SGX is bringing back lunch break during trading hours

SGX is bringing back lunch break during trading hours

It’s official: SGX is bringing back the lunch break, after six years since 2011.

sgx lunch break

The key purpose why the break was removed back then, was a strong bid to perk the market and raise trading volumes. However, brokers admitted that removing the lunch break was not very effective.

The SGX also announced that it will be widening bid spreads for certain stocks.

—This post was solely contributed by our community member, @inspirez in the InvestingNote platform and reposted on our blog.  This post was first posted here.

Singapore Exchange (SGX) is proceeding with adjustments to the equities market structure after receiving largely supportive feedback during the public consultation process in March 2017.

sgx

Effective 13 November 2017, the equities market will break from 12.00pm to 1.00pm. In addition, the minimum bid size for relevant securities in the $1.00 to $1.99 price range will be increased to $0.01 from the current $0.005 and the forced order range for relevant securities will be widened to +/- 30 ticks from +/- 20 ticks. The adjustments are aimed at addressing market conditions while balancing the diverse objectives and interests of different segments of participants in the market ecosystem.

More than 40 respondents participated in the public consultation. A few respondents had alternative suggestions to the three adjustments proposed in the consultation. SGX gave due consideration to these suggestions and provided reasons in its “Responses to feedback to the public consultation” document [link] for proceeding with the proposals in the consultation.

“We would like to thank market participants for supporting the changes to the equities market structure. The midday break, increased minimum bid size and wider forced order range are the result of the collaborative approach the entire market ecosystem is committed to in enhancing our market. We will be monitoring the impact of these changes post-implementation,” said Loh Boon Chye, CEO of SGX.

ebf23874e4c93d64fdfd57fd784a8a3eccb9ca85

Original post is found here, where you can engage in discussion with other investors. 

If you like this article, we’ve got more. Here’s an invitation to join our community and network of investors who’re actively sharing. It’s free and most importantly, these investors are out to help one another to get better investing outcomes.

button

Leave a Reply

Your email address will not be published. Required fields are marked *