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
Regulatory Notice 11.4.2(g) — Application of the Force Key
Practice Notes
Schedule A
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

Regulatory Notice 11.4.2(g) — Application of the Force Key

1. Introduction
1.1 SGX-ST provides a pre-execution Error Trade prevention mechanism, known as the "Force Key" function to minimise the occurrence of Error Trades arising from the erroneous entry of order prices. The Force Key is intended to complement, and not replace, Trading Members' responsibility to adopt adequate and appropriate measures and practices to safeguard against the execution of Error Trades.
1.2 This Regulatory Notice sets out the application of the Force Key.
2. Application of Force Key
2.1 Orders entered at prices outside the price range specified by SGX-ST ("Forced Order Range") must be confirmed using the Force Key, before they may be submitted.
2.2 Unless otherwise determined by SGX-ST, the Forced Order Range of the following products shall be as follows:

S/N Product Price Range ($) Minimum Bid Size ($) Forced Order Range
1 Stocks (excluding preference shares), real estate investment trusts (REITs), business trusts, company warrants and any other class of securities or futures contracts not specified in paragraph 2.2 Below 0.20 0.001 +/- 30 bids
0.20 – 0.995 0.005
1.00 and above 0.01
2 Structured warrants Below 0.20 0.001 +/- 30 bids
0.20 – 1.995 0.005
2.00 and above 0.01
3 Exchange traded funds and exchange traded notes All 0.01 or 0.001 as determined by
SGX-ST
+/- 30 bids
4 Debentures, bonds, loan stocks and preference shares quoted in the $1 price convention All 0.001
5 Debentures, bonds, loan stocks and preference shares quoted in the $100 price convention All 0.001 +/- 1,000 bids
2.3 The Forced Order Range and Force Key will not be applicable prior to the first trade on the first day of trading of any newly-listed instrument.
2.4 SGX-ST may, at its discretion apply the Force Key in particular cases notwithstanding paragraph 2.3. If SGX-ST uses its discretion to apply the Force Key to any such case SGX-ST will give prior notice to Members.
3. Use of the Force Key
3.1 In order to minimise the occurrence of Error Trades resulting from the erroneous entry of order prices, Trading Members should:
(a) ensure that the Force Key alert is available;
(b) encourage Trading Representatives to exercise judgment when accepting an instruction from a customer to execute an order priced outside the Forced Order Range; and
(c) ensure that procedures are in place to determine if there are legitimate commercial reasons for orders priced outside the Forced Order Range.

Added on 3 June 2019.