Trading Safeguards by SGX: New Implementation effective 26 Sept 2011 

Effective 26 September 2011, SGX will implement the following changes:

(i) Random endings to the Pre-Open and Pre-Close phases of the Opening and Closing Routines

In order to reduce the risks of the manipulation of market opening and closing price, SGX has introduced random endings to the Pre-Open and Pre-Close phases of the Opening and Closing Routines. This means that the market will close at anytime within a specified interval rather than a designated absolute time.

(a) Pre-Open and Open Routines

Pre-Open routine starts at 08.30hrs and ends randomly between 08.58hrs to 08.59hrs, i.e. Non-Cancel period can start anytime between 08.58hrs to 08.59hrs.

The market will open at 09.00hrs (no change from current timing).

(b) Pre-Close and Closing Routines
Pre-Close routine starts at 17.00hrs and ends randomly between 17.04hrs and 17.05hrs for a full trading day, i.e. Non-Cancel period can start anytime between 17.04hrs to 17.05hrs.

The market will close at 17.06hrs (no change from current timing).

Note : 

For half trading day, Pre-Close routine will end randomly between 12.34hrs and 12.35hrs, i.e. Non-Cancel period can start anytime between 12.34hrs and 12.35hrs.

(ii) Publication of Indicative Equilibrium Prices during the Opening and Closing Routines
We will be including a new column named “EP” will be added to iOCBC screen to display the Indicative Equilibrium Price (“IEP”). IEP is the price at which orders would be executed if orders matching were to occur at that point.

In addition, please take note that all better bid and ask prices as well as quantities will be masked. If you have access to view Bid/Ask information in iOCBC, you will no longer be able to view such information during the Pre-Opening (08.30hrs to 08.59hrs) and Pre-Closing routines. (17.00hrs to 17.05hrs)

Note: 
The publication of IEP is intended to provide more market transparency.  IEP acts as an indication of the eventual opening or closing price, which helps customers to assess the market and adjust their orders accordingly. 

The masking of all better bid/ask prices and quantities is included as a safeguard against manipulation of the eventual equilibrium price.
 
Last updated on 26 September 2011

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