SGX in tie-up with Shanghai exchange to bring its market data to Chinese investors

In an announcement on Nov 1, SGX said that the fund will be acquiring Trading Technologies International. PHOTO: ST FILE

SINGAPORE - The Singapore Exchange (SGX) announced on Monday (Nov 1) a collaboration with the Shanghai Stock Exchange (SSE) to distribute its securities market data within mainland China, offering market participants real-time access to prices.

Chinese investors can gain access to data on SGX-listed companies across wide-ranging industries, including its S-reits and property trusts. Excluding Japan, Singapore is Asia's largest Reits market with 42 S-reits and property trusts, which have a combined market capitalisation of over $110 billion.

Under the agreement, SSE subsidiary China Investment Information Services (CIIS) will be responsible for the distribution, marketing and sales of key SGX securities data to market data vendors, brokers and media channels in China, giving investors exposure to additional investment opportunities.

SGX will further support this initiative with on-the-ground investor education.

Wang Wei, CIIS managing director, said, "We hope that by availing more market information products,Chinese market participants will have better knowledge and understanding of portfolio management.

"We are also looking forward to reinforcing our partnership and exploring further collaboration in other areas," he added.

CIIS is expected to begin distributing SGX's securities market data on Monday.

Ng Kin Yee, SGX's managing director, head of data, connectivity and indices at SGX said, "Market participants require reliable and timely information to make investment decisions, and we are excited to bring our international offerings to investors in China."

SGX also announced on Monday an investment of about US$200 million (S$270 million) as a limited partner in a private equity fund, managed by 7RIDGE, a specialised growth equity firm invested in transformative technologies.

The fund is acquiring Trading Technologies, which has has close to three decades of track record in derivatives trading software. Its privately-managed infrastructure across six continents and "state of the art" software-as-a-service (SaaS)-based platform offers secure market connectivity and superior performance from anywhere in the world, said SGX.

It described the investment as strategic and aimed at strengthening investors' participation in the derivatives marketplace across major exchanges globally.

SGX said that with 7RIDGE as its new strategic partner, Trading Technologies will be in a strong position to accelerate the expansion of its industry-leading technology platform.

It will continue to work closely with international exchanges, liquidity venues and market participants as a key provider of listed derivatives trading, connectivity services and infrastructure.

The investment, which is expected to close before the end of the year, will be funded with a mix of cash and borrowings and is not expected to materially impact SGX's near-term earnings.

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