The Singapore Exchange Regulation (“SGX RegCo“) conducted a consultation from 5 to 26 September 2025 on Exchange Traded Funds (“ETFs“): Proposed Changes to the Obligations of Designated Market-Makers (“DMM“). The proposed changes seek to streamline the requirements of DMMs for ETFs, specifically in relation to the notifications and announcements that ETF DMMs need to make when they cease to provide bid and offer quotations, and when they resume quotation.
This is part of a broader regulatory reform initiative to align with other global markets, following the Monetary Authority of Singapore’s enhancement in July 2025 of the Grant for Equities Market Singapore Scheme for ETFs to facilitate more ETF listings.
SGX RegCo is proposing the removal of the following requirements for ETF DMMs:
- If it ceases to provide bid and offer quotations: (i) notifying Singapore Exchange Securities Trading Limited (“SGX-ST“) of the cessation and of the reasons for the cessation as soon as practicable; and (ii) making a public announcement of the cessation as soon as practicable; and
- If it resumes quotation: (i) notifying SGX-ST of the resumption as soon as practicable; (ii) making a public announcement of the resumption as soon as practicable; and (iii) at the appropriate juncture, announcing the reasons for its cessation of market-making previously.
SGX RegCo noted that the objectives behind the above requirements are addressed by other existing means. First, ETF DMMs provide bid and offer prices during more than 95% of the stock market hours each business day. The prices they provide are visible to investors. Second, SGX RegCo has, through the use of technology, become better able to monitor DMMs’ compliance with their quotation obligations.
To effect the proposed changes, SGX-ST Rules 6.6.2 (b) and (c) will be amended and Regulatory Notice 6.6.2 will be introduced.
Click on the following link for more information:
- Consultation Paper on Exchange Traded Funds: Proposed Changes to the Obligations of Designated Market-Makers (available on the SGX RegCo website at regco.sgx.com)
Disclaimer
Rajah & Tann Asia is a network of member firms with local legal practices in Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Our Asian network also includes our regional office in China as well as regional desks focused on Brunei, Japan and South Asia. Member firms are independently constituted and regulated in accordance with relevant local requirements.
The contents of this publication are owned by Rajah & Tann Asia together with each of its member firms and are subject to all relevant protection (including but not limited to copyright protection) under the laws of each of the countries where the member firm operates and, through international treaties, other countries. No part of this publication may be reproduced, licensed, sold, published, transmitted, modified, adapted, publicly displayed, broadcast (including storage in any medium by electronic means whether or not transiently for any purpose save as permitted herein) without the prior written permission of Rajah & Tann Asia or its respective member firms.
Please note also that whilst the information in this publication is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as legal advice or a substitute for specific professional advice for any particular course of action as such information may not suit your specific business and operational requirements. You should seek legal advice for your specific situation. In addition, the information in this publication does not create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on the information in this publication.
