On 1 August 2014, the Monetary Authority of Singapore (the "MAS") and the Singapore Exchange Limited (the "SGX") jointly issued a press release announcing that they will be implementing the following changes in phases over the next 24 months:

  • By end of 2014, the Securities Association of Singapore (the "SAS") will develop industry guidelines for its members and an appropriate template for the announcement of trading restrictions that are imposed on the customers of the SAS members for securities listed on the Singapore Exchange Securities Trading Limited (the "SGX-ST");
  • In January 2015, to reduce the board lot size for securities listed on the SGX-ST from the existing 1,000 to 100 shares;
  • In early 2015, to establish an independent Listings Advisory Committee, Listings Disciplinary Committee and Listings Appeals Committee and to expand the range of the SGX's sanctions for breaches of the SGX-ST Listing Rules;
  • In March 2015, to introduce a minimum trading price of S$0.20 as a continuing listing requirement for issuers listed on the Mainboard of the SGX-ST;
  • In mid-2016, to require securities intermediaries (including banks) to impose collateral requirements on their customers based on a minimum 5% of their net open positions on the trade (T) day;
  • In mid-2016, to require investors to notify the MAS of their net short positions (excluding derivatives) based on the lower of 0.05% or S$1 million of issued shares of an entity listed on the Mainboard and Catalist of the SGX-ST;
  • At a later stage, to shorten the settlement cycle from T+3 to T+2 days.

Details of these changes are outlined in a joint response issued by the MAS and SGX to feedback received from the consultation paper on "Review of the Securities Market Structure and Practices" that was issued jointly by the MAS and SGX on 7 February 2014.

Reference materials

The following materials relating to the above development are available from the MAS website www.mas.gov.sg and the SGX website www.sgx.com: