First Read: Singapore Exchange "2026 AIC: Equity market reforms; ... [ERRATUM]"

Research evidence excerpt

First Read: Singapore Exchange "2026 AIC: Equity market reforms; ... [ERRATUM]"

strong. SGX holds an estimated ~55-70% market share in offshore yuan futures

(recently trending towards the higher end from ~55-60% over the past 18

months) and ~90% share in A50 futures (vs. ~10% for HKEX), with open interest

even more skewed towards SGX. Mgmt attributed recent yuan market share gains

to liquidity network effects and capital efficiency benefits from margin offsets

across multi-product portfolios.

AI productivity gains / disruption – Mgmt noted that SGX remains at an early

stage in the AI adoption cycle. To date, AI has delivered incremental internal

productivity gains and is being leveraged to analyse client wallet share and identify

cross-selling opportunities, but it has yet to be truly transformative. On the market

data business, while peers have faced pressure amid concerns around AI

disintermediation, mgmt emphasised that SGX’s data is largely proprietary from its

own exchange activity and connectivity infrastructure. This makes its data offering

inherently more defensible.

Scientific Beta acquisition has underperformed – Of SGX’s five recent

acquisitions (BidFX, MaxxTrader, Scientific Beta, Energy Market Company, and

Baltic Exchange), Scientific Beta has underperformed expectations. The S$300mn

acquisition has seen goodwill impairments over recent years. Remaining goodwill

has been reallocated to the market data cash-generating unit, where synergies

have materialised, and the residual book value is now below S$100mn, suggesting

limited further downside from impairments.

This note replaces an earlier version to correct the number of stocks with >S$1mn SDAV,

and clarify that the comment on velocity in the first bullet reflects UBS’s view, rather than

management’s.