The Securities & Futures Commission says although the Stock Exchange's operational procedures and decision-making processes enable it to discharge its statutory obligation, it should review its practices in relation to connected transactions.

The commission today published its annual review of the exchange's performance in its regulation of listing matters.

The report said the exchange's operational procedures and decision-making processes were appropriate to enable it to discharge its statutory obligation to maintain an orderly, informed and fair market in 2005.

Key recommendations

The commission advised the exchange to review several procedures. The key recommendations are that it:

* review its practices in relation to connected transactions;

* review its practices relating to pre-deal research issued by sponsors, underwriters and their associates; and,

* expedite action to implement the remaining unaddressed recommendations in the commission's 2005 report.

For details of the report click here.