SGX / HPH Trust

SGX / HPH Trust: SGX will introduce dual currency trading which enables listed securities to be traded in 2 different currencies. As such, a co can now choose for its listed security to be traded in any two different currency denominations.

The securities will be fungible, i.e. an investor can buy and/or sell the security in any currency regardless of the currency in which it was first bought and/or sold.

Dual-currency listed shares will be consolidated in investors’ Central Depository (CDP) accounts so that the total number of shares can be viewed at a glance - for example, 1,000 US$-denominated shares and 2,000 S$-denominated shares will be reflected as 3,000 shares in the CDP account.

HPH Trust is the first listed security to launch dual currency units, in US$ and S$. It will start trading on 2 Apr.

Conceptually, this development could potentially lead to exciting share trading volume growth for SGX, if successfully executed.
This works best for highly liquid counters, with sizeable share ownership from both foreign funds and retail.
Ideally the sum of trading volume from both currency share listings would be greater than the original single currency share listing, boosted by the additional volume from arbitrageurs.

Besides potentially being applied to the blue chips and ADRs, this feature will also be a useful complement to the upcoming Asean trading link, which aims to provide investors in the region with access to each others’ markets, as Singapore investors can benefit from the convenience (in terms of pricing and settlement) of trading in overseas markets.