SINGAPORE SECURITIES MARKET CONSIDERING CHANGES
The Stock Exchange of Singapore Ltd
is looking at a new settlement and clearing system and a
corporate disclosure format that would make financial data more
readily available, George Teo, deputy chairman of the exchange,
said.
    He told a conference organised by the Development Bank of
Singapore Ltd that Singapore wants to develop the fixed rate
securities market. He said a state securities market, along the
same lines as the U.S. Government securities market, will be
developed to provide a benchmark for corporate bonds.
    Teo said the fixed rate securities market will pave the way
for companies to raise fixed rate funds.
    Referring to a proposed change in the broking commission
structure, Teo said the exchange is likely to introduce a
sliding scale structure instead of a negotiated commission
structure. He said the negotiated structure works against small
investors, who play an important role in the market.
    The market capitalisation of the Stock Exchange of
Singapore increased to 42 billion U.S. Dlrs in January 1987
from 32 billion U.S. Dlrs in early 1986, he said.
    Teo said the government has picked 15 companies to
participate in a privatisation program which strives to create
opportunities for investors through the sale of 380 mln dlrs
worth of shares a year. It will try to increase alternative
investment available to investors, he said.
    He cautioned against problems in a more competitive
securities market, adding that the possibility of insider
trading is increased when securities dealing, corporate finance
and investment advisory functions are conducted under one roof.
But he said the future direction of Singapore's securities
industry will be dictated by international trends.
 REUTER
