Singapore - The Singapore Exchange (SGX) has proposed its member firms maintain a business continuity plan to help them cope in the event of disasters and boost confidence that the marketplace will bounce back quickly, its website said on Friday.

The public has until May 22 to give its feedback.

The proposed rules are aimed at securities and derivatives members including the likes of Merrill Lynch Singapore, Goldman Sachs Futures, Barclays Bank plc and others.

The suggested rules published in The Business Times are in line with business contingency requirements for member firms in the New York Stock Exchange and the Australian Stock Exchange.

"Maintaining a stable marketplace is of paramount importance," SGX said.

Such rules would help brokerages better manage their risks by allowing them to minimize the impact of a major disruption or disaster, and to resume critical business functions in the shortest time possible, the SGX maintained.

SGX detailed its proposed requirements in a consultation paper available on the website www. sgx. com.

The exchange wants firms to document their business continuity arrangements, including an assessment of continuity risks and threat scenarios such as prolonged power outages, IT system software or hardware failures, acts of terrorism and outbreaks of infectious diseases.

An evaluation of the risks should pinpoint critical business functions and potential losses to enable firms to determine recovery strategies.

Measures to mitigate the risks should include procedures necessary to store operations in an orderly and expeditious manner, the SGX said. It also recommended the appointment of a senior officer to be responsible for the plan. (dpa)