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Singapore Exchange Relaxes Listing Requirements For Structured Warrants

Date 16/12/2002

Singapore Exchange Limited (SGX) today announced that it is revising the listing requirements for structured warrants (formerly known as Covered Warrants).

Under the new rules, if the issuer of the structured warrants acts as a Designated Market Maker for the warrants, or appoints an SGX Securities Trading (SGX-ST) members as a Designated Market Maker to make a market for its warrants:

  1. the issue will not have to comply with the requirement that at least 75% of an issue must be placed out to a minimum of 100 warrantholders; and.
  2. the issue will only need to comply with a minimum issue size requirement of S$2 million instead of S$5 million.
Designated Market Makers for structured warrants will be required to provide competitive bid-ask quotes for the issued warrants. Issuers who do not wish to make a market for their structured warrants may list their issues based on the existing minimum placement spread and issue size requirements as stated in Chapter 5 of the SGX-ST Listing Manual. (see Notes below)

Mr Gan Seow Ann, EVP and Head of Securities Trading at SGX said, "The alternative set of rules will allow a wider range of structured warrants to be offered in the market. The introduction of market making in the warrants market will enhance liquidity and provide greater price transparency."

All changes will be effective from 1 Jan 2003 and will be reflected in Chapter 5 of the Listing Manual. In the meantime, market participants may view the changes on SGX's website


Existing Listing Requirements for Structured Warrants

At least 75% of an issue must be placed out to a minimum of 100 warrantholders.

The minimum issue size must be S$5 million or its equivalent.