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  • Cryptocurrency and Blockchain Technology - The Road Ahead

    ARX Administrator    Chan Fook Leong, CFA, Darren Chua, CFA
    17 Apr 2018
    2367
    198

    Responding to the potential of blockchain technology and growing interest in cryptocurrencies, CFA
    Singapore organised a talk on 12 March 2018 at Capital Tower.
  • MANIPULATION IN SINGAPORE EQUITIES AROUND COMPANY ANNOUNCEMENTS

    Mabel Lee    Mr. Chan Fook Leong, CFA, Mr. Guruprasad Jambunathan, FRM
    06 Feb 2018
    31490
    103

    New research by CFA Singapore uncovers no evidence of broad-based market manipulation around company announcements on SGX. 
    • Analysis of announcements data from 2011-2016 suggests any potential instances of manipulation to be isolated incidents, not part of a broader phenomenon 
    • Research report recommends areas in which regulators may wish to strengthen oversight​​
     

    MANIPULATION IN SINGAPORE EQUITIES

     

    AROUND COMPANY ANNOUNCEMENTS​
     


     

    WHAT IS MARKET MANIPULATION?

    • Market Manipulation is defined as the deliberate creation of a false market in publicly traded securities with the aim of profiteering

    • The study did not segregate types of manipulation; it is all-encompassing including illicit activities such as insider trading and ‘front-running’​

    REPORT FINDINGS

    • No evidence of broad-based manipulation around company announcements on Singapore Exchange (SGX) between Jan 2011 and Dec 2016

    • Observed potential instances of manipulation around company announcements on SGX are standalone events and not part of a broader phenomenon

    • Demonstrates that regulatory measures have been effective in preventing broad-based market manipulation

    • Recommend certain announcement categories and sectors in which regulators may wish to strengthen oversight​

    METHODOLOGY
    • CFA Singapore and CRISIL analyzed publicly available data to determine the presence of market manipulation
    • Conducted at the overall market level by looking at announcement categories and sectors, specific subset levels such as market capitalization, listing board and domicile
    (S-Chips or non S-Chips) groups
    • Announcements were custom-categorized for more granular analysis: 4 SGX categories and 60 sub-categories re-grouped under 15 custom categories and 106 sub-categories. The study was done across three forms of returns and for multiple cumulative holding periods, pre- and post-announcement.
    • Visual inspection of price and volume performance around announcements used to identify the right methodology and key parameters to be adopted for a more formal study
    • Hypothesis testing, a validation study, and robustness checks (stress tests) were conducted to ensure the stability of findings
  • SGX Consultation Paper on Quarterly Reporting Framework

    23 Jan 2018
    1965
    0

    The Singapore Exchange (SGX) is seeking feedback on whether to retain quarterly reporting (QR). Concern about compliance costs has been repeatedly raised among market professionals and listed companies while investors prefer adjustments to QR to be tempered.

    On behalf of the Advocacy Committee of CFA Society Singapore, we would like to seek your feedback through a short survey  (2 multiple choice questions & an optional written section), via the following hyperlink: https://www.surveymonkey.com/r/CPQRF20180119

    Detailed information can be found on the below official hyperlinks: http://www.sgx.com/wps/wcm/connect/sgx_en/home/regulation_v2/consultations_and_publications/PC/
    Consultation+Paper+on+Quarterly+Reporting+Framework


    We would appreciate if interested members could leave your comments on ARX or email me by 06th February 2018. CFA Singapore will submit a collective response to SGX if there are substantive comments. If you would like your identity to be kept confidential, please let us know in your response to us.
  • SGX Consultation Paper on Enhancements to Continuous Disclosures

    08 Dec 2017
    1196
    0

    Singapore Exchange (SGX) has proposed to recalibrate disclosure requirements under the Listing Rules for areas of concern to both the market and the exchange.
     
    These changes cover the following areas:
    1. Secondary fund-raising
    ◾Additional upfront and prominent disclosure of the discount, ratio and other principal terms for rights issues.
    ◾A directors’ statement on why the rights issue is in the best interest of the issuer and their basis for forming such a view including justification for any discount.
    ◾Additional disclosure of the use of proceeds and intended use of unutilized amount if a rights issue takes place within a year of another fund-raising.
    ◾To announce specific usage of funds when disbursed if they were earmarked for “general working capital purposes” during the fund-raising exercise.
     
    2. Interested Person Transactions
    ◾Interested Person Transactions below S$100,000 are no longer exempted from announcements or shareholder vote.
    ◾Additional disclosure on the nature of the relationship with the interested person.
    ◾Identify the relevant director, CEO or controlling shareholder of the issuer who will be covered by the IPT mandate.
     
    3. Significant transactions and loans
    ◾Additional disclosures for loans that are not part of the issuer’s ordinary course of business.
    ◾Explanation on why no valuation was done for an acquisition or disposal of assets that is a major transaction except if the transaction involved shares.
    ◾Appointment of a competent and independent valuer for significant asset disposals.
     
    Detailed information can be found on the below official hyperlinks:
         
    We would appreciate if interested members could leave your comments on ARX or email me by 06th January 2018. CFA Singapore will submit a collective response to SGX if there are substantive comments. If you would like your identity to be kept confidential, please let us know in your response to us.
     
    Thank you.
  • MAS Consultation Paper on Execution of Customers' Orders

    06 Dec 2017
    1093
    0

    The Monetary Authority of Singapore (MAS) is proposing to: 
    - formalize expectations for holders of a capital markets services (CMS) licenses, banks, merchant banks and finance companies to have in place policies and procedures to place and/or execute customers’ orders on the best available terms to support fair outcomes for customers; and
    - enhance the existing business conduct requirements, applicable to CMS licensees, banks, merchant banks and finance companies, relating to handling of customers’ orders. 

    Specific Questions:
    1.    MAS seeks comments on the Best Execution requirements in the draft Notice and the draft guidelines to the Notice, set out in Annex 1 and 2.
    2.    MAS also seeks comments on the handling of comparable customers’ orders requirement set out in the draft notice. 

    Both Annex 1 and 2 are to be found on the below official hyperlink:
    http://www.mas.gov.sg/News-and-Publications/Consultation-Paper/2017/Consultation-Paper-on-Execution-of-Customers-Orders.aspx

    We would appreciate if interested members could leave your comments on ARX or email to me by 13th December 2017. If you would like your identity to be kept confidential, please let us know in your response to us. Thank you.
  • MAS Consultation Paper on Liquidity Risk Management for Fund Management Companies

    19 Nov 2017
    259
    0

    The Monetary Authority of Singapore (MAS) proposes to introduce a liquidity risk management framework in the form of guidelines for fund management companies with respect to the collective investment schemes (CIS) that they manage.  The framework seeks to provide guidance on sound practices in liquidity risk management of CIS to address the risks to investors from potential liquidity mismatches between the CIS' portfolio liquidity and redemption terms. MAS also proposes to amend the Code on CIS to impose additional portfolio requirements for money market funds due to their systemic relevance in the event of a crisis. MAS has issued a consultation paper and we would like to invite CFA members to submit their feedback for a collective response to this consultation paper.  
     
    Please click on the link below for the Consultation Paper on Liquidity Risk Management for Fund Management Companies:

    http://www.mas.gov.sg/~/media/MAS/News and Publications/Consultation Papers/Consultation Paper on Liquidity Risk Management Guidelines_26 Oct 2017.pdf

    We would appreciate if interested members could leave your comments by 25 November 2017. If you would like your identity to be kept confidential, please let us know in your response to us. Thank you.