SINGAPORE: The Monetary Authority of Singapore (MAS) has
instructed the Singapore Exchange (SGX) to conduct a thorough
review of its systems following a delay in the start of stock market trading till
12.30pm on Wednesday (Dec 3).
"MAS has registered its disappointment and concerns with SGX
over the delayed opening of its securities market caused by a
software defect. The lapse is unacceptable, coming within weeks of
the recent power breakdown on Nov 5," a spokesperson for
the central bank said in a statement.
"MAS has instructed the SGX Board and CEO to do a thorough
review to address the shortcomings that led to the lapse," the
spokesperson said, adding the central bank will not hesitate to
take supervisory actions against the bourse operator if
necessary.
Mr David Gerald, President and CEO of the Securities Investors
Association (Singapore), called on SGX to address the problem
urgently.
“It is not good for the confidence in the market as it appears
to be happening one too many times. Investors are in a quandary.
SGX needs to address this problem urgently to avoid a recurrence,
especially in this period of low market volume," he said.
"There has been much investment on the trading system and one
should, therefore, be confident of not expecting frequent computer
glitches,“ Mr Gerald added.
SGX said earlier on Wednesday that it will delay the start of
stock market trading to "enable member firms to complete client
position reconciliations, and rectify any errors in the end-of-day
processing for 1 Dec on the securities client-accounting system
hosted by SGX on behalf of member firms".
The latest trading disruption follows an incident on Nov 5 when
a power supply fluctuation caused trading in stocks and derivatives
to be halted for more than two hours.
The trading of stocks on SGX usually takes place from 9am to
5pm.
- CNA/cy