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THE Singapore Exchange (SGX) has set up a subsidiary to handle its regulatory functions and appointed veteran lawyer and director Tan Cheng Han as the new unit's chairman.
Prof Tan will step down from his directorships at Chuan Hup Holdings, Keppel Reit Management, Global Yellow Pages, Anwell Technologies and Singapore Technologies Marine. He will also resign as deputy chairman of the SGX Listings Advisory Committee, an independent body that decides on unusual listing-related issues for the exchange.
"The resignations ensure Professor Tan is independent of SGX, its members and any company listed on SGX," the market operator said.
The new regulation unit is called Singapore Exchange Regulation Pte Ltd, also known as SGX Regco. Its creation was first mooted in July 2016 as a way to more formally segregate SGX's commercial and regulatory obligations.
"The formation of SGX Regco is aimed at enhancing the governance of SGX as a self-regulatory organisation," SGX said. "It will make more explicit the segregation of SGX Regco's regulatory functions from SGX's commercial and operating activities. SGX Regco will undertake all front-line regulatory functions now undertaken by SGX's regulation unit and have a separate board of directors from SGX."
Current SGX chief regulatory officer Tan Boon Gin has been named the chief executive and a board member of SGX Regco. Other directors are being identified and will be appointed soon.
Prof Tan described a vision for SGX Regco as a regulator that has its ear to the ground and eyes focused forward.
"A regulatory company independent of SGX, yet pragmatic and innovative, while also attuned to market developments, is a development the market is closely watching," he said.