New guidelines issued for brokerages announcing trading restrictions

The Securities Association of Singapore (SAS) has issued a set of industry guidelines for its members when they announce trading restrictions of any securities listed on the Singapore Exchange (SGX). -- PHOTO: BLOOMBERG
The Securities Association of Singapore (SAS) has issued a set of industry guidelines for its members when they announce trading restrictions of any securities listed on the Singapore Exchange (SGX). -- PHOTO: BLOOMBERG

SINGAPORE - The Securities Association of Singapore (SAS) has issued a set of industry guidelines for its members when they announce trading restrictions of any securities listed on the Singapore Exchange (SGX).

This initiative, aimed at improving trading practices in the securities market, arises from a joint consultation by the Monetary Authority of Singapore and the SGX in February, the association said in a statement on Tuesday.

Under the guidelines, when a brokerage decides to tighten its trading policy to manage its credit risk exposure to its customers' trading activities in a particular SGX-listed security, it will have to make a public disclosure and provide the rationale for the trading restriction on its website.

The guidelines "serve to ensure that information on trading restrictions is disseminated in a consistent, fair, orderly and transparent manner for the benefit of the investing public, as some investors have perceived that such information may have an impact on market prices", SAS said.

The public can view the announcements on SAS members' websites.

SAS will also provide links on its website to these announcements to facilitate investor access to the information.