Singapore regulators say safeguards in place to prevent «pump and dump» and «short and distort» scenarios.
The Monetary Authority of Singapore (MAS) and Singapore Exchange Regulation (SGX RegCo) have safeguards in place to prevent excessive securities trading driving sharp movements in price, Ong Ye Kung, Minister for Transport, said in Parliament on Tuesday on behalf of Tharman Shanmugaratnam, Senior Minister and Minister in charge of MAS.
«Recent events in the U.S. have highlighted the risks of excessive trading driving sharp movements in price. There are important lessons to learn from this experience, and we need to be alert to similar risks potentially occurring in our own markets,» Ong said.
At the same time, the minister noted that there have been no signs that discussions in online forums or social media chat groups have led to any significant increase in the trading of securities listed in Singapore.
Safeguards in Place
Among the safeguards Singapore is taking to prevent such scenarios are to provide market transparency, curb any sharp price movements, and enforce against market misconduct.
