2. The Securities Industry Regulations (Rg 1) are amended by inserting, immediately after regulation 66, the following regulation:| “Exemption for designated market makers |
67.—(1) Parts IV, V, VI, VII and VIII of the Act shall not have effect in relation to any designated market maker or any of its representatives in respect of its dealings in designated securities for its own account or for the account of any of its related corporations.(2) In this regulation —“designated market maker” means a person who —| (a) | carries on business of dealing in designated securities as a market maker; and | | (b) | is approved by the Singapore Exchange Securities Trading Limited, in accordance with its business rules, as a designated market maker; |
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| “designated securities” means exchange traded fund interests which have received approval in-principle for listing and quotation, or are listed for quotation, on the Singapore Exchange Securities Trading Limited; |
“exchange traded fund interest” means —| (a) | any interest (whether or not it is an interest in a unit trust) in a scheme or arrangement which is made for the purpose, or having the effect, of providing facilities for the participation by persons as beneficiaries under a trust, in profits or income; or | | (b) | any share in a corporation which is formed for the purpose of making profits or income, |
| arising from the acquisition, holding, management or disposal of a portfolio of predetermined constituent assets in predetermined proportions, which constituent assets principally comprise securities listed for quotation on any stock exchange, that is — |
| (i) | listed for quotation, or has received approval in-principle for listing and quotation, on any stock exchange; and | | (ii) | created and redeemed in blocks of interests or shares, as the case may be, in exchange for the constituent assets in the portfolio, including cash as necessary to accomplish such exchange; |
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“market maker”, in relation to designated securities, means a person who —| (a) | either through a facility, at a place or otherwise, regularly quotes the prices at which the person proposes to acquire or dispose of designated securities for the person’s own account; and | | (b) | the person is ready, willing and able to effect transactions in the designated securities at the prices quoted by the person; |
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| “quote” means to display or provide, on a stock market of a securities exchange, information concerning the particular prices or the particular consideration at which offers or invitations to sell, purchase or exchange issued securities are made on that stock market, being offers or invitations that are intended or may reasonably be expected, to result, directly or indirectly, in the making or acceptance of offers to sell, purchase or exchange the issued securities; |
| “related corporation” has the same meaning as in section 4(1) of the Companies Act (Cap. 50).”. |
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