The Singapore Exchange (SGX) is separating its regulatory functions from its commercial and operating activities.
The move involves setting up a new unit - Singapore Exchange Regulation (SGX RegCo) - that will start operating in the third quarter of this year.
SGX RegCo, as an independent regulatory unit, is aimed at enhancing governance of the local bourse. It will also make a clearer distinction between SGX's segregate regulatory functions and its commercial and operating activities.
The SGX RegCo unit will undertake "all front-line regulatory functions" and have a separate board of directors from the SGX, the bourse said yesterday. It will be chaired by Professor Tan Cheng Han from the National University of Singapore's (NUS) law faculty. He will step down from the boards of several listed firms, such as Global Yellow Pages, to ensure that he "is independent of SGX, its members and any company listed on the SGX", said the bourse.
Prof Tan is chairman of the NUS law faculty's Centre for Law and Business and was the faculty's dean from 2001 to 2011. He is also a board member of the Accounting and Corporate Regulatory Authority.
He said in a statement: "A regulatory company independent of SGX, yet pragmatic and innovative, while also attuned to market developments, is a development the market is closely watching."
Mr Tan Boon Gin, the bourse's chief regulatory officer, will be SGX RegCo's chief executive and a board member.
"Other directors are being identified and will be appointed in due course," said the SGX.
Said Mr Tan: "Professor Tan's wide-ranging academic, corporate and legal experience will be invaluable in shaping the strategic direction and regulatory priorities of SGX RegCo. My team and I look forward to the counsel and insights of Professor Tan and the SGX RegCo board in carrying out our responsibility of ensuring a fair, orderly and transparent market."