Singapore Exchange (SGXL.SI), Asia’s second-largest listed bourse operator, cancelled its midday break from Monday and started all-day trading in a bid to allow faster response to regional market movements and news flows.
The market will trade non-stop between 0100 and 0900 GMT (9 a.m. to 5 p.m. local time), ceasing a practice of taking a break from 12:30 p.m. to 2 p.m.
The market will trade non-stop between 0100 and 0900 GMT (9 a.m. to 5 p.m. local time), ceasing a practice of taking a break from 12:30 p.m. to 2 p.m.
“We believe this is part of SGX’s strategy to increase participation and trading volumes, especially from retail investors,” Kim Eng Securities said in a note.
“Theoretically, this could boost average daily trading value (ADT) by 10 percent, though the actual improvement may be hard to quantify in the short term as market sentiment and overall market conditions will still be the biggest volume drivers.”
Some traders lamented the loss of time to meet clients, eat a relatively more leisurely lunch or get a breather.
“Instead of trading before 12:30 p.m. or after 2 p.m., people can change their trading time to lunch time, but that doesn’t mean they’ll trade more,” said a local trader.
“It’s just a shift of the timing of the trade, but it may not increase the actual number of trades.”
In Asia, Korea Exchange, India’s National Stock Exchange and Australian Securities Exchange already trade non-stop all day. More recently, Hong Kong Exchanges and Clearing has increased its trading hours but retains a lunch break.
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