MAS, SGX propose tougher rules for stocks trading

SINGAPORE — The Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX) have proposed that punters with open positions be made to put up collateral in an effort to ensure more orderly trading of stocks listed on SGX.

The proposal is one of several measures put up by the MAS and SGX in a consultation paper to promote orderly trading and responsible investing in Singapore-listed stocks.

Interested parties have until May 2 to submit their views and comments.

Other proposals include setting a minimum price for stocks listed on the Mainboard to reduce volatility, as well as a requirement that trading curbs implemented by stockbroking firms be announced through the SGX website, the MAS and SGX said in a joint statement.

The SGX today (Feb 7) separately announced several new rules that would take effect from March 3.

These include publication by the bourse operator of a “trade with caution” announcement whenever a company is unable to explain unusual trading activities. The company’s board of directors will also be required to approve a reply to a public query by the SGX.

“Today’s world is fast-changing and we need to strengthen Singapore’s securities market to meet the expectations of investors and companies,” SGX Chief Executive Magnus Bocker said.

The MAS said Singapore’s stock market is fundamentally sound and the consultation is aimed at initiating a conversation with stakeholders to strengthen regulations.

The proposed new regulations for trading stocks on the SGX come a few months after the share prices of Singapore-listed Blumont Group, LionGold and Asiasons fell sharply in a matter of days, wiping out billions of dollars in market value. CHANNEL NEWSASIA