Set 'fully independent' commission to look into SGX disruptions: SMCCA

After the Singapore Exchange suffered a second trading disruption in less than a month on Wednesday, the Small and Middle Capitalisation Companies Association (SMCCA) asked that a "fully independent" group be set up to look into the recent lapses.

“Trading disruptions have been totally unheard of in the last five to 10 years. It is thus important to clearly establish whether these are two highly unfortunate and highly coincidental incidents or the first signs of something with deeper implications," Tan Choon Wee, president of SMCCA, said in a statement.

Trading in Singapore's securities market was delayed to 12:30pm from the usual opening of 9am due to what the SGX said was a software update that went wrong. The previous disruption on 5 November this year was blamed on a power outage.

On 9 November, the SGX announced it was setting up an Inquiry Commission comprising four of its independent directors.

“With this latest incident, I think it is necessary to elevate this Inquiry Commission to one that is totally independent of SGX," said Tan. "We should include the necessary subject matter experts as well as have representation from the regulatory bodies."

In reaction to the latest trading disruption, the Monetary Authority of Singapore said the latest lapse, coming weeks from the last one, was "unacceptable".

The regulator said it instructed the SGX board and CEO to conduct a thorough review to address shortcomings that led to the new incident.

SGX CEO Magnus Bocker has apologised for the incident, saying the exchange takes full responsibility for the latest lapse.