Singapore’s link to US stocks is struggling to attract traders

Singapore aims to attract traders to its American stock market by offering trading during Asia hours. However, its effort has been slow to gain momentum. Rival products and cautious investors have resulted in minimal trading volumes. The first three US stocks listed in July through the Singapore Depository Receipts program were Grab, Sea Ltd, and SpaceX.

Since July, only $2.3 million worth of SpaceX SDRs have been traded in the period up to September 18, making up a tiny fraction of the $336.6 billion in SpaceX stock traded on the Nasdaq. In comparison, only around $24 million in Grab and Sea SDRs were traded in the same period, versus $26 billion in the US. The Singapore Exchange's SDR program, introduced in 2023, is part of a broader initiative to elevate the country's equities market, which has historically lagged behind other Asian financial centers.

While 38 SDR listings exist, including stocks from Thailand, Indonesia, and Hong Kong, the lack of investor enthusiasm has left liquidity low. Chris Forbes, head of Asia and Middle East at CMC Markets in Singapore, noted that the SDRs are not a timely addition to the market, as rivals have already established alternatives. Major global exchanges are preparing around-the-clock trading, such as Nasdaq and NYSE Arca's launch on December 6, and the London Stock Exchange's planned launch in the first half of next year.

The companies behind the listed stocks, Grab, Sea, and SpaceX, have not commented on the SDR rollout. The success of these listings depends on local investor familiarity with SDRs, as they are not included in local benchmarks like the Straits Times Index or MSCI indexes.