Singapore Exchange CEO to Leave Firm -- Update

By P.R. Venkat And Jake Maxwell Watts 

SINGAPORE--The head of Singapore's stock exchange, Magnus Bocker, will leave in June after a five-year tenure marked by success in boosting derivatives-trading volume, but also a decline in activity in regular stocks.

Mr. Bocker joined Singapore Exchange Ltd. in 2010 from Nasdaq OMX Group Inc., where he served as president, seeking to transform Singapore's exchange into a regional trading giant.

While he boosted trading derivatives-trading volume to a record and linked up with some neighboring exchanges in Southeast Asia, the company has been under pressure recently. Technical problems halted trading three times last year, and the volume of regular stock trading has slumped. The company also struggled to attract big-name listings and failed in a high-profile bid to buy Australia's exchange in 2010.

"I am proud of our accomplishments in expanding SGX both in Singapore and internationally, especially for Asian equity index derivatives," Mr. Bocker said in a statement. "But there is a time and season for everything, and it is now time for me to take on new challenges."

SGX in a statement Tuesday said that Mr. Bocker has notified it that he isn't seeking to have his appointment extended after his current contract is completed on June 30.

"The board is moving forward with its CEO succession plan and is assessing internal and external candidates on a short list," SGX said. It has hired the advisory firm Spencer Stuart to begin the search.

During his tenure with SGX, Mr. Bocker sought to raise the company's profile globally, pushing for consolidation with other exchanges in a region where market operators are often seen as national assets. In 2010, he announced a near-$9 billion offer to buy all of ASX Ltd., the operator of the Australian Securities Exchange, but Australia's government blocked the move, saying it wasn't in the country's best interest.

Mr. Bocker has also led SGX's efforts to promote itself as a derivatives trading venue, rolling out contracts on Asian assets from Chinese stocks to India's currency and achieving record trading volumes.

Still, SGX has been criticized for failing to boost securities trading volumes, which have slumped despite efforts to boost participation among retail investors and attract new listings.

Daily volume in securities trading--the bread and butter of most exchanges--slumped 30% to 2 billion shares a day in the fourth quarter, from a year earlier, according to SGX statistics. Last year, the exchange attracted around $2 billion in new listings, compared with $5.2 billion in 2013.

Write to P.R. Venkat at [e-mail] and Jake Maxwell Watts at [e-mail]

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