Proposed updates to improve margining, algorithmic trading, and clarity in regulations
The Singapore Exchange Regulation (SGX RegCo) has released a consultation paper seeking market feedback on proposed amendments to the Futures Trading Rules (FTR), Singapore Exchange Securities Trading (SGX-ST) rules, and Singapore Exchange Derivatives Clearing (SGX-DC) rules. The consultation will close on October 11.
Key proposed changes to the FTR include updates related to the admission and registration of Singapore Exchange Derivatives Trading members’ representatives, as well as adjustments to customer margining requirements. These changes aim to offer more flexibility in managing margin cycles, customer funds, and collateral for members.
Additionally, SGX RegCo seeks to update requirements for automated trading, with the goal of formalizing aspects of the Algorithmic Trading Regulatory Guide. This update is part of an effort to enhance the clarity and readability of the FTR by providing a clean version of the updated rules.
Changes are also proposed for the SGX-ST rules, particularly those related to automated trading and termination of membership, as well as SGX-DC rules regarding customer collateral management. The changes are aimed at aligning the rules with the new FTR.
