Singapore Exchange’s (SGX) securities market will trade continuously all day between 9 am and 5 pm from August 1.
In a statement on Thursday, SGX said the move, which drops the exchange’s 90-minute lunch break, will allow investors trading pan-Asian securities to respond to regional market movements and the news flow.
The move will also boost SGX’s competitiveness against its regional rivals. Korea Exchange, India’s National Stock Exchange and Australian Securities Exchange already trade non-stop all day.
Earlier this year, Hong Kong Exchanges and Clearing Limited increased its trading hours, while Tokyo Stock Exchange plans to do so in the near future, as both seek to attract more investors.
Other international exchanges such as New York Stock Exchange, NASDAQ and London Stock Exchange also operate continuous trading sessions.
“Continuous all-day trading will offer all investors more opportunities to trade and manage their risks,” Magnus Bocker, CEO of SGX, said.
He added that by embracing trading hours that are aligned with those of other key markets, Singapore will make further progress as an international financial hub.
Mr David Gerald, President and CEO of Securities Investors Association (Singapore), welcomed the move by SGX.
“We welcome continuous trading, giving investors the ability to respond to regional market movements, and flexibility to execute orders any time during the trading day,” Mr Gerald said.
Once continuous trading starts on SGX’s securities market, brokerage firms will offer retail investors various ways to execute orders, such as the use of central dealing desks or the appointment of back-up trading representatives.
Investors will also be able to use other channels, such as on-line internet trading services to directly execute orders.