SGX Group Announces Major Trading Engine Upgrade: Key Implications for Investors

Date: 6 November 2025

Source: Singapore Exchange Group (SGX Group)

Key Points

• SGX Group will introduce a new trading engine, “Iris-ST”, to power the Singapore stock market.
• The launch is designed to coincide with increasing investor participation and the expansion of SGX’s product suite.
• The new system will offer enhanced functionalities, including new order types, advanced risk controls, and more intuitive counter codes.
• SGX Regulation (SGX RegCo) is proposing rule amendments to enable the full use of Iris-ST’s features, with public consultation open until 31 December 2025.
• Iris-ST is expected to go live in the second half of 2027.

Details for Investors and Shareholders

1. Introduction of Iris-ST: A Next-Generation Trading Infrastructure

SGX Group is preparing to launch a new trading engine, “Iris-ST”, which aims to significantly enhance the technological capabilities of the Singapore stock market. According to Ng Yao Loong, Head of Equities at SGX Group, the new engine is being introduced at a time when both investor participation and SGX’s product offerings are growing rapidly. The upgrade is expected to address new and emerging demands from market participants, making the exchange more competitive and better equipped for future growth.

2. Enhanced Features and Functionalities

• New Order Types & Intuitive Counter Codes: Iris-ST will support a broader range of order types and feature more user-friendly counter codes, likely resulting in improved trading efficiency and accessibility for both retail and institutional investors.
• Advanced Risk Controls: The system will introduce a new pre-trade risk control (PTRC) mechanism. This will help SGX Member firms meet their regulatory obligations by providing pre-execution risk management checks and error prevention alerts. Notably, the existing Forced Order Range and “Force Key” error-prevention functions will be retired, with PTRC serving as their replacement.
• New Auction Price Collars: The implementation of new auction price collars is intended to help prevent excessive price volatility during auction routines, which is particularly relevant for price discovery and volatility management.
• Changes to Auction Phases: There will be an extension of the non-cancel phase during auction routines. During this updated phase, orders can be entered but not amended or withdrawn, providing a more stable and predictable environment during price formation events.

3. Regulatory and Market Impact

SGX Regulation (SGX RegCo) is actively consulting the market regarding the proposed rule amendments required to implement these enhancements. The consultation period is open until the end of 2025, giving market participants and stakeholders an opportunity to provide feedback on these significant changes.

The planned implementation timeline—late 2027—gives firms and investors ample time to prepare for the transition, but also signals SGX’s commitment to long-term infrastructure investment and regulatory adaptation.

Potential Price-Sensitive Factors for Shareholders

• Operational Efficiency and Market Growth: The new trading engine is positioned to improve operational efficiency, support higher trading volumes, and attract new market participants. These changes could enhance SGX’s competitiveness in the region and globally, potentially driving higher trading revenues and market share.
• Regulatory Modernization: By aligning its risk controls with international best practices and introducing more robust error prevention systems, SGX strengthens its reputation as a safe and well-regulated market, which can support premium valuations.
• Potential Short-Term Disruptions: While the long-term outlook is positive, shareholders should be aware of potential short-term disruptions or transitional costs as market participants adapt to the new system. However, the phased approach and advance notice should help mitigate these risks.

About SGX Group and SGX RegCo

SGX Group operates as a globally recognized multi-asset exchange, offering a range of services across equity, fixed income, currency, and commodity markets, all guided by high regulatory standards. SGX is also advancing sustainability and climate-focused financial products through its SGX FIRST platform.

SGX RegCo, the exchange’s independent regulatory subsidiary, oversees frontline regulatory functions, including issuer supervision, trading surveillance, and the formulation of market policies. SGX RegCo has received multiple awards for its contributions to market integrity and development.

Conclusion

The planned introduction of Iris-ST marks a significant step forward for SGX and may have material implications for the exchange’s future growth, operational resilience, and investor confidence. Shareholders should monitor further announcements regarding the implementation timeline and regulatory consultations, as these developments could influence SGX’s competitive positioning and, ultimately, its share price.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should perform their own due diligence and consult professional advisors before making any investment decisions regarding Singapore Exchange Limited or its securities.