Recognised Market Operator

From MarketsWiki
Jump to navigation Jump to search



A Recognised Market Operator (RMO) is a type of license issued by the Monetary Authority of Singapore (MAS) to entities that operate a stock market or derivatives market in Singapore. This license is granted under the Securities and Futures Act 2001 (SFA).[1]

Overview[edit]

The RMO license allows the holder to operate an alternative trading venue, marketplace or facility that brings together buyers and sellers of capital market products in Singapore. It is distinct from the Approved Exchange (AE) license, which is for operators of traditional stock or derivatives exchanges and subjects them to more stringent regulatory requirements.

To obtain an RMO license, applicants must meet certain criteria set by MAS, including having a permanent place of business or registered office in Singapore, appointing directors who are Singapore citizens or permanent residents, and maintaining minimum capital requirements. The specific capital requirements depend on whether the applicant seeks a Standard Payment Institution (SPI) license with a transaction threshold limit, or a Major Payment Institution (MPI) license without any threshold.

Regulatory Framework[edit]

RMOs are subject to ongoing regulatory requirements and supervision by MAS to ensure fair, orderly and transparent market operations. This includes rules on cybersecurity, anti-money laundering, counter-terrorism financing, business conduct, and product due diligence.

MAS may impose additional terms and conditions on RMOs commensurate with the risk profile, nature and scope of their operations. For example, RMOs operating digital asset exchanges (DAX) have specific requirements related to managing risks associated with trading digital tokens and cryptocurrencies.

Comparison with Other Jurisdictions[edit]

The RMO framework in Singapore is broadly similar to the "recognized market" concept used in other jurisdictions like Malaysia, where operators must be registered with the Securities Commission under the Capital Markets and Services Act 2007.[2][3]

However, there are some differences in specific eligibility criteria and capital requirements between the two countries. Malaysia mandates local incorporation for DAX operators, while Singapore only requires a local presence.

References[edit]