Since the penny stock crash, a series of measures has been introduced to ensure the market functions in an orderly manner. Circuit breakers and “trade with caution” warnings, issued upon detection of unusual trading, were introduced. To deter market manipulation, a “surveillance handbook” has been issued to brokers, clearly listing the typologies and possible patterns of market manipulation. SGX RegCo has stepped up engagement with brokers as well. And, a string of companies has become the target of regulatory action taken by the exchange.
SINGAPORE (May 27): Tan Boon Gin, CEO of stock exchange regulator Singapore Exchange Regulation, says the market can expect a stronger regulatory presence. “You will see a series of enforcement cases coming up quite soon,” he tells The Edge Singapore.
Tan’s assertion comes amid significant changes in the market as sentiment remains lacklustre and investors’ expectations change. The local stock market has gone through significant upheaval, not least because of the penny stock crash in 2013 that wiped out some $8 billion in value from the market. The event dented investor sentiment, and the ongoing trial of the alleged masterminds of the market manipulation has laid bare the fact that many in the broking industry bent rules and exploited loopholes. The role and effectiveness of the market’s regulators, along with the emphasis on corporate governance, have taken on a new urgency.
