MAS issues consultation paper on “Requirements on Controls against Market Abuse”

29 August 2019

On 5 August 2019, the Monetary Authority of Singapore (“MAS”) issued a consultation paper on “Requirements on Controls against Market Abuse”. MAS is seeking comments on proposals to improve controls and facilitate investigations into cases of market abuse such as market manipulation and insider trading, to maintain a fair, orderly and transparent market. The consultation closes on 5 September 2019.

The four proposed requirements will apply to licensed and exempt financial institutions in Singapore that undertake the regulated activity of dealing in capital markets products. The proposed requirements are as follows:

  1. Establish arrangements with clients to facilitate provision of information to the authorities on ultimate beneficial owner of orders and trades executed in omnibus accounts 
  2. Record communication concerning orders and trades placed in customers’ trading accounts 
  3. Record the device identification for orders and trades executed via mobile trading applications 
  4. Maintain a centralised electronic register containing a list of all payments made in cash or by non-account holdersThe proposed requirements will be set out in a new Notice on Controls against Market Abuse, and will take effect six months from its date of issuance.

Reference materials

The following materials are available on the MAS website www.mas.gov.sg: 

 

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