Singapore Exchange Regulation (SGX RegCo) has, in recent years, been intervening quickly when appropriate to address matters that may hurt investor or company interests (Do more to protect investors and monitor companies more closely, by Mr Matthew Yeo, April 4).
We have put in place stronger safeguards for investors and implemented many initiatives to complement our measures to prevent market misconduct.
Where we suspect there is a false market in a security, SGX RegCo issues Trade with Caution alerts containing information gleaned from our review of the unusual trading activities.
By making available information such as the proportion of trades by the suspected wrongdoers and the period of their activities, the information playing field for all participants is levelled and any attempt to create a false market is frustrated.
We have been issuing to each individual member, or broker firm, in the securities market a list of incidents of unusual trading attributed to the firm; the list also identifies each dealer or remisier involved. This Member Surveillance Dashboard has resulted in a general decline in such unusual activities in the securities market.
We have also published Trade Surveillance Handbooks so market participants are aware what trading behaviour breaches SGX rules and/or is illegal.
In respect of listed companies, we have used Notices of Compliance - a relatively new regulatory tool - to, among others, direct companies to appoint an independent reviewer to provide clarity on matters of concerns regarding the company, to object to the appointment of certain directors and, most recently, to spell out our expectations that directors should fully discharge their responsibilities and not resign at the first sign of trouble.
We have also used our administrative powers towards investor-centric outcomes, for example, by directing a company to hold a second extraordinary general meeting, and requiring a shareholder circular to be re-issued to correct material inaccuracies.
Our regulatory interventions are often underpinned by a close cooperation with other regulators, market professionals, member firms and other stakeholders.
Where certain suspected wrongdoings do not come under the ambit of SGX rules, for instance, we will make referrals to the relevant professional associations and statutory agencies which have the powers to take action.
Tan Boon Gin
Chief Executive Officer
Singapore Exchange Regulation