The minimum trading price (MTP) watchlist will cease to exist on 1 June, and Mainboard companies on the list will no longer need to satisfy the exit criteria and apply for removal from the MTP watchlist, the bourse said.
The Singapore Exchange Regulatory Committee (SGX RegCo) is scrapping the minimum trading price (MTP) rule for Mainboard issuers, while enhancing anti-manipulation measures, following a month-long public consultation on the matter.
In a statement on Tuesday, the bourse called the MTP framework «a blunt tool in addressing the risk of manipulation.»
The introduction of more efficient and targeted anti-manipulation tools such as Trade with Caution alerts and Member Surveillance Dashboard have prompted a decline in the number of manipulation alerts, SGX said.
More Refined Tools
«SGX RegCo will continue to enhance our tools to prevent and detect manipulation. This includes developing new capabilities such as the deployment of artificial intelligence in our real-time monitoring system,» SGX said.
The MTP watch list comprises smaller listed companies whose share prices are below S$0.20 and have an average daily market capitalization under S$40 million. There are currently 100 companies on the list, and only eight have triggered alerts of potential market manipulation.
