Date Issued: 21 June 2007
Date Closed: 12 July 2007
Status: Closed for Consultation
THE SINGAPORE EXCHANGE ISSUES TWO CONSULTATION PAPERS ON PROPOSED ENHANCEMENTS TO STRUCTURED WARRANTS AND SECURITIES MARKET
The Singapore Exchange (SGX) is inviting public comments on proposed enhancements to the structured warrants and securities markets. SGX is issuing two consultation papers in this regard.
1. Consultation on Proposed Amendments to the CDP Clearing Rules in relation to Failed Contracts in the Structured Warrants Market
The first consultation paper concerns the imposition of a penalty for failed contracts in structured warrants. This aims to discourage incidences which may potentially disrupt the fair and orderly operation and development of the structured warrants market.
Under this consultation, SGX proposes to impose a penalty on a Clearing Member who fails to deliver a structured warrant contract on Settlement Day. This penalty shall be 25% of the short contract value, subject to a minimum of $5,000 for each failed contract.
2. Consultation on Proposed Amendments to the SGX-ST Rules in relation to the SGX-ST Market Error Trade Policy
The second consultation paper introduces a new error trade policy for the structured warrants market, with consequential revisions to the error trade policy for the securities market. These proposed changes enhance the efficiency and transparency in the management of error trades.
SGX’s key proposals for erroneous trades referred to it, are:
(a) the erroneous price of a structured warrant will be adjusted, when it falls outside a specified narrow range; and
(b) time limits will be imposed within which error trades must be reported and referred to SGX.
Market participants and members of the public can forward their feedback and suggestions on the proposed changes from today to 12 July 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: | Chen Kaixin
Product Management
Sibylla Muecke
Regulatory Policy |
| Fax: | (65) 6535 5573 |
| SGX Consultation Paper - 21 June 2007 |
| Title | (In PDF) |
| Consultation on Proposed Amendments to the CDP Clearing Rules in Relation to Failed Contracts in the Structured Warrants Market | 
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| Consultation on Proposed Amendments to the SGX-ST Rules in Relation to the SGX-ST Market Error Trade Policy | |
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