Key Supervisory and Regulatory Initiatives

INSPECTIONS AND SUPERVISORY REVIEWS

BOX 2
SGX STOPS FLOOR TRADING

SGX formally announced its removal of floor trading, with the exception of Eurodollar futures contracts, by March 2006 due to the superiority of electronic trading platforms in global trading. With this move, all SGX derivative trading (SGX-DT) member firms with floor trading operations will eventually cease their floor operations and convert fully to electronic trading. This will allow customers to key in orders directly for execution in the SGX-DT market. With the switch to full electronic trading, the member firms will need to devote more compliance resources to monitor trading irregularities arising from electronic trades. MAS will be enhancing its inspection approach and methodologies to respond to the risks posed by electronic trading.