Singapore Exchange eyes Middle East move to target Dubai-bound hedge funds
The planned expansion comes as major fund managers flock to Dubai, attracted by favourable tax conditions and government incentives
An influx of the firm’s clients settling in the emirate is strengthening the case for opening a new office, complementing its operations in nine other countries, Lee Beng Hong, head of wholesale markets and platforms at Singapore Exchange, said in an interview.
“Given the success we’ve had in the Middle East, it’s the right time for us to grow our presence there,” Lee said. “We are actively looking at that.”
A wave of fund managers have flocked to Dubai in recent months, drawn by a slew of government incentives, a favourable timezone and a low tax regime. Millennium Management, BlueCrest and Balyasny Asset Management are among those that have expanded operations in the city.
“We go where our clients go,” Lee said. “The plan is to have more people, we don’t want to have small offices because that means employees are less connected to the functions that are building and designing our products.”
Currency trading has been a particular bright spot for Singapore Exchange this year, with four consecutive months of record volumes through August and average daily volumes of around US$111 billion. The firm has benefited from rising interest in the trading of Asian currencies, especially as the impact of the Japanese yen carry trade blow-up rippled across the region.
