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SGX restructures to pursue growth; bourse president to retire after 12 years
THE Singapore Exchange (SGX) on Thursday announced a new organisation structure and that Muthukrishnan Ramaswami, 62, will step down as president of SGX on Oct 1 after 12 years in the role.
Four business and client units – fixed income, currencies and commodities; equities (cash & derivatives); data, connectivity and indices; and global sales and origination – will report to CEO Loh Boon Chye from July 1 onwards.
Outgoing president Mr Ramaswami is a member of SGX's executive management committee and has direct oversight of technology, operations, market data and connectivity, and membership and international coverage functions of the SGX Group.
The new structure "capitalises on its strength as an international multi-asset exchange, to pursue growth opportunities and build scale in multiple asset classes", said the bourse.
SGX will combine fixed income, currencies and commodities (FICC) to form a new business unit.
The rising convergence of over-the-counter and listed foreign exchange markets presents it with opportunities to serve the market with innovative and differentiated products, it said.
SGX's wholly owned subsidiaries - Baltic Exchange and Energy Market - will report to FICC as anchors to the physical market in the commodities value chain.
The FICC unit will be led by Lee Beng Hong, who has over 16 years of international banking experience in global markets, specialising in Asian FICC products, sales and coverage.
He will join SGX on Aug 1, with CEO Mr Loh overseeing FICC in the interim.
SGX will also combine its cash equities and equity derivatives businesses into one platform which allows retail and institutional clients to access a continuum of equities products, including all trading, clearing, post-trade and research services.
The bourse will look to internationalise its cash equities segment through the introduction of new derivatives products, structured products and offshore risk management capabilities.
By focusing on equities as a single asset class, product and service innovation can span both cash and derivatives channels to address client needs holistically, said SGX.
Michael Syn, head of derivatives, has been appointed as head of equities.
The exchange's market data and connectivity unit has been renamed data, connectivity and indices (DCI) in recognition of SGX's data-related product and services.
SGX said it will build its index business capabilities to cater for future growth amid a global shift towards passive investing.
Ng Kin Yee will continue to lead DCI.
The global sales and origination (GSO) unit combines the equities and debt capital market teams with SGX’s nine international offices and specialist sales teams.
The consolidation will give the bourse a bigger international presence to facilitate capital raising in key markets, and create an integrated client-facing group that will serve all segments with SGX products and services across asset classes, said the exchange.
Chew Sutat, head of equities and fixed income, will head GSO.
"These changes will further SGX’s future growth as a leading international exchange, fluent in multiple asset classes," said Mr Loh.
"We look forward to building new capabilities in growth areas, achieving scale and efficiency in established markets and enhancing customer-centric delivery of investment, risk management and capital formation solutions to the marketplace."