The Singapore Exchange (SGX) is consulting the public on amendments to the Singapore Exchange Derivatives Clearing Limited (SGX-DC) rules.

The proposed amendments are in relation to its default management framework for exchange-traded and Over-the-Counter (OTC) derivative contracts.

The proposed enhancements include the introduction of a mechanism to limit SGX Clearing Members’ default management liabilities as well as changes to the manner in which the Clearing Fund will be used in default scenarios.

Refinements to the default management framework to strengthen SGX-DC’s authority in the management of defaults and to provide greater clarity on procedures have also been put forward.

Members of the public have until October 3 to comment on the proposed amendments.

SGX said the proposal is part of its continuing efforts to review its risk management practices in view of evolving market developments.

Separately, the exchange has also announced templates of SGXNet announcements to boost market transparency.

In a statement SGX said the changes will enable issuers to provide more information and enable investors to efficiently access the relevant information pertinent to their investment decisions. The new templates, which will be effective September 18, comprise a new announcement category and enhancement of existing templates.

The new announcement category has been created for new product information, and market-maker announcements for “structured warrants” and “certificates”, which currently come under “miscellaneous”.

SGX said the objective of the revised template is to provide investors with easier retrieval of announcements.

The enhanced templates also allow companies to specify a time from 8.30am when calling for a suspension or trading halt. Whereas currently, the earliest time is from 9.00am.

Source: CNA