SGX issues consultation paper on revised requirements for direct business trades

20 January 2009

Singapore Exchange Limited (SGX) is inviting public comments on proposed revisions to the requirements for direct business trades (married trades). These include amended thresholds for direct business trades and reporting requirements for such trades executed after trading hours.

SGX proposes to increase the thresholds for direct business trades to at least $500,000 (from $150,000); or 500,000 units of securities or futures contracts (from 50,000 units). It is anticipated that this increase would enhance market transparency as a result of more trades being conducted on-exchange.

In addition, SGX proposes that direct business trades executed after trading hours be reported in the first 20 minutes of the Opening Routine (i.e. from 8.30 am to 8.50 am) on the following Market Day. Information on such trades will then be made available during the Opening Routine (see Annex for explanation), improving the price formation process when the market opens for trading.

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