SGX consults on rule changes

Source: Singapore Exchange

Singapore Exchange (SGX) is consulting the securities and derivatives markets on proposed rule changes to provide market participants with more certainty and clarity of their rights and responsibilities.

Following an earlier public consultation from 25 October 2012 to 8 November 2012 to enhance clarity of clearing house processes, today's consultation brings further transparency for market participants.

Rule changes proposed today clarify the point at which settlement and other payments between the clearing house and Clearing Members become final. The points of finality will depend on the asset class used to make payment as well as the payment method.

Additionally, SGX is proposing rule refinements to:

clarify and align the powers which Singapore Exchange Derivatives Clearing Limited (SGX-DC) and Central Depository (CDP) will have in emergency situations and the circumstances under which such powers may be exercised;
remove rules which refer to the trading, clearing or settlement of physical scrip in the securities market. As the clearing and settlement of securities on SGX are now done on a book-entry basis, the rules are not needed.
formalise the practice of SGX members maintaining separate accounts for each direct customer. This provides greater assurance that SGX can, at all times, identify and monitor risks which may be associated with customers of SGX Members.

These rule amendments are set out in two Consultation Papers, one for the securities market and the other for the derivatives market. Both papers are available from today at SGX invites comments on the Papers until 3 January 2013 via:

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