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MTP will lower liquidity, raise listing cost: SMCCA
Small & mid-cap companies association says proposed rule will add 'no meaningful value' to capital markets
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Angela Tan
Published Wed, Oct 15, 2014 · 09:50 PM
Singapore
SINGAPORE'S Small and Middle Capitalisation Companies Association (SMCCA) believes that Singapore Exchange's (SGX's) proposed adoption of a Minimum Trading Price (MTP) will add "no meaningful value to the capital markets" but instead reduce liquidity and add to listing cost.
In response to SGX's public consultation papers on minimum price and enforcement, the voice for small and mid-cap listed companies says that the move to peg MTP at 20 cents a share should not be implemented as it will have a "negative impact on market liquidity in addition to other unintended consequences".
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