I REFER to last Friday's article, 'Rethink ways to test dealers' product knowledge'.

The extended settlement contract examination is to ensure that trading representatives understand sufficiently the extended settlement contract in order to advise their customers. Courses alone would not be adequate.

The decision for the exam to be administered by trading members was made after consultation and discussion with broking houses, where preference for self-regulation was expressed. In the context of the investigation, only one trading member was found to have not administered the exam properly.

Over and above the exam, the Exchange has also conducted training sessions for trading members and trading representatives to become more familiar with the new product, its usage and processes.

Yeo Lian Sim (Ms)
Senior Executive Vice-President
Head, Risk Management and Regulation Group
Singapore Exchange

This article was first published in The Straits Times.