A tale of 2 exchanges
A tale of 2 exchanges The economics of stock exchanges vary from country to country and depend on the trading volume, investor perception about future prospects, ease and cost of transactions (Capital Gain Tax, Dividend Tax, Stamp duty, Capital Controls), developed market infrastructure and established market practices etc. Countries like Sri Lanka, Mauritius, Philippines, Bangladesh will have noticeably smaller trading volume than the major exchanges above. Not all exchanges are created equal. My interest in stock exchanges stemmed from UnN post about the Intercontinental Exchange . That led me to do some bedside reading on Chicago Mercantile Exchange and eventually led me to HKEX and SGX, whereby I initiated a large and mid conviction position respectively. They are largely similar in their key risks and prospects although the economics of these exchanges are vastly different. As an investor in SGX and HKEX , I am impressed by the high profit margins and balance sheet