SGX Introduces Direct Market Access To Securities Trading Effective 18 September

03/09/2012

Singapore Exchange (SGX) announced today, rule changes to allow market participants to access SGX-ST’s trading system directly using systems of their own or of SGX-ST Members. The new rules take effect on 18 September 2012. These rules facilitate the introduction of the ASEAN Trading Link.

With direct market access, market participants are able to transmit orders to SGX-ST’s trading engine in real time. Accordingly, SGX-ST Members are required to establish measures to safeguard against potential system malfunction, and excessive customer trades by volume or value. The main rule amendments are:

  • Introducing Member requirements for customers who use their own order management systems.
  • Requiring Members to put in place minimum credit standards for customers with direct market access.
  • Requiring Members to have comprehensive programmes for maintaining the integrity of their order management systems.

The rule amendments take into consideration comments and suggestions from market participants and members of the public on the public consultation issued on 9 April 2012 and closed on 22 April 2012.

In addition to the rule changes on direct market access, SGX is also introducing new rules on the participation criteria and compliance requirements for SGX-ST members in relation to the ASEAN Trading Link. These rules also take effect on 18 September 2012.