SGX regulatory function to separate
Singapore Exchange Limited (SGX) has received prominent media attention in recent weeks, though not all of it has been favourable. Having recently suffered their worst ever disruption to trading, the SGX announced on Tuesday that they would be establishing a new unit for the company’s regulatory functions.
These reports have surfaced amid growing concern over the entanglement of the company’s dual functions as regulator and stock exchange operator, and the decision has consequently been met, generally speaking, with a positive response. While the effects of this decision are yet to be felt, the separation, it has been argued, removes the conflict of interest that arises when the company is asked to regulate its clients.
The new regulatory function will be called RegCo in the interim, and will be led by Chief Regulatory Officer Tan Boon Gin. The subsidiary company will be established in 2017, and will work closely with the Monetary Authority of Singapore (MAS) to ensure its successful establishment and implementation.