In 2014 the Singapore Exchange (SGX) introduced various circuit breakers and thresholds for error trades in an effort to promote greater safety and transparency.

Nine public consultation papers were issued between the Monetary Authority of Singapore (MAS) and SGX on various topics related to the securities market including proposed measures to improve the market structure and practices, enhancements to existing regulatory frameworks and new product offerings.

Soh Ee Fong, head securities & fiduciary services global transaction services at DBS Bank, explains that this has resulted in the progressive planned implementation (in 2014 through to 2016) of several key changes that include fee revisions, board lot reduction, minimum share price and a new post-trade system that would enable the Central Depository (CDP) to offer new functionalities to investors and intermediaries, such as collateralisation for securities trading.

Market participants and local custodians are therefore required to actively participate and enhance their current operating model to meet the requirements of this new infrastructure, adds Mostapha Tahiri, head of Singapore BNP Paribas Securities Services. 

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