SINGAPORE : The Singapore Exchange (SGX) is taking steps to enhance existing transparency in the market and to deter the failed deliveries of securities.
The SGX said it will publish the list of buying-in securities and volume of shares sought at 11am every day.
Currently, short positions which result in failure of delivery to the Central Depository are closed out by buying-in from the market at 11.30am daily.
SGX said that information about such positions would be useful to market participants and it will publish this via SGXNET and the SGX website.
A penalty of 5 per cent of the value of the failed trade, subject to a minimum of S$1,000, will also be imposed from September 25 onwards, on top of the current processing fee for buying-in of S$30 per contract.
Also from that date, any failure to deliver shares in the buying-in market may also be liable for a penalty of S$50,000 and/or disbarment from participating in the buying-in market.
These new measures will be reviewed after one month.
Separately, the Association of Banks in Singapore has warned its member banks to remind staff not to comment negatively about other financial institutions based on unsubstantiated rumours.
It said it had been informed that staff of some member banks allegedly took advantage of the current period of turmoil in the industry to make negative comments about the stability and viability of other banks and insurance companies. - CNA/ms
The SGX said it will publish the list of buying-in securities and volume of shares sought at 11am every day.
Currently, short positions which result in failure of delivery to the Central Depository are closed out by buying-in from the market at 11.30am daily.
SGX said that information about such positions would be useful to market participants and it will publish this via SGXNET and the SGX website.
A penalty of 5 per cent of the value of the failed trade, subject to a minimum of S$1,000, will also be imposed from September 25 onwards, on top of the current processing fee for buying-in of S$30 per contract.
Also from that date, any failure to deliver shares in the buying-in market may also be liable for a penalty of S$50,000 and/or disbarment from participating in the buying-in market.
These new measures will be reviewed after one month.
Separately, the Association of Banks in Singapore has warned its member banks to remind staff not to comment negatively about other financial institutions based on unsubstantiated rumours.
It said it had been informed that staff of some member banks allegedly took advantage of the current period of turmoil in the industry to make negative comments about the stability and viability of other banks and insurance companies. - CNA/ms
