SGX to establish subsidiary for regulation

Subsidiary known as RegCo, will handle regulation and be independent from the exchange.

The Singapore Stock Exchange (SGX) is to create a subsidiary company to handle front-line regulation.

The subsidiary - known as RegCo - is part of plans to segregate the exchange’s regulatory functions from other aspects of the business.

RegCo will have its own board of directors, who will be independent of the exchange, although the current chief regulatory officer, Tan Boon Gin, will head up the subsidiary as its chief executive officer.

SGX said the establishment of RegCo will “add to safeguards in place to ensure high governance standards in the regulation and operation of SGX markets.”

Tan Boon Gin, chief regulatory officer at the exchange, said the arrangement “will keep us close to market developments while effectively separating us from the commercial side of SGX.”

Chief executive officer at SGX, Loh boon Chye, added the decision to create a separate subsidiary was “made after a long and careful deliberation.”

He said RegCo will “demonstrate our commitment to do all that we can within the self-regulatory framework to address potential conflicts between our commercial objectives and our regulatory responsibilities.”

RegCo is expected to launch officially by the second half of 2017.