FIA has responded to the Singapore Exchange's consultation on proposed changes to its Futures Trading Rules and other rulebooks. While FIA generally supports the proposed changes, it also makes some recommendations and raises concerns about several proposals.
FIA commends SGX for proposing to grant members the discretion to accept certain types of collateral from customers. However, FIA also recommends excluding instruments and associated currencies subject to restrictions from the list of eligible collateral as they could add complexity and uncertainty to margin funding.
FIA also raises concerns about SGX's proposed ability to make temporary contract modifications under emergency circumstances. FIA stresses the importance of transparency and governance in any such changes, and that adjustments should be made within a reasonable timeframe to minimise market uncertainty.
SGX also proposes a new rule to provide clarity on the circumstances under which it may cancel or price adjust a trade. FIA recommends that this power be used with extreme prudence and limited to only the most exceptional circumstances.
Finally, FIA seeks clarification on various points around the automated trading rules in the new FTR.
Read the response in full.
- Operational and Regulatory Guidance