SGX Endorses Working Group Recommendations, Introduces Market Changes

SGX endorsed the findings of a working group launched in September across six areas of its market regime.

Singapore Exchange (SGX) has moved to adopt a series of recommendations from the Securities Industry Working Group (IWG), part of its bid to help improve and foster the exchange’s operational prowess in Singapore’s securities market.

The passage of the recommendations follow on the heels of another recent proposal earlier this month by SGX that offered multiple adjustments to another component of its business segment, i.e. its equities market structure. The SGX had offered a public consultation, detailing several alterations that are aimed at helping address market conditions to the benefit of participants.

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In terms of its latest adoptions however, the IWG digested a large amount of feedback given in part by a composite of members and participants – additionally, the Securities Association of Singapore was also an important element in soliciting input through their various working and discussion groups.

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The results are part of an initiative that date back to September 2016, when the SGX formed the IWG to help assess and garner recommendations by Q1 2017. Consequently, the IWG has issued recommendations across a total of six areas:

  • Restoration of corrupt data
  • Market recovery procedures
  • Market closure and resumption
  • Trade assumption
  • Incident communication
  • Business continuity testing and support

In light of the working group’s findings, the SGX has promptly adopted all six recommendations, including the deployment of three with immediate effect. This includes the establishment of a master record as an authoritative source of data in the event of complex malfunctions, while also providing more clarity on the timing and principles for market closure and resumption during a market-wide incident, and finally the creation of a clear protocol for trade assumption.

According to Ho Tian Yee, Chairman of the IWG, in a statement on the findings and implementation: “The IWG has assessed and made recommendations it believes are best suited to strengthen the operational resilience and endurance of our securities market. As we close off the IWG, we would like to thank all members and participants who had worked together to produce this report. It is this same collaborative spirit that we can build on to ensure the desired outcome for our industry.”

Loh Boon Chye

“Operating a market infrastructure is a perpetual process of adjustments and learning. The formation of IWG by SGX is one of several initiatives to bolster the resilience of our market infrastructure. We are appreciative of the support and contribution of every IWG member over the last 6 months and look forward to the continued participation of all stakeholders in our ecosystem as we work together to make implementation a success,” added Loh Boon Chye, Chief Executive Officer of SGX.

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