When is approval or recognition required?

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 .

What are the activities conducted by an AE or RMO?

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.

What licensing exemptions are available?

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

What are the business conduct requirements?