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Singapore Exchange (SGX) today announced that it has adopted the recommendations of the Securities Industry Working Group (IWG) to improve the operational resilience of Singapore’s securities market.
SGX, in consultation with the Monetary Authority of Singapore, formed the IWG in September 2016 to assess and make recommendations by the first quarter of 2017. The IWG took into consideration feedback garnered from members and participants, while the Securities Association of Singapore was instrumental in soliciting input through their various working and discussion groups.
The IWG made specific recommendations in six areas:
- Restoration of corrupt data
- Market recovery procedures
- Market closure and resumption
- Trade assumption
- Incident communication
- Business continuity testing and support
SGX has adopted all six recommendations and implemented three with immediate effect. The recommendations that SGX has implemented include establishing a Master Record as the authoritative source of data in the event of complex malfunctions; providing more clarity on the timing and principles for market closure and resumption during a market-wide incident; and establishing a clear protocol for trade assumption.
For the remaining recommendations, the exchange will form and chair an Executive Steering Group, comprising SGX and existing broker-members of the IWG, to oversee full implementation. The report summary can be found here.
Mr. Ho Tian Yee, Chairman of the IWG, said, “The IWG has assessed and made recommendations it believes are best suited to strengthen the operational resilience and endurance of our securities market. As we close off the IWG, we would like to thank all members and participants who had worked together to produce this report. It is this same collaborative spirit that we can build on to ensure the desired outcome for our industry.”
Mr. Loh Boon Chye, Chief Executive Officer of SGX, said, “Operating a market infrastructure is a perpetual process of adjustments and learning. The formation of IWG by SGX is one of several initiatives to bolster the resilience of our market infrastructure. We are appreciative of the support and contribution of every IWG member over the last 6 months and look forward to the continued participation of all stakeholders in our ecosystem as we work together to make implementation a success.”
