General Announcement::News release: SGX's revised MTP receives strong support, will start 1 June 2017

Issuer & Securities

Issuer/ Manager
SINGAPORE EXCHANGE LIMITED
Securities
SINGAPORE EXCHANGE LIMITED - SG1J26887955 - S68
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
02-Dec-2016 19:28:21
Status
New
Announcement Sub Title
News release: SGX's revised MTP receives strong support, will start 1 June 2017
Announcement Reference
SG161202OTHRLJNG
Submitted By (Co./ Ind. Name)
Ho Lily
Designation
AVP, Marketing & Communications
Description (Please provide a detailed description of the event in the box below)
Singapore Exchange (SGX) has received positive feedback to its proposal to add a market capitalisation test to the Minimum Trading Price ("MTP") requirement for Mainboard.

We received varying responses on the frequency of the watch-list review, ranging from quarterly to yearly. After careful consideration of the pros and cons of both review periods, SGX has decided on a half-yearly review, in June and December each year, as it strikes a balance between being too short-term and too protracted. Companies that are placed on the watch-list due to MTP rules may submit applications to exit the watch-list in March and September each year if they meet the criteria. Details on the feedback received and SGX's responses are found at this link or at: http://www.sgx.com/wps/portal/sgxweb/home/regulation/consult_pub/consult_papers

The revised MTP criteria will be effective on 2 December 2016 and implemented in two steps.

A one-time review of the companies which were placed on the watch-list based on previous MTP rules was conducted on 1 December 2016. With immediate effect, 14 companies which do not trigger the new MTP criteria will exit the watch-list. The number of companies on the watch-list now total 54. The updated watch-list can be found at this link or at: http://www.sgx.com/wps/portal/sgxweb/home/company_disclosure/watchlist

The first review of companies under the revised criteria will be on 1 June 2017. Companies that are currently on the MTP watch-list and whose shares have 6-month volume-weighted average price (VWAP) and market capitalisation below the new MTP thresholds will stay on the watch-list with a 36-month cure period starting from 1 June 2017. Other companies that do not meet the new MTP thresholds will enter the watch-list that day.

Tan Boon Gin, Chief Regulatory Officer of SGX, said, "We are always looking for ways to improve our regulatory framework to see if we can achieve the same desired outcome with a more refined and calibrated approach. This latest proposal originated from ideas contributed by market participants that we built on and developed through further analysis. We will continue to engage the industry to find an equilibrium between the highest regulatory standards and the associated cost of compliance."


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Attachments

20161202_SGXs_revised_Minimum_Trading_Price_rule_receives_strong_support_will_start_1_June_2017.pdf
Total size =287K

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