CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

Binance to buy 18% stake in Singapore-licenced Hg Exchange

By Andreas Ismar

06:53, 8 December 2021

Binance logo layered with financial charts
Binance will conduct the buy through its Singapore arm, Binance Asia Services - Photo: Shutterstock

Cryptocurrency exchange Binance plans to acquire 18% stake in Hg Exchange (HGX), a Singapore-licenced private securities exchange.

The move comes on the back of lengthy regulatory review for Binance’s operating licence in the city state, a process which had been frustrating for the world’s biggest crypto exchange as other exchanges had been awarded permits.

HGX, which offers equity investment in private companies, has been granted a recognised market operator licence by the Monetary Authority of Singapore (MAS) earlier this year. Binance will conduct the transaction through its Singapore arm, Binance Asia Services, it said in a statement.

Crypto, traditional financial offerings converging

“Crypto and traditional financial offerings continue to converge. Through this investment, we seek to work with HGX in enhancing offerings of products and services supported by blockchain technology,” Richard Teng, chief executive of Binance Singapore, said.

US100

20,800.30 Price
+0.440% 1D Chg, %
Long position overnight fee -0.0241%
Short position overnight fee 0.0019%
Overnight fee time 22:00 (UTC)
Spread 7.0

XRP/USD

1.38 Price
-7.840% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01168

BTC/USD

96,375.10 Price
-1.780% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

ETH/USD

3,324.52 Price
-2.850% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 6.00

“We aim to work collaboratively with HGX to enhance the blockchain ecosystem in Singapore,” he added.

In addition to shares in private companies, HGX is working to list alternative assets including wines, art, and real estate.

Teng was previously the chairman of HGX before joining Binance in August. His appointment was seen as a step to secure regulatory approvals following his 13 years of work experience at the MAS and over seven years at the Singapore stock exchange.

Read more: Binance restricts Singapore services after central bank censure

Markets in this article

BNB/USD
Binance Coin / USD
655.98 USD
-6.55 -1.000%
BNB/USD
Binance Coin / USD
655.98 USD
-6.55 -1.000%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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