SGX upgrades as competition heats up for big Asian stock exchanges
The Singapore Exchange (SGX) has introduced new measures designed to propel it into position as Asia’s most desirable place to list, by eliminating lunch breaks and establishing a S$194.96 million (US$151.5 million) “world’s fastest trading platform” called SGX Reach.
SGX Reach will be the first fast electronic trading system outside the USA and Europe. SGX, which wants to attract more listings but often struggles against Hong Kong and its closer local connections to win Chinese IPOs, is also pursuing an acquisition of the Australian Securities Exchange (ASX) worth US$8.4 billion. Improved technology, size and international reach may well be what it needs to fulfill its vision of regional dominance and global significance under ambitious CEO Magnus Bocker.
The new system claims a response time of 90 microseconds, and the ability to handle one million order-book changes per second. The London Stock Exchange Group’s ‘Turquoise’ platform, the current world’s fastest, has a response time of 126 microseconds. Despite the lightning fast times, exchanges still clear all trades made. Not to be outdone, the Hong Kong Exchange (HKEx) plans to extend hours and will fire up its own new system by the end of the year, which can handle 30-150,000 trades a second with a response time of nine milliseconds. The Tokyo Stock Exchange (TSE) will examine its trading hours again and will probably cut its lunch break by 30 minutes. It too is planning to speed up its trading system, which has crumbled under active trading demands a couple of times in recent years.
source & article: The Australian business
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