SINGAPORE, March 20 Singapore's central bank
said on Monday it has asked the Singapore Exchange to
enhance its recovery processes following an investigation into a
trading disruption in July last year.
At the time, trading in the securities market was suspended
for several hours because duplicate trade confirmation messages
were generated. Trading resumed only the next day.
That disruption was followed by another in December, when
trading for some derivative contracts opened more than two hours
after the scheduled start.
The frequency of the glitches have frustrated investors even
as authorities try to revitalise the bourse in one of Asia's
major financial hubs.
The Monetary Authority of Singapore, the country's central
bank and SGX's regulator, only referred to the July disruption
in its Monday statement.
"MAS has determined that while SGX has met its primary
obligation as an exchange to maintain fair, orderly and
transparent markets, it did not restore the proper functioning
of its critical system within four hours as required," the
"MAS notes that SGX has taken steps since the incident to
address the hardware and software errors which led to the
The central bank directed SGX to implement within 24 months
the six recommendations made by an industry group to improve
restoration of corrupt data, market recovery procedures, market
closure and resumption, trade assumption, incident communication
and business continuity testing and support.
"MAS takes a serious view of trading disruptions," said Ong
Chong Tee, MAS deputy managing director for financial
SGX said in a statement that it has adopted all
recommendations and implemented three with immediate effect.
"The recommendations that SGX has implemented include
establishing a Master Record as the authoritative source of data
in the event of complex malfunctions; providing more clarity on
the timing and principles for market closure and resumption
during a market-wide incident; and establishing a clear protocol
for trade assumption," SGX said.
In 2015, the MAS "reprimanded" SGX for lapses related to
market outages in October and November 2014. SGX has since
provided verification from independent experts that the remedial
measures have been completed and MAS accepts their findings, the
central bank statement said.
(Reporting by Marius Zaharia; Editing by Richard Borsuk)