Singapore Exchange Ltd. is considering expanding into Dubai due to the increase of hedge funds relocating to the United Arab Emirates. The arrival of many of its clients in the emirate is reinforcing the argument for establishing a new office, which would complement its operations in nine other countries, according to Lee Beng Hong, head of wholesale markets and platforms at Singapore Exchange. “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.
Although Singapore Exchange's strategy in the Middle East is still in its early stages, the initial plan involves relocating an employee from Qatar to Dubai before expanding the team further, according to Lee. He did not reveal how many additional hires the firm intends to make. “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 standout area for Singapore Exchange this year, achieving four straight months of record volumes through August and averaging daily volumes of approximately US$111 billion. The firm has capitalized on the growing interest in Asian currency trading, particularly following the repercussions of the Japanese yen carry trade collapse throughout the region.