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Chapter 15 — Research

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 15 — Research
15.1 Permissible Activities
15.1.1 Research department of Trading Member to engage only in the permitted activities Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
15.1.2 Trading Member and research staff to obtain the appropriate licence prior to engaging in research activities Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
15.1A Application of Chapter
15.1A.1 Trading Member that holds a licence specified in Rule 4.1.1(1)(b) to comply with such requirements prescribed by the Relevant Regulatory Authority and principles of good business practice in respect of the stipulated requirements. 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.
15.2 Notification Procedures
15.2.1 Trading Member to inform SGX-ST before establishment of a research department 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.
15.2.2 Trading Member to supply SGX-ST with information it requires on the research establishment Not Compoundable Not Compoundable N.A. N.A. N.A. N.A.
15.3 Supervision
15.3.1(1) Trading Member to supervise research analysts 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.
15.3.1(2) Trading Member to implement written supervisory procedures to ensure that research analysts comply with this Chapter 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.
15.3.1(3) Trading Member to implement any procedure, Directive or recommendation 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.
15.4 Separation of Research Activities
15.4.1 Trading Member to separate research activities from dealing, corporate finance and back office operations. Not Compoundable Not Compoundable N.A. N.A. N.A. N.A.
15.4.2 Trading Member to implement any procedure, Directive or recommendation 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. $10,000
15.5 Investment Recommendations
15.5.1(1) Trading Member to have adequate basis, supported by research for making an investment recommendation 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.
15.5.1(2) Trading Member to maintain independence and objectivity in producing a research report or making an investment recommendation 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.
15.5.1(3) Trading Member not to issue a research report or make an investment recommendation that is not consistent with its research analyst's views 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.
15.6 Records
15.6.1 Trading Member to maintain records of research report or investment recommendation for stipulated period. 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.
15.7 Disclosure
15.7.1(1) Trading Member to disclose interest at date of disseminating research report or investment recommendation. 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.
15.7.1(2) Trading Member to disclose monetary compensation or benefits receivable in respect of research report or investment recommendation. 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.
15.8 Trading Restrictions
15.8.1(1) Trading Member and research analyst not to knowingly trade in a security or futures contract while in possession of non-public material information. Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
15.8.1(2) Trading Member and research analyst not to knowingly trade in a security or futures contract when transaction may create a conflict of interest. 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.
15.8.1(3) Trading Member and research analyst not to procure a third party to trade when prohibited to do so. 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.
15.8.1(4) Trading Member and research analyst not to buy or sell a security or futures contract contrary to the most recent research report published by the TM within 3 days of issuance of the report. 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.

Added on 16 May 2011 and amended on 19 May 2014 and 8 October 2018.