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Chapter 1 General Matters
Chapter 2 Access and Membership
Chapter 3 Conduct of Members, Approved Traders and Representatives
Chapter 4 Listing and Trading of Contracts
Chapter 5 Physical Delivery
Chapter 6 Dispute Resolution and Arbitration
Chapter 7 Adverse Events, Rule Violations and Disciplinary Action
Chapter 8 Definitions and Interpretation
Chapter 9 Transitional Provisions
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SIAC DC Arbitration Rules
Archive
Rule Amendments

Chapter 3 — Conduct of Members, Approved Traders and Representatives

Past version: effective from Jul 16 2012 - Mar 14 2013.
To view other versions open the versions tab on the right.

Rule Violation Whether composition may be offered Composition Amount which may be Offered by the Exchange, where the Exchange has Determined the Member, Approved Trader and/or Registered Representative to be Liable Mandatory minimum penalty imposable by the DC
Rule Chapter/Number Brief Description of Rule Members Approved Traders Registered Representatives
1st Violation 2nd Violation 3rd Violation 1st Violation 2nd Violation 3rd Violation 1st Violation 2nd Violation 3rd Violation
Chapter 3 — Conduct of Members, Approved Traders and Representatives
3.2 Duties Applicable to All Members, Approved Traders & Registered Representatives
3.2.1 Members, Approved Traders and Registered Representatives to observe general duties of integrity, fair dealing and care 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 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A.
3.2.2 Corporate Member to ensure that constitutive documents conform to this Rules Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.2.3 Member to immediately report change in Member's circumstances [Unless otherwise specified in this Schedule]
Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.2.4 Member to immediately inform the Exchange of the stipulated events Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.2.5 Member not to carry on business on any market if prohibited by the Exchange Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
Member to comply with the rules and regulations of other markets on which a Member carries on business Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.2.6 Member to promptly settle all margin liabilities Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.2.7 Member not to carry speculative long and short positions for the same Contract Month Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.2.8 Member, Approved Trader and Registered Representative to comply with advertising guidelines 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 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A.
3.3 Duties of Members Undertaking Agency Trades
3.3.1 Member to comply with customer account & Know-Your-Customer Requirements Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.2 Member to comply with management approval requirement for opening customer accounts Compoundable $500 $1,000 $2,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.3 Member to obtain Risk Disclosure Statement Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000.
3.3.4 Member to execute orders only upon receipt from a Customer, unless otherwise authorised by the Customer Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.5 Member to provide online Customers with adequate information, guidance and training with respect to the stipulated matters Compoundable $500 $1,000 $2,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.6 Member to accept orders only via Registered Representatives Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.7 Member or Registered Representative not to accept orders without executing them. Approved Trader to execute orders in accordance with the applicable rules 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 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A.
3.3.8 Registered Representative to immediately record an order, amendment or cancellation on an Order Form, unless immediately entered by an Approved Trader Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A.
3.3.9 Member to comply with the Conduct of Business Regulations in respect of statement of accounts and contract notes Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
Member to provide statement of account and contract note at Exchange's request Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
Member to obtain prior consent for electronic issuance of statement of account or contract note Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.10 Member to meet the stipulated fiduciary obligations to its Customers and to comply with segregation requirements under the SFA and Conduct of Business Regulations Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
3.3.11 Member not to trade or accept any Customer's monies or assets after insolvency Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
3.3.12 Member to comply with the stipulated requirements in relation to customer margins Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.13 Member to collect the required margins for Over-The-Counter Spot Trades from its Customer and the direct counterparty Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.14 Member to apply Inter-Exchange Cross Margining, only if the stipulated conditions are met Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.15 Member to comply with the requirements for the transfer of error trades to House Account Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.16 Member to enter into a give-up arrangement only if give-up agreement is executed and to comply with the stipulated requirements for unsuccessful give-up trades Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.17 Member to comply with the requirements for reporting of account identity Compoundable $500 $1,000 $2,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.18 Member to comply with the requirements for the reporting of open positions Compoundable $500 $1,000 $2,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.19 Member to comply with the requirements and procedures prescribed by the Exchange for Omnibus Accounts [Unless otherwise specified in this Schedule]
Compoundable $500 $1,000 $2,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.20 Member to comply with limits on Omnibus Accounts imposed by the Exchange Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.21 Member to obtain the required disclosures from the Omnibus Account Holder Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
Member to comply with the orders of the Exchange in the event of an Omnibus Account Holder's failure to disclose Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
Member to ensure that Omnibus Account Holders are aware of this Rule 3.3.21 Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.22 Member to produce audit trail of transactions when requested by the Exchange Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
3.3.23(a) Member to ensure that data and records are made and kept in a way that is easily retrievable Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.23(b) Member to keep data and records for the minimum period prescribed by law Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
3.3.23(c) Member to make data and records available to the Exchange in a timely manner when requested Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
3.3.23A(a) Members, Approved Traders and Registered Representative s to maintain a register of securities in accordance with SFA Not Compoundable Not Compoundable $10,000
3.3.23A(b) Members, Approved Traders and Registered Representative s to produce the register for inspection if requested by the Exchange Not Compoundable Not Compoundable $10,000
3.3.23A(c) Members, Approved Traders and Registered Representative s to permit the Exchange to take extracts of the register Not Compoundable Not Compoundable $10,000
3.3.24 Member to comply with all information technology and data security requirements Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.25 Member to issue unique ID tags & passwords Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.26 Member to make and keep as record, computations of financial & capital requirements Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.27 Member to submit financial statements or other infomration as required by the Exchange Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
Member to comply with the directions of the Exchange thereafter Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
3.3.28 Member to comply with the requirements relating to auditor certification of its accounts Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.29 Member to cause auditor to report the stipulated information to the Exchange Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.30 Member to satisfy the applicable approval or notification requirements in relation to any change of auditors Compoundable $500 $1,000 $2,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.31 General Trading Member not to act as guarantor Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.32(a) General Trading Member to satisfy the Secondary Requirement in respect of opening a Foreign Branch Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.32(b) General Trading Member to obtain the necessary approval from the Authority and the Exchange in respect of opening a Foreign Branch Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
3.3.32(c) General Trading Member to obtain approval from the regulator in the relevant foreign jurisdiction in respect of opening a Foreign Branch and to furnish documentation of such approval to the Exchange Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.32(d) General Trading Member to obtain approval from its, or its parent company's primary regulator in respect of opening a Foreign Branch and furnish documentation of such approval to the Exchange Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.32(e) General Trading Member to comply with any other requirements imposed by the Exchange on Foreign Branch Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.32(f) General Trading Member to ensure that activities of the Foreign Branch fall within the Regulated Activitities which the General Trading Member is authorised to conduct Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
3.3.32(g) General Trading Member to submit the required undertaking to the Exchange, in relation to its Foreign Branch Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.3.32(h) General Trading Member to conduct the necessary internal audit on th Foreign Branch and submit a copy of the internal audit report to the Exchange Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.4 Trading Practices & Conduct Rules of Members, Approved Traders & Registered Representatives
3.4.1 Member, Approved Trader or Registered Representative not to manipulate the market Not Compoundable Not Compoundable $30,000
3.4.2 Member, Approved Trading or Registered Representative not to engage in churning Not Compoundable Not Compoundable $30,000
3.4.3 Member, Approved Trader or Registered Representative not to engage in false trading, bucketing, fraudulent inducement to trade or employment of fraudulent device Not Compoundable Not Compoundable $30,000
3.4.4 Member, Approved Trader or Registered Representative to immediately inform Exchange of prohibited trading practices Not Compoundable Not Compoundable $10,000
3.4.5 Member, Approved Trader or Registered Representative not to disseminate false or misleading information Not Compoundable Not Compoundable $30,000
3.4.6(a) Member, Approved Trader or Registered Representative not to permit the use of the Member's facilities or privileges by any other person in the stipulated manner Not Compoundable Not Compoundable $30,000
3.4.6(b) Member, Approved Trader or Registered Representative not to engage in conduct which impairs dignity of the good name of the Exchange. Not Compoundable Not Compoundable $10,000
3.4.6(c) Member, Approved Trader or Registered Representative not to commit acts substantially detrimental to the interest of Exchange Not Compoundable Not Compoundable $10,000
3.4.6(d) Member, Approved Trader or Registered Representative not to refuse to comply with an order of the Exchange or the Disciplinary Committee or Appeals Committee Not Compoundable Not Compoundable $30,000
3.4.6(e) Member, Approved Trader or Registered Representative not to refuse to comply with a final arbitration award Not Compoundable Not Compoundable $30,000
3.4.6(f) Member, Approved Trader or Registered Representative to answer Customers' complaints promptly and in appropriate detail Compoundable $500 $1,000 $2,000 $250 $500 $1,000 $250 $500 $1,000 N.A.
3.4.6(g) Member, Approved Trader or Registered Representative not to commit fraudulent or dishonest act or any act of bad faith Not Compoundable Not Compoundable $30,000
3.4.6(h) Member, Approved Trader or Registered Representative not to act in a dishonourable or uncommercial manner Not Compoundable Not Compoundable $10,000
3.4.6(i) Member, Approved Trader or Registered Representative not to make a material misstatement to the Exchange or Disciplinary Committee or Appeals Committee or in any information supplied to Exchange Not Compoundable Not Compoundable $20,000
3.4.6(j) Member, Approved Trader or Registered Representative not to make or cause to be made a false or misleading entry into books, records, etc Not Compoundable Not Compoundable $10,000
3.4.6(k) Member, Approved Trader or Registered Representative not to omit to make material entry in any books, records, reports, etc Not Compoundable Not Compoundable $10,000
3.4.6(l) Member, Approved Trader or Registered Representative not to alter or destroy any books, records, reports, etc Not Compoundable Not Compoundable $10,000
3.4.6(m) Member, Approved Trader or Registered Representative not to use or reveal confidential information obtained by reason of participating in an investigative proceeding or hearing Not Compoundable Not Compoundable $10,000
3.4.6(n) Member, Approved Trader or Registered Representative not to refuse to appear before the Exchange or the Disciplinary Committee or Appeals Committee at a hearing or in connection with any investigation. Not Compoundable Not Compoundable $10,000
3.4.6(o) Member, Approved Trader or Registered Representative not to refuse to fully answer all questions or produce books and records at any audit, hearing or investigation Not Compoundable Not Compoundable $10,000
3.4.7 Member, Approved Trader or Registered Representative not to disclose orders Not Compoundable Not Compoundable $10,000
3.4.8 Member, Approved Trader or Registered Representative not to enter bids and offers other than in good faith Not Compoundable Not Compoundable $10,000
3.4.9 Member, Approved Trader or Registered Representative not to engage in the prohibited acts in relation to fictitious transactions without change in ownership Not Compoundable Not Compoundable $10,000
3.4.10 Member not to execute any trade beyond any limits imposed and to comply with the prescribed requirements relating to overtrading Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
3.4.11 Member, Approved Trader or Registered Representative not to knowingly take advantage of an error 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 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A.
3.4.12 Member, Approved Trader or Registered Representative not to be convicted of any offence relating to fraud, any act of bad faith, dishonest, dishonourable or uncommercial conduct Not Compoundable Not Compoundable $10,000
3.4.13 Member, Approved Trader or Registered Representative not to engage in front running Not Compoundable Not Compoundable $10,000
3.4.14 Member, Approved Trader or Registered Representative not to knowingly trade against Customers' orders Not Compoundable Not Compoundable $10,000
3.4.15 Members, Approved Traders and Registered Representative s not to participate in any prohibited market conduct or in any insider trading Not Compoundable Not Compoundable $10,000
3.5 Inspection and Audit
3.5.2 Member to grant access to and cooperate with the Exchange in respect of inspections and audits Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000

Added on 16 May 2011 and amended on 16 July 2012.