Date Issued: 16 July 2007
Date Closed: 06 August 2007
Status: Closed for Consultation
THE SINGAPORE EXCHANGE ISSUES CONSULTATION PAPER ON AMENDMENTS TO THE FUTURES TRADING RULES IN RELATION TO THE DISSOLUTION OF THE SGX-DT COMPENSATION FUND.
The Singapore Exchange (SGX) is inviting public comments on the proposed dissolution of the SGX-DT Compensation Fund.
The SGX-DT Compensation Fund (the “Fund”) was originally set up on 25 November 1986 by the Singapore International Monetary Exchange (SIMEX). SIMEX was the predecessor of the Singapore Exchange Derivatives Trading Ltd (“SGX-DT”). The principal purpose of the Fund was to provide compensation to investors, the exchange or the clearing house in a case where loss was incurred through the default or defalcation of any of SIMEX’s derivatives members. The Fund is due to expire on 24 November 2007.
SGX has reviewed the purpose for the Fund and proposes to discontinue the Fund, in order to apply the Fund’s assets more effectively, by combining the resources available under the Fund with those under the Clearing Fund.
The Singapore Exchange Derivatives Clearing Ltd (“SGX-DC”) is the central counterparty and clearing house for all SGX-DT trades. It plays a critical role in managing systemic risk. SGX intends to apply the Fund’s assets and concentrate resources in the clearing house. The monies will provide additional protection to maintain the integrity of the clearing system. At the same time, the Fidelity Fund will continue to provide protection to retail investors.
Market participants and members of the public can forward their feedback and suggestions on the proposed changes from today to 6 August 2007 via email and either by post/courier or by fax.
| Email: | rules@sgx.com |
| Post/Courier: | Singapore Exchange Limited
2 Shenton Way, SGX Centre 1
#19-00,
Singapore 068804 |
| Attn: | Glenn Seah
Regulatory Policy |
| Fax: | (65) 6538 8273 |
| SGX Consultation Paper - 16 July 2007 |
| Title | (In PDF) |
Consulation on Proposed Amendments to the Futures Trading Rules In Relation to the Dissolution of the SGX-DT Compensation Fund
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