Artificial intelligence and other regtech solutions will be rolled out as part of Singapore Exchange Regulation's (SGX RegCo) oversight processes of listed issuers.
SGX RegCo will adapt information from companies’ disclosures into structured data that can be analyzed and used easily and quickly, and looking into using machine-learning techniques and additional information sources to improve its predictive capabilities, the bourse announced on Thursday.
The regtech solutions will help automate the extraction of data that can then be used to compute indicators of financial risks, based on SGX RegCo's observations of signs of signs of possible financial distress or irregularities in listed companies, which include the existence of long outstanding trade receivables, significant asset write-offs, low cash coverage ratio and negative working capital.
«The automation of such processes directs regulatory resources to higher risk areas and enables us to be more targeted in our regulatory responses,» Tan Boon Gin, CEO of SGX RegCo, said in the announcement, adding that it hopes it will help provide transparency to investors.
