Glossary

Singapore Exchange (SGX)

The Singapore Exchange serves as the Asian gateway to global capital markets. It is Asia’s first demutualized and integrated securities and derivatives exchange. The Exchange offers investors a comprehensive suite of products, including equities, fixed income, currencies, commodities, derivatives, and structured products.

The History of the Singapore Exchange

Singapore established the SGX in 1999 after merging the Securities Clearing and Computer Services Pte Ltd, the Stock Exchange of Singapore, and the Singapore International Monetary Exchange. In 2000, the government adopted its current name.

Since then, the holding company has operated several joint ventures with stock exchanges in other regions. For example, in August 2009, it created Chi-East by partnering with Chi-X Global.

SGX has also expanded its operations and field offices. In 2008 and 2010, it opened offices in Beijing and London, respectively.

The Role of the Singapore Exchange

The SGX provides a platform for the buying and selling of securities. It also regulates and supervises listed companies to ensure compliance with listing rules. In addition, the SGX ensures that trading practices are fair and transparent.

To accomplish this, the SGX focuses on three main areas:

  1. Ensuring the quality of listed companies
  2. Promoting market integrity
  3. Facilitating market development

The Enforcement Powers Granted to the Singapore Exchange

The SGX has the power to investigate and take disciplinary action against listed companies and their directors, officers, and employees for breaches of listing rules. It can also impose sanctions on listed companies that violate rules, such as fines and trading halts.

Here are some additional enforcement actions SGX can take if it determines entities have violated its regulations:

  • Issuing a letter of warning to the entities involved
  • Bringing the involved parties before the Disciplinary Committee to face charges
  • Making an offer of composition to the entities involved
  • Influencing the resignation of involved persons from leadership positions in listed companies
  • Prohibiting all listed entities from hiring individual violators in leadership positions
  • Denying access to market facilities
  • Issuing public reprimands

The Benefits of the Singapore Exchange

In every market, some entities view regulatory bodies as meddling agencies. Sometimes, company history with the agencies could even support this. Even so, there are benefits to the SGX and other regulatory bodies for securities. Consider the following:

  • The SGX attracts foreign companies to list on its Exchange. Foreign companies and investors can boost healthy competition in a market and make it easier for local investors to diversify their portfolios. It also provides more opportunities to generate high returns on investments.
  • The exchanges get more revenue. When foreign companies list on a local Exchange, the fees go to the regulating entity. In this way, SGX and the broader economic benefits from increased market activity.
  • The listing rules of the SGX ensure that it only lists high-quality companies. This helps to protect investors from scams and fraudsters. It also makes it easier for investors to make informed decisions. That leads to faster and better decision-making, which can improve market efficiency.

How To Get Listed With the Singapore Exchange

Listing your stock on the Asian market through SGX can fuel growth for your business. It remains committed to guiding companies through the process. These are some of the steps it assists with:

  • Meeting corporate governance and regulatory requirements
  • Executing corporate actions
  • Investor outreach

SGX uses two different listing processes. It uses the Catalist to onboard fast-growing startups while the Mainboard serves established corporations. Companies can list a wide range of securities options, similar to offerings in the United States and other countries. Here are some examples:

  • Daily Leverage Certificates
  • Real Estate Investment Trusts
  • Global depository receipts
  • Structured warrants
  • Exchange Traded Notes
  • Exchange Traded Funds
  • Business trusts

How Message Capturing And Archiving Can Help With SGX Compliance

Listed companies must maintain business communication records. These might cover transactions, customer service, or discussions between colleagues. There are also other regulatory bodies governing listed companies that could request access to these records. Failure to comply could lead to expensive fines.

Maintaining and regularly reviewing records can also help companies self-regulate and audit themselves better. For example, text message records might indicate insider trading and other fraudulent activities. It is always better for a company to discover this than for regulatory bodies to find out independently.

LeapXpert automates the message capturing and archiving process, and stores all records in secure places and searchable formats. This streamlined solution takes all the hassle out of compliance regarding business communications. Book your demo to get started.