02-08-2014, 08:47 PM
http://www.theedgesingapore.com/the-dail...price.html
FThe Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX) today issued their response to the joint consultation paper on the Review of the Securities Market Structure and Practices, which was published on 7 February 2014.
MAS and SGX have taken into account the feedback received and decided to proceed with all five proposals as follows:
(i) Minimum trading price. To introduce a minimum trading price of $0.20 as a continuing listing requirement for issuers listed on the SGX Mainboard. This is to address risks of low-priced securities being more susceptible to excessive speculation and potential market manipulation. A transition period of 12 months will be given to affected issuers to undertake corporate actions to meet the new requirement. This proposal will, over time, improve the quality of issuers listed on the SGX Mainboard.
(ii) Collateral requirement for securities trading. To require securities intermediaries to collect minimum 5% of collateral from their customers for trading of listed securities to promote financial prudence. This will help mitigate the risk of excessive leverage assumed by investors. It will also reduce reliance on remisiers to manage the credit risk exposures of customers. Institutional investors, trades settled through delivery-versus-payment mode, and funds from the Central Provident Fund and Supplementary Retirement Schemes will be exempted from the collateral requirement.
(iii) Short position reporting requirements. To implement aggregate short position reporting to further enhance transparency of short selling activities in the securities market. The value threshold has been adjusted upwards such that only short positions that exceed the lower of 0.05% or S$1 million of issued shares will have to be reported. Aggregated information will be released on a weekly basis.
(iv) Transparency of trading restrictions imposed by securities intermediaries. The Securities Association of Singapore (SAS) will take the lead to develop industry guidelines. This is to address the concerns of information asymmetry with regard to the dissemination of information on trading restrictions imposed by their members. The industry guidelines will provide guidance on publication of the trading restrictions and their rationale, and to promote consistent practice among SAS members given the differing practices currently.
(v) Reinforcing the SGX listings and enforcement framework. SGX will establish three independent committees, namely Listings Advisory Committee, Listings Disciplinary Committee and Listings Appeals Committee. They will introduce a wider range of sanctions for breaches of listing rules. These will further strengthen SGX’s listings process, improve transparency of its disciplinary process and enhance its ability to enforce the listing rules.
To improve retail investors’ access to a broader range of listed securities, particularly blue-chip stocks, SGX will also reduce the board lot size for securities listed on SGX from the existing 1,000 shares to 100 shares in January 2015. SGX will announce details of this initiative by end August 2014.
FThe Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX) today issued their response to the joint consultation paper on the Review of the Securities Market Structure and Practices, which was published on 7 February 2014.
MAS and SGX have taken into account the feedback received and decided to proceed with all five proposals as follows:
(i) Minimum trading price. To introduce a minimum trading price of $0.20 as a continuing listing requirement for issuers listed on the SGX Mainboard. This is to address risks of low-priced securities being more susceptible to excessive speculation and potential market manipulation. A transition period of 12 months will be given to affected issuers to undertake corporate actions to meet the new requirement. This proposal will, over time, improve the quality of issuers listed on the SGX Mainboard.
(ii) Collateral requirement for securities trading. To require securities intermediaries to collect minimum 5% of collateral from their customers for trading of listed securities to promote financial prudence. This will help mitigate the risk of excessive leverage assumed by investors. It will also reduce reliance on remisiers to manage the credit risk exposures of customers. Institutional investors, trades settled through delivery-versus-payment mode, and funds from the Central Provident Fund and Supplementary Retirement Schemes will be exempted from the collateral requirement.
(iii) Short position reporting requirements. To implement aggregate short position reporting to further enhance transparency of short selling activities in the securities market. The value threshold has been adjusted upwards such that only short positions that exceed the lower of 0.05% or S$1 million of issued shares will have to be reported. Aggregated information will be released on a weekly basis.
(iv) Transparency of trading restrictions imposed by securities intermediaries. The Securities Association of Singapore (SAS) will take the lead to develop industry guidelines. This is to address the concerns of information asymmetry with regard to the dissemination of information on trading restrictions imposed by their members. The industry guidelines will provide guidance on publication of the trading restrictions and their rationale, and to promote consistent practice among SAS members given the differing practices currently.
(v) Reinforcing the SGX listings and enforcement framework. SGX will establish three independent committees, namely Listings Advisory Committee, Listings Disciplinary Committee and Listings Appeals Committee. They will introduce a wider range of sanctions for breaches of listing rules. These will further strengthen SGX’s listings process, improve transparency of its disciplinary process and enhance its ability to enforce the listing rules.
To improve retail investors’ access to a broader range of listed securities, particularly blue-chip stocks, SGX will also reduce the board lot size for securities listed on SGX from the existing 1,000 shares to 100 shares in January 2015. SGX will announce details of this initiative by end August 2014.
also says that mid-liquidity in sg market and hunger for yield investors are willing to take higher risks!