SGX seeks public feedback on proposed changes to securities trading & market practices

SGX seeks public feedback on proposed changes to securities trading & market practices

Michelle Zhu
10/10/17, 05:35 pm

SINGAPORE (Oct 10): The Singapore Exchange (SGX) is seeking public feedback on a raft of proposed changes to its rules on securities trading and market practices.

This will be conducted via a public consultation which will remain open until 7 Nov.

See: Consultation paper on proposed changes to the SGX-ST Rules and other rulebooks

In a Tuesday filing, SGX says its proposed changes were developed in active consultation with its members.

Objectives of the proposed changes include adopting a more principles-based approach as well as ensuring that its rules remain relevant as market practices evolve.

To ease the barrier of entry to welcome new remisiers into the industry, SGX has suggested giving trading members full flexibility to set the amount of security deposit required of a remisier after conducting a credit assessment, while allowing them to negotiate the terms of their agreement with their remisiers.

SGX also intends to cease mandating senior management pre-approval for staff securities trading, so long as measures are in place to guard against the misuse of confidential information.

Additionally, trading representatives (TRs) who are engaging in their own business activities, apart from securities trading, will also no longer require SGX’s oversight as members will be responsible for ensuring that such activities do not conflict with the TR’s trading activities and compromise on customer interests.  

Rules requiring a member to obtain written customer acknowledgement each time a TR starts mobile broking will be removed, although members will still be required to the provide appropriate risk disclosures to customers.

According to SGX, it also intends to introduce a less prescriptive approach to its requirements governing customer account opening, by giving members the responsibility of ensuring that any account opening is duly authorised.

Currently, management oversight of a securities broking firm is vested upon persons who are registered as approved executive directors with SGX. While registering of the CEO is currently practised by all members, many also register their executive directors with SGX.

As such, SGX is proposing to require only CEO registration as this person is ultimately responsible for the day-to-day management of the entire member firm and its activities.

SGX believes the proposed changes will clarify current market practices and situations, while certain exchange practices will be formalised in the process. The bourse operator is also looking to introduce or amend product definitions to clarify the applicability of the rules, given the definitional changes in the Securities & Futures Act.

Shares in SGX closed 3 cents higher at $7.64. 

US sanctions on Huawei could backfire

SINGAPORE (May 27): It was only to have been expected. After nearly a year of pressure that failed to stop Huawei Technologies Co’s expansion — especially in the rollout of the next generation 5G wireless network globally — in its tracks, US President Donald Trump signed an executive order effectively barring American firms from doing business with the Chinese telecommunications equipment company. The inclusion of Huawei on the US Department of Commerce’s Bureau of Industry and Security’s (BIS) Entity List means that companies would need to apply for a waiver to supply goods with ....

Annica chairman Ong quits just as $33 mil goes missing at his law firm JLC

SINGAPORE (May 27): Jeffrey Ong, managing partner of law firm JLC Advisors, may have given instructions to pay out a sum of $33.2 million held in escrow by his firm for a client, Allied Technologies. According to Allied’s statement filed with Singapore Exchange on May 23, the payment may have been “unauthorised”, citing a letter it received from JLC on May 22. Allied’s statement did not specify who the payment was made to. Ong also abruptly resigned as non-executive chairman of Annica Holdings on May 20. In a May 22 filing with SGX, Annica CEO Sandra Liz Hon Ai Ling said Ong resigne....

SGX RegCo sees targeted approach in enforcement, more powerful market discipline

SINGAPORE (May 27): Tan Boon Gin, CEO of stock exchange regulator Singapore Exchange Regulation, says the market can expect a stronger regulatory presence. “You will see a series of enforcement cases coming up quite soon,” he tells The Edge Singapore. Tan’s assertion comes amid significant changes in the market as sentiment remains lacklustre and investors’ expectations change. The local stock market has gone through significant upheaval, not least because of the penny stock crash in 2013 that wiped out some $8 billion in value from the market. The event dented investor sentiment, a....