Singapore Exchange Case Study

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Role of SGX The Singapore Exchange (SGX) plays an important role which is to actively seek to promote Singapore as a preferred choice among companies looking to raise funds from the capital market. The main role of SGX is ultimately to promote the capital market in Singapore, and ensuring that our country continues to remain competitive as an option for good companies to list on our stock market. Other roles include regulating the exchange whereby SGX runs constant surveillance on the market activity, querying companies if there is any unusual stock-price movements or breaches of listing rules and lastly, the supervision of markets. Functions of SGX Regulating the Exchange One of the most critical function of SGX is being in charge of regulating…show more content…
1. Trading - Securities Market and Derivatives Market are both employing the latest technology to check for any irregular market behavior such as unusual price and volume movements. Analysts are also there to assess the data and once a potential trading irregularity is identified, the analyst would conduct an in-depth review before taking further actions. 2. Clearing - Guarantees the performance of all trades done on the exchange which are cleared through the clearing members. Provides assurance of contract performance to their customers. To maintain the financial integrity and stability of the markets, Risk Management monitors and manages SGX's counterparty risk exposure to ensure that clearing members have adequate resources to meet the obligations to SGX clearing houses. Any exception is promptly addressed through imposition of additional collateral or reduction of position limits. In addition, Risk Management monitors SGX’s financial resources to ensure that its clearing houses have the requisite financial resources to back their guarantees. This is done by performing stringent daily stress…show more content…
ASX bears the responsibility of monitoring and enforcing compliance with its operating rules to ensure a fair, orderly and transparent market. Using the operating rules, ASX provides clearing and settlement services in a fair and effective way. In general, it functions as a market operator and facilitator by: market rules – investors, listing rules – companies. ASX also sets the market rules to regulate how trading may take place on ASX. Additionally, responsibility for listed companies’ compliance with listing rules are shared between the ASX and the Australian Securities and Investments Commission (ASIC). Functions of ASX ASX functions as a market operator, clearing house and payments system facilitator. It also oversees compliance with its operating rules, promotes standards of corporate governance among Australia’s listed companies and helps to educate retail

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