Proposed changes to Securities and Futures Act open for feedback

THE Monetary Authority of Singapore (MAS), on Wednesday, opened up for consultation its proposed amendments to the Securities and Futures Act to reform the regulation of over-the-counter (OTC) derivatives trading and the securities market.

This consultation, said the regulator in a statement, follows the feedback MAS had received from public consultations on the proposed OTC derivatives reforms in February 2012 and proposed securities market regulations two years later.

The MAS embarked on these reforms three years ago to make the trading of OTC derivatives safer and more transparent. To this end, the Act was amended to cater for the mandatory reporting and central clearing of OTC derivatives trades and regulation of OTC derivatives trade repositories and clearing facilities.

"The proposed legislative amendments will complete the OTC derivatives reforms in Singapore," said the MAS, adding that it was not necessary to mandate a trading regime for OTC derivatives - for now.

The proposed reforms also aim to strengthen the securities market in two areas - to improve transparency in short selling by requiring the reporting of short selling of securities trading and the publication of aggregate short positions, and to enhance the authorities' enforcement powers against market misconduct such as the dissemination of false or misleading information. This also includes increasing the quantum of civil penalties that may be applied to serve as a stronger deterrent.

Feedback and comments should be submitted by March 24, 2015.