SGX initiatives to grow and develop the TR community

19 November 2008

Singapore Exchange Limited (SGX) announced today that it is embarking on three initiatives to grow and develop the trading representative (TR) community in Singapore. These are:

1. Reductions in new TR fees

Application and registration fees will be reduced from a total of $4,050 to $300. SGX will also waive transfer fees of $2,000, which are levied on TRs who join a new member firm within one month of starting work at their previous firm.

The fee revisions, which take effect from 1 December 2008, will facilitate the entry of new TRs and encourage the growth of the TR community. Based on fees collected in the financial year ended 30 June 2008, this move will result in savings of about $2 million for the industry.

2. New programme for TRs’ professional development

SGX and the Securities Association of Singapore (SAS) are working with the Financial Training Institute (FTI) at the Singapore Management University (SMU) to launch a new programme for the professional development of brokers and remisiers. The new offering, which provides a roadmap towards eventual accreditation, is in the form of a competency-based training and assessment programme that meets the exacting requirements of the Financial Industry Competency Standards (FICS).

Delivered by FTI@SMU, the rigorous programme aims to raise the standard and professionalism of new and existing brokers as well as remisiers. The first intake will commence in February 2009.

3. Facilitating recruitment of new TRs by member firms

To further capitalise on the fee reductions and new programme, SGX will also work with its member firms on a recruitment drive for new TRs among graduates in the local universities in the first half of 2009. This is in addition to the broking firms’ individual recruitment activities.

“SGX is pleased to partner with the industry and our member firms to expand the TR community in Singapore. We hope that these initiatives will critically increase the distribution base of listed products, which are more transparent and standardised in nature, and we foresee healthy growth in demand going forward. Remisiers and dealers are an important part of our supply and value chain. We want to further develop their capabilities and professional profile so that all investors can expect quality advisory and execution services,” said Mr Andrew Ler, SGX Senior Vice President and Head of Private Investors.

“The Securities Association of Singapore warmly welcomes SGX’s initiative to reduce the fees for new TRs. The fee reduction is timely, coming just as the industry is getting ready to invest more in the professional development of new trading representatives as well as the continuing education of trading representatives who have been in the market for some time,” said Mr Lim Eng Hai, Chief Executive Officer of SAS.

On the new programme, Associate Professor Annie Koh, Dean of Executive and Professional Education, SMU said, “The global financial crisis is rewriting the landscape of the financial services industry. Increasingly, brokers will need to be ready to take advantage of opportunities that emerge from the current turmoil. As a knowledge partner in this new programme, FTI@SMU provides the training pathways for trading representatives to broaden their product knowledge and enhance their soft skills. Upon completion of the programme, they will be equipped with the capability to move towards greater value-added advisory services.”

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