Singapore Exchange (SGX)

[touzi]

Why transfer the regulatory function to a separate subsidiary instead of passing that function to MAS? Is that subsidiary supposed to be revenue generating?

[thor666]

http://www.sgx.com/wps/wcm/connect/sgx_e...n=alwayson

SGX provides further details on market disruption



1. Singapore Exchange’s (SGX) securities market experienced a market disruption on Thursday, 14 July 2016, when the exchange ceased trading at 1138 hours, and remained closed for the rest of the day.

2. Investigations found that Thursday’s event was caused by a disk failure and an application that did not detect the problem. The disruption was prolonged due to challenges in the orders and trade reconciliation process.

Cause and description of disruption

3. At 0938 hours, SGX detected Input/Output errors on a disk that runs the application to send out clearing confirmation messages to members. As the application did not detect the disk failure, which it should have, it did not automatically cutover to SGX’s backup secondary system. SGX initiated a manual cutover from the primary to secondary systems at 1012 hours.

4. As a result of disk failure, some clearing confirmation messages were not generated. Following the cutover, the application attempted to resend all missed messages, which resulted in some messages being duplicated.

5. At this point, trading ceased at 1138 hours, and from 1151 hours members could reconcile and manage their orders including those which were traded. Trading was orderly throughout the time the market was open.

6. While there was a problem with the clearing confirmation messaging application, there was no problem with the trade confirmation messaging application, which had continued to work as normal. To reconcile their orders and trades, members can rely either on trade confirmation messages or clearing confirmation messages. Those using the latter in this case experienced problems with reconciling orders and trades.

Reconciliation process challenges

7. Order and trade reconciliation required SGX and its members to match their trade or clearing confirmation data files.

a. While SGX provided members with a complete set of data detailing all trades done prior to the adjust phase, specific, one-off data files on missing and duplicated clearing confirmation messages, for each member had to be generated. This was because members have different trade and order management systems and processes. These one-off files had to be newly generated by SGX.

b. SGX proceeded to work with each individual member to reconcile all trade and orders status to ensure that records in their respective trade and order management systems were accurate. The entire process took longer than expected, as members use different systems, and either the trade confirmations or clearing confirmation messages, or both.  

Remedial and follow up actions

8. The disk has been replaced on Thursday and complete health checks conducted.


9. We are working with our vendor to review the application which sends out clearing confirmation messages, and will implement the necessary changes to ensure detection by the application of specific hardware problems.


10. We will improve our process in data generation, and fine tune the data files to better enable our members in their reconciliation processes.


11. We will work with members to review their order and trade reconciliation process, to improve overall recovery and market resumption, in the event of a similar recurrence.

12. We will increase the number of our Business Continuity Planning scenarios which require industry-wide participation for reconciliation and recovery.   



Sent from my LG-H818 using Tapatalk

[weijian]

Singapore Retail Securities Brokers and CDP to Promote Electronic Statements to all Retail Investors


All the nine retail securities brokers in Singapore and The Central Depository (“CDP”) will progressively provide electronic statements to customers, starting from the fourth quarter of 2016. These nine retail securities brokers in Singapore are all members of the Securities Association of Singapore (“SAS”) and SGX-Securities Trading (“SGX-ST”). Retail investors who have internet trading accounts will be able to enjoy seamless accessibility when retail securities brokers soon allow customers the ability to view their account statements and contracts electronically. They are also able to view, print or save their records online for up to 3 months when securities brokers switch to electronic contracts.

http://infopub.sgx.com/FileOpen/20160817...eID=417802

[CityFarmer]

Singapore legal system, is different from US, thus the inappropriateness of the dual-class listing, IMO. No detail is given on the proposal. Let's see how it will provide comparable investor protection, on the dual-class listing in Singapore.

Singapore Exchange said to consider dual-class share structures

SINGAPORE (Aug 23) Singapore Exchange is likely to allow dual-class weighted voting rights for listed companies, after the city-state amended its laws this year to allow such structures, according to two people familiar with the matter.

The planned move comes after Hong Kong’s stock exchange operator in October scrapped a similar proposal after opposition from its regulator. Hong Kong lost the listing of Alibaba Group Holding, the biggest US IPO on record, after refusing to allow its corporate governance structure.

In the US, companies with more than one type of share, including Google Inc. and Facebook Inc., are subject to more stringent reporting requirements and shareholders have the ability to band together on lawsuits.

Under the proposals, listing applicants will need to meet certain requirements for dual-class shares, said the people, who asked not to be named because the discussions are private.
...
http://www.theedgemarkets.com.sg/sg/arti...structures

[CityFarmer]

New proposal on the MTP watchlist. Noble will not "qualified" for the watchlist, under the new proposal.  

SGX to add market cap test for entry into MTP watchlist

SINGAPORE (Aug 23): The Singapore Exchange is adding a market capitalisation test to the entry criteria for the minimum trading price (MTP) watch-list.

That means Mainboard-listed companies who fail to meet the current six-month volume-weighted average price (VWAP) of 20 cents will only be placed on the SGX watch-list if their market capitalisation is less than $40 million. The SGX watch-list currently has two entry criteria: the MTP and the financial entry criteria.
...
http://www.theedgemarkets.com.sg/sg/arti...-watchlist

[CityFarmer]

More views on the matter...

Singapore’s dual-class shares move wins nod from IPO group

SINGAPORE (Aug 30): Singapore’s stock exchange won approval from its listing advisory committee to allow dual-class shares, as it seeks to lure international businesses.

Companies will be permitted to have weighted voting rights, subject to various corporate governance safeguards to mitigate the inherent risks of such structures, according to the report by Singapore Exchange committee published Monday.
...
http://www.theedgemarkets.com.sg/sg/arti...-ipo-group

[ksir]

More views on the matter...

Singapore’s dual-class shares move wins nod from IPO group

SINGAPORE (Aug 30): Singapore’s stock exchange won approval from its listing advisory committee to allow dual-class shares, as it seeks to lure international businesses.

Companies will be permitted to have weighted voting rights, subject to various corporate governance safeguards to mitigate the inherent risks of such structures, according to the report by Singapore Exchange committee published Monday.
...
http://www.theedgemarkets.com.sg/sg/arti...-ipo-group

It is quite funny though the dual-class shares.
If someone really wants to control or have the final say in a company, why don't just be the biggest shareholders or own more than 50%?

[weijian]

It is quite funny though the dual-class shares.
If someone really wants to control or have the final say in a company, why don't just be the biggest shareholders or own more than 50%?

Quality startup/entrepreneurs will have leverage over the capital (the VCs). If the capital is chasing them, one of the leverage they can use is to use the dual class structure to their advantage when issuing new shares. In this case, they are able to cash out some, while continuing to hold the free option of control. Not everyone will have this option, some folks run after startup money but a few privileged ones have startup money running after them. So, i don't think it is really funny that there can be dual class shares for startups, especially the high quality ones

(P.S. for Manchester United having dual class shares, now i do think that's funny! whether from the POV of a ManU fan or not)

[ksir]

To me, it is about ownership and being aligned with shareholders for long term.
Dual class means higher class holder (founder?) will have power to veto majority shareholders? Just curious. Which means to say that the founder can basically decide whatever he wants? Sounds to me like having the cake and eat it too?!

[weijian]

Excerpt from pg70 of SGX AR16:
After robust discussions, an overwhelming majority of the LAC members present voted in favour of permitting dual class share structures  to list on SGX, subject to various corporate governance safeguards to mitigate the inherent risks of such a dual  class share structure.
The envisaged dual class share structure listing framework is intended to enhance SGX’s attractiveness as a listing venue and to broaden and deepen Singapore’s capital market. Unlike many other countries, Singapore does not have a vast hinterland providing a continuous pipeline of IPO-ready listing applicants. The LAC understands the need for SGX to attract quality listings from both within and outside Singapore, including companies with a dual class share structure. Quality IPO listings, together with a well-regulated market will strengthen investor confidence and attract greater investor interest.


There are 16 members in the LAC, ranging from accountants, lawyers, listed CEOs (Ezra's Lionel Lee), bankers, private equity heads...and a certain head of SIAS, Mr David Gerald. I guess 1 of those dissenting ones would at least be Mr David Gerald i suppose?