SGX moves to ease ETF market-maker rules, match global norms

[SINGAPORE] The Singapore Exchange (SGX) on Friday (Sep 5) said its regulatory arm plans to streamline the requirements of designated market-makers (DMMs) for exchange-traded funds (ETFs), aiming to align with global market standards.

The Singapore Exchange Regulation (SGX RegCo) intends to remove the administrative requirement for notifications and announcements when DMMs in ETFs suspend or resume quoting prices, according to the statement.

The move follows measures by the Republic in February to enhance its equities market, including a 20 per cent tax rebate for primary listings on SGX.

It also coincides with an ongoing probe into the local stock market by the Monetary Authority of Singapore and a review group set up in August last year, aimed at strengthening market functionality.

The proposals result from a review of the regulatory framework around the trading of ETFs, SGX RegCo said, to identify areas that may impact their listing and trading.

“ETF DMMs provide bid and offer prices during more than 95 per cent of the stock-market hours each business day,” it added.

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SGX said it is still seeking market feedback on the proposed changes, with the consultation open till Sep 26.