Which division of the SFC supervises exchanges and clearing houses?

• A. The licensing division
• B. The supervision of markets division
• C. The enforcement division
• D. The corporate affairs division

Answer: (B)

The key idea is which part of the SFC is charged with watching over the organizations that run the trading venues and the clearing facilities. The division responsible for supervising markets focuses on market operators—exchanges and clearing houses—ensuring they run properly, enforce market rules, manage risk, and provide a fair, orderly, and transparent marketplace for investors. This includes oversight of how trades are executed and settled, governance of the venue, and compliance with regulatory standards.

The other divisions handle different functions: licensing deals with granting authorizations to individuals and firms, enforcement investigates and acts on misconduct, and corporate affairs manages the SFC’s internal governance and communications.