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SGX offers more data to brokerages to stop market rigging
THE Singapore Exchange (SGX) will push out more data linked to possible market misconduct to brokerages in a bid to detect and stop market rigging, it said on Wednesday.
SGX will issue reports to brokerages with statistics on activities that could be related to market misconduct.
Each brokerage that is an SGX member will receive this set of data - known as the Surveillance Dashboard - with information specific to its alerts only. But brokerages will also get their ranking against peers in the same industry based on the number of alerts from the firm.
The alerts are to do with three forms of market manipulation: spoofing, layering and "marking the close". These are explained in a new trade surveillance handbook that SGX has also launched to boost industry education on such errant practices.
Tan Boon Gin, SGX chief regulatory officer, said: "Trading misconduct must be curtailed as early as possible to minimise market impact and maintain public confidence. The recent enhancement to 'our trade with caution' alerts is just one example of this approach.
"Now, the trade surveillance handbook and members' Surveillance Dashboard will enable member firms to join forces with SGX as gatekeepers to take the fight to detect and stop market misconduct even further upstream."
Lim Kok Ann, chairman of the Securities Association of Singapore, said that the members are supportive of this collaborative approach to boost the quality of the Singapore marketplace. "Investors will only participate in a market which has a level playing field, and is secure and efficient," he added.
The first Dashboard will be released to brokerages this week, and will cover alerts generated from April to August 2016. Subsequent Dashboards will be released on a quarterly basis from January 2017.