Singapore Exchange (SGX)

[cfa]

The share buy- back has been relentless under relentless selling mode .
As the earning will be hit ,can the dividend payout ratio be maintained ?

[weijian]

The share buy- back has been relentless under relentless selling mode .
As the earning will be hit ,can the dividend payout ratio be maintained ?

hi cfa,
SGX's shares from its sharebuyback are normally awarded to directors, mgt and employees as part of the incentive program. So in a sense, this action of sharebuyback is generally neutral from OPMI's perspective.

As for dividend payout ratio, the dividend policy has been changed to absolute 30cents per share/year (or 7.5cents per share/quarter) from FY19 onwards. So, the payout ratio is not a factor in the dividend consideration. Nonetheless, for context, paying 30cents in the last 2 FY translates to an average payout ratio of ~86%. Assume a 15% drop in net income, this pay out ratio increases to 86%/0.85 ~ 101%. It does look manageable and probably prophetic since previously, shareholders have always been asking the BOD to increase pay out ratio, but they resisted to do so.

[TerryT]

1Q 2020 - Net profit of $114m, Div $80.4m (70.5%)

2Q 2020 - Net profit of $99m, Div $80.4m (81.2%)

3Q 2020 - Net Profit of $137m, Div $80.4m (58.6%)


Based on last 3 quarters, a 15% cut of profit still look manageable to maintain Div payout. But moving forward, is the mitigation or growth plan thats keeping investors in suspense.

[cfa]

Many thanks WeiJian and TerryT .

[cfa]

Need to add new source of income after losing MSCI license ?


https://links.sgx.com/1.0.0/corporate-an...d63f8b1fe8

SGX to fully acquire BidFX, advancing its global ambitions to offer end-to-end FX platform and solutions

 Acquisition will accelerate momentum to establish SGX as a one-stop venue for international FX OTC and futures participants
 Continued revenue growth in BidFX driven by record trading volumes and onboarding of new clients

[¯|_(ツ)_/¯]

30 June 2020 FY2020 result (ended 30 June 2020) to release on 30 Jul 2020 after market close.
https://links.sgx.com/FileOpen/20200630_...eID=621855

Webcast on Friday, 30 Jul 2020@6pm: www.sgx.com/shareholders

Wear mask and keep your distance, everyone.

[weijian]

Actually, 80% of the non Spore MSCI contracts is the MSCI Taiwan. I cannot imagine HKEX actually has anything to do with Taiwan.

Nonetheless, the 10-15% overall profit drop (security, derivative and data etc) when it is 10-15% volume lost from only derivative portion, does suggest these MSCI contracts have much higher margin compared to the other derivative products.

2 years ago, there was an issue between NSE and SGX on the Niffy contract and it was resolved pretty competently by the Mgt. Would be interesting to observe the potential mitigation measures rolled out and how SGX handles this, FTSE Taiwan?

It makes sense for SGX to implement the FTSE Taiwan index as the first mitigation action. This is quite consistent with their prior actions in the last crisis with NSE on the Niffy contracts.

The FTSE index and MSCI index are actually quite similar in a sense that the top 10 components are the same companies (you cannot get too far off based on market cap) but weightages especially the top stock TSMC is actually very different with FTSE putting in a limit for individual stock. I reckon the difference in TSMC's weightage (MSCI:37.6% FTSE: 18.94%) would actually be the most significant difference between both contracts? I am assuming that other factors like contract sizes and expiry dates etc can be mostly equalized with SGX as the same offerer/clearing house.

I thought this change would be a very good case study and test on the supposed "network effects" that stock exchanges are expected to enjoy.

MSCI Taiwan index: https://api2.sgx.com/sites/default/files...0%29_0.pdf

SGX to introduce SGX FTSE Taiwan Index futures 

https://links.sgx.com/FileOpen/20200701_...eID=622059

[TerryT]

You read them well! It appeared to me that they dropped MSCI instead. And the 100% acquisition of BidfX looks interesting with huge growth potential.

Actually, 80% of the non Spore MSCI contracts is the MSCI Taiwan. I cannot imagine HKEX actually has anything to do with Taiwan.

Nonetheless, the 10-15% overall profit drop (security, derivative and data etc) when it is 10-15% volume lost from only derivative portion, does suggest these MSCI contracts have much higher margin compared to the other derivative products.

2 years ago, there was an issue between NSE and SGX on the Niffy contract and it was resolved pretty competently by the Mgt. Would be interesting to observe the potential mitigation measures rolled out and how SGX handles this, FTSE Taiwan?

It makes sense for SGX to implement the FTSE Taiwan index as the first mitigation action. This is quite consistent with their prior actions in the last crisis with NSE on the Niffy contracts.

The FTSE index and MSCI index are actually quite similar in a sense that the top 10 components are the same companies (you cannot get too far off based on market cap) but weightages especially the top stock TSMC is actually very different with FTSE putting in a limit for individual stock. I reckon the difference in TSMC's weightage (MSCI:37.6% FTSE: 18.94%) would actually be the most significant difference between both contracts? I am assuming that other factors like contract sizes and expiry dates etc can be mostly equalized with SGX as the same offerer/clearing house.

I thought this change would be a very good case study and test on the supposed "network effects" that stock exchanges are expected to enjoy.

MSCI Taiwan index: https://api2.sgx.com/sites/default/files...0%29_0.pdf

SGX to introduce SGX FTSE Taiwan Index futures 

https://links.sgx.com/FileOpen/20200701_...eID=622059
[/quote]

[¯|_(ツ)_/¯]

6 July 2020 SGX Orb Awards focuses on resilience of financial markets
https://links.sgx.com/FileOpen/20200706_...eID=622684

Singapore Exchange (SGX) today launched the third edition of its annual SGX Orb Awards to recognise excellence in financial journalism and content. Continuing the theme of “Connecting Perspectives and Inspiring Conversations,” this year’s special category focuses on the resilience of financial markets amid the COVID-19 pandemic.
The coronavirus outbreak has exacerbated a backlash against globalisation, as nations face pressure to close themselves off from the outside world to protect lives and livelihoods. With some economists predicting that the pandemic may hasten the end of open borders and free markets, how are governments and institutions responding? How has this shaped the role of international financial centres such as Singapore in facilitating the exchange of ideas and capital?

Wear mask and keep your social distance, everyone.

[weijian]

Pretty sums it up.

Singapore's vision to attract tech listings met with scepticism

"If a company listed on the Nasdaq cannot find enough liquidity, it won't find it on the SGX," he said. The daily turnover of the Nasdaq Composite Index is about 70 times that of the Straits Times Index.

https://www.businesstimes.com.sg/compani...scepticism