Singapore Exchange announced on July 18 that it will create a separate and independently governed subsidiary to perform the exchange operator’s front-line self-regulatory functions. "The move aims to further enhance the governance of SGX as a self-regulatory organization by making more explicit the segregation of its regulatory functions from its commercial and operating activities," the exchange said.
The Monetary Authority of Singapore issued a statement in support of SGX's plan and called it "an important step in strengthening the safeguards to manage potential conflicts of interest between SGX's commercial and regulatory roles."
A separate board of directors will govern the new regulatory unit. The majority of the directors, including the chairman, will be independent of SGX. In addition, all of the directors will be independent of any other corporation listed on the exchange. SGX's chief regulatory officer, Tan Boon Gin, will serve as CEO of the subsidiary and will report directly to the subsidiary's board. The exchange expects to make the transition to the new structure by the second half of 2017.
