SGX Proposes Enhanced Regulatory Framework For Direct Access to Securities Market
Singapore Exchange (SGX) is consulting the public on proposed rule changes to enhance the regulatory framework for direct access to its securities market, in preparation for the ASEAN Trading Link.
The ASEAN Trading Link will provide brokers of participating ASEAN exchanges with the infrastructure to input orders directly on another participating ASEAN exchange. While the foreign broker may access SGX securities market only as a customer of an SGX broker, it will not require its SGX broker to physically assist with trade execution.
SGX has reviewed its regulatory framework governing access to its securities markets, with particular focus on direct market access, and is proposing rule changes, in alignment with international standards.
These include, amongst other things:
* Introducing Member requirements for customers who use their own order management systems.
* Requiring Members to put in place minimum credit standards for customers with direct market access.
* Requiring Members to have comprehensive programmes for maintaining the integrity of their order management systems.
SGX intends to implement the rule amendments in June 2012, subject to regulatory approval.
The consultation paper with details is available on SGX website www.sgx.com from today. Market participants and members of the public can send in their comments and suggestions from today until 22 April 2012 via email and either by post/courier or fax to:
2 Shenton Way, #19-00
SGX Centre 1
Attn: Gideon Goh
Development & Regulatory Policy
Fax: +65 6534 2207