SGX names veteran banker Loh Boon Chye as its new CEO

Singapore

THE Singapore Exchange (SGX) has tapped a veteran banker with experience beyond the market operator's traditional equities stronghold as its next chief executive.

It announced on Monday that, after a 3 1/2-month search, Loh Boon Chye, the former head of Bank of America Merrill Lynch's global markets in the Asia-Pacific, will be its chief executive from July 14.

Mr Loh, 51, replaces Magnus Bocker, who said in February that he will leave after his contract runs out on June 30. SGX president Muthukrishnan Ramaswami will be in charge in the interim.

Mr Loh said in a statement: "I am honoured to be given the mandate to steer SGX, and look forward to building on a strong foundation.

"I have previously had the opportunity to be involved with SGX and seen it grow into a truly international exchange that is a gateway to Asia. In a rapidly evolving financial landscape, SGX has to adapt to stay ahead, and I look forward to working with the stellar team towards this goal."

SGX chairman Chew Choon Seng said: "He is very well regarded by everyone who has worked with him and is respected as an accomplished leader and team manager. Boon Chye is no stranger to SGX and his knowledge and extensive experience in capital markets equip him well to take SGX forward."

Mr Loh will inherit an exchange in which equity activity has been languishing in the shadows of a booming derivatives business. In such circumstances, SGX's directors have chosen a new chief executive with experience in various markets - from equities to debt to foreign exchange to commodities.

Mr Loh began his career as an investment officer with the Monetary Authority of Singapore in 1989.

After a stint at the Singapore branch of Morgan Guaranty Trust Co of New York, he joined Deutsche Bank in 2002 and established himself as a sharp fundraiser who helped the bank to move up the debt-market league tables.

Mr Loh joined Bank of America Merrill Lynch in December 2012 as head of global markets Asia, the first time the bank had placed the business under one person. He quit earlier this year.

OCBC's head of global corporate banking George Lee said: "Boon Chye is a visionary who is widely regarded as one of the top brains in the Treasury market. He is very down to earth and takes a balanced approach in everything he does."

A bank insider who declined to be named said: "He's a very reasonable person and easy to work with, quite consultative. He has different strengths from the outgoing CEO. He's been in the market, so he's quite familiar with capital markets, so there could be a shift away from the tech side. Hopefully, he can revive the stock market."

Even before he steps into the hot seat, Mr Loh already faces a sizeable wishlist from various corners of the market.

Ernest Kan, Deloitte Singapore's chief of operations for clients and markets, expressed concern about the quiet new listings market.

Jimmy Ho, president of the Singapore Society of Remisiers, said he hoped Mr Loh would not discourage uncollateralised speculation. Lunch was also on the table. "This looks like a small matter," he said, "but it's very important. Return the lunch break."

David Gerald, president of the Securities Investors Association of Singapore, welcomed Mr Loh's capital markets experience, and urged him to keep retail investors at the forefront of his priorities. He then unfurled his "to do" list for Mr Loh. "Retail investors are still unhappy with the lack of protection for their investments in S-chips like China Sky (the saga of which remains unresolved); there are serious concerns relating to large share consolidation by penny-stock companies leading to erosion of shareholder value, the bunching of annual general meetings, particularly in the last week of April, and the overall low trading volumes."

Loh Hoon Sun, managing director of Phillip Securities, kept his wish simple: "We would like the new CEO to continue to grow the exchange in terms of market cap, number of listed companies and trading volume in order for it to become an important stock exchange globally."

Easily done, right?

SGX shares closed at S$7.93 on Monday, down by 19 Singapore cents or 2.34 per cent, before the appointment was announced.

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