Singapore Hot Stocks-SGX down on worries over MF Global

SINGAPORE Tue Nov 1, 2011 10:43pm EDT

Related Topics

SINGAPORE Nov 2 (Reuters) - Shares of Singapore Exchange (SGX) , Asia's second-largest listed bourse, fell as much as 2.9 percent on Wednesday, on worries that the bankruptcy of U.S. brokerage firm MF Global could hurt its trading volumes.

At 0230 GMT, shares of SGX were 2.1 percent lower at S$6.39 percent, underperforming the benchmark Straits Times Index's 0.8 percent loss.

"MF Global is a big clearing member and it'll definitely affect trading volumes in the short term. It may not be as big here as in the U.S. or Australia, but there's still exposure," said a local trader.

SGX said on Monday it had told MF Global's Singapore unit not to take any more derivative positions and to reduce existing positions. It said the brokerage was also meeting its financial obligations to the exchange's clearing house.

MF Global, which filed for bankruptcy in the United States on Monday, said its Singapore unit has appointed KPMG to oversee the winding down of the company. (Reporting by Charmian Kok; Editing by Matt Driskill)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.