Singapore - The Singapore Exchange (SGX) has set up Singapore Exchange Regulation (SGX RegCo) as an independent regulatory unit, it said on Thursday.

The unit is appointing Professor Tan Cheng Han as chairman and will start operating in the third quarter of this year. Prof Tan is a professor of law at the National University of Singapore's law faculty.

SGX RegCo wants to enhance the governance of the SGX, and the segregation of the unit's regulatory functions from the SGX's commercial and operating activities will be clearer.

The unit will undertake all front-line regulatory functions that are now under SGX's regulation unit, and have a separate board of directors from the SGX.