Singapore Exchange (SGX) introduced an electronic
trading (e-trading) engine for futures contracts
in August 2004. The SGX Quotation and Execution
System (QUEST) has allowed brokers to offer e-trading
services to customers. Following its introduction,
MAS conducted thematic inspections in 2005 on brokers
offering e-trading services to their customers.
The inspections uncovered a few key risk areas
that needed improvements, such as the lack of verification
of trading limits, inadequate trade surveillance
and lax security controls over trading terminals.
These findings were shared at a Compliance Roundtable
held in December and the brokers concerned are
reviewing their systems and controls to address