ARZACU
CONFIDENTIAL
(c) the Securities Commission and the Commodity Trading Commission, both originally intended to be high-powered watchdogs of the local securities industry, are not equipped to function as proper regulatory bodies.
(d)
the Office of the Commissioner for Securities and Commodities Trading, with its insufficient resources, is not able to carry out proper surveillance and monitoring of markets and
brokers.
7.
On the basis that Government should encourage self-regulation of markets, ensure proper safeguards for investors, and preserve flexibility to cater for rapid developments in the securities industry, the Securities Review Committee has made no fewer than 160 recommendations. The major ones are
(a) a fundamental revision of the internal constitution of the Stock Exchange, in particular its governing Committee, with proper representation for individual and corporate shareholders, coupled with a number of independent members, to ensure that it is properly governed working in the interests of all its members and
users;
(b) a core of professional and independent executives for the two Exchanges on which to build the foundations of the self-regulatory system, whereby the Exchange Committee sets policy and the executive implements it;
(c) an extension of the stock exchange settlement period to three days after the trading day and the early implementation of a
central clearing system;
(d) restructuring the clearing and guarantee system in the Futures Exchange with the clearing house within the Exchange back ed by a Clearing Members' Fund to strengthen the risk-management functions and to facilitate information flows essential to the
discharge of these functions;
(e) replacing the two Commissions and the Commissioner's
CONFIDENTIAL