Expect lower SGX clearing fees until 2020

Blame the reduction of clearing fees to 0.0325% of contract value.

Clearing fees in the Singapore Exchange (SGX) have been declining since 2014, where the reduction each year has been close to 16-20bps YoY, Maybank Kim Eng revealed.

According to a report, firstly, this could be attributed to the reduction in clearing fees from 0.04% to 0.0325% of contract value since June 2014 in order to improve liquidity and retail participation.

There is also the introduction of the market makers and liquidity providers (MMLP) to "bring in liquidity and improve depth of market" in June 2014. Fee rebates are also offered to MMLP to incentivize them to trade.

Maybank KE also saw a higher mix of products, including exchange traded funds (ETF) and daily leverage certificates (DLC).

The securities daily average value (SDAV) of these products rose from 3% of total SDAV in 2014 to 8% in the first quarter of 2018.

Maybank KE expects clearing fees to fall by 6-10bps YoY to 5.54 bps in 2018, 5.48bps in 2019, and 5.42bps in 2020.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia