SGX banks on cost cutting as market environment worsens

Operating costs are projected to fall by $20m.

The local bourse isn't facing the anemic market sentiment sitting down, as it plans to counter its slipping earnings by cost cutting measures.

According to OCBC, 2016 operating expenses are now projected to be in the range of $415m to $425m, down by about $10m to $20m from the earlier guidance.

"For its technology-related capital expenditures, this has been cut from a range of S$75m to S$80m to a lower level of S$70m to S$75m, down about S$5m-S$10m," OCBC said.

OCBC says when implemented together, this could lower costs by $30m.

“With the current market rout and the lack of key price drivers, due to the slowdown in China, sharp drop in oil prices and the impact on investor confidence, this has led to an increase in risk aversion,” OCBC added.