Trading of international securities in Singapore and its implications

• Main Authors: Chee, Kevin Tien Jin, Tay, Boon Hwee, Yeo, Andrew Khee Huat
• Other Authors: Ong Poh Wah
• Format: Final Year Project
• Language: English
• Published: 2015
• Subjects: DRNTU::Business
• Online Access: http://hdl.handle.net/10356/64503
• Institution: Nanyang Technological University

Over the years, the financial markets around the world have seen some major changes, namely, the deregulation of markets, a wider use (with increasing sophistication) of information technology and telecommunication networks, and the rapid growth in emerging markets. All these have contributed to a growing trend towards internationalisation of the securities industry in many countries. In 1989, the total turnover of the foreign sector of the top 20 stock exchanges grew by an awesome 79.65% from 1988 to reach US$263.342 trillion. Asian bourses, too, have not been left unaffected by this phenomenal trend. Singapore, too, can be expected to be swept away in this wave of internationalisation. From a practical perspective, an added dimension to the local securities market would be especially appreciated since, well known to all, is the fact that Singapore has a small investor and corporate base. Although the local market still has room for expansion, long-term growth prospects are limited. Invariably, Singapore has to be more outward looking, and would stand to gain if it capitalises on this trend towards internationalisation. It is thus working towards becoming a regional supermarket for international stocks. Undeniably, the regional countries are also eyeing the same pie, but compared to its neighbours, Singapore already has a headstart due to its : (1) Geographical location (2) Reputation as an efficient financial centre (3) Excellent infrastructure (4) Position as a centre for regional Operational Head Quarters (OHQs)