX) has proposed a five-minute long trading session for the securities market that will take place after the closing auction routine ends. Called "trade at close", it will allow participants to execute orders only at the closing auction price set during the closing auction routine. The TAC session will apply to the ready and unit share markets. "The introduction of the TAC session will allow investors to trade at a fixed price, namely the closing price of the security, while preserving the integrity of the price discovery process," said head of market services Nico Torchetti.
SGX will shorten the trading phase preceding the closing routine by five minutes to 4.55pm on a normal trading day, or 11.55am for half-day trading. This will allow the market closing time to remain at 5.06pm and 12.06pm respectively, it said in a press statement. The main features of the TAC trading session are:
• The session will not occur if there is no closing auction price;
• Orders will match at only the closing auction price and according to time priority; and
• Orders can be amended but must all be priced at the closing auction price.
The closing auction price will increase in importance following the introduction of the TAC session, said SGX. Members of the public can submit feedback on the TAC session proposal till Oct 11. If adopted, SGX will implement the TAC session in July 2019.
The controlling shareholder of Soilbuild Business Space Reit's manager is taking nearly half of the real estate investment trust's $65 million subordinated perpetual securities offering, according to a filing with the Singapore Exchange early yesterday morning.
Mr Lim Chap Huat, who also holds a 9.096 per cent stake in the Reit, has agreed to subscribe for $30 million of the deal, which was priced on Thursday night. The perpetuals will bear an annual distribution rate of 6 per cent for the first three years. After that and every three years thereafter, the distribution rate will reset to 379 basis points over the prevailing three-year Singapore-dollar Swap Offer Rate.
Mr Lim wholly owns Soilbuild Group Holdings, which is the Reit sponsor.
Valuetronics Holdings has resumed production at a plant in Guangdong, China, the electronics manufacturing services company said yesterday during the midday trading break.