MAS: Separate Subsidiary Will Strengthen Governance of SGX’s Regulatory Functions

Singapore, 18 July 2016…The Monetary Authority of Singapore (MAS) said today that SGX’s move to transfer its regulatory functions to a separate subsidiary company is an important step in strengthening the safeguards to manage potential conflicts of interest between SGX’s commercial and regulatory roles. 

2   MAS has been in close discussion with SGX on enhancing the governance of SGX’s regulatory responsibilities.  The setting up of a separate subsidiary company to perform regulatory functions, together with the establishment of the independent Listings Committees in October 2015, will further strengthen SGX’s role as a self-regulatory organisation (SRO).

3   The independence of the subsidiary company from SGX will be an important factor for its success.  MAS will therefore require the Chairman of the subsidiary company and a majority of its directors to be independent of SGX and its regulated subsidiaries1, and for all directors to be independent of any corporation listed on SGX.

4   MAS will continue to directly regulate SGX in terms of its obligations as a listed company and market operator, as well as maintain oversight of SGX’s regulatory responsibilities as performed by its regulatory subsidiary.

1 This includes SGX-Securities Trading, SGX-Derivatives Trading, Central Depository and SGX-Derivatives Clearing.

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Last Modified on 26/11/2016