Don’t wait for trading queries before disclosing big deals, SGX warns firms

Insider trading must be stopped at all costs.

The Singapore Exchange reiterated that companies are responsible for halting the trading of their own shares in order to prevent insider trading when they are on the cusp of a large deal.

Although choosing the timing of an announcement can be challenging, SGX said that the onus is on the company to halt trading if trading activities of its shares suggest there could be a potential leak of the matter under negotiations or discussions.

“Should the company not be ready to make the disclosure, it should release a holding statement to explain its position. The company may request for a suspension of trading if it is unable to release the material information by the end of the trading halt to allow more time for the matter to be concluded and disclosed via announcement,” said the SGX.

“Should SGX suspect insider trading, we will take action including obtaining from the company the name list of parties privy to the material announcement, analysing trades, obtaining information from brokers and referring cases to the Monetary Authority of Singapore (MAS),” the SGX warned.