CMFAS RES 1A The Capital Markets Industry & Participants question: organised market to Singapore participants without becoming a systemically

CMFAS RES 1AThe Capital Markets Industry & Participants

An overseas trading venue wants to offer an organised market to Singapore participants without becoming a systemically important approved exchange. The most likely route is to seek recognition as a(n):

A Approved clearing house
B Recognised Market Operator (RMO)
C Licensed Fund Management Company
D Central depository

Show the answer and explanation

Answer: B. Recognised Market Operator (RMO)

An overseas or smaller market operator can seek recognition as a Recognised Market Operator (RMO), which operates under a lighter regime than an approved exchange. A clearing house, fund manager and depository perform different functions.

Common mistake

RMO status suits a non-systemic market operator; the approved-exchange regime is stricter and reserved for systemically important venues.

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Original study material mapped to the public CMFAS RES 1A syllabus. Unofficial, not endorsed by MAS or IBF. Verify figures and rules against current guidance before relying on them.