Why Singapore can be your base to Trade Asia

presented by Singapore Exchange, Enterprise Singapore

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Singapore, Michigan?

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Singapore

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Singapore

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278 mi25.6million population

234mi22.7mpopulation

So… are we a land of crazy rich Asians?

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High GDP per capita ranked just one below the USA

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Grew GDP/capita by > 40X

World Bank Rankings (2017)

USA #7US$59,532

Singapore

High GDP per capita ranked just one below the USA

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Grew GDP/capita by > 40X

World Bank Rankings (2017)

USA #7US$59,532

Singapore #8US$57,714

Singapore

Singapore is an International Business and Financial Hub

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^Note: UHNWI refers to individuals with a net worth of over US$30m in assets*Source: Knight Frank Wealth Report (2016), Economist Intelligence Unit (2014), MAS Annual Report (2015/2016), Fitch Ratings (2015), Global Financial Centres Index rankings (2016)

Asia’s Wealth Management Hub

Home to major sovereign wealth funds such as GIC, Temasek, Norges Bank Investment Management, Canada’s Caisse, Korean National Pension Service, Investment Company of People’s Republic of China, etc.

Ultra High Net Worth Individuals (UHNWIs^)

Singapore has 2,500 UHNWIs, is the 3rd most important city to the world’s UHNWIs

One of the world's fastest growing number of UHNWI in the next decade

Singapore is a key Asian financial centre and world’s fourth most important venue for

financiers

World’s No. 4 Financial Centre

Only Asian country with a Fitch AAA Rating

World’s BEST Business Environment*

Over S$2.7 trillion AUM Over 591 registered & licensed

fund managers Poised to be the 2nd largest

global asset management hub by 2018

80% AUM are sourced from outside of Singapore

Serving Global Investors

Global Hub for Institutional Investors

Our competitive advantage

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Connecting you to Asia Pro-Business Environment &

Regulation Skilled Workforce

Maritime Hub of Asia

Connected to over 600 ports in over 120 countries

Best Global Container Terminal Operating Company for 12th time

Best Container Terminal - Asia (Over 4 Million TEUs) for 28th time

Connectivity & Ease of Access to Asia

Strategically located in the heart of Asia

Close to 4 billion people within a 7-hour flight radius

Pro-Business Environment

37,000 International companies based in Singapore

#1 in Asia for IP Protection (WEF)

#2 for ease of doing business (World Bank)

#3 most Competitive Economy in the World (IMF)

Skilled Workforce

96.8% Literacy Rate

80% English Proficiency

55% % of workforce white collared

52.8% with tertiary education**

*source : Total Workforce Index 2017

**source: Singstat 2017

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Singapore Exchange

Why Singapore can be your base for

Trading Asia – Singapore Exchange (SGX)

Global Futures & Options Volume 2017

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-

5,000,000,000

10,000,000,000

15,000,000,000

20,000,000,000

25,000,000,000

30,000,000,000

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2008 2009 2010 2011 2012 2013 2014 2015 2016

North America Asia Source: FIA

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Asia’s Broadest Range of Listed Index Futures and Options

NIKKEI 225 NIKKEI

DIVIDENDFTSE CHINA A50MSCI CHINA

Nifty 50MSCI INDIA

MSCI INDONESIA

MSCITAIWAN

MSCI SINGAPORE

MSCI THAILAND

MSCI MALAYSIA

MSCI PHILIPPINES

• ADV: 934,000 Contracts (>US$20m)

• Open Interest: 1.8 million Contracts (>US$50m)

• 7 key Asia benchmarks covers 80% of Asia’s top economies: China, Japan, India, Taiwan and Indonesia, and Southeast Asia

• FBOT-approved platform & CFTC-approved products; USD-denominated & Cash settled

• High efficiency of connectivity and high capital efficiency through cross margins.

• 23.5 hour platform provides round-the-clock capability for trading

Growing US Day session activity

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0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Nu

mb

er o

f C

on

trac

ts T

rad

ed in

T+

1 (

Co

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acts

)

T+1 T+1 %

10

14%

ADV crossed 100,000 contracts T+1 (US Day) 45% Growth ; China A50 & USD/CNH ~2X growth

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Nikkei225 FTSEChina A50

MSCITaiwan

Nifty 50 INR/USD USD/CNH MSCISingapore

T+1 volumes across key contracts

2017-12 2018-09

+89

%

+1

5%

+54

%

+37

%

+17

%

+13

5%

+7%

$-

$200

$400

$600

$800

$-

$1,000

$2,000

$3,000

$4,000

$5,000

Oct

-14

Dec

-14

Feb

-15

Ap

r-1

5

Jun

-15

Au

g-1

5

Oct

-15

Dec

-15

Feb

-16

Ap

r-1

6

Jun

-16

Au

g-1

6

Oct

-16

Dec

-16

Feb

-17

Ap

r-1

7

Jun

-17

Au

g-1

7

Oct

-17

Dec

-17

Feb

-18

Ap

r-1

8

Jun

-18

Au

g-1

8

BillionsMillions

Cumulative Volume (Notional) Daily Average Volume (Notional)

SGX FX Futures

Key Highlights

SGX USD/CNH Futures Volume Growth

Average daily notional in Sep 2018

Total Notional Volumes Up to Date Total Notional Volumes Up to Date

US$4.62Bn US$2.47BnRecord USD/CNH futures traded on 16 August 2018

46,162 lots

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Dai

ly A

vera

ge V

olu

me

an

d O

I (N

oti

on

al U

SD)

Daily Average Notional above USD 1 Billion since Sep 2017.

SGX INR/USD Futures Volume Growth

-

20,000

40,000

60,000

80,000

0

500,000

1,000,000

1,500,000

No

v-1

3Ja

n-1

4M

ar-1

4M

ay-1

4Ju

l-1

4Se

p-1

4N

ov-

14

Jan

-15

Mar

-15

May

-15

Jul-

15

Sep

-15

No

v-1

5Ja

n-1

6M

ar-1

6M

ay-1

6Ju

l-1

6Se

p-1

6N

ov-

16

Jan

-17

Mar

-17

May

-17

Jul-

17

Sep

-17

No

v-1

7Ja

n-1

8M

ar-1

8M

ay-1

8Ju

l-1

8Se

p-1

8

Mo

nth

-En

d O

pe

n In

tere

st

(No

. of

Co

ntr

acts

)

Mo

nth

ly V

olu

me

(N

o. o

f C

on

trac

ts)

Total Monthly Volume (Contracts)

US$3.8Bn US$1.76BnSep 2018

Record INR/USD traded on 26 Sep 2017

124,297 lots

SGX Commodities growing as an Asset ClassComplements Singapore’s commodities hub status

Price-Discovery Centre For The Steel Value Chain

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aIron Ore

CFR China (62%)

Coking CoalFOB Australia,

CFR China

Steel HRC Steel (CFR ASEAN)

FreightTime Charter FFA (CV,PV,SV,HV)

Single Routes (C5, 2A, 3A)

Rubber (TSR & RSS3)

Other Commodities Products

Energy Electricity

Maritime Indices

SGX Connectivity to Asia & Rest of World

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US$360bn, ~50% of total market cap, of international companies listed on SGX

Source: Bloomberg and Singapore Exchange (July 2018)

US, UK, Europe, ANZ24 Listed Companies

Market Cap: US$89 billion

Frasers Logistics & Industrial Trust, Manulife US REIT, Lonza,

Prudential

North Asia

162 Listed CompaniesMarket Cap: US$179 billion

SOE:CAO, China Everbright, POE: Yangzijiang, Hutchison

Port

ASEAN

77 Listed CompaniesMarket Cap: US$74 billion

Thailand3 Listed Companies

Market Cap: US$14.8 bn

Thai Beverage, one of the largest beverage players in Asia

Malaysia43 Listed Companies

Market Cap: US$46.6bn

IHH Healthcare, Asia’s largest healthcare operator

Philippines1 Listed Company

Market Cap: US$265 mn

Del Monte Pacific, a global F&B conglomerate

Indonesia27 Listed Companies

Market Cap: US$12.9 bn

Lippo REIT, whose sponsor is PT Lippo Karawaci,

Indonesia’s largest listed property company

Myanmar3 Listed Companies

Market Cap: US$620 mn

Yoma Strategic, Singapore Myanmar Investco, Memories

GroupConnectivity into Asia:Majority of SGX companies generate over two-thirds of their revenue from Asia

How the world is interconnected? – Submarine Cables

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Why Singapore can be your base for Trading Asia?

Asia with Global ReachAccess to multiple exchanges, liquidity hubs, ECNs across geographies worldwide. 2

3Asia’s Largest Offshore Futures MarketsHome to a suite of widely traded Asian equity derivatives such as: MSCI Singapore, MSCI Taiwan , Nikkei 225, Nifty 50, FTSE China A50

4Longest Trading Hours in Asia >21 hrsTrading session opens as early as 0725 hrs and closing at 0445 hrs the following day.

Competitive Tax EnvironmentThere is no tax on income derived and received outside of Singapore, and no capital gains or estate taxes to worry about

Most Livable City in Asia Mercer’s 2018 Quality of Living Survey 5 6

Multi Asset Class SGX is a multi-asset class exchange and trusted market infrastructure operator in Asia catering to the investment and risk management needs for the global community

Asian Data Center Location Ranking

Data Center Risk Index identifies the top risks likely to affect data center business operations: Internet Bandwidth Ease of doing business Energy stability Political stability Natural disaster

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Singapore is the most robust market out of 10 Asian countries in terms of business operations for data centers

Source: Cushman and Wakefiled Research Publication, October 2017, Data Center Investment

SGX Co-Location – Gateway for the Financial Community

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Data Vendors

International Exchanges Hubs

Broking & Clearing Firms

Network Service Providers(NSPs)

Independent Software Vendors (ISVs) and service providers

Trading Participants

The Fastest Access - Order Round Trip within SGX Co-Location

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SGX - Titan Matching Engine

OM/OUCH GWY

Co-Location Rack/Servers

P1

Start #1

Stop #1

Order Ack

Start #2

Stop #2

Order Entry

300µsec 320µsec

Co-Location Tier 1 RackNetwork Latency < 20µsec

P2

Note: 1 second = 1 ,000 milliseconds,1 millisecond = 1,000 microseconds,1 microsecond = 1,000 nanoseconds

SGX Liquidity Hub

Cost effective – Lower international connectivity fees to SGX

Convenient – One stop engagement with SGX for all Trading, market data and remote network access requirements

Faster time to market – Shorter lead time to set up international connectivity

Business continuity – Support for contingency access to SGX

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Q&A

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This presentation is being made available to certain authorized recipients for their general information only. While SGX and its affiliates have taken reasonable care to ensure the accuracy and completeness of the information provided in this presentation, they will not be liable for any loss or damage of any kind (whether direct, indirect or consequential losses or other economic loss of any kind) suffered due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such information. Neither SGX nor any of its affiliates shal l be liable for the content of information provided by or quoted from third parties. Examples provided are for illustrative purposes only. The information in this presentation is subject to change without notice.Any recirculation, transmission or distribution of this presentation or any part thereof by any third party requires the prior written permission of SGX. SGX and its affiliates disclaim all responsibility and liability arising in connection with any unauthorised recirculation, t ransmission or distribution of this presentation or any part thereof. © SGX Ltd, September 2014

Appendix A - SGX Co-Location Financial Ecosystem