One of the objectives not mentioned is the facilitation of efficient markets for the allocation of capital and the transfer of risks. An efficient market has a reliable and unhindered process that is exposed to the competition of bids and offers of the participants. It can efficiently allocate limited capital to its most effective use.

A fair, orderly, and transparent market has established processes to meet the needs of investors. It must be unbiased towards investors and other related participants. Information should always be available regardless of who is interested.

The prefix “pre” indicates that this term pertains to information available before transactions. This is information regarding bids and offers are publicized in the market to attract potential investors or other related participants.

Issued securities are financial instruments such as bonds, debentures, or common stocks. These securities may or may not be listed in the securities market. Issued securities are available for secondary trading.

When an investor is based overseas, a third party usually helps them access bids and offers in the market. For example, an investor enters an overseas market through intermediaries in Singapore who are also in contact with other intermediaries. Having direct access to a market means the investor does not need intermediaries to purchase or sell futures contracts or securities.

To be approved as a market operator in an RMO, MAS looks into various factors to determine if it is systemically important such as the size of the market, the nature of its provided services, the nature of the participants, etc. In addition, the corporation must be regulated by MAS or other written laws.

Treasury bills are government short-dated securities that are issued at a discount from the par value of the bill. These are used to fund public projects and investments. It is considered to be safe since it is released by the government.

Options are part of derivatives. A put option gives the holder the right to sell a stock. On the other hand, a call option gives the holder the right to buy a stock.

A relevant product exchange deals with reputational risks, legal risks, and operational risks daily which is why it needs to undergo an assessment to mitigate such risks and improve internal controls.

Flow to equity is the measure of how much cash is available to equity shareholders after the deduction of expenditures and reinvestments. The components of flow to equity are net income, working capital, capital expenditures, and debt.

In the delisting of a futures contract, any open interests and legal obligations attached to the futures contract may cause disruptions in the market. Thus, it is important to check whether these will cause any disputes upon delisting.

The position limit is the maximum position determined by an exchange. It is held or controlled by any party to the futures contract. It may be either net long or net short.

A futures exchange should be reliable and transparent. Both parties must be aware of the terms of their exchange and avoid actions that would damage the credibility and confidentiality of the futures exchange.

Physical delivery of the futures contract must ensure that the underlying thing of the futures contract is delivered in a safe, reliable, and timely manner. There must be proper delivery procedures in place for such physical delivery.

The position accountability threshold is set to reduce the likelihood of one of the parties influencing the price or value of the underlying thing. When exceeded, it may have an effect on the process or orderly trading of the futures contract.

Alternative products are other products other than the futures contract. The framework must contain the risk assessment or each alternative product and how these risks are mitigated in the framework.

The Securities and Futures Act requires MAS to be informed on the earlier between one week before the announcement regarding the change or one week before the changes are in effect.

Traded Benchmarks are susceptible to market abuse and are significantly impacted by low liquidity and market volatility, To avoid any fallback or market disruptions, Brokers and Submitters must transact objectively and adhere to established methodologies.

Trading related scandals start from inadequate internal controls and segregated duties. Internal controls and segregation of duties must be designed to mitigate the risks of corruption, money laundering, and other serious crimes.

The parties must attempt to communicate with each other immediately in the event of line failures or disconnections. Delays may lead to misunderstandings in case one party decides to cancel the transaction without the knowledge of the other party.

The broker should first put the price under reference, then check with the Market Participant to establish the latter’s original interest. Two-way prices include both an offer price and bid price. This is a type of quote normally used in foreign exchange markets.

Where Market Participants are handling client orders, these orders should be handled promptly, professionally, with fairness and transparency, and with due regard to the best interests of the client.

Brokers must communicate the special conditions to the other parties immediately and accurately. This must be done to avoid any misunderstandings and disputes among the parties.

Functional Equivalence and Objectives-based approaches are flexible when it comes to diverse legal and administrative systems. They provide concept-based explanations on the process of implementations to allow different options when appropriate.

Technology-neutrality and future-proofing are intended to apply to the technologies of different countries and relevant entities. The requirements are flexible and may apply irrespective of the technological platform involved.

Virtual assets are a representation of value such as cryptocurrencies like bitcoin. Although it is called innovative, there are risks associated with it such as the anonymity and limited verification of participants.

The Authority’s role as the central financial center in the country is crucial to the economy’s stability. As a financial agent of the Government, it is their role to conduct monetary policies and payment systems to promote a better and conducive financial market for the investors and participants.

The director must decide only for the best interests of the organization. The term of a managing director is 3 years maximum. This position may receive remuneration and allowances from the funds of the institution.

A managing director must be impartial with his decisions. Influences from third parties may disrupt the organization. Conflict of interest may arise if the managing director is also a director in a related financial organization.