SGX opens direct market access to securities trading

Starting September 18 market participants can transmit orders to SGX-ST in real time.

Singapore Exchange (SGX) has effected rule changes to allow market participants to access SGX-ST’s trading system directly using systems of their own or of SGX-ST Members. These rules facilitate the introduction of the ASEAN Trading Link.

"With direct market access, market participants are able to transmit orders to SGX-ST’s trading engine in real time. Accordingly, SGX-ST Members are required to establish measures to safeguard against potential system malfunction, and excessive customer trades by volume or value," explained SGX in a release.

"The main rule amendments include the introduction of Member requirements for customers who use their own order management systems. Members will also be required to put in place minimum credit standards for customers with direct market access. Additionally, Members will need to have comprehensive programmes for maintaining the integrity of their order management systems.

In addition to the rule changes on direct market access, SGX is also introducing new rules on the  participation criteria and compliance requirements for SGX-ST members in relation to the ASEAN Trading Link. These rules also take effect on 18 September 2012.