I am sure many of us have heard about options trading.
Most of the time, the strategies have to be implemented using stock options listed in the US market.
In the near future, we might be able to trade stock options linked to our own Singapore listed stocks.
SGX is currently exploring plans to make sure options available in the next two years.
SGX eyes single-stock options within 2 years (Business Times)
While having stock options will allow us to implement more investment strategies, it remains to be seen whether the instrument will have sufficient liquidity and volume. If this project is successful, it could also mean the end of the numerous warrants issued by third parties that we see currently.
One significant difference is that anyone could become a market marker, as you would be able to buy or even sell options that you don’t own. Selling naked options can be dangerous though, and the regulators will probably have very strict rules on this.