The American Stock Exchange and Singapore Exchange Begin Trading ETFs in Singapore.
NEW YORK, May 4 /PRNewswire/ --
The American Stock Exchange(R) (Amex(R)) and the Singapore Exchange (SGX) today launched the trading of five Amex-listed exchange-traded funds (ETFs) on SGX Securities Trading (SGX-ST). The day's trading volume for the five shares totaled 35,870 shares with a total dollar value of USD$4,349,358.
Today's announcement comes less than a year after the Amex and SGX signed an agreement to create a joint venture for the pan-Asian trading of ETFs. Under the agreement, a Singaporean joint venture company owned equally by both exchanges has been created to promote the listing and trading of ETFs.
The Amex and SGX ETF trading network is fungible, meaning that the same ETFs will trade in Singapore and the U.S. and an investor can buy or sell ETFs in Singapore or the U.S. The funds will be commonly settled in US dollars. Trading ETFs on SGX-ST is the first step in a fully fungible global trading platform that will include Europe and potentially Latin America and Japan.
"We have made history here today in Singapore," said Salvatore F. Sodano, Amex chairman and chief executive officer. "Today's launch extends our clear domestic leadership in ETFs globally, and we are on track to execute our core strategy of providing a fully fungible, 24-hour trading global platform for our ETF product line."
The following Amex-listed ETFs began trading today in Singapore:
-- S&P 500 SPDRs(R) [SPY]
(Total Volume: 20,060 shares/Total Dollar Value: USD$2,513,801)
-- DJIA DIAMONDS(R) [DIA]
(Total Volume: 5,250 shares/Total Dollar Value: USD$567,700)
-- iShares(SM) MSCI Singapore Index Fund [EWS]
(Total Volume: 400 shares/Total Dollar Value: USD$2,220)
-- iShares(SM) Dow Jones U.S. Technology Sector Index Fund [IYW]
(Total Volume: 130 shares/Total Dollar Value: USD$8,375)
-- iShares(SM) S&P 500 Index Fund [IVV]
(Total Volume: 10,030 shares/Total Dollar Value: USD$1,257,262)
ETFs are indexed funds that trade throughout the day in the same way as individual stocks and are designed to track the performance of a specific index. They can be more liquid and cost-effective investment vehicles. Retail or institutional investors buy a single share of a specific ETF which tracks the movement of the index, whole business sector, national economy or region on which the fund is based.
The Amex pioneered the concept of ETFs in the U.S. in 1993 with the introduction of SPDRs(R) -- Standard & Poor's Depositary Receipts(R), an exchange-traded unit investment trust based on the Standard & Poor's 500 Index(R). There are now 99 ETF products trading on the Amex, with assets currently totaling over $70 billion. In the fourth quarter of 2000, net new asset investment in ETFs exceeded inflows into equity mutual funds, according to a report published by Strategic Insight, a New York-based research firm.
In February, the Amex announced plans to create a joint venture with Euronext, the first pan-European exchange, to cross list and trade U.S., European and other internationally sourced ETFs.
Clearing and Settlement Arrangements
The products will be cleared and settled through the coordinated efforts of the Depository Trust Company and the Central Depository (Pte) Limited, SGX's subsidiary responsible for securities clearing, settlement and depository services. The Central Depository (CDP) maintains an NSCC sponsor account with its counterpart in the U.S., the Depository Trust Company (DTC), facilitating the cross-border transfers of ETFs between CDP and DTC Participants. The settlement period for ETFs is T+3.
The American Stock Exchange
The American Stock Exchange(R) (Amex(R)), a subsidiary of the National Association of Securities Dealers, Inc. (NASD(R)), is the only primary exchange that offers trading across a full range of equities, Exchange Traded Funds (ETFs), including structured products and HOLDRS(SM), and options. In addition to its role as a national equities market, the Amex is the leader in ETF listings, listing 99 ETFs to date, and is the second-largest options exchange in the U.S., trading options on broad-based and sector indexes as well as domestic and foreign stocks. For more information, visit http://www.amex.com.
Singapore Exchange Ltd
Singapore Exchange Ltd (SGX) was inaugurated on 1 December 1999, as Asia Pacific's first demutualised and integrated securities and derivatives exchange, following the merger of two established and well-respected financial institutions -- the Stock Exchange of Singapore (SES) and the Singapore International Monetary Exchange (SIMEX). Leveraging on the combined strengths of the former entities, and through its innovative approach, broad range of products, strong international alliances and the best of technology, SGX aims to establish itself as a leading integrated exchange, expanding its presence in the global financial marketplace. The exchange is a founding member of the GLOBEX(R) Alliance, the world's largest derivatives trading link. It is also set to launch a cross trading link for securities with the Australian Stock Exchange (ASX). On 23 November 2000, SGX became the first exchange in Asia Pacific to be listed via a public offer and a private placement. SGX is listed on its own Mainboard. For more information, visit us at http://www.sgx.com.
For more complete information and prospectuses, including potential risks, for SPDRs(R) and DIAMONDS(R) (each sponsored by PDR Services LLC) call 1-800-THE-AMEX or visit http://www.amex.com; and for iShares(SM) (sponsored by Barclays Global Investors N.A.), call 1-800-iShares or visit http://www.ishares.com. With respect to ETFs listed on the SGX, as required under the Companies Act of Singapore, a statement including a prospectus will be available in Singapore for each product. Read a prospectus carefully before you invest. Exchange Traded Funds are subject to risks similar to those of stocks. Investment returns may fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth more or less than their original cost. Investments in foreign investments may incur unique and greater risks than domestic investments. Past performance is no guarantee of future results. ALPS Distributors, Inc., a registered broker-dealer, is distributor for the DIAMONDS(R) and SPDR(R) Trusts, both unit investment trusts. iShares(SM) are distributed by SEI Investments Distribution Co. Barclays Global Fund Advisors serves as an advisor to iShares and is a subsidiary of Barclays Global Investors, N.A., neither of which is affiliated with SEI Investments Distribution Co.
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|Date:||May 4, 2001|
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