As per the recent announcement made by NY-based multi-national stock exchange service provider NASDAQ, Singapore Stock Exchange has started using its new financial framework product – Multi Matching Trading Engine. According to the details available in the statement, Singapore stock exchange went live with NASDAQ’s trading engine starting on 3rd June and applying this new piece of technology has made the Asian exchange upgrade its technical capabilities significantly. The new trading engine helps SGX unify their operations, messaging and data infrastructure allowing the exchange to scale up its product offerings. SGX is now capable of adding more securities and other major assets commonly traded in the market thereby increasing its capacity for the maximum number of assets it can handle simultaneously.
However, this is not the first partnership between two stock exchanges as they have been technology partners in the industry for nearly 16 years now. The first tech exchange/collaboration deal was signed between two parties back in 2003 and when speaking about the application of new trading engine, Vincent Low, head of software delivery and integration at SGX commented, “It was an excellent collaboration working with our industry partners comprising of trading members, clearing members and data vendors to move towards a new securities trading engine. With this upgrade, SGX has standardized the API messages for both cash and derivatives products of our Equities business, bringing connectivity and maintainability convenience to our customers’ Order Management Systems. With a more robust and efficient platform, we are also able to enhance our market offerings to our customers”. Singapore has been developing as a major global hub for FX and liquidity in Asian market for quite some time.
It has also been working together with the Monetary Authority of Singapore towards developing Singapore’s market into a global FX price discovery and liquidity centre in the South Asian region. In order to ensure steady progress in this front, Singapore’s regulatory authorities together with SGX have been encouraging local firms to start building their own trading engines to be put to use by the country for quite a while now. Speaking about the tech exchange deal between two parties, Robert Frojd, Managing Director for South Asia, Southeast Asia & Pacific market regions at NASDAQ commented, “SGX continues to be at the forefront of adopting new innovations and technologies to better serve its customers and strengthen its capital markets ecosystem. SGX continues to be at the forefront of adopting new innovations and technologies to better serve its customers and strengthen its capital markets ecosystem”.
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