Singapore Exchange (SGX)

(20-08-2013, 10:31 AM)sgd Wrote: Maybe instead of food companies could give out souvenirs to each attendee like in the past. I have a sizable collection of old kerosene cigarette lighters from 70's/80's era given to me by an old friend many of the lighters bear names of companies they used to give it out at AGM's back when smoking was not yet considered health risk a time before anti-smoking campaigns began.

Super Group distributes bags of coffee/tea to its shareholders, after its AGM annually. It is a good idea, no accumulation of (useless) souvenirs, and able to QC the company key products...

I reckon that companies could either do a major reverse split or SGX could ensure that while there is no board lots, the value of each trading transaction must exceed some arbitrary fixed amount (like $300 etc).

Food is a small issue - it could be removed entirely from the AGM. I am thinking of logistics - if a Company has 50,000 shareholders due to the new rule and even if 10% choose to turn up, they need to book a pretty big convention hall to host its AGM. This could be costly for many small caps.

Just my personal opinions !

(20-08-2013, 10:48 AM)CityFarmer Wrote:

(20-08-2013, 10:31 AM)sgd Wrote: Maybe instead of food companies could give out souvenirs to each attendee like in the past. I have a sizable collection of old kerosene cigarette lighters from 70's/80's era given to me by an old friend many of the lighters bear names of companies they used to give it out at AGM's back when smoking was not yet considered health risk a time before anti-smoking campaigns began.

Super Group distributes bags of coffee/tea to its shareholders, after its AGM annually. It is a good idea, no accumulation of (useless) souvenirs, and able to QC the company key products...

viz branz as well...i got a huge bag of their products this year..and their agm food was little serving..but still feel good attending it

maybe sgx can help defray the cost (for penny stock counters) of bigger audience by providing its sgx auditorum hall in sgx centre 1 / 2 for AGMs purpose for free.

u see, sgx wins on higher trading vol by requiring 1 share trading, in return sgx can give some help to smaller listed companies, net net is a win win

with this, food can still be there because main bulk of agm event cost is mainly the rental of space

the increased earning that sgx makes should also help to defray commission cost so that brokerage firms will not suffer as a result of lower commission earned?

(20-08-2013, 09:30 AM)Some-one Wrote:

(20-08-2013, 07:47 AM)opmi Wrote:

(19-08-2013, 08:23 PM)Some-one Wrote: I don't know if I am playing the devil's advocate or not. Did anyone not realise that it would increase the number of shareholders attending AGM and this might be counter productive to real discussion in the AGM? I suggest that only those holding 1000 shares and above can attend the AGM but retailers can still buy shares lesser than 1000.

The principle behind this suggestion is wrong. All shareholders big and small should be treated equally.

If follow what u propose, why not make it minimum 1,000,000 shares to attend AGM?

There is a need to balance between serious shareholders and those who are buying the shares just to attend AGM and eat the food. I am not sure how many AGMs you have attended. Every year, I tried my best to attend all the AGMs by taking leaves. I have came across shareholders who are asking questions that are not related to the Annual Report. Most of them are just attending for the buffet spread.

Keppel Corp has always held their AGM in Raffles Convention Centre and after the AGM, you cannot imagine how many people cut the queue and take huge quantity of the food for which they would never be able to finish alone. Some even tabao back the food, pushing and shoving just to get the food. There was once when the waiter was nearly knocked down by the shareholders.

These shareholders hold a minimum quantity of 1000 shares as per current requirement. With the new requirements, those holding 100 shares and maybe even 1 share in the future is able to attend the AGM, how would this affect future AGM? Imagine 1 million shares with 1 million shareholders attending AGM, how would this affect the quality of the AGM?

I suggest you attend Keppel Corp AGM and see what would really gone wrong when the minimum number of shares is reduced. I think it is fine to reduce it to 100 shares or 10 shares but only serious investors should be allowed to attend the AGM to keep quality discussion with the management ongoing.

Another good suggestion by freedom is to simply just remove the food. I believe with this removal, more serious investor would attend AGM for real discussion and not just simply for the food.

OPMI is right on the principle. All shareholders should be treated equally. Negating it would open a can of worms.

Actually I think take away the food incentive is a good way to take away those non-serious investors during AGM. Simple solution to a complex problem.

(20-08-2013, 10:09 AM)Some-one Wrote:

(20-08-2013, 09:50 AM)opmi Wrote: I have been to SG, HK, Msian AGMs. Most people are there for the food too. Hahahah...
Only one with no free food is the one at Omaha.

Should separate food issue with AGM issues.

If it is about the rush for food, the companies should just go for lunchboxes.
No need to set minimum threshold.

Most people who are there for food wont ask questions so the quality discussion with mgt not compromised.

The worst people at AGM Q&A are those who speak up for the sake of speaking up. Likely correcting grammar, fawning over
big bosses (e.g. CDL) & make some political comments. You guys know who I am referring to.

You hold shares in Berkshire Hathaway? Are you a fund manager? I was just wondering if you really fly overseas just to attend their AGM?

With regards to your last paragraph, I was in Sembcorp Industries AGM few years back and there is this guy who seems to have a personal grudge against the management and he even make some racist comments. Then this Mano (very famous person who attend AGM regularly) actually apologises. I think these people should not be allowed to attend AGM and with more people allowing to buy shares that are less than 1000, there may be some who just buy for the sake to eat the buffett since it just do not cost much now. Let's first just assume that things remains status quo after SGX reduce per lot to 100 shares.

I think I know who this person that you are referring to . Yes, these are the things that may happen more frequently with the reducing of the per lot size and which SGX should have thought about. It looks to me that SGX is trying to benefit its shareholders. This change would result in more liquidity and more revenue for SGX. Perhaps, regulator and stock exchanges should be of different entity.

RE: Singapore Exchange Limited (SGX)
Not fund mgr. Cheapo one. fly budget to HK or take coach to KL. low cost.
Part AGM part go look see.

Yes. Got 1 share BRK-B Pre split. Been to BRK AGM in 08.

what is the impact for retail investors like us?

Singapore Exchange and Clearstream to launch collateral management service
 Singapore Exchange (SGX) and Clearstream to jointly offer a collateral management solution
 SGX customers will benefit from more efficient use of their assets held with SGX’s Central Depository (CDP) as collateral
 Singapore is first Asian market to use Clearstream’s Liquidity Hub GO (Global Outsourcing) service
SGX and Clearstream have signed a Letter of Intent on the launch of a collateral management service which enables customers to more easily and efficiently use assets held at SGX’s securities depository, CDP, for their collateral needs.
Under the agreement, SGX uses Clearstream’s collateral management infrastructure, the Global Liquidity Hub, and offers its Liquidity Hub GO service, to enable collateral to be allocated, optimised and substituted on a fully automated and real-time basis. Singapore’s market infrastructure remains strong as the service ensures collateral remains within domestic jurisdiction.
Muthukrishnan Ramaswami, President of SGX, said: “We are pleased to partner with Clearstream in providing our customers a collateral management offering which meets their needs at a time when they are increasingly concerned about risks and regulatory changes. We will also work with Clearstream to expand this offering to other markets in the region. By becoming the first Asian securities depository to offer this service, we strengthen and enhance Singapore’s position as a leading financial centre.”
Jeffrey Tessler, CEO of Clearstream, said: “We are delighted to expand the Liquidity Hub GO partnership model to Singapore Exchange and to bring our unique collateral management outsourcing solution to Asia. Together with SGX, we will be able to develop a tailor-made collateral management solution for Singapore in a very short time-to-market. High quality collateral is scarce and increasingly expensive – making it available is also a top industry priority in Asia. SGX and Clearstream will soon be able to jointly address this major industry challenge for the Singapore and Asian markets.”
Clearstream’s Liquidity Hub GO service went live with the Brazilian CSD Cetip in July 2011 and will be launched with ASX, Australia, the South African CSD Strate and Spanish CSD Iberclear in the course of 2013. Canadian CDS CSD has also signed a Letter of Intent with Clearstream. The initiative has gained momentum as upcoming regulatory changes require financial and non-financial institutions to improve their capital management. Clearstream is the only collateral management services provider with a proven ability to manage collateral across time zones without transferring assets out of the respective domestic environment.

Financial Statement: http://infopub.sgx.com/FileOpen/SGXNet_1...eID=260023

Announcement: http://infopub.sgx.com/FileOpen/20131017...eID=260038

Quote:

FY14Q1 Highlights
• Revenue: $184 million, up 15% from a year earlier
• Operating profit: $107 million, up 21%
• Net profit: $92 million, up 24%
• Earnings per share: 8.6 cents, up 24%
• Interim dividend per share: 4.0 cents - Record Date: 25th Oct 13

(Not vested)

News update on the SGX's FY14Q1 result...

SGX profit up 24% as growth in all businesses accelerates

SINGAPORE — The Singapore Exchange (SGX) has reported first-quarter net profit of S$92.3 million, up 24 per cent from a year earlier as revenue increased 15 per cent, helped by growth across all businesses.

Revenue from the securities business grew 15 per cent to S$69 million and accounted for 38 per cent of total revenue, the SGX said. The average value of daily trading was steady at S$1.3 billion.

Securities clearing revenue rose 17 per cent to S$54.4 million due to institutions trading a broader range of stocks and increased retail participation. The clearing revenue a year earlier was also lower due to block trades driven by merger and acquisition-related activities.

A total of 11 listings in the quarter raised S$2 billion compared with 10 IPOs raising S$3.6 billion a year earlier. Total equity funds of S$4.6 billion were raised, compared with S$4 billion a year earlier.

SGX CEO Magnus Bocker said the firm will continue to execute its strategies amid uncertain market conditions. “In the next few quarters, we will introduce products such as foreign exchange futures and new ASEAN equity index futures,” he said.

“The growth of our distribution capabilities is on track; we have received an automated trading services licence in Hong Kong. We remain committed to strengthening our regulatory and risk management capabilities, including preparing ourselves for new European and US regulatory standards.”
http://www.todayonline.com/business/sgx-...ccelerates

It seems SGX securities clearing revenue can be a gauge for investor sentiment in the market. The higher the revenue due to higher retail participation, the more bullish is Mr Market.

Perhaps SGX securities clearing revenue can act as a bullish/bearish indicator. After all, retailers tend to be the "last ones at the party"