Rulebooks: Contents

Rulebooks
Mainboard Rules
Catalist Rules
SGX-ST Rules
Chapter 1 General
Chapter 2 Admission and Registration of Trading Members, Chief Executive Officers and Trading Representatives
Chapter 3 Capital and Financial Requirements
Chapter 4 Operational Requirements
Chapter 5 Trading Practices and Conduct
Chapter 6 Designated Market-Makers
Chapter 7 Listing and Quotation
Chapter 8 Trading
Chapter 9 Settlement
Chapter 10 Requirements on Specific Securities and Futures Contracts
Chapter 11 Cancellation of Contracts and Trades
Chapter 12 Supervision and Enforcement
Chapter 13 Definitions and Interpretation
Directives
Regulatory Notices
Practice Notes
Schedule A
Chapter 3 Capital and Financial Requirements
CDP Clearing Rules
CDP Settlement Rules
DVP Rules [Entire Rulebook has been deleted]
CDP Depository Rules
Futures Trading Rules
SGX-DC Clearing Rules
SIAC DT Arbitration Rules
SIAC DC Arbitration Rules
Archive
Rule Amendments

  Versions
(1 version)
 
Jun 3 2019 onwards

Chapter 3 Capital and Financial Requirements

Rule Violation Whether composition may be offered Composition amount that may be offered by SGX-ST, where SGX-ST has determined the Trading Member, Chief Executive Officer 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) Chief Executive Officer 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 3 — Capital and Financial Requirements
3.2 Base Capital Requirement
3.2.1 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.
3.2.3 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.
3.3 Financial Resources Requirement
3.3.2 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.
3.3.5 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.
3.3.6 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.
3.3.7 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
3.3.8 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.
3.3.9 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
3.4 Aggregate Indebtedness Requirement
3.4.2 Trading Member not to cause or permit the aggregate indebtedness to exceed 1,200% 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.
3.4.3 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.
3.4.4 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.
3.4.5 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
3.5 Powers to Impose Other Requirements
3.5.1 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.
3.6 Exposure to Single Customer
3.6.2 Trading Member to notify SGX-ST if Trading Member'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
3.7 Remote Trading Member: Exposure to Single Customer
3.7.1 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.
3.7.2 Trading Member to notify SGX-ST if remote Trading Member'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.
3.8 Exposure to Single Security
3.8.2 Trading Member to notify SGX-ST if the Trading Member'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.
3.8.3 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
3.8.7 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.
3.9 Remote Trading Members: Exposure to Single Security
3.9.1 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.
3.9.2 Trading Member to notify SGX-ST if Trading Member'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.
3.10 Margin Financing
3.10.2 Remote 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.
3.10.3 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.
3.10.4 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.
3.10.5 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.
3.10.6 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.
3.10.6/3.10.7/3.10.8 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.
3.10.9 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.
3.10.11 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.
3.10.12(a) Trading Member not to cause or permit 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.
3.10.12(b) 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.
3.10.12(c) 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.
3.10.13 Transactions in a margin account to be on a 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.
3.10.14 Trading Member to apply haircuts 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.
3.10.15 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.
3.11 Borrowing and Lending of Specified Products
3.11.1 Remote Trading Member to comply with such requirements prescribed by the Relevant Regulatory Authority and principles of good business practice in relation to the areas set out in this Rule 3.11 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.
3.11.2 Trading Member to enter into written agreement with the borrower or lender before engaging in activity Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
3.11.3(b) Trading Member to obtain collateral from borrower before delivering loaned 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.
3.11.3(c) Trading Member not to accept collateral that is not in the form specified in Regulation 45(9) of the SFR (Licensing and Conduct of Business) Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
3.11.3(d) Collateral that is obtained from the borrower not to be less than the prescribed level 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.
3.11.3(e) Trading Member to notify the borrower to provide additional collateral to meet the prescribed level 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 not to allow new borrowings until the value of the collateral is restored to the prescribed level 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.
3.11.3(g) Trading Member not to allow a borrower to withdraw collateral unless the specified conditions are 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.
3.12 Submission of Returns
3.12.1(a) Trading Member to submit indicated financial returns and statements 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.
3.12.1(b) Remote Trading Member to submit indicated financial returns and statements 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.
3.12.3 Trading Member to request for any extension of time at least three Market Days prior to the due date 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.
3.12.4 Trading Member to resubmit statements and documents and take other steps SGX-ST may require if they are inaccurate or incomplete 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.
3.13 Annual Financial Audit
3.13.1 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.
3.13.2 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
3.13.3 Trading Member to furnish the indicated information to 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.
3.13.4 Trading Member to procure that the Trading Member's auditor report immediately the indicated matters to 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.
3.13.6 Trading Member to request for any extension of time at least three Market Days prior to the due date 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.
3.14 Provision in Annual Accounts
3.14.1 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.
3.15 Other Financial Requirements
3.15.2 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.
3.15.3(a) 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.
3.15.3(b) 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.
3.15.4(a) 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.
3.15.4(b) 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.
3.15.4(c) 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.
3.15.4(d) 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.
3.15.5 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.
3.15.6 Remote 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.
3.15.7 Trading Member that holds a Capital Markets Services Licence not to issue or allot partly paid shares 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 3 June 2019.