Singapore Exchange (SGX) today launched two initiatives in collaboration with Member firms to detect and stop market misconduct, foster good trading practices and maintain a fair, orderly and transparent marketplace.
The initiatives complement SGX’s existing real-time trade surveillance, Member inspections and enforcement actions. SGX also regularly discusses with Members any unusual trading behaviour.
The first initiative is the Trade Surveillance Handbook which aims to improve Members’ understanding of what constitutes improper market conduct that can lead to a reduction in market efficiency and confidence. The Handbook is released in series with the first featuring spoofing, layering and marking the close activities. It also provides a set of guidelines that Members can incorporate into their surveillance programmes to prevent, detect and halt market malpractices.
The second is the Members’ Surveillance Dashboard. It contains, in the form of a report, statistics and information on activities which could be related to market misconduct. Each Member will receive the Dashboard with information specific to itself only. The information includes the number of alerts triggered in SGX’s real-time surveillance system by the Member with regard to potential spoofing, layering and marking the close activities. It also includes information on the Member’s ranking vis-à-vis its peers in the same industry based on the number of alerts attributed to the firm.
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SGX Collaborates With Member Firms To Address Market Misconduct
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