Rulebooks: Contents

Rulebooks
Mainboard Rules
Catalist Rules
SGX-ST Rules
Definitions and Interpretation
Section A — General
Section B — Market Participants
Section C — Market Structure
Section D — Regulatory Framework
Section E — Other Business Activities
Section F — Transitional Provisions
Directives
Practice Notes
Schedules
CDP Clearing Rules
DVP Rules
CDP Depository Rules
Futures Trading Rules
SGX-DC Clearing Rules
SIAC DT Arbitration Rules
SIAC DC Arbitration Rules
Rule Amendments

Chapter 18 — Exchange Options Trading
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Contents:
18.1 Applicability and Definitions
18.1.1 Applicability
18.1.2 Definitions
18.2 Option Contracts to be Traded
18.2.1 Approval of Options for Listing or Quotation and Trading
18.2.2 Approval of Underlying Securities
18.2.3 Criteria for Approval of Underlying Securities
18.2.4 Withdrawal of Approval of Underlying Securities
18.3 Option Transactions
18.3.1 Registration
18.3.2 Responsibility on Registration
18.3.3 Series of Options Open for Trading
18.3.4 Terms of Options
18.3.5 Adjustments to Terms
18.3.6 Suspension of Trading
18.3.7 Resumption of Trading
18.4 Rights and Obligations of Purchasers and Writers
18.4.1
18.4.2 Position Limits
18.5 Position Limits
18.5.1 Members Prohibited from Opening Transactions that would Violate Individual Position Limits
18.5.2 Market Position Limits
18.5.3 Position Limits Subject to Change
18.5.4 Definition of "Control"
18.5.5 Reports Relating to Position Limits
18.5.6 Closing Off Positions
18.5.7 Trading Member's Duty to Inform Customers of Position Limits
18.5.8 Limit on Uncovered Short Positions
18.5.9 Other Restrictions on Option Transactions and Exercises
18.6 Dealings
18.6.1 Trading Hours
18.6.2 Trading on the Trading System
18.6.3 Minimum Bids
18.6.4 Direct Business
18.6.5 Settlement of Premiums
18.6.6 Failure by Customers to Pay Premium
18.6.7 Failure to Pay Premium or Deliver — Trading Member
18.6.8 Closing Transactions
18.7 Doing Business with the Public
18.7.1 Approval of Customer's Options Trading Account
18.7.2 Diligence in Opening Account
18.7.3 Undertaking to be Obtained
18.7.4 Documents to be Furnished
18.7.5 Contract Statements to Customers
18.7.6 Required Courses/Fees
18.7.7 Transfers of Options Positions
18.7.8 Transactions with Issuers
18.7.9 Due Authorisation for Option Transactions
18.7.10 Taking of Orders by Customers
18.7.11 Communication with the Public
18.8 Margins and Scrip-Covered Call Options
18.8.1 Margins Payable on Opening Written Transactions
18.8.2 Scrip-Covered Call Options
18.8.3 Margin Securities
18.8.4 Margin Requirements
18.8.5 Maintenance of Margin
18.8.6 Margin Prescribed is Minimum
18.9 Exercise of Option by Customers
18.9.1 Exercise Cut-Off Time
18.9.2 Exercise through Trading Member
18.9.3 Allocation of Exercise Notices to Customers
18.9.4 Notification to the OCC of Exercise Notices
18.9.5 Effect of Exercise of Option — Deemed Contract
18.9.6 Option Exercisable Upon Payment of Premium
18.9.7 Due Date of the Contract for the Underlying Securities Upon Exercise
18.10 Adjustments
18.10.1 Adjustments in the Event of a Distribution
18.10.2 Rounding Off Fractions
18.10.3 Bonus Issue
18.10.4 Rights Issue
18.10.5 Other Distribution
18.10.6 Dividends
18.11 Delivery and Settlement Procedures in the Event of A Distribution
18.11.1 Bonus Issue — Exercise Notice during "Cum Bonus" Period
18.11.2 Bonus Issue — Exercise Notice before "Cum Bonus" Period
18.11.3 Bonus and Rights Issues — Exercise Notices On or After "Ex Date"
18.11.4 Rights Issue — Exercise Notice During "Cum Rights" Period
18.11.5 Rights Issue — Exercise Notice Before "Cum Rights" Period
18.11.6 Other Distribution
18.11.7 Dividends
18.11.8 Seller of Underlying Securities in Short Position
18.12 Transaction Costs
18.12.1 Commission on Options
18.12.2 Clearing Fees
18.12.3 Commission and Clearing Fees on Exercise of Options
18.12.4 Stamp Duty
18.13 Miscellaneous
18.13.1 OCC to Issue Notices and Communications
18.13.2 Disciplinary Action for Breach of Regulations