Don't frame self-regulation debate as a binary choice

WE refer to "SMCCA faces hurdle in membership drive" (BT, Nov 4) and "MTP will lower liquidity, raise listing cost: SMCCA" (BT, Oct 16).

Under Singapore's regulatory framework, SGX acts as the frontline regulator for issuers listed on the SGX-ST. Under section 16 of the Securities and Futures Act (SFA), SGX-ST, as an approved exchange, has the obligation, among other things, to maintain listing rules that make satisfactory provision for a fair, orderly and transparent market for trading of securities, and to enforce compliance with its listing rules.

While the listing rules operate as a contract between SGX-ST and the issuers, SGX-ST's ability to enforce its rules is backed by statute. Section 25 of the SFA provides for the power of court to order observance of listing rules. This means that SGX's listing rules have statutory effect.