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“We can’t trade well when we’re planning what we are going to trade tomr. Living in the now is a necessity to good trading.” ~ Bill Williams

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“Fm trading standpoint, it is impt to trade not just based on price alone but also the direction of change in price – i.e. the dp / dt.”

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Market movement likely to be muted given US having Presidents’ Day (Washington Day) next Monday..

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STI crossed 3,000 – true test for the day if it will stay above at market close..

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The Pre-Open and Pre-Close Routines

As an extension to the regular trading session (9.00 am – 5.00 pm) for the stock market, the Singapore Exchange Securities Trading Limited (SGX-ST) introduced a Pre-Open and a Pre-Close Routine on 21st August 2000. It is aimed at increasing efficiency and transparency of the marketplace, so as to facilitate smooth price movements during the opening and closing sessions of trading.

The Pre-Open Routine is a 30 minutes auction session (consisting of a Pre-Open Period and a Non-Cancel Period), which is conducted prior to the commencement of the regular trading session at 9.00 am. As for the Pre-Close Routine, it runs for 6 minutes. Likewise, it will also have a Pre-Close Period and a Non-Cancel Period.

Pre-Open Routine
Pre-Open Period (8.30 am – 8.59 am):
Buy and sell orders are keyed into the SGX trading terminals, and the orders can be amended or withdrawn. However the orders placed are not matched yet.

Non-Cancel Period (8.59 am – 9.00 am):
No further entries, amendments or withdrawal of orders are allowed. Orders that can be matched are executed based on a single “opening” price computed by the SGX trading system. All unmatched orders will flow into the regular trading session.

Adjust Phase
Lunch Break Hours (12.30 pm – 1.59 pm):
Orders can be entered, reduced in quantity or withdrawn. No matching of orders is carried out.

Adjust Phase Non-Cancel Period (1.59 pm – 2.00 pm):
Orders cannot be entered, amended nor withdrawn. Orders that can be matched will be matched at a single price computed based on an algorithm set by SGX-ST. Unmatched orders are carried forward into the afternoon trading session.

Pre-Close Routine
Pre-Close Period (5.00 pm – 5.05 pm):
Buy and sell orders are keyed into the SGX trading terminals, and the orders can be amended or withdrawn. However the orders placed are not matched yet.

Non-Cancel Period (5.05 pm – 5.06 pm):
No further entries, amendments or withdrawal of orders are allowed. Orders that can be matched are executed based on a single “closing” price computed by the SGX trading system (similar to the formulae used for the Pre-Open Routine). All unmatched orders are discarded.

~ Source: SIAS

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SGX Improves Securities Settlement To Reduce Incidence Of Failed Trades

Source: The Edge

Singapore Exchange Limited (SGX) has announced improvements to its clearing and settlement system for securities traded on SGX, to reduce the incidences of non-delivery of securities and imposition of the attendant penalties. These improvements will take effect on Nov 6.

SGX says it has revised the cut-off time for delivery of securities to 12 noon on T+3 to allow buy-in to be conducted in the afternoon for non-delivered securities to enable market participants to meet their delivery obligations. Only securities that are not successfully bought-in by the end of T+3 will be deemed to have failed.

A summary of the improvements are:

•Bringing forward securities delivery cut-off time to 12.00pm on T+3

The revised cut-off time for market participants to deliver securities to meet their settlement obligations is streamlined to 12.00pm on T+3. Participants must ensure that they have sufficient securities in their accounts by that time, failing which CDP will conduct buy-in for these securities.

•Earlier buy-in time on T+3

CDP will conduct the buy-in of undelivered securities on T+3 from 3.00pm to 5.00pm instead of the morning of T+4. This allows identified open positions to be covered before the trade is deemed to have failed and the attendant penalties are imposed.

CDP will publish the list of securities to be bought-in on the SGX website on T+3 at 2.30pm.

To allow market participants to fine-tune their internal processes, SGX will allow a transition period from 6 November to 26 November 2009. The new buy-in time of 3.00pm on T+3 will only take effect on 30 November 2009.

•Failed trades on T+3

A trade is deemed to have failed if buy-in for the shortfall is unsuccessful by the end of T+3. SGX will impose a penalty of $1,000 or 5% of the value of the failed contract that was not bought in (whichever is higher) at the end of T+3. The existing arrangements for SGX to consider appeals for the waiver of this penalty will continue.

•Continuation of buy-in for failed trades

Buy-in will continue on T+4 and T+5 from 3.00pm to 5.00pm for outstanding undelivered securities at the end of T+3. For failed delivery of securities that cannot be procured after T+5, a penalty of $5,000 each day will apply.

For extended failed delivery of securities after T+7, or for failed delivery of securities in the buy-in market, the matter may be referred to the Disciplinary Committee to decide on the appropriate penalty.

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Ascendas REIT acquiring Singapore Science Park Assets at a price tag of S$183 Mln.

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Nikkei hits 3-month high on the positive note of US jobs data.

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