Singapore Exchange Limited Has Found A New CEO: What Does It Mean For Investors?

Singapore Exchange Limited (SGX: S68) first announced in late February this year that its Chief Executive Officer Magnus Bocker would be stepping down at the end of this month after being at the helm since 2009.

After months of searching for a new leader, the bourse operator revealed yesterday evening that a new Chief Executive Officer, Loh Boon Chye, has been appointed.

Loh, who will commence his appointment as Singapore Exchange’s new leader on 14 July, is a seasoned investment banker who has worked in both the public as well as the private sectors.

He started his career in finance with the Monetary Authority of Singapore in 1989 and subsequently held various important leadership roles in major investment banks such as Deutsche Bank and Bank of America Merrill Lynch. Loh is also no stranger to the Singapore Exchange as he had served as a director on the company’s Board from October 2003 to September 2012.

Will he be able to help grow Singapore Exchange’s business in the coming years? Singapore Exchange has been facing declining trading volumes over the last few years and this has showed up in stagnant revenue; Singapore Exchange’s revenue last peaked at S$769 million in the fiscal year ended 30 June 2008, nearly seven years ago.

Some of the company’s recent initiatives, such as reducing the board lot size to 100 units in January and the minimum trading price rule that came into effect in March, were aimed at increasing trading activity in the market and to help improve investor confidence in the bourse.

Meanwhile, Singapore Exchange is also facing competition from neighbouring exchanges such as the Hong Kong Stock Exchange. Last November, the  Shanghai-Hong Kong Stock Connect was launched and it allows foreign investors to gain direct, albeit controlled, access into the Chinese stock market. The Hong Kong Stock Exchange is currently looking into linking up with ShenZhen Stock Exchange, the second largest Chinese stock exchange.

Loh has not announced any plans or strategies as yet on how he might enhance Singapore Exchange’s competitiveness, but it’s likely that investors would hear more from him over the next few months. For investors in Singapore Exchange as well as local investors in general, it’d be interesting to keep tabs on the company’s future roadmap.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim doesn’t own shares in any companies mentioned.