A company will need an Approved Exchange (AE) or Recognised Market Operator (RMO) licence if it wishes to operate an “organised market” as defined under Part I of the First Schedule to the SFA .

An entity operating a market in Singapore for securities, derivatives contracts or units in a collective investment scheme, may be considered to be operating an organised market under Part II of the SFA .

A person who operates an organised market must be regulated by MAS. As a general principle, markets that are systemically-important will be regulated by MAS as AEs. Other markets may be regulated as RMOs. AEs are required to comply with a higher level of statutory obligations than that required of RMOs.

Foreign entities operating markets offering services to participants in Singapore are subject to the recognition regime as RMOs where MAS places reliance on the home regulator for the supervision of the foreign entity. A key consideration for recognition as a foreign RMO is that the regulatory regime of home jurisdiction of the foreign entity should be comparable to the SFA, of which an important component is the application of the IOSCO Objectives and Principles of Securities Regulation by the home jurisdiction.

There also has to be adequate arrangements for supervisory cooperation between MAS and the home regulator of the foreign organised market operator.

Please refer to Regulation 27 of the Securities and Futures (Organised Markets) Regulations 2018 for the licensing exemptions that are available.

AEs and RMOs are obliged to ensure that access for participation in the organised market is subject to criteria that are fair and objective, and are designed to ensure the orderly functioning of the organised market and to protect the interests of the investing public.

For more details on key requirements, please refer to the regulations, notices and guidelines below:

• Securities and Futures (Organised Markets) Regulations 2018
• Securities and Futures (Corporate Governance of Approved Exchanges, Approved Clearing Houses and Approved Holding Companies Regulations) 2005
• Notice on Listing, De-Listing or Trading of Relevant Products on an Organised Market of an Approved Exchange or a Recognised Market Operator Incorporated in Singapore (SFA 02-N01)
• Notice on Supervision of Market Participants (SFA 02-N02)
• Notice on Execution of Orders by Market Operators (SFA 02-N03)
• Notice on Capital Requirements for Recognised Market Operators that are Formed or Incorporated in Singapore (SFA 02-N04)
• Notice on Reporting of Suspicious Activities & Incidents of Fraud (CMG-N01)
• Notice on Technology Risk Management (CMG-N02)
• Notice on Cyber Hygiene (CMG-N03)
• Guidelines on Business Continuity Management
  
• Guidelines on the Regulation of Markets (SFA02-G01) 
• Guidelines on Application of Section 339 (Extra-Territoriality) of the Securities and Futures Act (SFA 15-G01)
• Guidelines on Technology Risk Management
• Guidelines on Fit and Proper Criteria (FSG-G01)
• Guidelines on Outsourcing