Singapore to Reform Equity Markets After Scandal

February 10, 2014 Share Print 0

Singapore is proposing wide-scale reforms to its equity market rules in the wake of a penny stock scandal, its central bank and stock exchange announced on Friday.

The Monetary Authority of Singapore (MAS) and Singapore Exchange Ltd (SGX) are consulting the market on a series of changes including minimum trading prices, new collateral rules, short-selling reporting, and new independent committees to vet listing applicants and impose regulatory sanctions.

“This consultation allows us to have a conversation with all stakeholders on how to make the market strong and more mature,” said Lee Chuan Teck, assistant managing director for capital markets at the MAS.

Singapore is one of Asia’s leading financial centres, but its stock market has struggled recently with a drop in trading volumes and “ultra penny stocks”, which trade for as little at S$0.001, becoming some of the most actively traded shares.

via CNBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.