MAS reprimands SGX for trading system disruptions
On June 24 the Monetary Authority of Singapore reprimanded the Singapore Exchange for “lapses” related to two market outages last year and directed the exchange to improve its recovery capabilities and processes. MAS imposed a moratorium on fee increases until certain improvements are completed, and ordered the exchange to focus on three areas: strengthening its monitoring capabilities, strengthening its business continuity management and disaster recovery procedures improving its crisis communications processes to provide prompt information to all stakeholders.
Also on June 24, SGX published the findings of an investigation by an independent board-level committee into the breakdown of its trading systems in November, including a detailed analysis of the exchange’s business continuity procedures. The committee found that the market closure and the subsequent resumption of trading operations “could have been managed better and the time to recover could have been shorter.” SGX said it has addressed the problems that led to the outage and has committed to make further improvements to enhance overall resiliency and incident management.
