Singapore legislation
Regulation 7
of Securities and Futures (Organised Markets) Regulations 2018
Regulation 7
Criteria for deciding whether applicant should be approved as approved exchange or recognised as recognised market operator
Subregulation 1
Pursuant to section 10(1)(a) of the Act, the Authority may, for the purposes of deciding whether a Singapore corporation mentioned in section 8(1) or 12(1) of the Act should be approved as an approved exchange, take into account the following criteria:
the likelihood that a disruption in the operations of an organised market to be operated by the corporation —
could trigger, cause or transmit further systemic disruptions to the capital markets or financial system of Singapore; or
could affect public confidence in the capital markets, financial institutions or financial system of Singapore;
the ability of the corporation to meet the obligations of an approved exchange under sections 15(1) and 17(1) of the Act.
Subregulation 2
Pursuant to section 10(1)(a) of the Act, the Authority may, for the purposes of deciding whether a Singapore corporation mentioned in section 8(1) or 12(1) of the Act should be recognised as a recognised market operator, take into account the following criteria:
the likelihood that a disruption in the operations of an organised market to be operated by the corporation —
would not trigger, cause or transmit further systemic disruptions to the capital markets or financial system of Singapore; and
would not affect public confidence in the capital markets, financial institutions or financial system of Singapore;
the ability of the corporation to meet the obligations of a recognised market operator under sections 33(1) and 35(1) of the Act.
Subregulation 3
The Authority may have regard to the following matters in determining whether a disruption in the operations of an organised market to be operated by a corporation could, or would not, have the effects mentioned in paragraphs (1) and (2):
the size and structure, or proposed size and structure, of the organised market to be operated by the corporation;
the nature of the services provided, or to be provided, by the organised market to be operated by the corporation;
the nature of the issued securities, issued units in collective investment schemes or derivatives contracts traded, or to be traded, on the organised market to be operated by the corporation;
the nature of the investors or participants, or proposed investors or participants, who may use or have an interest in the organised market to be operated by the corporation;
whether the corporation is regulated by the Authority under the Act or any other written law;
the persons who may be affected in the event that the corporation, or the organised market to be operated by the corporation, runs into difficulties.