Singapore Regulatory Developments

1
Singapore Regulatory Developments

• Presented by
• Mohammad Nizam
• Deputy Director and Head,
• Market Conduct Policy Division
• Monetary Authority of Singapore
• Date
• 10 Aug 2005

2
Market Overview SGX-DT
equity index futures/options, interest rate
futures, single stock futures
Products
Volume
Top 5 Contracts
Nikkei 225, MSCI Taiwan Index, Euroyen, MSCI
Singapore, and Mini Japanese Government Bonds
3
Market Overview Other Recognised Markets
Bloomberg Tradebook
NYMEX
Brokertec USA LLC
IPE London Ltd
CME Inc
Tradeweb Europe Ltd
Euronext Paris SA
Brokertec USA LLC
Marketaxess Europe
Garban LLC
4
Market Overview OTC Derivatives Market

• Daily Average turnover of USD 17 billion
• 2nd largest market in Asia
• 12th largest market globally

5
Fair, Efficient Market and Sound Infrastructure
Regulatory Objective
Principles Business Friendly, Promoting Growth
6
Regulatory Developments

• 1) Enhancing the Regulatory Framework
• 2) Regulation of Commodities Futures and OTC
  Derivatives
• 3) Infrastructure Developments

7
1) Enhancing the Regulatory Framework

• Designation Approach for Clearing Facilities

• Definition of clearing and settlement includes
  entire value chain
• Designation Regime Risk Based. Default Yes
  MAS only designates and regulate when necessary

8
1) Enhancing the Regulatory Framework

• Classification of Markets

Before
After
9
2) Keeping an Eye on

• Commodities Futures
• OTC Derivatives
• Market Not regulated. Will there be a need in
  the future?
• Clearing and Settlement How are we to regulate
  clearing members?

10
3) Infrastructure Development

• Move to pit to E-trading
• - SGX Quest (integrated trading engine)
• Facilitates audit trail

11
Thank You