MAS says SGX's separate regulatory unit will strengthen governance

SINGAPORE Exchange's (SGX) move to transfer its regulatory functions to a separate subsidiary company will strengthen SGX's role as a self-regulatory organisation (SRO), said the Monetary Authority of Singapore (MAS).

It will also help strengthen the safeguards to manage potential conflict of interest between SGX's commercial and regulatory roles.

MAS has been in close discussion with SGX on enhancing the governance of SGX's regulatory responsibilities, said MAS in a release on Monday.

MAS highlighted: "The independence of the subsidiary company from SGX will be an important factor for its success. MAS will therefore require the chairman of the subsidiary company and a majority of its directors to be independent of SGX and its regulated subsidiaries, and for all directors to be independent of any corporation listed on SGX."

MAS will continue to directly regulate SGX in terms of its obligations as a listed company and market operator, as well as maintain oversight of SGX's regulatory responsibilities as performed by its regulatory subsidiary.