SGX Approves and Implements Working Group Proposals

The Singapore Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (SGX) has reviewed and ultimately adopted a composite of recommendations brought forth by the Securities Industry Working Group (IWG), following last month’s proposals that outlined key areas of improvement for the exchange, per an SGX statement.

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The proposals initially outlined a total of six different areas, which were the culmination of an initiative launched back in September 2016 that sought to improve and foster the exchange’s operational prowess in Singapore’s securities market. As such, the areas the IWG touched on were considerations in the following:

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

The proposals and ultimately their approval were done by the SGX in tandem with the Monetary Authority of Singapore, which initially had formed the IWG last September. The program was designed to garner feedback from members and participants, helping touch on and bring to light areas of improvement for SGX.

Following a review, SGX adopted all six recommendations, including three with immediate effect – this includes the provision of a Master Record as the authoritative source of data in the event of complex malfunctions, providing more clarity on the timing and principles for market closure and resumption during a market-wide incident, and establishing a clear protocol for trade assumption.

According to Ho Tian Yee, Chairman of the IWG, in a statement on the review and following results, “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.”

“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,” explained Loh Boon Chye, Chief Executive Officer of SGX.