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 thislinkor 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 thislinkor 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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SGX - Singapore Exchange Limited published this content on 02 December 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 02 December 2016 11:53:10 UTC.

Original documenthttp://www.sgx.com/wps/wcm/connect/sgx_en/home/higlights/news_releases/sgxs-revised-minimum-trading-price-rule-receives-strong-support-will-start-1-june-2017

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