Rulebooks: Contents

Rulebooks
Mainboard Rules
Catalist Rules
SGX-ST Rules
CDP Clearing Rules
CDP Settlement Rules
DVP Rules [Entire Rulebook has been deleted]
CDP Depository Rules
Futures Trading Rules
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SIAC DC Arbitration Rules
Archive
SGX-ST Rules
Section B — Market Participants
Chapter 4 — Trading Members
Rule Amendments

  Versions
(2 versions)
 
Sep 18 2012 - Mar 14 2013Mar 15 2013 onwards

4.6.7A Risk Management and Financial Controls

Past version: effective from Sep 18 2012 - Mar 14 2013.
To view other versions open the versions tab on the right.

(1) A Trading Member must have written policies and procedures on risk management controls in respect of customer orders, including orders of related corporations, and demonstrate compliance in the following areas:—
(a) monitoring the credit risks arising from the acceptance of orders on at least a daily basis;
(b) ensuring that:
(i) automated pre-execution risk management control checks are conducted on all orders, including credit control checks on all orders;
(ii) there are appropriate internal controls for the setting and modification of any parameters of such automated pre-execution risk management control checks;
(c) having error-prevention alerts to bring attention to possible erroneous entries of quantity, price and other data fields; and
(d) defining and managing the Trading Member's sources of liquidity to ensure that there are sufficient liquidity facilities to meet settlement obligations.
(2) A Trading Member referred to in Rule 4.6.7A(1) must have written policies and procedures on risk management controls demonstrating compliance with the areas set out in Rule 4.6.7A(1) in respect of its own orders.
(3) A Trading Member referred to in Rule 4.6.7A(1) must have automated processes in place to monitor at the firm level if the Trading Member is at risk of breaching capital and financial requirements and prudential limits on exposures to a single customer and a single security, so as to restrict trading activity or inject additional capital if necessary.

Added on 18 September 2012.