Subsidiary governance reform: mandatory independent CEO and majority public representatives to strengthen market transparency and risk oversight. Subsidiaries must appoint a Chief Executive Officer not concurrently holding any position in the parent exchange, with appointment, terms, renewal and termination subject to prior regulatory approval; the CEO sits on the subsidiary board and must not be a sub broker of the subsidiary or a broker of the parent exchange. The governing board must include at least 50% non member Public Representatives nominated by the parent exchange (subject to prior regulatory approval), who are persons of integrity with securities market competence, serve for one year or until the next AGM, and are subject to re nomination cooling periods. The parent exchange is responsible for subsidiary risk management and must establish supervisory mechanisms including margin verification, reporting, inspections and complaint handling.
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Subsidiary governance reform: mandatory independent CEO and majority public representatives to strengthen market transparency and risk oversight.
Subsidiaries must appoint a Chief Executive Officer not concurrently holding any position in the parent exchange, with appointment, terms, renewal and termination subject to prior regulatory approval; the CEO sits on the subsidiary board and must not be a sub broker of the subsidiary or a broker of the parent exchange. The governing board must include at least 50% non member Public Representatives nominated by the parent exchange (subject to prior regulatory approval), who are persons of integrity with securities market competence, serve for one year or until the next AGM, and are subject to re nomination cooling periods. The parent exchange is responsible for subsidiary risk management and must establish supervisory mechanisms including margin verification, reporting, inspections and complaint handling.
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