With effect from 31 March 2014, the following new functionalities were introduced to the securities trading engine of the Singapore Exchange Limited, SGX Reach.

  • Market orders and market-to-limit (the "MTL") orders available throughout trading session (from 9am to 5pm)

Market orders and MTL orders are orders which are entered into the order book with a specified quantity but without a price. Market orders are executed at the best price currently available in the market. On the other hand, MTL orders will only match at the current best bid or ask price and not trade through the order book. If the MTL order is only partially filled after matching at the current best price, the remainder is submitted as a limit at the same price that the earlier match occurred.

Previously, these two order types were only available during the market opening and closing routines. With effect from 31 March 2014, the orders are available throughout the trading session.

  • New order types: Price triggered orders (the "PTOs")

PTOs allow market participants to buy or sell an instrument when the trigger price condition is reached. There are two types of PTOs, namely, stop orders and if-touched orders.

Both a stop order and an if-touched order are instructions containing a target price and volume that will be converted into an actual order in the order book once the target price is met. The difference between them is that a stop order is typically used as a loss- limiting mechanism in respect of open positions, while an if-touched order is used to create new positions in anticipation of a particular reversing trend.

Reference materials

Please click here for an SGX announcement dated 19 March 2014 relating to the above development which is available from the SGX website at www.sgx.com.

For more information on the complete suite of order types available in SGX Reach, please click here for the FAQs on Reach Order Types on the SGX website at www.sgx.com.