SGX and ASIC Play it Safe During Coronavirus Epidemic

Amidst the global coronavirus epidemic, the Singapore Exchange (SGX), one of the major players in the financial big picture, has launched a $3.5 million aid campaign facilitating the financial community of the city-state. The $3.5 million, or $5 million in Singaporean dollars, subsidy will be distributed over a period of twelve months, ensuring a smooth partition.

The money will help reinforce Singapore place in the financial industry, hopefully making it more or less immune to inevitable disturbances in the stock market. The chief executive officer of SGX, Loh Boon Chye, recently clarified:

“As a key part of Singapore’s financial market infrastructure, we are committed to ensuring uninterrupted operations at all times – this means taking the lead to do more for those who are putting their lives and jobs at risk, as well as companies and individuals who keep businesses and markets running. We are all in this together and as a community, we can be confident about emerging stronger when the virus situation blows over.”

The sum will be divided accordingly. It will serve to support Singaporean companies and employees on the exchange. A large part of the total budget will be put aside for the national healthcare support programs. The money is a gleam of hope among the rising hysteria surrounding the virus, acting as both direct and moral support.

In a similar move, ASIC, the Australian Securities and Investments Commission, has taken important steps in ensuring the stability of the country's equity market. Many large equity market participants have been issued a daily limit of executable trades. Specifically, the regulatory agency has reduced their numbers by 25 %, when compared to the last week's trades.

This is definitely a move towards the right direction. The markets industry is a vital part of the global economy, and as such should be carefully reared.