Legal and regulatory framework governing financial futures

• Main Authors: Wong, William, Wu, Shi Yeh, Neo, Poh Ling
• Other Authors: Ng Jessica
• Format: Final Year Project
• Language: English
• Published: 2015
• Subjects: DRNTU::Business
• Online Access: http://hdl.handle.net/10356/64330
• Institution: Nanyang Technological University

The Singapore International Monetary Exchange (SIMEX) is established in 1984. Its linkage to the Chicago Mercantile Exchange had eliminated the forecasted problem of lack of trading liquidity in SIMEX as was experienced by other futures exchanges in their early stages of trading. Since then, many significant developments in futures trading activities have taken place at SIMEX. Trading volumes have been soaring consistently and contracts offered at the Exchange have increased more than threefold, from 4 contracts to 15 contracts. To further enhance its position in the global financial market, SIMEX has always been improving its legal and regulatory framework to ensure maximum protection to all its participants and to enhance its soundness as a major international financial exchange. SIMEX has a very detailed Rule Book covering all the rules and procedures governing futures trading. The Exchange is also under the close supervision of the Monetary Authority of Singapore (MAS) through the Futures Trading Act, enacted in 1985. Aside from the rules under the Act and the Rule Book, SIMEX has an unique system of financial safeguards, enforced with the help of its Clearing House and other departments in SIMEX. In addition, SIMEX is going to introduce an automated trading system in 1993. This will be another major step towards providing 24 hour trading for its global users. Thus, with this system of sound regulatory framework and financials safeguard coupled with consistent improvements, there is no doubt as to how SIMEX could have achieved a reputable recognition in the world's financial sector in just eight years from its initial establishment.