SGX to revise entry rules for remisiers

The removal of the $30,000 banker’s guarantee is being mulled.

The Singapore Exchange (SGX) is looking to create more leeway for remisiers, after it revised some of its rules on securities trading and market practices.

According to SGX, brokers will have more freedom to negotiate their agreements with remisiers and set the amount of security deposit needed after a credit assessment is done.

"This eases the entry of new remisiers to the industry," SGX said.

Trading representatives (TRs) that work separately from the office will also not be required to report to SGX.

Additionally. every time a TR will start mobile broking, they will not be mandated to notify their customers.

"Members will be responsible for ensuring that such activities do not conflict with the TR’s trading activities and compromise customers’ interest," SGX said.

SGX also said requirements to open customer accounts will become "less prescriptive" and that brokers must ensure any account opening is authorised.

SGX will also limit the registration of brokerage firms' managers only to chief executive officers, as they are "ultimately responsible" for the firm and its activities.

The public consultation for the revised rules is open until 7 November 2017.