SGX to close CDP customer service centre from April 18

STARTING Saturday, the Singapore Exchange (SGX) will close The Central Depository (CDP) customer service centre at The Metropolis until further notice.

All CDP services will be provided through the Internet, phone and mail, the bourse operator said in a press statement on Friday, adding that this is to ensure public health and safety amid the novel coronavirus pandemic.

All CDP account holders are "strongly encouraged" to use online or electronic methods to access services or make payments, SGX said. More details on CDP services are available on SGX's website.

Individual shareholders should apply for rights issues via automated teller machines, as banks have temporarily closed a number of branches. They should not go to bank branches to purchase cashier's orders needed for paper form applications.

To receive cash distributions directly into their designated bank account, CDP customers should sign up for its direct crediting services. This is because CDP will progressively stop providing physical cheque services.

SGX on Friday said it will also refine its processes to cater to the new operating environment amid the pandemic. Likewise, it is encouraging customers to increase their use of online services.

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The bourse operator will minimise face-to-face interaction between investors, member firms and SGX staff, after having reviewed all activities that require the physical presence of SGX staff or CDP customers in member firms' or CDP's premises.

For one, it has temporarily suspended its onsite reviews of member firms, in favour of offsite inspections which focus on trading activities and are aimed at ensuring SGX markets remain orderly.

"Members' business continuity plans continue to be actively monitored so as to minimise the risk of any disruption to their business and operations," it said.

In light of the increased market volatility, SGX has also stepped up its offsite monitoring of members' financial and liquidity conditions. This includes performing more stress tests on their financial positions. Members continue to be able to meet their financial obligations to SGX, it said.

In addition, the bourse operator will update its contingency plan to handle material disruptions in members' trade settlement, "as part of prudent planning to cover even unlikely scenarios".

The updated plan will ensure investors need not visit the CDP customer service centre to settle trades directly with CDP. It will also keep the number of staff from SGX and member firms to a minimum on premises.

SGX chief executive officer Loh Boon Chye said that essential services providers such as the bourse operator must examine their businesses and processes for ways to support measures to curb the spread of Covid-19 while preserving customers' interests.

"We will continue to listen and work with our customers and stakeholders as we battle this outbreak together," he added.

SGX's measures are in line with the Monetary Authority of Singapore's announcement earlier on Friday. The central bank is urging customers to minimise their visits to financial institutions' premises during the ongoing "circuit-breaker" period, which began on April 7 and lasts till May 4.