Singapore exchange allows direct access from foreign terminals

Using new system based on FIX protocol, overseas trades can now be routed electronically to SGX.

As part of its strategy of attracting greater global participation, Singapore Exchange (SGX) has launched a facility called SGXAccess. Using open interface technology, it allows SGX Securities Trading member firms to trade in Singapore's securities market from anywhere in the world, through their own trading terminals.

In the incumbent system, SGX's trade matching and order management systems were integrated, but with the introduction of SGXAccess these are being decoupled.

SGXAccess gives members the flexibility to buy or develop their own Order Management Systems (OMS) on top of the exchange's SESOPS terminals. This flexibility means that members can locate their trading terminals outside Singapore.

"SGXAccess is key to SGX's international development and growth strategies aimed at increasing market depth and liquidity. It removes geographical barriers to our marketplace and extends our reach," says Thomas Kloet, CEO of SGX. "This launch marks the first step to open SGX's core systems to choice of access and technology as appropriate to the member firms."

Currently 12 members of the exchange - a mix of domestic and foreign brokers - have signed Memoranda of Intent to take up SGXAccess by the end of 2001.

SGXAccess was developed by Hewlett Packard and NEON Asia Pacific, a subsidiary of Nasdaq-listed NEON, an e-business software and services company that is in the process of being acquired by Sybase.

The solution provided by NEON is based on a global financial messaging interface standard, Financial Information exchange (FIX) 4.2, which is increasingly accepted globally as the standard protocol for communication used by brokerages and stock exchanges.