|Trading of Alibaba Shares
With the pricing of Alibaba expected on September 18th and trading to begin on the September 19th, we have fielded many calls concerning the trading of Alibaba shares in the secondary market.
As you might remember, 2 years ago, Facebook went public on the NASDAQ market and the problems that occurred were very serious. We believe the issues that Facebook had have been addressed by the numerous market centers and exchanges.
Alibaba chose the NYSE but there are still no assurances that secondary trading will not be extremely volatile and without issues.
Shares will be prohibited from shorting. If there are delays in the delivery of the shares beyond T+3, we cannot guarantee that National Securities Clearing Corporation (NSCC) will not force a buy-in on the shares liquidated.
Clients are advised to exercise caution when trading Alibaba when it starts trading on NYSE on September 19th, 2014.
Update on Foreign Excluded Investment Products
MAS has updated the regulatory requirements relating to SIPs and EIPs. With effect from 4 January 2013, foreign shares (e.g. Citigroup listed on NYSE) and other overseas-listed investment products which would otherwise be considered EIPs on SGX would now be reclassified as EIPs as well. Clients who have not passed the CAR can now trade in these foreign EIPs.
All clients will be required to accept the RWS upon first login to this platform after 3 January 2013.
Trading of Specified Investment Products
With effect from 3 January 2012 trade date, clients who have not passed or been exempted from the Customer Account Review will not be able to place orders for Specified Investment Products (SIPs). SIPs include but are not limited to Exchange Traded Funds and Structured Warrants. Click here to learn more about SIPs.
List of Tradeable Stocks
To assist you with managing your investment risks, we are pleased to avail you with trading facilities for the larger US-listed securities. In order to provide greater transparency and convenience, the list of US-listed securities which can be traded online (with current market capitalisation greater than US$1 billion) can be viewed here.
Clients who already hold other stocks in their online portfolios can continue to sell them online.
Clients who wish to purchase other stocks may seek assistance from their Trading Representatives.
Change in US Markets SEC Fee
With effect from the settlement date of 18 March 2014 (i.e. trades done from 13 March 2014), the SEC fee for US sell trades will be revised from US$17.40 per million dollars (0.00174%) to US$22.10 per million dollars (0.00221%).
A copy of the Commission?s order can be found at