Foreign brokers that operate overseas will be covered by the Singapore Exchange (SGX), when it expands membership on the securities market.
Referred to as “Remote Trading Members”, foreign brokers will follow their home rules and deal only for foreign investors.
Through the remote trading members, foreign investors can be served by a larger pool of traders that have access to the Singapore market, according to Channel News Asia.
The move is expected to extend the reach of the SGX into the international market, thus boosting liquidity in the Singapore market.
Currently, some foreign investors transact through various intermediaries to access the Singapore markets, said SGX.
This results in a lack of visibility over the identity of foreign customers accessing the market. SGX said this will inhibit its ability to oversee market access in an optimal manner.
These proposals are set out in a consultation paper and are open to feedback until January 24.