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.