The Singapore stock market

Abstract

The Stock Exchange of Singapore (SES) was established in 1973. Since then, it has been playing an important role in establishing Singapore as a leading financial center in Asia. However, in recent years, more and more countries have seen an important role for their stock markets. SES should therefore constantly review its operational and regulatory framework to remain competitive. The purpose of this report is to study its current operational and regulatory framework, draw conclusions and make recommendations for improvements. Investigation of the situation is based on secondary data collected from books, newspapers, SES journals, fact books, annual reports and relevant Acts. The report also provides a comparison between the administration of New York Stock Exchange ( NYSE ) and SES. On investigation, it revealed that SES has a superior trading system. SES's computerized CLOB trading system has been expanded significantly, capable of matching orders for more than 500 million shares a day now, more than six times the capacity of the old trading floor. To further improve the current situation, SES should enlarge its market size, introduce and at the same time educate people with the knowledge of the new products, reduce its trading costs, encourage stock splits and further enhance investors' protection.