Singapore Exchange (SGX) announced on Monday (July 18) that it will set up a separate subsidiary company RegCo to undertake its front-line regulatory functions.
RegCo is expected to be established by the second half of 2017, SGX added.
The move, together with the introduction of the independent Listings Committees in October 2015, will strengthen SGX's role as a self-regulatory organisation (SRO), the Monetary Authority of Singapore (MAS) said in a press release on the same day.
According to SGX, RegCo will be governed by a board of directors separate from that of the exchange. RegCo's chairman and majority of its directors will also be independent of SGX and its regulated subsidiaries which include SGX-Securities Trading, SGX-Derivatives Trading, Central Depository and SGX-Derivatives Clearing.
Mr Tan Boon Gin, chief regulatory officer of SGX said: "This arrangement will keep us close to market developments while effectively separate from the commercial side of SGX."
"We will continue with our initiatives to improve the quality of our market including our partnership with industry professionals and companies."
MAS added that it will continue to directly regulate SGX in terms of its obligations as a listed company and market operator, as well as maintain oversight of SGX's regulatory responsibilities as performed by RegCo.