SGX to Transfer Regulation Function to Separate Subsidiary

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 announced that it will set up a separate subsidiary company, known as RegCo, to perform all the front-line regulatory functions it currently undertakes.

According to a statement issued today, the move aims to further enhance the governance of SGX as a self-regulatory organisation (SRO) by making the segregation of its regulatory functions relating to its commercial and operating activities more definitive.

This will further enhance the robustness of our SRO framework.

As a result, the chairman of the new subsidiary company and a majority of its directors will be independent of SGX and its subsidiaries, including SGX Securities Trading and SGX Derivatives Clearing.

Self-regulatory organisation

The SRO model is widely adopted by exchanges globally albeit in different forms. SGX closely monitors developments in the SRO area and regularly considers enhancements to assure continued regulatory robustness.

Following the setting up of the independent Listings Committees in October 2015, the establishment of RegCo will add to the safeguards in place to ensure high governance standards in the Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term and operation of SGX markets.

The establishment of RegCo will not add to the requirements of the current IPO listing process. This is consistent with ongoing efforts to rationalise regulatory functions performed by MAS and SGX.

MAS oversight

MAS will continue to directly regulate SGX in terms of its obligations as a listed company and market operator, as well as maintaining oversight of SGX’s regulatory responsibilities as performed by RegCo.

SGX will be directly accountable to MAS for ensuring the adequate provision of resources to RegCo in order for it to discharge its regulatory functions.

Loh Boon Chye, CEO of SGX, commented: “The new arrangement and the October 2015 introduction of the independent Listings Committees demonstrate our commitment to do all that we can within the SRO framework to address potential conflicts between our commercial objectives and our regulatory responsibilities. This will further enhance the robustness of our SRO framework”.

SGX expects to set up RegCo by the second half of 2017.