The three largest exchanges in the world are the New York Stock Exchange (NYSE), Nasdaq and the Hong Kong Exchange and Clearing (HKEX) in that order (see Table 1). The NYSE and Nasdaq represent the deepest, most liquid capital markets in the world while HKEX represents the world’s up and coming and potentially largest capital market in the future, Greater China. HKEX is also the world’s largest exchange by its own market capitalisation (see Table 2). The Shanghai Stock Exchange is the fourth largest exchange by market capitalisation of its listed stocks and the Shenzhen Stock Exchange is the seventh-largest globally by market capitalisation of its listed stocks.

In comparison, the Singapore Exchange (SGX) is not on the list because the total market capitalisation of all its listed stocks is less than US$1 trillion ($1.3 trillion). Although SGX is not privy to a large domestic market like China, it plans to carve its own unique growth path with an M&A strategy that will continue to grow its revenue, maintain its margins and profitability.

According to SGX CEO Loh Boon Chye, the bourse’s strategy of ensuring it continues to grow well into the future is by being a multi-asset exchange and striking a balance between equities, fixed income, currencies and commodities, derivatives and eventually digital assets.

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