Singapore Exchange moves to ease ETF market-maker rules to match global norms
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SGX said it is still seeking market feedback on proposed changes, with the consultation open till Sept 26.
PHOTO: REUTERS
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BENGALURU – Singapore’s local bourse operator on Sept 5 said its regulatory arm plans to streamline the requirements of designated market-makers (DMMs) for exchange-traded funds (ETFs), aiming to align with global market standards.
Singapore Exchange Regulation (SGX RegCo) intends to remove the administrative requirement for notifications and announcements when DMMs in ETFs suspend or resume quoting prices, according to the statement.
The move follows measures by Singapore in February to enhance its equities market, including a 20 per cent tax rebate for primary listings on the Singapore Exchange.
It also coincides with an ongoing probe into the local stock market by the Monetary Authority of Singapore and a review group set up in August 2024, aimed at strengthening market functionality.
The proposals result from a review of the regulatory framework around the trading of ETFs, SGX RegCo said, to identify areas that may impact their listing and trading.
“ETF DMMs provide bid and offer prices during more than 95 per cent of the stock market hours each business day,” it added.
SGX said it is still seeking market feedback on the proposed changes, with the consultation open till Sept 26.
There are currently 49 ETFs listed on SGX, with combined assets under management exceeding $15 billion.
Among the latest to list was the SPDR J.P. Morgan Saudi Arabia Aggregate Bond UCITS ETF on Sept 3, marking the first ETF offering investors direct exposure to Saudi Arabia’s bond market.
The ETF tracks the J.P. Morgan Saudi Arabia Aggregate Bond Index, and is managed by State Street Investment Management.
It was first launched on Deutsche Boerse in December 2024, before cross-listings in London and Milan, and is now available in Singapore. REUTERS
