Firms can choose to be traded in any two different currency denominations, for it's listed shares. This added functionality aims to deliver greater cost efficiency to investors as it means they are able to trade foreign-denominated securities in their local currency, said the Singapore Exchange. But it might also meant that shares traded in riskier foreign currency could be also traded using Singapore dollar as well...
And according to SGX, the securities will be fungible meaning "an investor can buy and/or sell the security in any currency regardless of the currency in which it was first bought and/or sold."
“Dual-currency listed shares will be consolidated in investors’ Central Depository (CDP) accounts so that the total number of shares can be viewed at a glance - for example, 1,000 US$-denominated shares and 2,000 S$-denominated shares will be reflected as 3,000 shares in the CDP account,” said SGX.
Interestingly, Hutchison Port Holdings Trust is the first listed security to launch dual currency units, in US$ and S$, and will start trading on 2 April 2012.
No comments:
Post a Comment