Singapore Exchange overhauls business units to drive growth in multiple asset classes

A man checks his phone at the entrance of the Singapore Exchange Ltd. (SGX) headquarters in Singapore, on Thursday, Jan. 19, 2017. Photographer: Ore Huiying/Bloomberg

Singapore Exchange Ltd (SGX) on Thursday announced plans to combine its commodities, currencies and fixed income unit and named a new head for its equities segment as part of a corporate rehaul to help drive growth in multiple asset classes.

“These changes will further SGX’s future growth as a leading international exchange, fluent in multiple asset classes,” SGX CEO Loh Boon Chye said in a statement.

The changes are among the most significant at SGX since Loh, a veteran banker, joined the bourse four years ago.

The moves, effective from July 1, come as SGX aims to add products to its lucrative derivatives business and offer Southeast Asian unicorns a platform to list shares and bonds, in a multi-asset strategy, Loh told Reuters in an interview earlier this month.

The exchange said on Thursday that it was merging its cash equities and equity derivatives businesses and its current head of derivatives, Michael Syn, would be the new chief of the unit.

SGX has hired Lee Beng Hong from Deutsche Bank to head its fixed income, currencies and commodities businesses. Lee has over 16 years of international banking experience in global markets and will join SGX on Aug 1, the bourse said.

SGX’s revenue from the trading of equities, commodities and foreign exchange derivatives jumped 30% in June-March, making up 50% of the total. Revenue from its equities and fixed income segment fell 16% and accounted for 39%.

SGX also said it was forming a new unit called Global Sales and Origination, which combines the equities and debt capital market teams with the bourse’s nine international offices and specialist sales teams. Chew Sutat, currently the head of equities and fixed income, will head the unit.