SGX loosens some rules on remisiers to encourage new entrants
The Singapore Exchange (SGX) is loosening some rules that will affect remisiers, as part of a raft of proposed changes on securities trading and market practices.
This is to encourage new entrants to the industry, it said.
Notably, SGX is proposing to remove a requirement that trading representatives (TRs) who work outside the office have to inform customers and SGX, and get customers' permission.
This is because off-premises broking is becoming more commonplace, and customers are getting accustomed to it.
Broking houses still have to disclose the "limitations of off-premises broking", SGX said.
Another rule that will be changed is the prescription that a broking house has to collect a S$30,000 minimum deposit from a remisier, and more if the volume of transactions is bigger.
SGX is proposing to remove the minimum amount prescription, noting that it will give broking houses more flexibility to determine what the appropriate amount is.
"The removal of the minimum sum may also have the benefit of removing a barrier of entry for younger remisiers who have less business and can only put up a smaller deposit," SGX said.
10 October 2017