Rulebooks: Contents

Rulebooks
Mainboard Rules
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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 8.6.12(4) — Computation of Monetary Loss
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

  Versions
(1 version)
 
Feb 24 2014 onwards

Practice Note 8.6.12(4) — Computation of Monetary Loss

Issue Date Cross Reference Enquiries
Issued on 24 February 2014 8.6.12(4) Please contact Enforcement:—

E-Mail Address :
enforcement@sgx.com

1. Introduction

1.1. As set out in Rule 8.6.12(4), SGX-ST may consider the monetary loss involved when deciding whether to cancel an error trade under Rules 8.6.13, 8.6.13A and 8.6.13B.
1.2. This Practice Note sets out how monetary loss would be computed under Rule 8.6.12(4).
2. Computation of Monetary Loss
2.1. Subject to paragraph 2.2, the monetary loss referred to in Rule 8.6.12(4) will be the difference between the value of the error trade and the value of the intended trade. The value of the intended trade will be determined as:
(1) in the case of an error in the entry of the volume of the order, the value of a trade for the actual intended volume, at the price at which the order was entered;
(2) in the case of an error in the entry of the price of a structured warrant, the value of a trade for the volume of the order which was entered, at the Reference Price as determined in accordance with Rule 8.6.13(2);
(3) in the case of an error in the entry of the price of all other securities or Futures Contracts, excluding bonds, the value of a trade for the volume of the order which was entered, at the Reference Price in accordance with Rule 8.6.13A(2) or Rule 8.6.13A(3); and
(4) in the case of an error in the entry of the price of a bond, the value of a trade for the volume of the order which was entered, at:
(a) the last traded price immediately preceding the error trade, where such preceding trade was executed on the same trading day as the error trade; or
(b) the best bid or best offer price at the time of the execution of the first share of the error trade.
2.2. Where an erroneous order results in more than one (1) error trades, monetary loss will be the aggregate monetary loss of all such error trades executed at prices outside the upper and lower limits of the no-cancellation range applied pursuant to Rule 8.6.4A, which are referred to SGX-ST for review under Rule 8.6.3.

Added on 24 February 2014.