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Market activity has picked up considerably in 2013. Associated with the increased activity, Singapore Exchange (SGX) has issued 22 public queries to specific listed companies between 2 January and 20 February 2013. This is significantly higher than the monthly average of 5 queries issued in 2012. SGX reminds the public that we query the listed companies where there is unusual trading not explained by announced developments or industry trends. Investors do well to take note when there are public queries of listed companies.
SGX conducts rigorous surveillance of trading activities to detect any undesirable trading conduct and enforce the listing rules. The Exchange deploys its customised surveillance system that picks up unusual trading patterns and behaviour in individual counters real-time, throughout trading hours. When alerted, surveillance analysts review company disclosures, macroeconomic factors as well as industry developments that could explain the trading activity. When the trading activity cannot be explained, the Exchange will publicly query the company in case there is material information yet to be disclosed. While listed companies take their disclosure obligations seriously, there could be instances where news of fast developing corporate actions have leaked. The query serves to remind the listed companies to make prompt material announcements.
For the investors, the public query serves to raise awareness that trading activity in a particular counter is unusual. The incidences of query serve as real-time up-to-the-minute alert to the investors to trade with care.
