Singapore – Regulatory Developments Presented by Mohammad Nizam Deputy Director and Head, Market Conduct Policy Division Monetary Authority of Singapore Date 10 Aug 2005

Market Overview: SGX-DT Volume Products Top 5 Contracts equity index futures/options, interest rate futures, single stock futures Nikkei 225, MSCI Taiwan Index, Euroyen, MSCI Singapore, and Mini Japanese Government Bonds

Market Overview: Other Recognised Markets NYMEX IPE London Ltd Tradeweb Europe Ltd Brokertec USA LLC Bloomberg Tradebook Brokertec USA LLC CME Inc Euronext Paris SA Garban LLC Marketaxess Europe

Market Overview: OTC Derivatives Market  Daily Average turnover of USD 17 billion  2 nd largest market in Asia  12 th largest market globally

Fair, Efficient Market and Sound Infrastructure Regulatory Objective: Principles: Business Friendly, Promoting Growth

Regulatory Developments 1) Enhancing the Regulatory Framework 2) Regulation of Commodities Futures and OTC Derivatives 3) Infrastructure Developments

1) Enhancing the Regulatory Framework Designation Approach for Clearing Facilities Definition of “clearing and settlement” includes entire value chain Designation Regime: Risk Based. Default “Yes”; MAS only designates and regulate when necessary MAS Before Approval Regime: “No” till MAS says “Yes” “Clearing and settlement” not defined MAS After Lower cost Start Biz Faster

1) Enhancing the Regulatory Framework Classification of Markets Before: Approved Exchange ReTS (assumes certain biz models) Approved Exchange RMOs (allows new biz models and regulatory flexibility) After:

2) Keeping an Eye on …  Commodities Futures  OTC Derivatives Market: Not regulated. Will there be a need in the future? Clearing and Settlement: How are we to regulate clearing members? MAS -SFA IE Sg -CTA Commodities Futures

3) Infrastructure Development  Move to pit to E-trading - SGX Quest (integrated trading engine)  Facilitates audit trail

Thank You