SGX (S68) Annual Reports

SGX was formed in 1999 in order to effectuate the demutualization and merger of

the two exchanges: Stock Exchange of Singapore and Singapore Intl Monetary

Exchange. Prior to the merger, each exchange was owned by the member firms

that engaged in trading and clearing and settlement functions. Pursuant to

legislation adopted to effect the merger, SGX was created to own the exchanges

and their related clearing houses, and the former owners and seatholders were

given shares in SGX in exchange for their shares and seats in the two exchanges.

SGX owns and operates the only integrated securities exchange and derivatives

exchange in Singapore and their related clearing houses. The securities

exchange was the first fully electronic and floorless exchange in Asia. The

derivatives exchange is one of the largest in Asia and was named "Derivatives

Exchange of the Year" in 1989, 1992, 1993 and 1998 by the International

Financing Review and "Asia’s Best Derivatives Exchange in 1999" by The Asset

magazine. Together, the two exchanges serve a wide array of international and

domestic investors and end users, including many of the world’s largest

financial institutions, and have been among the most innovative exchanges in

the world in technological and new product development.

SGX has been developing alliances and new products in order to meet the

changing needs of the international and domestic financial communities. SGX was

a founding member of the GLOBEX Alliance together with some other leading

derivatives exchanges. It also has alliances or significant relationships with

the Chicago Mercantile Exchange, the American Stock Exchange, the Australian

Stock Exchange and the National Stock Exchange of India. SGX has introduced a

variety of securities and derivatives products to respond to investors' desires

for 24-hour trading, diversification and trading across markets.