Last year brought one of the most shocking stock market outages to the market, with the highly sophisticated and tightly regulated Singapore Exchange (SGX) experiencing a 144 minutes outage in the beginning of November after power supply issues.
Following the event, the SGX Board appointed a Board Committee of Inquiry and mandated it to oversee investigations into the facts and circumstances leading to the breakdown and recommend appropriate improvements to prevent similar future recurrences and enhance processes in crisis management.
Today, the SGX Board Committee of Inquiry has confirmed the appointment of the set of independent experts who are going to help assess technical, operational management and communications issues.
Legal Risk Factor Beneath Ripple’s Lawsuit from SECGo to article >>
The team has already started work in December with its report and is expected to submit the report to the SGX Board and the Monetary Authority of Singapore by the end March 2015.
After a second glitch which led to a delayed opening trading on the SGX in December, the local financial regulator and central bank, the Monetary Authority of Singapore, warned the city-state’s stock exchange that it may face monetary penalties should operating problems persist.
SGX is the largest operator in Southeast Asia and the glitch isn’t helping the exchange at a time when competition for the biggest financial center in Asia is rising with the Hong Kong – Shanghai stock connect enabling access to the lucrative Chinese equities market for international investors.