Singapore: SGX moves to streamline ETF Designated Market-Maker Obligations to encourage ETF trading

Singapore Exchange Regulation (SGX RegCo) has published a consultation paper proposing amendments to its rules governing designated market-makers (DMMs) for exchange-traded funds (ETFs) listed on Singapore Exchange Securities Trading Limited (SGX-ST). The proposed changes aim to simplify DMM obligations. This consultation aligns with MAS’s emphasis on encouraging ETF listing and trading in Singapore and shows the continued direction of travel in Singapore.

Background 

The proposals follow recent moves from MAS intended to promote more ETF listings in Singapore. In July 2025, MAS announced it would be enhancing its Grant for Equity Market Singapore (GEMS) Scheme for ETFs, by increasing funding for primary ETF listings and introducing funding for cross-listed and feeder ETFs.

Along this same theme of facilitating ETF listings and trading, SGX reviewed its current framework to identify any unnecessary impediments to ETF listing or trading. Following this review, SGX has now proposed removing certain notification requirements for ETF DMMs, in order to align with global practices in other established ETF markets, such as Hong Kong and Japan.

Key proposals: Removal of notification and announcement requirements

At present, SGX-ST Rules require an ETF DMM to:

• notify SGX-ST and provide reasons as soon as practicable when it ceases to provide bid and offer quotations;
• make a public announcement regarding the cessation; and
• upon resuming quotations, notify SGX-ST and make a corresponding public announcement, with appropriate reasons for the prior cessation.

SGX RegCo has now proposed removing the requirements for ETF DMMs to notify SGX-ST or make public announcements when they stop or resume quoting temporarily. This change would be on the basis that:

• most ETF DMMs already provide competitive bid and offer quotes for over 95% of SGX-ST trading hours. Investors can also see live bid and offer prices throughout the trading day and contact details for ETF managers are readily available for queries; and
• with the use of technology, SGX can now independently monitor DMMs’ performance and respond directly if minimum quoting obligations are not met, without relying on the notifications from ETF DMMs.

Under the proposals, SGX-ST Rules 6.6.2(b) and (c) would be amended, and a new Regulatory Notice 6.6.2 would be introduced to update the framework.

Next steps

SGX RegCo invites feedback from all market participants and stakeholders by 26 September 2025.