The government has announced the merger of the Stock Exchange of Singapore (SES) and the Singapore International Monetary Exchange (Simex).
The two exchanges will merge into a single privately-held company that will eventually be listed. The merger will mean the separation of ownership rights from trading access to the markets. The listing is expected to take place in about five years.
Existing SES and Simex members will be given shares in the new entity, and the remaining shares will be sold to other market players such as financial institutions and fund managers.
The combined exchange will phase in open-access to local and foreign brokers by January 2002 and free up brokerage commissions from the fixed rate of 1%.
While the exchange will continue to perform routine regulatory functions, the role of the Monetary Exchange of Singapore as the regulator of the exchange will be enhanced.
To ensure that brokers retain a significant but not over-dominant role, their combined ownership in the merged exchange will be kept within a range of 33% to 75%.