Singapore Exchange Limited (“SGX”) is inviting public comment on the proposed new business continuity management (“BCM”) requirements to be adopted and implemented by SGX member firms. The objective is to ensure that members have the ability to :-
a. manage operational disruptions and contingencies,b. minimise the impact of a major disruption or disaster, and
c. resume critical business functions in the shortest possible time.
With reference to the BCM guidelines for financial institutions by the Monetary Authority of Singapore (“MAS”) and international best practices, the proposed requirements will assist member firms in developing a comprehensive and robust BCM framework. This initiative is to foster greater confidence in the marketplace of member firms’ preparedness in managing risks and to recover effectively from disasters.
PROPOSED BCM FRAMEWORK FOR SGX MEMBERS
SGX member firms will be tasked to adopt and implement the following BCM requirements:-
a. To assess business and operational risks and maintain adequate business continuity arrangements.b. To document business continuity arrangements in a business continuity plan, and designate a senior officer to be responsible for the member firm’s business continuity plan.
c. To review and test the member firm’s business continuity plan regularly.
d. To appoint an emergency contact person, and furnish the contact information of such person to SGX. The emergency contact person is to be contactable at all times.
The proposed new rules and requirements will be implemented under the SGX-ST Rules, Futures Trading Rules, CDP Clearing Rules and SGX-DC Clearing Rules.
Market participants and members of the public are encouraged to participate in this public consultation. The consultation paper which sets out the proposed requirements will be available on www.sgx.com, from 8 May 2008 to 22 May 2008.