SGX announces new measures to strengthen the transparency of Singapore's securities market

Nurdianah Md Nur

With aim of strengthening the transparency of the securities market in Singapore, the Singapore Exchange (SGX) recently announced new measures which will be effective from 3 March 2014.

The new measures include:

  • An issuer's board of directors will be required to approve the issuer's reply to a public query by SGX.
  • SGX will publish a "Trade with Caution" announcement whenever issuers are unable to explain the trading activities which SGX is querying.
  • Issuers will be required to notify SGX of discussions or negotiations that are likely to lead to a takeover, reverse takeover or a very substantial acquisition.

SGX has also published information on its website regarding the use of its regulatory powers to suspend and designate a stock. These two tools are used sparingly by SGX in exceptional cases where anomalies in trading are observed.

"Today's world is fast-changing and we need to strengthen Singapore's securities market to meet the expectations of investors and companies," said Magnus Bocker, SGX's chief executive officer. "The enhancements to SGX's regulatory tools encompass structural and regulatory aspects crucial to a well-functioning securities market."