New SGX guide to fight insider trading

It contains principles to help companies control confidential information.

The Singapore Exchange (SGX) launched a guide on the prevention of insider trading.

According to a press release, SGX launched the guide with the Association of Banks in Singapore (ABS), the Institute of Singapore Chartered Accountants (ISCA), the Law Society of Singapore, and the Singapore Institute of Directors (SID).

The guide contains recommended principles and guidelines to help companies and their advisers in retaining control over the flow of confidential information. SGX said the guide appropriately restricts staff dealing with the company’s securities and creates a culture of compliance.

Specifically, the guide has suggestions on arrangements that companies and their advisors can put in place to more effectively deter insider trading.

Areas covered by the guide include arrangements for ensuring that confidential information remains confidential until it is expected to be revealed under existing rules and minimising accidental information leaks.

The guide also covers characteristics of effective trading restrictions on trading and promotion of awareness of controlling confidential information.

"The guide is not meant to be prescriptive or exhaustive, and needs to be customised to each company’s unique profile and circumstances," SGX said.