20¢ minimum traded price on track and is needed for a quality market: SGX

Singapore

THE Singapore Exchange (SGX) on Tuesday said it is on track to implement the 20-cents minimum traded price (MTP) for the Mainboard and that the move is aimed at improving the market's quality as higher-priced shares have better liquidity and are less susceptible to speculation and manipulation.

In a statement, the exchange said the MTP will be introduced on March 2, but will only come into force after a one-year transition ending March 1, 2016, which means there is no immediate impact on companies. "The first batch of companies which do not comply with MTP then will enter the SGX watch-list," said the exchange. "These companies will have a 36-month period up to Feb 28, 2019 to comply."