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
Practice Note 8.10.3 — Approval of Off-Market Trades in a Security or Futures Contract Subject to Suspension or Trading Halt
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

Practice Note 8.10.3 — Approval of Off-Market Trades in a Security or Futures Contract Subject to Suspension or Trading Halt

Issue Date Cross Reference Enquiries
Amended on 3 April 2008. Rules 8.10.38.11.6 Please contact Member Supervision:

Facsimile No : 6538 8273
E-Mail Address: membersup@sgx.com

1 Introduction

1.1 This Practice Note explains the rationale and the circumstances under which SGX-ST may approve the trading of a security or Futures Contract that is the subject of a suspension or trading halt.
1.2 Rule 8.10.3 says securities or Futures Contract which have been suspended from trading cease to be traded on the Trading System. Except with SGX-ST's approval, a Trading Member must not execute any transactions in a suspended security or Futures Contract.
1.3 Rule 8.11.7 says securities or Futures Contracts which are subject to a trading halt cease to be traded on the Trading System. Except with SGX-ST's approval, a Trading Member must not execute any transactions in a security or Futures Contract subject to a trading halt.

2 Rationale for Rules

2.1 All market participants should have equal opportunity. The objective of a suspension and trading halt is usually to facilitate proper dissemination of material information to the market place to ensure the operation of a fair market. Hence, SGX-ST Rules 8.10.3 and 8.11.6 stop all trading of a security or Futures Contract by a Trading Member if the security or Futures Contract is under suspension or trading halt. However, SGX-ST recognises that there may be circumstances under which off-market trading of the security or Futures Contract is appropriate.

3 Circumstances Under Which SGX-ST May Approve Off-Market Trades in A Security or Futures Contract Subject to Suspension or Trading Halt

3.1 SGX-ST may, on a case-by-case basis, approve off-market trades in a security or Futures Contract that is subject to suspension or trading halt, if the buying customer and selling customer are informed of the reasons for suspension or trading halt and there is a reason for the trade beyond simply wanting to trade. Circumstances under which SGX-ST may approve off-market trades include:—
(1) A seller, being in financial difficulty, needs to sell a security or liquidate a Futures Contract in relation to a security that may be suspended for an indefinite period.
(2) A seller who short-sold a security or Futures Contract that is subsequently subject to suspension or trading halt, and the clearing house requires the seller to cover the short position within a prescribed period.
(3) A security or Futures Contract is suspended prior to delisting on SGX-ST. The minority shareholders may wish to sell the security or Futures Contract to the majority shareholders.
(4) The trustee of the estate of a deceased investor needs to liquidate a security or Futures Contract that may be suspended for an indefinite period.