The Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX) have issued their response to the joint consultation paper on the Review of the Securities Market Structure and Practices, published on 7 February 2014.
MAS and SGX said they have made the decision to proceed on various points.
Short position reporting that exceeds the lower of 0.05% or S$1 million of issued shares will be required.
Board lot sizes for securities listed on SGX will change from the existing 1,000 shares to 100 shares in January 2015.
A minimum trading price of S$0.20 will act as an ongoing listing requirement for issuers listed on the SGX Mainboard.
To improve SGX’s listings and enforcement framework, SGX will establish three independent committees, the Listings Advisory Committee, Listings Disciplinary Committee and Listings Appeals Committee. They will introduce a wider range of sanctions for breaches of listing rules.
Securities intermediaries will have to collect a minimum 5% of collateral from retail customers for trading of listed securities. MAS and SGX said this will help mitigate the risk of excessive leverage.