SGX Issues Two Consultation Papers On Proposed Enhancements To Structured Warrants Market

Singapore Exchange Limited (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. 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. 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 .

The consultation papers, which explain the rationale and proposed revisions in detail, will be available on SGX website at www.sgx.com from 21 June 2007. Market participants and members of the public can forward their feedback and suggestions on the above proposed revisions from today to 12 July 2007 via email and either by post/courier or 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: 6535 5573