Singapore introduced a number of measures to rectify the securities market

Original title: Singapore has introduced a number of measures to rectify the securities market

After the “small stock storm” incident last year, the Monetary Authority of Singapore and the Singapore Exchange will introduce a number of measures to rectify Singapore securities market to ensure a more orderly transaction and a responsible investment environment.

In 2013, the Singapore Exchange’s stock trading volume was surpassed by the Thai Stock Exchange and fell to second place in Southeast Asia for the first time. In November 2013, three unseen low-cap companies in the Singapore market plunged, causing a market value of 8 billion Singapore dollars (about 6.3 billion US dollars) to evaporate, and the Singapore stock market was hit hard. Afterwards, the Monetary Authority of Singapore and the Singapore Exchange began a comprehensive review of the stock market structure. The Singapore Monetary Authority said recently that after conducting a detailed review of the local securities market, the market mechanism is considered to be sound, but there are still some areas that can be improved. Therefore, some measures have been proposed and public consultation is sought on these measures. The authorities will consider The decision is made only after the opinions of the parties. The comment period will expire on May 2 this year.

New initiatives by the Singapore Monetary Authority include the introduction of minimum transaction prices to reduce volatility and curb speculation on low-cap companies’ stocks; set mortgage requirements for securities transactions; and establish new short-selling reporting systems Wait. At the same time, the Singapore Exchange will also introduce incentives for electronic market makers and reduce the cost of securities clearing by 20% in order to attract over-the-counter transactions to the exchange. In addition, the SGX has introduced specific measures to avoid excessive speculation. For example, starting next month, when a listed company is unable to explain the abnormal trading behavior of its stock, the SGX will issue a “Cautious Deal” prompt. (Reporter Zhao Ying)

Responsible Editor: Zhang Xiaofang

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