The measures for failed trade delivery introduced on 25 September 2008 have been successful. There were only a few isolated incidences of failed settlement in the buying-in market. There has also been a significant reduction in failed delivery in the ready market. By settling their trades on time, market participants are contributing to ensure the integrity of the securities settlement system.
Singapore Exchange Limited (“SGX”) will be engaging market participants shortly, in a public consultation, to establish a permanent disciplinary framework for penalizing securities settlement failure on the SGX-Securities Trading (SGX-ST) market.
Until then, SGX will continue to extend the existing directive against failed share deliveries. More details of the public consultation paper will be issued shortly.
