Economy of the United Kingdom
The economy of the United Kingdom is developed and market-orientated. It is the fifth-largest national economy in the world measured by nominal gross domestic product, ninth-largest by purchasing power parity, twenty second-largest by GDP per capita, comprising 3.5% of world GDP. In 2016, the UK was the tenth-largest goods exporter in the world and the fifth-largest goods importer, it had the second-largest inward foreign direct investment, the third-largest outward foreign direct investment. The UK is one of the most globalised economies, it is composed of England, Scotland and Northern Ireland; the service sector dominates, contributing around 80% of GDP. Britain's aerospace industry is the second-largest national aerospace industry, its pharmaceutical industry, the tenth-largest in the world, plays an important role in the economy. Of the world's 500 largest companies, 26 are headquartered in the UK; the economy is boosted by North Sea gas production. There are significant regional variations in prosperity, with South East England and North East Scotland being the richest areas per capita.
The size of London's economy makes it the largest city by GDP in Europe. In the 18th century the UK was the first country to industrialise, during the 19th century it had a dominant role in the global economy, accounting for 9.1% of the world's GDP in 1870. The Second Industrial Revolution was taking place in the United States and the German Empire; the costs of fighting World War I and World War II further weakened the UK's relative position. In the 21st century, the UK remains a great power with the ability to project power and influence around the world. Government involvement is exercised by Her Majesty's Treasury, headed by the Chancellor of the Exchequer, the Department for Business and Industrial Strategy. Since 1979 management of the economy has followed a broadly laissez-faire approach; the Bank of England is the UK's central bank, since 1997 its Monetary Policy Committee has been responsible for setting interest rates, quantitative easing, forward guidance. The currency of the UK is the pound sterling, the world's fourth-largest reserve currency after the United States Dollar, the Euro and the Japanese Yen, is one of the 10 most-valued currencies in the world.
The UK is a member of the Commonwealth, the European Union, the G7, the G20, the International Monetary Fund, the Organisation for Security and Co-operation in Europe, the World Bank, the World Trade Organization, Asian Infrastructure Investment Bank and the United Nations. After the Second World War, a new Labour government nationalised the Bank of England, civil aviation, telephone networks, gas and the coal and steel industries, affecting 2.3 million workers. Post-war, the United Kingdom enjoyed a long period without a major recession; the annual rate of growth between 1960 and 1973 averaged 2.9%, although this figure was far behind other European countries such as France, West Germany and Italy. Deindustrialisation meant the closure of operations in mining, heavy industry, manufacturing, resulting in the loss of paid working-class jobs; the UK's share of manufacturing output had risen from 9.5% in 1830 during the Industrial Revolution to 22.9% in the 1870s. It fell to 13.6% by 1913, 10.7% by 1938, 4.9% by 1973.
Overseas competition, lack of innovation, trade unionism, the welfare state, loss of the British Empire, cultural attitudes have all been put forward as explanations. It reached crisis point in the 1970s against the backdrop of a worldwide energy crisis, high inflation, a dramatic influx of low-cost manufactured goods from Asia. During the 1973 oil crisis, the 1973–74 stock market crash, the secondary banking crisis of 1973–75, the British economy fell into the 1973–75 recession and the government of Edward Heath was ousted by the Labour Party under Harold Wilson, which had governed from 1964 to 1970. Wilson formed a minority government in March 1974 after the general election on 28 February ended in a hung parliament. Wilson secured a three-seat overall majority in a second election in October that year; the UK recorded weaker growth than many other European nations in the 1970s. In 1976, the UK was forced to apply for a loan of £2.3 billion from the International Monetary Fund. Denis Healey Chancellor of the Exchequer, was required to implement public spending cuts and other economic reforms in order to secure the loan, for a while the British economy improved, with growth of 4.3% in early 1979.
However, following the Winter of Discontent, when the UK was hit by numerous public sector strikes, the government of James Callaghan lost a vote of no confidence in March 1979. This triggered the general election on 3 May 1979 which resulted in Margaret Thatcher's Conservative Party forming a new government. A new period of neo-liberal economics began with this election. During the 1980s, many state-owned industries and utilities were privatised, taxes cut, trade union reforms passed and markets deregulated. GDP fell by 5.9% but growth subsequently returned and rose to an annual rate of 5% at its
The United Kingdom the United Kingdom of Great Britain and Northern Ireland, sometimes referred to as Britain, is a sovereign country located off the north-western coast of the European mainland. The United Kingdom includes the island of Great Britain, the north-eastern part of the island of Ireland, many smaller islands. Northern Ireland is the only part of the United Kingdom that shares a land border with another sovereign state, the Republic of Ireland. Apart from this land border, the United Kingdom is surrounded by the Atlantic Ocean, with the North Sea to the east, the English Channel to the south and the Celtic Sea to the south-west, giving it the 12th-longest coastline in the world; the Irish Sea lies between Great Ireland. With an area of 242,500 square kilometres, the United Kingdom is the 78th-largest sovereign state in the world, it is the 22nd-most populous country, with an estimated 66.0 million inhabitants in 2017. The UK is constitutional monarchy; the current monarch is Queen Elizabeth II, who has reigned since 1952, making her the longest-serving current head of state.
The United Kingdom's capital and largest city is London, a global city and financial centre with an urban area population of 10.3 million. Other major urban areas in the UK include Greater Manchester, the West Midlands and West Yorkshire conurbations, Greater Glasgow and the Liverpool Built-up Area; the United Kingdom consists of four constituent countries: England, Scotland and Northern Ireland. Their capitals are London, Edinburgh and Belfast, respectively. Apart from England, the countries have their own devolved governments, each with varying powers, but such power is delegated by the Parliament of the United Kingdom, which may enact laws unilaterally altering or abolishing devolution; the nearby Isle of Man, Bailiwick of Guernsey and Bailiwick of Jersey are not part of the UK, being Crown dependencies with the British Government responsible for defence and international representation. The medieval conquest and subsequent annexation of Wales by the Kingdom of England, followed by the union between England and Scotland in 1707 to form the Kingdom of Great Britain, the union in 1801 of Great Britain with the Kingdom of Ireland created the United Kingdom of Great Britain and Ireland.
Five-sixths of Ireland seceded from the UK in 1922, leaving the present formulation of the United Kingdom of Great Britain and Northern Ireland. There are fourteen British Overseas Territories, the remnants of the British Empire which, at its height in the 1920s, encompassed a quarter of the world's land mass and was the largest empire in history. British influence can be observed in the language and political systems of many of its former colonies; the United Kingdom is a developed country and has the world's fifth-largest economy by nominal GDP and ninth-largest economy by purchasing power parity. It has a high-income economy and has a high Human Development Index rating, ranking 14th in the world, it was the world's first industrialised country and the world's foremost power during the 19th and early 20th centuries. The UK remains a great power, with considerable economic, military and political influence internationally, it is sixth in military expenditure in the world. It has been a permanent member of the United Nations Security Council since its first session in 1946.
It has been a leading member state of the European Union and its predecessor, the European Economic Community, since 1973. The United Kingdom is a member of the Commonwealth of Nations, the Council of Europe, the G7, the G20, NATO, the Organisation for Economic Co-operation and Development and the World Trade Organization; the 1707 Acts of Union declared that the kingdoms of England and Scotland were "United into One Kingdom by the Name of Great Britain". The term "United Kingdom" has been used as a description for the former kingdom of Great Britain, although its official name from 1707 to 1800 was "Great Britain"; the Acts of Union 1800 united the kingdom of Great Britain and the kingdom of Ireland in 1801, forming the United Kingdom of Great Britain and Ireland. Following the partition of Ireland and the independence of the Irish Free State in 1922, which left Northern Ireland as the only part of the island of Ireland within the United Kingdom, the name was changed to the "United Kingdom of Great Britain and Northern Ireland".
Although the United Kingdom is a sovereign country, Scotland and Northern Ireland are widely referred to as countries. The UK Prime Minister's website has used the phrase "countries within a country" to describe the United Kingdom; some statistical summaries, such as those for the twelve NUTS 1 regions of the United Kingdom refer to Scotland and Northern Ireland as "regions". Northern Ireland is referred to as a "province". With regard to Northern Ireland, the descriptive name used "can be controversial, with the choice revealing one's political preferences"; the term "Great Britain" conventionally refers to the island of Great Britain, or politically to England and Wales in combination. However, it is sometimes used as a loose synonym for the United Kingdom as a whole; the term "Britain" is used both as a synonym for Great Britain, as a synonym for the United Kingdom. Usage is mixed, with the BBC preferring to use Britain as shorthand only for Great Britain and the UK Government, while accepting that both terms refer to the United K
The pound sterling known as the pound and less referred to as sterling, is the official currency of the United Kingdom, Guernsey, the Isle of Man, South Georgia and the South Sandwich Islands, the British Antarctic Territory, Tristan da Cunha. It is subdivided into 100 pence. A number of nations that do not use sterling have currencies called the pound. Sterling is the third most-traded currency in the foreign exchange market, after the United States dollar, the euro. Together with those two currencies and the Chinese yuan, it forms the basket of currencies which calculate the value of IMF special drawing rights. Sterling is the third most-held reserve currency in global reserves; the British Crown dependencies of Guernsey and the Isle of Man produce their own local issues of sterling which are considered equivalent to UK sterling in their respective regions. The pound sterling is used in Gibraltar, the Falkland Islands, Saint Helena and Ascension Island in Saint Helena and Tristan da Cunha; the Bank of England is the central bank for the pound sterling, issuing its own coins and banknotes, regulating issuance of banknotes by private banks in Scotland and Northern Ireland.
Banknotes issued by other jurisdictions are not regulated by the Bank of England. The full official name pound sterling, is used in formal contexts and when it is necessary to distinguish the United Kingdom currency from other currencies with the same name. Otherwise the term pound is used; the currency name is sometimes abbreviated to just sterling in the wholesale financial markets, but not when referring to specific amounts. The abbreviations "ster." and "stg." are sometimes used. The term "British pound" is sometimes incorrectly used in less formal contexts, it is not an official name of the currency; the exchange rate of the pound sterling against the US dollar is referred to as "cable" in the wholesale foreign exchange markets. The origins of this term are attributed to the fact that in the 1800s, the GBP/USD exchange rate was transmitted via transatlantic cable. Forex traders of GBP/USD are sometimes referred to as "cable dealers". GBP/USD is now the only currency pair with its own name in the foreign exchange markets, after IEP/USD, known as "wire" in the forward FX markets, no longer exists after the Irish Pound was replaced by the euro in 1999.
There is apparent convergence of opinion regarding the origin of the term "pound sterling", toward its derivation from the name of a small Norman silver coin, away from its association with Easterlings or other etymologies. Hence, the Oxford English Dictionary state that the "most plausible" etymology is derivation from the Old English steorra for "star" with the added diminutive suffix "-ling", to mean "little star" and to refer to a silver penny of the English Normans; as another established source notes, the compound expression was derived: However, the perceived narrow window of the issuance of this coin, the fact that coin designs changed in the period in question, led Philip Grierson to reject this in favour of a more complex theory. Another argument that the Hanseatic League was the origin for both the origin of its definition and manufacture, in its name is that the German name for the Baltic is "Ost See", or "East Sea", from this the Baltic merchants were called "Osterlings", or "Easterlings".
In 1260, Henry III granted them a charter of protection and land for their Kontor, the Steelyard of London, which by the 1340s was called "Easterlings Hall", or Esterlingeshalle. Because the League's money was not debased like that of England, English traders stipulated to be paid in pounds of the "Easterlings", contracted to "'sterling". For further discussion of the etymology of "sterling", see sterling silver; the currency sign for the pound is £, written with a single cross-bar, though a version with a double cross-bar is sometimes seen. This symbol derives from medieval Latin documents; the ISO 4217 currency code is GBP, formed from "GB", the ISO 3166-1 alpha-2 code for the United Kingdom, the first letter of "pound". It does not stand for "Great Britain Pound" or "Great British Pound"; the abbreviation "UKP" is used but this is non-standard because the ISO 3166 country code for the United Kingdom is GB. The Crown dependencies use their own codes: GGP, JEP and IMP. Stocks are traded in pence, so traders may refer to pence sterling, GBX, when listing stock prices.
A common slang term for the pound sterling or pound is quid, singular and plural, except in the common phrase "quids in!". The term may have come via Italian immigrants from "scudo", the name for a number of coins used in Italy until the 19th century.
Bill of lading
A bill of lading is a document issued by a carrier to acknowledge receipt of cargo for shipment. Although in England, the term once related only to carriage by sea, a bill of lading may be used for any type of carriage of goods. Bills of lading are one of three crucial documents used in international trade to ensure that exporters receive payment and importers receive the merchandise; the other two documents are a policy of an invoice. Whereas a bill of lading is negotiable, both a policy and an invoice are assignable. In international trade outside the United States, bills of lading are distinct from waybills in that the latter are not transferable and do not confer title; the UK Carriage of Goods by Sea Act 1992 grants "all rights of suit under the contract of carriage" to the lawful holder of a bill of lading, or to the consignee under a sea waybill or a ship's delivery order. A bill of lading must be transferable, serves three main functions: it is a conclusive receipt, i.e. an acknowledgement that the goods have been loaded.
Typical export transaction use Incoterms terms such as CIF, FOB or FAS, requiring the exporter/shipper to deliver the goods to the ship, whether onboard or alongside. The loading itself will be done by the carrier himself or by a third party stevedore. A bill of lading is a standard-form document, transferable by endorsement. Most shipments by sea are covered by the Hague Rules, the Hague-Visby Rules or the Hamburg Rules, which require the carrier to issue the shipper a bill of lading identifying the nature, quantity and leading marks of the goods. In the case of Coventry v Gladstone, Lord Justice Blackburn defined a bill of lading as "A writing signed on behalf of the owner of ship in which goods are embarked, acknowledging the receipt of the Goods, undertaking to deliver them at the end of the voyage, subject to such conditions as may be mentioned in the bill of lading." Therefore, it can be stated that the bill of lading was introduced to provide a receipt to the shipper in the absence of the owners.
Although the term "bill of lading" is well known and well understood, it may become obsolete. Articles 1:15 & 1:16 of the Rotterdam Rules create the new term "transport document". While there is evidence of the existence of receipts for goods loaded aboard merchant vessels stretching back as far as Roman times, the practice of recording cargo aboard ship in the ship's log is as long-lived as shipping itself, the modern bill of lading only came into use with the growth of international trade in the medieval world; the growth of mercantilism produced a requirement for a title document that could be traded in much the same way as the goods themselves. It was this new avenue of trade that produced the bill of lading in much the same form as we know today; the principal use of the bill of lading is as a receipt issued by the carrier once the goods have been loaded onto the vessel. This receipt can be used as proof of shipment for customs and insurance purposes, as commercial proof of completing a contractual obligation,especially under INCOTERMS such as CFR and FOB.
Although the Hague-Visby Rules provide that a bill of lading is only prima facie evidence of receipt, the Carriage of Goods by Sea Act 1992 s.4 declares a BoL "conclusive evidence of receipt". A "clean bill of lading" is used when there is full compliance with no discrepancies between the description filed by shipper and the actual goods shipped. A clean bill of lading indicates that the goods have been properly loaded on board the carrier's ship in accordance with the contract. A "dirty bill of lading" will be issued if the goods to be shipped differ in quality or quantity from the contract description, or if freight has yet to be paid; the buyer's bank is entitled to reject a dirty bill of lading, but will accept it after an agreed reduction in price."STC": if the cargo cannot be examined, such as goods in a sealed container), the carrier will issue a bill of lading describing the goods as "container said to contain" the contracted cargo. If the cargo within the contain do not ply with description, the consignee will take action against the seller, the carrier will not be involved.
The bill of lading from carrier to shipper can be used as an evidence of the contract of carriage by the fact that carrier has received the goods and upon the receipt the carrier would deliver the goods. In this case, the bill of lading would be used as a contract of carriage. In this case, the bill of lading can be used if shipper does not properly ship the goods the shipper cannot receive the bill of lading from the carrier; the shipper would have to deliver the bill of lading to the seller. In this case, the bill of lading is used as a contract of carriage between carrier. However, when the bill of lading is negotiated to a bona fide third party the bill of lading becomes a conclusive evidence where no contradictory evidence can be introduced, it i
English coffeehouses in the 17th and 18th centuries
English coffeehouses in the 17th and 18th centuries were public social places where men would meet for conversation and commerce. For the price of a penny, customers purchased a cup of admission. Travellers introduced coffee as a beverage to England during the mid-17th century. Coffeehouses served tea and hot chocolate as well as a light meal; the historian Brian Cowan describes English coffeehouses as "places where people gathered to drink coffee, learn the news of the day, to meet with other local residents and discuss matters of mutual concern." Topics like the Yellow Fever would be discussed. The absence of alcohol created an atmosphere in which it was possible to engage in more serious conversation than in an alehouse. Coffeehouses played an important role in the development of financial markets and newspapers. Topics discussed included politics and political scandals, daily gossip, current events, debates surrounding philosophy and the natural sciences. Historians associate English coffeehouses, during the 17th and 18th centuries, with the intellectual and cultural history of the Age of Enlightenment: they were an alternate sphere, supplementary to the university.
Political groups used coffeehouses as meeting places. Europeans first learned about coffee consumption and practise through accounts of exotic travels to "oriental" empires of Asia. According to Markman Ellis, travellers accounted for how men would consume an intoxicating liquor, "black in colour and made by infusing the powdered berry of a plant that flourished in Arabia." Native men consumed this liquid "all day long and far into the night, with no apparent desire for sleep but with mind and body continuously alert, men talked and argued, finding in the hot black liquor a curious stimulus quite unlike that produced by fermented juice of grape."Cowan explains how European perceptions of the initial foreign consumption of coffee was internalised and transformed to mirror European traditions through their acquisition of coffee and its transfusion into popular culture. As such, through Cowan's evaluation of the English virtuosi's utilitarian project for the advancement of learning involving experiments with coffee, this phenomenon is well explained.
Sir Francis Bacon was an important English virtuoso whose vision was to advance human knowledge through the collection and classification of the natural world in order to understand its properties. His work with coffee inspired further research into its medicinal properties. Experiments with coffee led to supposed "cures" for ailments such as "Head-Melancholy", scurvy and excessive drunkenness. Adversely, there were those who were cautious of the properties of coffee, fearing they had more unfavourable effects than positive ones. Experimentalists put forth speculations surrounding coffee's consumption; these experimentalists feared that excessive coffee consumption could result in languor, heart conditions and trembling limbs, as well as low spiritedness and nervous disorders. During the mid-17th century, coffee was no longer viewed as a medicinal plant. Oxford, possessing the unique combination of exotic scholarship interests and a vibrant experimental community, was the first English city to establish a coffeehouse.
A Jewish entrepreneur named Jacob established the first English coffee house in 1650, which he named the Angel. According to Cowan, Oxford was seen as an important fixture for the creation of a distinctive coffeehouse culture throughout the 1650s; the Queen's Lane Coffee House in Oxford, still in existence, was established in 1654. The first coffeehouses established in Oxford were known as penny universities, as they offered an alternative form of learning to structural academic learning, while still being frequented by the English virtuosi who pursued advances in human knowledge; the coffeehouses would charge a penny admission, which would include access to newspapers and conversation. Reporters called; this environment attracted an eclectic group of people who mingled with each other. In a society that placed such a high importance on class and economic status, the coffeehouses were unique because the patrons were people from all levels of society. Anyone who had a penny could come inside. Students from the universities frequented the coffeehouses, sometimes spending more time at the shops than at school.
Cowan states: "The coffeehouse was a place for like-minded scholars to congregate, to read, as well as learn from and to debate with each other, but was emphatically not a university institution, the discourse there was of a far different order than any university tutorial." Despite coffeehouses being far more inclusive, early Oxford coffeehouses had an air of exclusivity, catering to the virtuosi. Early Oxford coffeehouse virtuosi included Christopher Wren, Peter Pett, Thomas Millington, Timothy Baldwin, John Lampshire, to name a few; the memoirs of Anthony Wood and John Evelyn provide evidence of the nature of early Oxford coffeehouses. The early Oxford coffeehouses helped establish the tone for future coffeehouses in England, as they would differ from other English social institutions such as alehouses and taverns. "The coffeehouse was a place for "virtuosi" and "wits", rather than for the plebes or roués who were portrayed as typical patrons of the alcoholic drinking houses. Ellis concludes," power lay in the fact.
Their purpose was something more than to provide a meeting-place for social gossip. The
London is the capital and largest city of both England and the United Kingdom. Standing on the River Thames in the south-east of England, at the head of its 50-mile estuary leading to the North Sea, London has been a major settlement for two millennia. Londinium was founded by the Romans; the City of London, London's ancient core − an area of just 1.12 square miles and colloquially known as the Square Mile − retains boundaries that follow its medieval limits. The City of Westminster is an Inner London borough holding city status. Greater London is governed by the Mayor of the London Assembly. London is considered to be one of the world's most important global cities and has been termed the world's most powerful, most desirable, most influential, most visited, most expensive, sustainable, most investment friendly, most popular for work, the most vegetarian friendly city in the world. London exerts a considerable impact upon the arts, education, fashion, healthcare, professional services and development, tourism and transportation.
London ranks 26 out of 300 major cities for economic performance. It is one of the largest financial centres and has either the fifth or sixth largest metropolitan area GDP, it is the most-visited city as measured by international arrivals and has the busiest city airport system as measured by passenger traffic. It is the leading investment destination, hosting more international retailers and ultra high-net-worth individuals than any other city. London's universities form the largest concentration of higher education institutes in Europe. In 2012, London became the first city to have hosted three modern Summer Olympic Games. London has a diverse range of people and cultures, more than 300 languages are spoken in the region, its estimated mid-2016 municipal population was 8,787,892, the most populous of any city in the European Union and accounting for 13.4% of the UK population. London's urban area is the second most populous in the EU, after Paris, with 9,787,426 inhabitants at the 2011 census.
The population within the London commuter belt is the most populous in the EU with 14,040,163 inhabitants in 2016. London was the world's most populous city from c. 1831 to 1925. London contains four World Heritage Sites: the Tower of London. Other landmarks include Buckingham Palace, the London Eye, Piccadilly Circus, St Paul's Cathedral, Tower Bridge, Trafalgar Square and The Shard. London has numerous museums, galleries and sporting events; these include the British Museum, National Gallery, Natural History Museum, Tate Modern, British Library and West End theatres. The London Underground is the oldest underground railway network in the world. "London" is an ancient name, attested in the first century AD in the Latinised form Londinium. Over the years, the name has attracted many mythicising explanations; the earliest attested appears in Geoffrey of Monmouth's Historia Regum Britanniae, written around 1136. This had it that the name originated from a supposed King Lud, who had taken over the city and named it Kaerlud.
Modern scientific analyses of the name must account for the origins of the different forms found in early sources Latin, Old English, Welsh, with reference to the known developments over time of sounds in those different languages. It is agreed; this was adapted into Latin as Londinium and borrowed into Old English, the ancestor-language of English. The toponymy of the Common Brythonic form is much debated. A prominent explanation was Richard Coates's 1998 argument that the name derived from pre-Celtic Old European *lowonida, meaning "river too wide to ford". Coates suggested that this was a name given to the part of the River Thames which flows through London. However, most work has accepted a Celtic origin for the name, recent studies have favoured an explanation along the lines of a Celtic derivative of a proto-Indo-European root *lendh-, combined with the Celtic suffix *-injo- or *-onjo-. Peter Schrijver has suggested, on these grounds, that the name meant'place that floods'; until 1889, the name "London" applied to the City of London, but since it has referred to the County of London and Greater London.
"London" is sometimes written informally as "LDN". In 1993, the remains of a Bronze Age bridge were found on the south foreshore, upstream of Vauxhall Bridge; this bridge either reached a now lost island in it. Two of those timbers were radiocarbon dated to between 1750 BC and 1285 BC. In 2010 the foundations of a large timber structure, dated to between 4800 BC and 4500 BC, were found on the Thames's south foreshore, downstream of Vauxhall Bridge; the function of the mesolithic structure is not known. Both structures are on the south bank. Although there is evidence of scattered Brythonic settlements in the area, the first major settlement was founded by the Romans about four years after the invasion
Singapore Exchange Limited is an investment holding company located in Singapore and provides different services related to securities and derivatives trading and others. SGX is a member of the World Federation of Exchanges and the Asian and Oceanian Stock Exchanges Federation. SGX operates several different divisions, each responsible for handling specific businesses. SGX ETS: provides global trading access to SGX markets where 80 percent of the customers are from outside Singapore. SGX DT: provides derivatives trading. SGX ST: provides securities trading. SGX DC: subsidiary for clearing and settlement operations. SGX AsiaClear: offers clearing services for over-the-counter oil swaps and forward freight agreements. SGX Reach: an electronic trading platform. Central Depository Pte Ltd: subsidiary responsible for securities clearing and depository services. Asian Gateway Investments Pte Ltd: wholly owned subsidiary Singapore Exchange IT Solutions Pte Ltd: provides computer services and maintenance as well as software maintenance The companies listed on SGX belong to one of two groups: the companies listed on the SGX Mainboard and the companies listed on SGX SESDAQ.
In order to be listed on the mainboard, a company has to fulfill some requirements set forth by SGX, while a listing on SESDAQ is not tied to the fulfillment of any additional conditions. SESDAQ was replaced on 26 November 2007 by the SGX Catalist after an extensive study of other market models and a public consultation in May 2007; the word "Catalist" is an amalgamation of the words "Catalyst" and "List", to reflect the idea that the Catalist board could be used as a catalyst to propel growth upon listing. Catalist differs from SESDAQ in its use of a sponsor system to determine a prospective company's suitability to list and as a corporate advisor to advise on listing and corporate governance issues; the exchange launched SGX QUEST in August 2004. The system is used by the exchange for securities trading. Local times: SGX was formed on 1 December 1999 as a holding company; the share capital of some former exchange companies, namely Stock Exchange of Singapore, Singapore International Monetary Exchange and Securities Clearing and Computer Services Pte Ltd was cancelled and new shares issued in these companies were paid up by SGX.
In this way, all assets owned by these three companies were transferred to SGX. The shareholders holding shares in SES, Simex and SCCS received newly issued SGX shares. On 23 November 2000, SGX became the second exchange in Asia-Pacific to be listed via a public offer and a private placement. Listed on its own bourse, the SGX stock is a component of benchmark indices such as the MSCI Singapore Free Index and the Straits Times Index. On 25 September 2006, the Joint Asian Derivatives Exchange, a joint venture between SGX and Chicago Board of Trade became operational. However, this joint venture was cancelled in November 2007, with CME Groups selling of its 50% stake in the joint venture to SGX; the contracts traded on JADE were transferred to SGX's QUEST trading platform. In August 2009, SGX formed a joint venture with Chi-X Global, called Chi-East. At the beginning of October 2010, this joint venture received approval from the Monetary Authority of Singapore to operate a dark pool trading platform.
In March 2007, SGX bought a 5% stake in Bombay Stock Exchange for 42.7 million dollars. On 15 June 2007, Tokyo Stock Exchange, Inc. announced that it had acquired a 4.99% stake in SGX. Since the value of the shares has declined and the Tokyo Stock Exchange, Inc. has made a decision to sell the shares it holds in SGX to its parent company, the Tokyo Stock Exchange Group, Inc. On 31 January 2008, SGX acquired a 20% stake in Philippine Dealing System Holdings Corp, which has become an associated company of SGX. At the beginning of 2008, SGX reached an agreement to buy at least 95% of Singapore Commodity Exchange. On 30 June 2008, SGX completed the acquisition of Singapore Commodity Exchange Ltd, which now is a 100% subsidiary. On 18 April 2008, SGX opened a representative office in Beijing. On 8 June 2010, SGX announced; this is part of SGXs move to invest S$250 million into its Reach initiative. By implementing this initiative, SGX plans to create the world's fastest trading engine and a data centre as well as further connecting trading communities in the world to Singapore.
The new trading platform, SGX Reach, will be delivered to SGX by NASDAQ OMX, Voltaire and HP. This platform is based on GENIUM, a trading platform developed by NASDAQ OMX. SGX has entered a partnership with NASDAQ OMX. Together they will provide a suite of tools and solutions for companies, designed to support listed companies in Asia. SGX plan to introduce dual currency trading of securities — Which includes stocks and other listed investments in two different denominations, the Singapore and US dollar on 2 April 2012; as of 31 January 2010, SGX had 774 listed companies with a combined market capitalisation of S$650 billion. The revenues of SGX are from the securities market and derivatives market. SGX reported a net profit of $165.8 million for the first half of its financial year 2010. Excluding non-recurring items, net profit was 7% higher compared to 1H FY2009. In the second quarter of the financial year 2010, excluding the non-recurring items, net profit of $77.0 million was 3% higher than a year ago.
Operating revenue increased 6% to $324.0 million. In October 2012, excessive speculation led to t