|Stock Exchange of Hong Kong Limited- changes to the Takeovers Code:
The Securities and Futures Commission (SFC) announced certain changes
to the Takeovers Code including, among other things, reduction of trigger
threshold from 35% to 30% and corresponding changes to the definition of
“control”. The changes are effective from Friday, 19 October, 2001
Exchange encourages all issuers to assess whether, and how, the announced
changes to the Takeovers Code will affect their obligations under the Listing
Rules in respect of any of their existing or potential transactions.
|Kuala Lumpur Stock Exchange introduces circuit breakers: The Kuala Lumpur
Stock Exchange (KLSE) will introduce circuit breakers by the first quarter of
2002. The Exchange expects that
they will enhance market stability and investors confidence.
implementation of the circuit breakers at the KLSE was announced at the
recent National Budget for the year 2002 as part of the of the efforts to
ensure stability in the stock market. The budget announcement on the circuit
breakers have the capacity to halt trading activities temporarily when large
declines are experienced during a trading day. These halts are based on
predetermined trigger levels
breakers will be triggered when the KLSE Composite Index (KLSE CI) declines
below its closing index of the previous market day by 10%, 15% and 20%.
|Singapore Stock Exchange to raise securities clearing fee: On 8 October 2001,
the Singapore Stock Exchange raised the maximum clearing fee (or fee
“cap”) for securities trades above SGD 200,000 from SGD 100 to SGD 200,
with effect from 1 December 2001. The current clearing
fee of 0.05% of the contract value will be maintained.
the exchange charges a single, bundle clearing fee, subject to a cap of SGD
100, for the full range of post – trade services in the securities market.
These services are provided by the Central Depository, the securities
clearing and depository unit of
the Singapore exchange. They include clearing, settlement and custody, as
well as the central counter party
guarantee for the settlement of all securities trades.
exchange expects that the increased cap on securities clearing fees will
impact its total operating revenue up by between 2% and 7%.
|Saudi Exchange introduces new electronic system: The Saudi stock
market will introduce a new electronic trading system called TADAWUL with the aim to stimulate the transactions,
replacing the ESIS (Electronic Securities Information System) introduced in
new system features a number of improvements as it will integrate not only
the trading, but also the clearing, settlement and depository operations. The
system allows for real time settlement of trades, on-line submission of
regulatory news and enhanced Straight
–Through- Processing (STP). TADAWUL brings the Saudi exchange in line with
the international standards in terms of trading and settlement operations.
|London Stock Exchange launches new market segment : On 2 November 2001,
the London Stock Exchange launched the first international market for health
companies called techMARK mediscience.
new market builds on the success of techMARK, the Exchange’s international
market for innovative technology companies which celebrated its two years of
existence, by bringing together its 48 listed companies from the
biotechnology, pharmaceuticals, diagnostics, drug delivery and medical
mediscience was developed in response to customer demand, with the
support of industry participants and the Bio Industry Association (BIA) and
fills a gap in the market by raising the profile of
new market has its own index developed by FTSE, the techMARK mediscience
index, composed of emerging healthcare companies. The index is
designed to reflect the market performance
of these companies and to provide investors in small and
medium–sized companies from the healthcare industry with a measurement tool
of this market. The new index forms part of the FTSE techMARK Index Series
and will be reviewed quarterly, by an independent Committee of market users.
The visibility of techMARK mediscience will be further raised and maintained
through a dedicated website.
|Korea Stock Exchange expands quotation information disclosed: Currently order
information on 5 best bid and ask quotations for all listed stocks is
disclosed to the public on a real time basis along with the aggregate order
quantity of each side. From January
2002, the provision of the aggregate order
quantity will be discontinued.
the scope of the bid/ask information disclosed will be expanded to 10 best
bid and ask quotations. This change is designed to prevent the attempt to
mislead investment decisions by placing unreasonably large orders (fake
order) at the prices that are unlikely to be matched, i.e. intentionally
increasing the aggregate order quantity of a certain issue.
|Singapore Exchange launches first stage of securities lending : On 1 November 2001, Singapore Exchange began
building a lending pool of
investors as the first step of the securities lending program.
Central Depository (CDP), the securities
clearing and depository division of Singapore Exchange, has invited
participation from investors who hold at least 50,000 of any eligible stock
from an initial list of stocks listed on the exchange main board. Investors
wishing to be lenders must send an application form to CDP indicating which
securities they wish to lend and the respective quantities.
Central Depository will lend securities only to its Depository Agents which
comprise the Singapore Exchanges member stock broking firms, trust companies
or bank nominees registered with CDP. The Central Depository will charge its
Depository Agents a borrowing
fee of 6% per annum and an administration
fee of SGD 20 per borrowing of request. From these revenues, the Central
Depository will pay lenders whose security are eventually borrowed, a fee of
4% per annum on the value of the borrowed securities. Investors can borrow
securities through the Depository Agents who will determine their own lending
borrowing period is T+3 business
days which coincides with the securities settlement cycle. Borrowers have the
option to extend the loan for another T+3 business days after which they may
initiate a new loan.
the counterparty to both lenders and borrowers, the Central Depository
assures the return of loaned securities.
launch of securities lending facility is an important development for the
Singapore market. The start of lending and borrowing activities is expected
to begin by the end of the year.
|New York Stock Exchange launches NYSE Open Book :
After having received the Securities and Exchange
Commission approval, the New York Stock Exchange launched the NYSE
Open Book, a new market data service that will allow subscribers to
see information contained on the
exchange limit order books.
to further enhance the transparency of the New York Stock Exchange, NYSE Open
Book offers market participants
a comprehensive view of the aggregate limit-order volume at every bid and
offer price outside the displayed NYSE quote. The
exchange expects to implement the new service with market data vendors
and users in the late January 2002.
NYSE Open Book responds to the
demand of broker- dealers
and institutional investors for more in-depth and detailed market
data. The demand stems in part from the six-fold increase in the number of
price points brought about by
|Singapore Exchange installs automated real-time market surveillance
system for securities market: On 11 December 2001, the Singapore Exchange
installed a real-time automated market surveillance system which will enhance
the exchange’s surveillance of its securities market.
employs the latest technology to automatically detect and alert the
exchange of irregular market behaviour such
as unusual price movements of
trading volumes. The
system also enables the
Singapore Exchange to find trace of historical trading, allowing
investigators to identify the sequence of orders, quotes or trades
that give rise to a particular situation.