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Chapter 11 — Capital and Financial Requirements

Rule Violation Whether composition may be offered Composition Amount which may be Offered by SGX-ST, where SGX-ST has Determined the Trading Member, Approved Executive Director and/or Trading Representative to be Liable Mandatory minimum penalty imposable by the Disciplinary Committee
Rule Chapter/Number Brief Description of Rule Trading Members (or Designated Market Maker, where applicable) Approved Executive Directors Trading Representatives (or Market Making Representative, where applicable)
1st Violation 2nd Violation 3rd Violation 1st Violation 2nd Violation 3rd Violation 1st Violation 2nd Violation 3rd Violation
Chapter 11 — Capital and Financial Requirements
11.2 Base Capital Requirement
11.2.1 Trading Member not to cause or permit its base capital or net head office funds to fall below the base capital requirement. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.2.3 Trading Member to notify SGX-ST in the case of failure to comply or awareness of impending failure to comply with the base capital requirement. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.2.4 Trading Member to comply with SGX-ST's requirements when base capital or net head office funds fall below the base capital requirement. Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
11.2A Net Liquid Capital
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11.3 Financial Resources Requirement
11.3.1 Trading Member not to cause or permit its financial resources or adjusted net head office funds to fall below its total risk requirement. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.3.5 Trading Member to notify SGX-ST in the case of failure to comply or awareness of impending failure to comply with the financial resources requirement. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.3.6 Trading Member to comply with SGX-ST's requirements when the financial resources of adjusted net head office funds fall below the total risk requirement. Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
11.3.7 Trading Member to notify SGX-ST when financial resources or adjusted net head office funds fall below 120% of its total risk requirement. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.3.8 Trading Member to comply with SGX-ST's requirements when financial resources or adjusted net head office funds fall below 120% of total risk requirement. Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
11.3.9 Trading Member to notify SGX-ST when financial resources or adjust head office funds falls below 150% of its total risk requirement. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.3.10 Trading Member to comply with SGX-ST's requirements, when financial resources or adjusted net head office funds fall below 150% of its total risk requirement Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
11.4 Aggregate Indebtedness Requirement
11.4.1 Trading Member not to cause or permit the aggregate indebtedness to exceed 1200% of aggregate resources. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.4.2 Trading Member to notify SGX-ST of failure to comply or awareness of impending failure to comply with the aggregate indebtedness requirement. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.4.3 Trading Member to comply with SGX-ST's requirements when aggregate indebtedness exceeds 1200% of the aggregate resources. Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
11.4.4 Trading Member to notify SGX-ST if aggregate indebtedness exceeds 600% of aggregate resources. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.4.5 Trading Member to comply with SGX-ST's requirements when aggregate indebtedness exceeds 600% of aggregate resources. Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
11.5 Powers to Impose Other Requirement
11.5.1 Trading Member to comply with additional requirements prescribed by SGX-ST. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.7 Exposure to Single Customer
11.7.1 Trading Member to notify SGX-ST if TM's exposure to a single customer exceeds 20% of its average aggregate resources. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
Trading Member to comply with SGX-ST's direction to reduce risk exposure to single customer. Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
11.7A10 Other Requirements for Exposure to Single Customer
11.7A.1 Trading Member to have in place adequate tools and procedures to monitor exposure to a single customer. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
Trading Member to comply with SGX-ST's direction to demonstrate adequacy of tools and procedures. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.7A.2 Trading Member to notify SGX-ST if TM's exposure to a single customer exceeds its internal threshold. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.8 Exposure to Single Security
11.8.1 Trading Member to notify SGX-ST if the TM's exposure exceeds the stipulated limits. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.8.2 Trading Member to comply with risk management requirements imposed by SGX-ST to reduce risk exposure to a single security. Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
11.8.8 Trading Member not to permit exposure to a suspended security quoted on SGX-ST or recognised group A securities exchange above the stipulated limit. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.8A Other Requirements for Exposure to Single Security
11.8A.1 Trading Member to have in place adequate tools and procedures to monitor exposure to a single security. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
Trading Member to comply with SGX-ST's direction to demonstrate adequacy of tools and procedures. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.8A.2 Trading Member to notify SGX-ST if TM's exposure to a single security exceeds its internal threshold. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.9 Margin Rules
11.9.1A(2) Trading Member to comply with such requirements prescribed by the Relevant Regulatory Authority. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
Trading Member to notify SGX-ST of changes to requirement prescribed by the Relevant Regulatory Authority. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.9.2 Trading Member to obtain written agreement for margin account arrangements. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.9.3 Trading Member to obtain the specified authorisation and discretion from its customer Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.9.4 Trading Member not to cause or permit a new transaction in the customer's margin account when equity limit stipulated is not met Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.9.5 Margins deposited by the customer to a Trading Member to be in the acceptable form Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.9.6 Trading Member not to cause or permit the equity in a customer's margin account to fall to or below the stipulated limit, and had not required the customer to provide additional margin Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.9.8 Trading Member to conduct daily review of all margin accounts in the prescribed manner Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.9.10 Trading Member not to allow customers to withdraw cash or Specified Products from their accounts when the equity is below 140%. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.9.11(1) Trading Member not to cause or permit the the aggregate of the margin exposures of all customers to exceed the stipulated limit Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.9.11(2) Trading Member not to cause or permit the aggregate of the margin exposures of all customers in respect of Specified Products, other than Specified Products quoted on SGX-ST, to exceed the stipulated limit Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.9.11(3) Trading Member not to cause or permit the debit balance in each customer's margin account to exceed the stipulated limit. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.9.13 Transactions in a margin account to be on an immediate or ready basis. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.9.14 Trading Member to apply discounts prescribed by SGX-ST in computing the market value of Specified Products Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.9.15 Trading Member to comply with SGX-ST's requirements for margin financing transactions. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.11 Annual Financial Audit
11.11.1 Trading Member to obtain SGX-ST's prior approval for any change of its existing external auditors, or to notify SGX-ST by the prescribed time, as applicable. Compoundable $500 $1,000 $2,000 $250 $500 $1,000 N.A. N.A. N.A. N.A.
11.11.1A Trading Member to comply with SGX-ST's direction for the removal and appointment of another external auditor. Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
11.12 Provision in annual accounts
11.12.1 Trading Member to make provisions in its annual accounts as required by SGX-ST. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.13 Other financial requirements
11.13.1 Trading Member not to reduce its paid-up ordinary share capital without prior written approval of SGX-ST. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.13.2(1) Trading Member to notify SGX-ST prior to the issue of any preference share. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.13.2(2) Trading Member not to redeem any redeemable preference shares when the necessary conditions are not met. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.13.3(1) Trading Member to obtain prior approval of SGX-ST if it enters a subordinated loan agreement in a format other than prescribed format Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.13.3(2) Trading Member to notify SGX-ST of the drawing down of a qualifying subordinated loan by the prescribed time. Compoundable $500 $1,000 $2,000 $250 $500 $1,000 N.A. N.A. N.A. N.A.
11.13.3(3) Trading Member not to repay any subordinated loan principal before the maturity date without prior approval of SGX-ST. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.13.3(4) Trading Member not to repay any subordinated loan principal that has matured when the stipulated conditions are not met. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.13.4 Trading Member not to make any unsecured loan or advance, payment of dividend or increase in director's remuneration when conditions are not met. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.13.5 Trading Member to notify SGX-ST immediately of any actions taken relating to the prescribed activities. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
11.14 Register of Connected Persons
11.14.1 Trading Member to keep register of connected persons. Compoundable $500 $1,000 $2,000 $250 $500 $1,000 N.A. N.A. N.A. N.A.

Added on 16 May 2011 and amended on 19 May 2014, 29 December 2014, 8 October 2018 and 22 April 2019.