Update on Regulatory Framework for Organised Markets

18 Jun 2018 LegisWatch

On 22 May 2018, the Monetary Authority of Singapore ("MAS") issued 2 consultation papers:

(i) Consultation Paper on the Draft Notice on Listing, De-Listing or Trading of Products for Approved Exchanges ("AEs") and Recognised Market Operators ("RMOs") ("First CP"); and

(ii) Consultation Paper on the Review of the Recognised Market Operators Regime ("Second CP").

The First CP relates to the new product notification regime for AEs and Singapore-incorporated RMOs (collectively the "Exchanges") introduced under the Securities and Futures (Amendment) Act 2017 ("SFAA") and which will supersede the existing product approval regime when the SFAA provisions come into force. It sets out, inter alia, the proposed criteria and self-certification process for which the Exchanges may list or de-list products by way of notification to MAS. Details of such criteria and process are contained in the draft Notice on Listing, De-listing or Trading of Relevant Products on an Organised Market of an Approved Exchange or Recognised Market Operator incorporated in Singapore ("Notice") attached to the First CP.

The Second CP separately explains MAS' rationale for the review of the existing regime for market operators, and lays out the proposal to introduce a tiered regulatory framework for RMOs, to take into account emerging technological trends in the financial markets and services sector and new business models.

This Update provides a brief summary of the key and salient points of the proposals in the consultation papers. The consultation papers may be obtained from MAS’ website here. The deadline for public feedback on both consultation papers is 22 June 2018. We would be pleased to include, in our response to MAS, any feedback that your organisation would like to give MAS on the proposals in the abovementioned consultation papers.

If you would like information on this or any other area of law, you may wish to contact the partner at WongPartnership that you normally dealwith or the following partner:

Rosabel NG
Head – Derivatives & Structured Products Practice
Joint Head – Financial Services Regulatory Practice
d +65 6416 8269
e rosabel.ng@wongpartnership.com
Click here to see Rosabel’s CV.