SGX Hires Deutsche Bank Veteran to Head New FICC Unit
SGX Hires Deutsche Bank Veteran to Head New FICC Unit
(Bloomberg) -- Singapore Exchange Ltd. said it hired a veteran Deutsche Bank AG executive as part of a reorganization meant to position the exchange for future growth.
SGX, which faces increasing competition from its rival Hong Kong Exchanges & Clearing Ltd., said Lee Beng Hong will join from August 1 as head of a new fixed income, currencies and commodities unit. Lee has been with the German lender since at least 2008, and most recently has headed its financing and solutions group for North Asia.
Michael Syn, currently the SGX head of derivatives, will become head of equities, which now includes cash and derivatives. The present head of equities and fixed income, Chew Sutat, will move to head global sales and origination.
“By focusing on equities as a single asset class, product and service innovation can span both cash and derivatives channels to address client needs holistically,” SGX said in its statement, noting plans for the “introduction of new derivatives products, structured products and offshore risk management capabilities.” The reorganization takes effect on Monday.
Competition with Hong Kong is likely to intensify following the HKEX announcement in March that it will partner MSCI Inc. to start trading Chinese equity futures. That would end SGX’s effective monopoly on offshore derivatives based on China A shares, which it has enjoyed since 2006.
For the last five years, delistings have outnumbered listings at the exchange, with the number of companies traded dropping to 741 at the end of December, from 782 in 2010. This year, companies have raised slightly over $1 billion in initial public offerings, according to data compiled by Bloomberg.
Syn, Lee and Chew will report to SGX Chief Executive Officer Loh Boon Chye, together with the head of data, connectivity and indices. SGX President Muthukrishnan Ramaswami, 62, who had been responsible for operational aspects of SGX, is retiring, the exchange said. He has been with the company since 2007.
To contact the reporter on this story: Joanna Ossinger in Singapore at jossinger@bloomberg.net
To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Marcus Wright
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