Singapore Exchange (SGX), in consultation with the Monetary Authority of Singapore (MAS), has formed a Securities Industry Working Group (IWG), to assess and make recommendations on SGX and industry participants’ processes to improve the Singapore securities market’s operational resilience.
The IWG comprises a broad base of stakeholders and is chaired by Mr Ho Tian Yee, currently a Board Member of DBS Group Holdings and Chairman of Fullerton Fund Management Co. Ltd. In addition to SGX management, the other 12 members include local and international members of SGX’s securities market, representatives from the investment community, independent experts and software vendors. The full list of the members is set out in Appendix A.
In making their recommendations, the IWG will take into consideration the findings from feedback garnered from members and participants as well as SGX’s own investigations following the 14 July market disruption.
The areas that will be reviewed, assessed and given recommendations on include:
- Appropriate provision of back-up systems and processes as well as the ability to re-connect SGX and its market participants following a disruption;
- Protocols and processes between SGX and its members to resume trading promptly in the event of a disruption;
- Communication and maintenance of these established protocols and processes;
- Business continuity planning and industry-wide exercises to familiarise and test SGX and its market participants’ readiness to respond to market disruptions.
Commenting on his appointment, Mr Ho said, “Markets are becoming more complex with increasing dependency amongst participants, and the attendant risks of multiple points of disruption are ever present. I look forward to working with the IWG to contribute towards strengthening the industry’s operational resilience for the stakeholders we represent and serve.”
The IWG is expected to complete its assessment and submit its recommendations to the MAS by 1Q2017.