By Jake Maxwell Watts 

SINGAPORE-- Singapore Exchange said Wednesday it would invest 20 million Singapore dollars (US$14.9 million) in its technology infrastructure and apologized for a power outage late last year that halted trading in its securities and derivatives markets for more than two hours.

The exchange also said it would contribute S$1 million to an investor education fund and freeze any increases to securities and derivatives markets fees until Singapore's central bank was satisfied the exchange operator had met all its obligations.

Singapore Exchange, also known as SGX, said it "regrets and fully accepts responsibility" for the power outage, following an internal investigation that blamed the outage on a design fault in the exchange's power infrastructure and the failure of a backup generator to operate correctly.

SGX, which is already suffering declining trading volumes and earlier this month appointed a new chief executive, has battled reputational damage following the outage--which was its second disruption in 2014.

The internal inquiry, led by four board directors who were independent of Singapore Exchange management, recommended changes to the company's infrastructure and improved monitoring to prevent further incidents. SGX said in a separate statement it had dealt with many of the committee's recommendations and would adopt all others by the third quarter of this year.

The committee found the outage had been caused by a series of events on November 5 last year that began with a voltage dip across two substations supplying power to its data center. One of two backup power generators which kicked in to compensate for the fluctuation failed due to a hardware glitch, which prompted a switch-over to another backup system. Due to a design fault at this stage of the backup, the power supplied to SGX's computer systems surged, resulting in a momentary loss of power and an automatic shutdown of trading, the committee found.

Write to Jake Maxwell Watts at jake.watts@wsj.com

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