SGX, an abbreviation for Singapore Exchange, refers to the main stock exchange in Singapore. It is a leading multi-asset exchange serving as both a securities market and a derivatives market. The SGX operates on a fully electronic trading system, facilitating the buying and selling of financial products such as equities, fixed income instruments, exchange-traded funds (ETFs), and derivatives contracts.
As a securities market, SGX enables companies to list their shares for trading, allowing investors to buy and sell these shares, thereby providing opportunities for businesses to raise capital. It provides a transparent and regulated platform where investors can trade stocks and other securities efficiently, contributing to the overall financial market stability and growth of Singapore.
Additionally, SGX serves as a derivatives market, offering a range of derivative products such as futures contracts and options. These derivative instruments allow market participants to hedge risks, speculate on price movements, and enhance investment strategies.
By offering a diverse array of financial products, SGX attracts local and international investors, providing a platform where they can access various investment opportunities. The exchange plays a crucial role in Singapore's financial ecosystem, supporting the country's status as a global financial hub.
SGX is regulated by the Monetary Authority of Singapore, ensuring fair trading practices, investor protection, and market integrity. Its continuous innovation and commitment to maintaining high standards have positioned SGX as a key player in the global financial markets.
