Singapore’s link to US stocks is struggling to attract traders
Some observers say the SDR programme is late to the party; others cite local investors’ unfamiliarity with it
Singapore's attempt to provide trading in American stocks during Asian hours through its Singapore Depository Receipts (SDR) programme has been met with sluggish participation. The SDR launched in July through SGX listed three US stocks: Grab, Sea and SpaceX. Trading volume for SpaceX SDRs between July and September 18 was only S$2.3 million, which is a minuscule fraction of the S$2 billion average daily SGX turnover and US$336.6 billion in SpaceX stock traded on the Nasdaq.
Grab and Sea SDRs saw a combined S$24 million trade during the period, compared to US$26 billion in the US. SGX launched 38 SDR listings, which include stocks from Thailand, Indonesia and Hong Kong, to offer access to global companies during Asian hours. However, the programme is currently facing low liquidity, highlighting the challenge regional bourses face in capturing a share of the demand for round-the-clock US trade.
Experts say that Singapore and regional bourses are late to the party, and investors are wary of unfamiliar offerings. Global exchanges like Nasdaq and NYSE Arca are preparing to launch 24-hour trading programmes, underscoring the need for Singapore and regional bourses to innovate and attract more investors.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
