Singapore to redefine SGX's oversight role on surveillance, members

SINGAPORE, Jan 28 (Reuters) - Singapore’s central bank said on Thursday it will redefine the regulatory responsibilities between itself and the Singapore Exchange in areas such as supervision of stock exchange members and market surveillance.

The move follows criticism of the SGX’s ability to juggle its responsibilities as being both a market operator and regulator.

In a speech, Ong Chong Tee, deputy managing director, Monetary Authority of Singapore (MAS), said the move was aimed at minimising the overlaps faced by intermediaries, who are members of different exchanges, and at the same time regulated by the central bank.

He said the MAS would be enhancing its surveillance capabilities both within and across markets.

Ong defended SGX’s role as a self-regulatory organisation, saying removal of the function would create ambiguity about who would oversees the conduct of listed companies.

“Exchange self-regulation has a long history in financial markets and in many established markets,” he said.

He praised the SGX for raising its admission criteria, setting up three new independent listings committees to complement its listing and disciplinary processes.

“However, we have also determined that there is scope to recalibrate the responsibilities of the exchange vis-à-vis the MAS in the areas of member supervision and market surveillance.”

Reporting by Saeed Azhar; editing by Susan Thomas