Rulebooks: Contents

Rulebooks
Mainboard Rules
Catalist Rules
SGX-ST Rules
CDP Clearing Rules
DVP Rules
CDP Depository Rules
Futures Trading Rules
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
Regulatory Notices
Practice Notes
Schedules
SGX-DC Clearing Rules
SIAC DT Arbitration Rules
SIAC DC Arbitration Rules
Rule Amendments

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  • Futures Trading Rules

    • Chapter 1 General Matters

      • 1. Market Overview

        The Exchange operates the Markets in accordance with applicable laws of Singapore. As an Approved Exchange we are committed to promoting a fair, orderly and transparent market in a manner consistent with the public interest as contemplated under the Act. This Rules is designed to facilitate the operation of efficient markets for the allocation of capital and transfer of risks. To the extent that the Markets function in an efficient manner, the Exchange will not intervene or impose unnecessary regulatory requirements that would inflate compliance or regulatory costs for its participants. This Rules seeks to achieve the above regulatory objectives while promoting robust and liquid Markets.

        • 1.1 Market Title

          The Markets comprise the SGX-DT Market and such other markets as provided under this Rules from time to time.

          Amended on 26 November 2007.

        • 1.2 Scope of Rules and Products on the Market

          • 1.2.1 Rules Govern Market

            This Rules governs the operation of the Markets as contemplated under the Act.

          • 1.2.2 Products Available for Trading on the Market

            The Contracts listed and traded on the Markets comprise Futures Contracts and Option Contracts as more fully described in Chapter 4.

        • 1.3 Exchange's Regulatory Responsibilities

          • 1.3.1 Operation of Fair, Orderly and Transparent Market

            The Exchange is obligated under the Act to ensure, as far as reasonably practicable, that each Market it operates is fair, orderly and transparent. In connection with this statutory obligation, the Exchange undertakes surveillance, supervision and enforcement actions to ensure compliance with this Rules. In discharging its obligations under the Act, the Exchange cannot act contrary to the interests of the investing public and is required to have particular regard to the interests of the investing public.

          • 1.3.2 Regulatory Arrangements

            The Exchange may take any action or enter into any agreement or arrangement it considers necessary or desirable in furtherance of its regulatory responsibilities under any applicable law or regulation with any Person including, without limitation, MAS, any other exchange, market, clearing house or Partner Market, or any Person which, in the opinion of the Exchange, exercises a legal or regulatory function under any law or regulation.

        • 1.4 Confidentiality of Information of Members, Approved Traders and Registered Representatives

          • 1.4.1 Confidentiality Undertaking

            The Exchange shall not use, distribute, supply, provide, make available, sell or otherwise deal with Confidential Information to or for the benefit of any third party, including any third party who or which by himself or itself or by any director, officer, employee or representative that has, or at any time has had, any trading interests upon the Exchange. "Confidential Information" relates to information which is not in the public domain and includes information pertaining to a Member's Open Positions, Financial Resources, Members' Affairs and User Information.

          • 1.4.2 Members' Affairs

            All confidential information concerning a Member's affairs obtained or received by officials of the Exchange:

            (a) as a result of inspections of accounting, financial statements, declarations or reports on financial condition and daily monitoring or stress testing activities; or
            (b) pursuant to or in connection with any disciplinary proceedings, investigations or surveillance or enforcement actions taken by the Exchange,

            (collectively, "Members' Affairs") shall be confidential to such officials of the Exchange. For the avoidance of doubt, nothing in this Rule prohibits the disclosure by the Exchange of the outcome of any disciplinary proceedings or the grounds for a decision of the Disciplinary Committee or Appeals Committee.

          • 1.4.3 Consensual Disclosure

            Where the Exchange considers it necessary or desirable to use or disseminate any Confidential Information, the Exchange shall seek the prior consent of that Member to such use or dissemination, and shall provide to such Member:

            (a) particulars sufficient to identify the nature of the information;
            (b) the name and address of each Person to whom it is proposed to disseminate that information;
            (c) a description of the manner in which and the purposes for which it proposes to disseminate that information; and
            (d) a description of the circumstances in which and the conditions upon which it is proposed that the use or dissemination will take place.

            Any Member approached by the Exchange under this Rule may give or withhold its consent to any use or dissemination of its information in its absolute discretion.

          • 1.4.4 Permitted Disclosure

            Notwithstanding anything to the contrary as set forth above, the Exchange may disclose any information, including Confidential Information concerning or associated with a Member, Approved Trader or Registered Representative (including, without limitation, information concerning any aspect of transactions made on the Markets) in connection with the discharge of its regulatory obligations under the Act or when compelled under applicable laws to do so or pursuant to any cross-border regulatory sharing arrangement subject to its obligation to maintain confidentiality under the Act. To the extent practicable, the Exchange shall use its best endeavors to notify the affected party of such disclosure(s) prior to disclosing the same.

        • 1.5 Compensation for Investors

          • 1.5.1 Fidelity Fund Maintained by Exchange

            (1) The Exchange is required under the Act to establish and maintain a fidelity fund consisting of such amount as prescribed by MAS to:
            (a) compensate any Person (other than an Accredited Investor) who suffers pecuniary loss through the Defalcation committed by a Member that is a CMS licence holder, or any of its directors, officers, employees or representatives, in respect of any money or other property that was entrusted to or received by the Member or any of its directors, officers, employees or representatives, for or on behalf of the Person, or by reason that the Member was a trustee of the money or other property; or
            (b) pay to a liquidator, official assignee or trustee in bankruptcy of a Member, that is a CMS licence holder, that is being wound up or the subject of bankruptcy proceedings respectively, to make up or reduce the deficiency arising because the available assets of the Member are insufficient to satisfy any debts arising from its trading activities that have been proved in the liquidation or bankruptcy of the Member.
            "Defalcation" refers to the misapplication, including misappropriation, of any property as contemplated under the Act.
            (2) Pursuant to Rule 1.5.1(1), the fidelity fund will not be applied in the event of a Bank Trading Member's defalcation, winding up or bankruptcy.

            Amended on 25 August 2009.

          • 1.5.2 Compensation Claims by Persons Claiming Compensation in the Case of Defalcation

            Persons claiming compensation from the fidelity fund under Rule 1.5.1(1)(a) shall do so in accordance with the procedures set forth on the Exchange's website.

            Amended on 25 August 2009.

          • 1.5.3 [Rule has been deleted.]

            Deleted on 24 November 2007.

        • 1.6 Exclusion of Liability, Disclaimer of Warranties & Statutory Immunity

          • 1.6.1 No Liability for Loss

            Unless otherwise expressly provided in this Rules or in any other agreements to which the Exchange is a party, the Exchange shall not be liable to any Person for any loss (consequential or otherwise, including, without limitation, loss of profit), damage, injury, or delay, whether direct or indirect, arising from:

            (a) any action taken by the Exchange in connection with the discharge of its regulatory responsibilities including the suspension, interruption or closure of the Markets; or
            (b) any failure or malfunction of Exchange Systems.

            "Exchange Systems" refers to any pre-trade, trade or post-trade systems, including the Trading System, operated by the Exchange in connection with the Markets.

            Amended on 14 November 2016.

          • 1.6.1A Indemnity to the Exchange

            (1) Each Trading Member indemnifies the Exchange and its directors, officers, employees, representatives and agents ("Indemnified Persons") against any loss or liability reasonably incurred or suffered by the Indemnified Persons where such loss or liability arose out of or in connection with:—
            (a) any breach by the Trading Member of its obligations under the Rules; or
            (b) any wilful, unlawful, reckless or negligent act or omission by the Trading Member.
            (2) Without prejudice to the generality of Rule 1.6.1A(1), in the event that any legal, arbitration or other proceedings are brought to impose any liability on the Indemnified Persons for an alleged failure on the part of any Indemnified Person to prevent or to require action by a Trading Member or any of its directors, officers, employees, representatives or agents, the Trading Member shall reimburse the Exchange for:—
            (a) all expenses and legal fees incurred by the Exchange in connection with such proceedings;
            (b) any payment made by the Exchange with the approval of the Trading Member in connection with any settlement of such proceedings; and
            (c) any payment made by the Exchange as a result of any order, award or judgment made in such proceedings.
            The Trading Member shall render such co-operation as the Exchange reasonably requires in respect of such proceedings including without limitation the production of any document or records.
            (3) Without prejudice to Rule 1.6.1A(2), the cost to the Exchange of producing, pursuant to a court order or other legal process, records relating to the business or affairs of a Trading Member may, at the absolute discretion of the Exchange, be required to be paid to the Exchange by such Trading Member, whether such production is required at the instance of such Trading Member or at the instance of any other party.

            Added on 26 April 2013.

          • 1.6.2 Statutory Immunity

            As provided under the Act, the Exchange or any Person acting on its behalf including any director or any Committee Member shall be immune from any criminal or civil liability for anything done (including any statement made) or omitted to be done with reasonable care and in good faith in the course of, or in connection with, the discharge or purported discharge of its obligations under the Act or this Rules.

          • 1.6.3 Disclaimer of Warranties

            All warranties and conditions, both express and implied as to condition, description, quality, performance, durability, or fitness for the purpose or otherwise of any of the Exchange Systems or any component thereof are excluded except as required by law. The Exchange does not warrant or forecast that the Exchange Systems, any component thereof or any services performed in respect thereof will meet the requirements of any user, or that operation of the Exchange Systems will be uninterrupted or error-free, or that any services performed in respect of the Exchange Systems will be uninterrupted or error-free.

          • 1.6.4 Index Related Disclaimers

            The Exchange, Index Provider and any other party involved in, or related to, making or compiling any index do not guarantee the originality, accuracy or completeness of such indices or any data included therein. Contracts on any index ("Index Contracts") are not sponsored, guaranteed or endorsed by the Index Provider or any other party involved in, or related to, making or compiling such indices. Neither the Index Provider nor any other party involved in, or related to, making or compiling any index makes any representations regarding the advisability of investing in such Index Contracts. Neither the Index Provider nor any other party involved in, or related to, making or compiling any index makes any warranty, express or implied, as to the results to be obtained by any person or any entity from the use of such index or any data included therein. Neither the Index Provider nor any other party involved in, or related to, making or compiling any MSCI Index makes any express or implied warranty, and expressly disclaims all warranties of merchantability and fitness for a particular purpose or use with respect to such index or any data included therein. Without limiting any of the foregoing, in no event shall an Index Provider or any other party involved in, or related to, making or compiling any index have any liability for any direct, special punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages. In addition, neither the Exchange, an Index Provider nor any other party involved in, or related to, making or compiling any index shall have any liability for damages, claims, losses or expenses relating to any futures or options contracts that may be caused by any errors or delays in calculating or disseminating such index. "Index Provider" as used herein refers to MSCI, FTSE, IISL, NKS or such other index provider and their respective affiliates with whom the Exchange has or shall enter into agreements with for the creation and exploitation of indices and index-linked products.

          • 1.6.5 Notification to Customers

            Members shall notify Customers of the above exclusion of liability and disclaimer of warranty by the Exchange either by way of inclusion in the contracts granting access to the Markets or such other manner as approved by the Exchange.

        • 1.7 Rules as Binding Contract and Deemed Consent of Members

          • 1.7.1 Binding Contract

            This Rules shall operate as a binding contract as contemplated under the Act, between:

            (a) the Exchange and each Member; and
            (b) between each Member and any other Member.

          • 1.7.2 Deemed Consent

            Each Member shall be deemed to have agreed to observe and perform the provisions of this Rules in force for the time being, so far as these provisions are applicable to the Exchange or the Member, as the case may be.

          • 1.7.3 No Third Party Rights

            A Person who is not a Member has no rights under the Contracts (Rights of Third Parties) Act (Cap. 53B) to enforce any provisions under this Rules.

        • 1.8 Waiver by Exchange

          Unless otherwise indicated, the Exchange may waive compliance with this Rules or portion thereof or grant waivers subject to such terms and conditions as it deems fit. All waivers shall be notified to Members via Regulatory Notices or Circulars as the Exchange deems fit.

        • 1.9 Amendment of Rules

          • 1.9.1 Rule Amendment Process

            The Exchange is prohibited from making any amendments to this Rules unless it complies with such requirements as contemplated under the Act. In addition to these requirements, Board approval is required to effect any Rule amendments. These safeguards are designed to promote regulatory transparency and accountability on the part of the Exchange with respect to its rulemaking process and thereby promote investor confidence in the Markets.

          • 1.9.2 New Rule — Effective Date

            Any amendment to this Rules shall not come into force unless the prescribed time periods as contemplated under the Act are met and a Circular announcing the effective date of the revised Rules is issued by the Exchange.

          • 1.9.3 Mandatory Rule Amendments

            Notwithstanding anything to the contrary as set forth above, the Exchange may effect Rule amendments in such manner as directed by MAS or pursuant to the Act or other applicable laws.

        • 1.10 Directives, Regulatory Notices and Practice Notes

          • 1.10.1 Issuance of Supplementary Instruments

            The Exchange may, from time to time, issue Directives, Regulatory Notices or Practice Notes to supplement this Rules or to provide guidance on the interpretation or application of this Rules.

          • 1.10.2 Authorised Use of Directives, Regulatory Notices and Practice Notes

            Directives, Regulatory Notices and Practice Notes may only be used in the manner and for such purposes as expressly contemplated under this Rules. "Directives" are binding notices directing Members to take corrective or other actions in the interests of a fair, orderly and transparent market or to address investor protection concerns. "Regulatory Notices" are binding notices issued by the Exchange regarding regulatory matters pertaining to the Markets. "Practice Notes" are guidelines that seek to explain the application and interpretation of a Rule. Practice Notes do not bind the Exchange in the application of a Rule.

          • 1.10.3 Precedence

            The order of precedence in the construction and interpretation of the various legislative and quasi-legislative instruments governing the Markets and their participants shall be, in descending order of precedence, as follows:

            (a) Act
            (b) Rules
            (c) Directives
            (d) Regulatory Notices
            (e) Practice Notes

          • 1.10.4 Supremacy

            In the event of a conflict between any provision in the aforesaid instruments the provisions contained in the instrument at a higher precedence level shall prevail.

        • 1.11 Governing Law and Jurisdiction

          This Rules is governed by the laws of Singapore. Save as provided in Chapter 6 of this Rules, the courts of Singapore shall have exclusive jurisdiction to determine any dispute arising from or in connection with this Rules.

        • 1.12 Effective Date for New Rules and Transitional Arrangements

          • 1.12.1 Effective Date

            This Rules shall take effect on the Effective Date.

          • 1.12.2 Transitional Arrangements

            The Exchange may, from time to time, publish transitional arrangements in relation to this Rules.

          • 1.12.3 Floor Rules

            The floor trading rules in the Old Rules shall continue to apply to the extent that floor trading is still available for discrete Contracts on the Effective Date. With respect to generic, non-floor specific rules, in the event of a conflict between this Rules and the Old Rules, this Rules shall prevail. "Old Rules" refers to the collection of rules applicable to the Markets and commonly referred to as the "DT Rules" that were in force before this Rules came into effect.

          • 1.12.4 Survival of Accrued Rights and Obligations

            The rescission of the Old Rules shall not impair, modify or discontinue the status, operation or effect of any act or omission under the Old Rules.

    • Chapter 2 Access and Membership

      • 2. Overview of Access and Membership

        Unless otherwise indicated, the Exchange operates wholly electronic Markets. Electronic trading access to the Markets is solely via the Trading System. Subject to this Rules, Direct Market Access is available to all customers and is not conditioned on Membership. "Direct Market Access" refers to direct access to the Trading System via an Exchange-provided or Exchange-approved OMS. Direct Market Access does not include Internet Trading.

        Amended on 15 March 2013 and 14 November 2016

        • 2.1 Access and Trading

          • 2.1.1 Access to the Trading System

            A Member or Customer may access the Trading System via:

            (a) an Exchange-provided OMS; or
            (b) an Exchange-approved OMS developed by a Member or an independent software vendor (commonly referred to as ISVs).

            "OMS" refers to an order management system through which orders are routed to the Trading System. "Exchange-approved OMS" refers to an OMS that has passed conformance testing and meets appropriate technical specifications as required by the Exchange.

            Amended on 15 March 2013 and 14 November 2016.

          • 2.1.2 Conditions Governing Direct Market Access

            (1) With respect to each Customer for which the Member has authorised Direct Market Access, the Member must have measures in place for each Customer to:
            (a) meet minimum standards including standards on financial standing, credit history and criminal records, adverse records or pending court proceedings relating to prohibited market conduct;
            (b) have appropriate procedures in place to assure that all relevant persons:—
            (i) are familiar with and comply with these Rules;
            (ii) have knowledge and proficiency in the use of the order management system;
            (c) be provided information concerning its access to the Trading System and applicable laws:
            (d) be subject to a legally binding agreement governing the terms and conditions for such Direct Market Access;
            (e) have security arrangements in place to ensure that unauthorised persons are denied such Direct Market Access; and
            (f) assist the Exchange in any investigation into potential violations of this Rules and applicable laws. Such assistance shall be timely and shall include, but is not limited to, the provision of information to the Exchange relating to the identity and address of any person who may be responsible for the execution of an order or trade.
            (2) Where a Member permits the delegation of Direct Market Access by its authorised Customer and any other persons, the Member must include in the legally binding agreement referred to in Rule 2.1.2(1)(d) the requirement for such Customer and any other persons delegating Direct Market Access to ensure that all persons with Direct Market Access are subject to the requirements set out in Rules 2.1.2(1)(a) to (f).
            (3) The Exchange may require a Member to provide to the Exchange a report by an independent reviewer on the Member's compliance with Rules 2.1.2, 2.1.2A and 2.1.2B.

            Amended on 15 March 2013 and 14 November 2016.

          • 2.1.2A Conditions Governing Sponsored Access

            (1) Where a Member authorises Sponsored Access for its Customers, in addition to the requirements set out in Rule 2.1.2, the Member must:—
            (a) maintain a register recording the identity and address of all Customers with Sponsored Access;
            (b) produce to the Exchange the register referred to in Rule 2.1.2A(1)(a) at such time as the Exchange requires; and
            (c) have measures in place for each Customer to comply with the requirements set out in Rule 2.6.2A, Rule 2.6.4, Regulatory Notice 2.6.4, Regulatory Notice 2.6.2A and any other requirement set out by the Exchange relating to the OMS.
            (2) Where a Member permits the delegation of Sponsored Access by its authorised Customer and any other persons: —
            (a) the Member must have measures to ensure that the authorised Customer and any other persons delegating Sponsored Access:
            (i) are persons regulated by a recognised regulatory authority in respect of any regulated activity; or
            (ii) where such persons are not regulated in accordance with Rule 2.1.2A(2)(a)(i), that such persons are Members of the Exchange, and that such persons shall only be permitted to delegate Sponsored Access to their Related Corporations; and
            (b) the Member must include in the legally binding agreement referred to in Rule 2.1.2(1)(d) the requirement for such Customer and any other persons delegating Sponsored Access to ensure that all persons with Sponsored Access are included in the register referred to in Rule 2.1.2A(1)(a) and subject to the requirements set out in Rule 2.1.2A(1)(c).

            For the purpose of this Rule 2.1.2A, "recognised regulatory authority" refers to a signatory to the International Organization of Securities Commissions' Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information, and "regulated activity" shall have the same meaning as in the Securities and Futures Act.

            Added on 15 March 2013.

          • 2.1.2B Suspension and Termination of Direct Market Access

            (a) The Exchange may suspend or terminate, or direct a Member to suspend or terminate a person's Direct Market Access:
            (i) where the person has failed to assist the Exchange with an investigation in accordance with Rule 2.1.2(1)(f);
            (ii) in the interest of a fair, orderly and transparent market; or
            (iii) where the person has caused the Member to breach requirements in the Rules.
            (b) A Member must have the ability to immediately suspend or terminate a person's Direct Market Access when necessary for the fulfillment of its duties under Rule 3.2.1 or any other reason.

            Added on 15 March 2013.

          • 2.1.3 Access to Partner Market

            The Exchange may provide access facilities to enable Persons to execute trades on contracts listed on a Partner Market. Such Persons accessing the Partner Market are required to comply with this Rules as well as applicable rules, laws and regulations governing trading in the Partner Market. "Partner Market" refers to another exchange or market, in Singapore or elsewhere, accessible via the Trading System or such other means as approved by the Exchange.

            Amended on 14 November 2016

          • 2.1.4 Trading Capacity — House and Agency

            (a) Subject to Rule 2.1.4(b), a Member may execute House Trades, Agency Trades or both.
            (b) A Member that holds a licence specified in Rule 2.4.1(b) shall not execute Agency Trades for Customers domiciled in Singapore.

            Amended on 1 April 2014.

        • 2.2 Classes of Membership

          • 2.2.1 Overview

            Membership shall:

            (a) comprise such classes of membership as provided under this Rules; and
            (b) be granted pursuant to and subject to this Rules.

          • 2.2.2 Trading Member

            There are 2 classes of Trading Members:

            (i) General Trading Members; and
            (ii) Bank Trading Members.

            A Trading Member shall observe this Rules and any requirements as prescribed by the Exchange from time to time.

            Amended on 25 August 2009.

          • 2.2.3 Clearing Member

            To the extent that a Clearing Member has trading privileges, it is required to observe this Rules, the Clearing Rules and any requirements as prescribed by the Exchange or the Clearing House from time to time.

          • 2.2.4 Dual Member

            A Dual Membership entitles a Member to certain Membership privileges and subjects it to certain additional Membership obligations as set out in the applicable rules, including this Rules, the Clearing Rules, the CDP Clearing Rules and the Securities Rules. A "Dual Member" refers to a Member of more than one (1) Approved Exchange or more than one (1) Designated Clearing House owned by the Singapore Exchange Limited, as the case may be.

          • 2.2.5 Honorary Member

            The Exchange reserves the right to confer the distinction of Honorary Member to any person who has made a significant contribution to the promotion and development of a Market or Markets.

        • 2.3 Admission Criteria for Members

          • 2.3.1 Licensing, Financial, Integrity, Clearing and Other Requirements

            To be eligible for admission as a Member, an applicant shall satisfy the Exchange of its ability to satisfy the following requirements, where relevant, both at the time of admission as well as on a continuous basis until the termination of the Membership:

            (a) in the case of a General Trading Member, licensing requirements as set forth in Rule 2.4.1;
            (b) in the case of a Bank Trading Member, credit rating requirements as set forth in Rule 2.4.2;
            (c) financial requirements as set forth in Rule 2.5;
            (d) technical matters and risk management controls as set forth in Rule 2.6;
            (e) fit and proper requirements as set forth in Rule 2.12;
            (f) clearing arrangement with a Clearing Member as set forth in Rule 2.10; and
            (g) other requirements as prescribed under the Act, this Rules and applicable laws.

            Amended on 25 August 2009.

          • 2.3.2 Membership in Other Exchanges

            The following requirements apply in relation to membership in other exchanges:

            (a) the Exchange may consider an application from a member of another exchange if such applicant is able to satisfy the Exchange that it meets the requirements set forth in Rule 2.3.1; and
            (b) a Member engaging in Agency Trades shall notify the Exchange at the time of submission of its application for concurrent membership in another exchange. The Exchange may impose such additional requirements and conditions on the Member as it deems necessary.

            Amended on 24 January 2011.

        • 2.4 Licensing and Credit Rating Requirements for Members, their Employees and Agents

          • 2.4.1 Licensing and Registration Requirements for General Trading Members

            A General Trading Member and its employees and agents are required to procure and maintain the requisite licence(s) and registration(s) with the Relevant Regulatory Authority to conduct regulated activities. The General Trading Member and its employees and agents shall independently satisfy such licensing and registration requirements as follows:

            (a) where the General Trading Member or its employees and agents engage in any Regulated Activity in Singapore, procure and maintain the requisite licence(s) and registration(s) with MAS. "Regulated Activity" refers to any activity that requires a CMS Licence, registration in the Public Register of Representatives, financial adviser's licence or such other licence or registration as required under the Act or Financial Advisers Act (Cap 110); and
            (b) where the General Trading Member or its employees and agents do not engage in regulated activities in Singapore and such General Trading Member is not incorporated in Singapore and does not carry on a business in Singapore, hold the requisite licence and registration from a Relevant Regulatory Authority in the country where it is engaging in such regulated activities. If the Exchange is of the view that the regulatory requirements arising from the licence and registration are not comparable to those contemplated under the Act and this Rules, it shall have the discretion to prescribe additional requirements.

            Amended on 25 August 2009, 29 November 2010 and 1 April 2014.

          • 2.4.2 Credit Rating Requirements for Bank Trading Members

            A Bank Trading Member is required to satisfy the Exchange that it, or its parent bank, has obtained a credit rating that indicates, at least, adequate intrinsic safety and soundness, excluding external credit support, and a limited ability to withstand adverse business or economic conditions from any rating agency registered with an appropriate authority.

            Added on 25 August 2009 and amended on 26 April 2013.

          • 2.4.3 Downgrades in Credit Rating of Bank Trading Members

            Upon admission as a Bank Trading Member, if there is any downgrade in the rating of the Bank Trading Member or its parent bank such that it falls below the minimum prescribed rating, the Exchange may, at its discretion, impose additional conditions as it deems fit, for permitting the Bank Trading Member to continue its trading activities as a Bank Trading Member.

            Added on 25 August 2009.

        • 2.5 Financial Requirements for Members

          • 2.5.1 Overview of Base Capital, Total Risk Requirement, Net Liquid Capital and Statutory Requirements

            A Member is required to comply with the financial requirements set forth in Rule 2.5, including, where applicable, requirements for Base Capital, Net Liquid Capital, Net Head Office Funds, Adjusted Net Head Office Funds, Financial Resources and Aggregate Resources. "Financial Resources", "Base Capital", “Net Liquid Capital”, "Net Head Office Funds", "Adjusted Net Head Office Funds", "Total Risk Requirement", "Aggregate Indebtedness", and "Aggregate Resources" shall have the meanings ascribed to them under Chapter 8 of this Rules.

            Amended on 25 August 2009 and 1 April 2014.

          • 2.5.2 Trading Members

            The following requirements apply in relation to Trading Members:

            (a) except for Rule 2.5.4, a Trading Member that engages solely in House Trades and Proprietary Trades of its Related Corporations is not subject to any financial requirements under Rule 2.5. However, in deciding whether to admit such Trading Member, the Exchange shall take into account matters such as the prospective Trading Member's financial standing, pending court proceedings and criminal records;
            (b) a General Trading Member that holds a licence to engage in a Regulated Activity, shall at all times:
            (i) maintain a Base Capital or Net Head Office Funds, as the case may be, of not less than $1 million;
            (ii) not cause or permit its Financial Resources or Adjusted Net Head Office Funds, as the case may be, to fall below its Total Risk Requirement; and
            (iii) not cause or permit its Aggregate Indebtedness to exceed 1200% of its Aggregate Resources.
            (b1) a General Trading Member that holds a licence specified in Rule 2.4.1(b) shall at all times maintain a Net Liquid Capital of not less than $1 million;
            (c) any other Bank Trading Member shall at all times:
            (i) maintain a Base Capital or Net Head Office Funds, as the case may be, of not less than $1 million, failing which, the Bank Trading Member must deposit an amount of not less than $1 million in cash and/or Acceptable Government Securities with the Clearing House;
            PROVIDED ALWAYS THAT:—
            (1) the Exchange shall have the discretion to decide if a Bank Trading Member may rely on its Base Capital or Net Head Office Funds instead of depositing cash and/or Acceptable Government Securities;
            (2) if the Bank Trading Member is also a clearing member of the Clearing House and/or CDP, and has a deposit in excess of $1 million with the Clearing House or CDP in accordance with the applicable provisions of the Clearing Rules or CDP Clearing Rules, it need not deposit with the Clearing House a further $1 million or such other amount as may be prescribed by the Exchange; and
            (3) the Exchange shall have the discretion to use or apportion in any manner, the abovementioned deposit to satisfy the Bank Trading Member's obligations to the Exchange, Clearing House, and/or CDP under this Rules, the Clearing Rules, and the CDP Clearing Rules respectively. In deciding the apportionment, the Exchange may, in consultation with the Clearing House and/or CDP, take into account factors, including but not limited to, the amount owed by the Bank Trading Member to the Exchange, Clearing House and/or CDP respectively.
            (ii) not cause or permit its Financial Resources or Adjusted Net Head Office Funds or cash and/or Acceptable Government Securities deposited with the Clearing House or CDP, as the case may be, to fall below its Total Risk Requirements.

            Amended on 25 August 2009 and 1 April 2014.

          • 2.5.3 [Rule has been deleted.]

            Deleted on 25 August 2009.

          • 2.5.4 Additional Financial, Capital and Other Requirements Imposed by the Exchange or the Clearing House

            The Exchange or the Clearing House may from time to time prescribe additional financial and capital requirements for any Member or category or group of Members. Without limiting the foregoing, the Exchange may prescribe with respect to particular Members, capital, financial and other requirements in excess of the requirements prescribed under the Act, relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities, or this Rules with respect to volume, risk exposure of positions carried, risk concentration, margin policies, nature of business conducted or to be conducted, their memberships in any exchange or market, and such other matters as deemed fit by the Exchange.

            Amended on 1 April 2014.

          • 2.5.5 Calculation of Financial Resources

            In the calculation of Financial Resources, a corporate Member may include Qualifying Subordinated Loan(s), subject to such conditions and restrictions as prescribed under the Financial and Margin Regulations and in such form as prescribed by the Exchange or the Clearing House.*

            * Refer to Annex A — Deed of Subordination (Term Loan) and Annex B — Deed of Subordination (Revolving Credit Facility).

            Amended on 25 August 2009, 7 February 2014 and 29 December 2014.

          • 2.5.6 Notification of Material Changes to Financial Resources and Adjusted Net Head Office Funds

            The following requirements apply in relation to material changes to Financial Resources, Adjusted Net Head Office Funds and cash and/or Acceptable Government Securities deposited with the Clearing House or CDP pursuant to Rule 2.5.2(c)(i):

            (a) a corporate Member is required to immediately notify the Exchange in the event of any material changes to its Financial Resources or Adjusted Net Head Office Funds or cash and/or Acceptable Government Securities deposited with the Clearing House or CDP pursuant to Rule 2.5.2(c)(i), as the case may be, including:
            (i) an initial notification if its Financial Resources or Adjusted Net Head Office Funds or cash and/or Acceptable Government Securities deposited with the Clearing House or CDP pursuant to Rule 2.5.2(c)(i), as the case may be, fall below 150% of its Total Risk Requirement;
            (ii) a warning notification if its Financial Resources or Adjusted Net Head Office Funds or cash and/or Acceptable Government Securities deposited with the Clearing House or CDP pursuant to Rule 2.5.2(c)(i), as the case may be, fall below 120% of its Total Risk Requirement;
            (iii) in the case of a General Trading Member, if its Aggregate Indebtedness exceeds 600% of its Aggregate Resources; or
            (iv) in the case of a Clearing Member, if its Financial Resources, Adjusted Net Head Office Funds or cash and/or Acceptable Government Securities deposited with the Clearing House or CDP pursuant to the Clearing Rules or CDP Clearing Rules, as the case may be, is reduced by more than 20% from the previously submitted monthly financial statement;
            (b) if the Exchange is notified by a corporate Member under this Rule 2.5.6 or otherwise becomes aware that a corporate Member's Financial Resources or Adjusted Net Head Office Funds or cash and/or Acceptable Government Securities deposited with the Clearing House or CDP pursuant to Rule 2.5.2(c)(i), as the case may be, has fallen or will fall below 120% of its Total Risk Requirement or such higher percentage as the Exchange may have imposed under Rule 2.5.4, the Exchange may direct that Member to comply with any or all of the requirements described under Regulation 7(3) of the Financial and Margin Regulations;

            PROVIDED THAT, in the case of a Bank Trading Member, the Exchange shall only require that Member to comply with directions in respect of the Bank Trading Member's business that is governed by this Rules;
            (c) if the Exchange is notified by a corporate Member under this Rule 2.5.6 or otherwise becomes aware that a corporate Member's Financial Resources or Adjusted Net Head Office Funds or cash and/or Acceptable Government Securities deposited with the Clearing House or CDP pursuant to Rule 2.5.2(c)(i), as the case may be, has fallen or will fall below 150% of its Total Risk Requirement or such higher percentage as the Exchange may have imposed under Rule 2.5.4, the Exchange shall be entitled to require that Member to:
            (i) submit its statements of assets and liabilities, Financial Resources, cash and/or government securities deposited with the Clearing House or CDP pursuant to Rule 2.5.2(c)(i), Total Risk Requirement, Aggregate Indebtedness, and such other statements as required by the Exchange at such interval and for such time frame as determined by the Exchange; and
            (ii) operate its business or in the case of a Bank Trading Member, its Business Governed by this Rules, in such manner and on such conditions as the Exchange may impose;
            and
            (d) if the Exchange is notified by a General Trading Member under this Rule 2.5.6 or otherwise becomes aware that a General Trading Member's Aggregate Indebtedness exceeds or will exceed 600% of its Aggregate Resources, or such lower percentage as the Exchange may have imposed under Rule 2.5.4, the Exchange may direct that Member to comply with any or all of the requirements described under Regulation 17(2) of the Financial and Margin Regulations.

            Amended on 25 August 2009.

          • 2.5.6A Notification of Material Changes to Net Liquid Capital.

            The following requirements apply in relation to material changes to the Net Liquid Capital requirements specified in Rule 2.5.2(b1):

            (a) the General Trading Member shall immediately notify the Exchange if it fails to meet or becomes aware that it will fail to meet the Net Liquid Capital requirements referred to in Rule 2.5.2(b1), or such higher Net Liquid Capital requirements as the Exchange may have imposed under Rule 2.5.4; and
            (b) if the Exchange is notified by the General Trading Member under this Rule or otherwise becomes aware that a General Trading Member has failed to meet the Net Liquid Capital requirements referred to in Rule 2.5.2(b1), or such higher Net Liquid Capital requirements as the Exchange may have imposed under Rule 2.5.4, the Exchange may refer the matter to the Disciplinary Committee, and may take such interim control measures, including but not limited to all or any of the following, as the Exchange deems fit and appropriate:—
            (1) require the General Trading Member to operate its business activities on the Exchange subject to such restrictions or conditions as the Exchange decides;
            (2) suspend the General Trading Member's business activities on the Exchange for a period the Exchange decides. The suspension may be announced to all General Trading Members. During the suspension, the General Trading Member:—
            (a) must not enter into a new transaction without the approval of the Exchange;
            (b) remains liable to settle all contracts outstanding at the time of suspension. However, it must not settle any transaction without the approval of the Exchange.
            (3) require a Director to step down from day-to-day conduct of the business affairs of the General Trading Member on the Exchange; or
            (4) appoint a person or persons (which may include a firm of auditors) as Manager to manage the business of the General Trading Member on the Exchange. The Exchange will fix the remuneration of the Manager, which must be paid by the General Trading Member. The General Trading Member is solely responsible for the Manager's acts and defaults. The Manager must carry out directions given by the Exchange in relation to the business of the General Trading Member, including carrying on the business of the General Trading Member in accordance with instructions.

            Added on 1 April 2014.

          • 2.5.7 Requirements Relating to Preference Shares, Unsecured Loans and Others for General Trading Members

            The following additional financial requirements apply to General Trading Members:

            (a) a General Trading Member that holds a licence to engage in a Regulated Activity shall comply with the obligations under the Financial and Margin Regulations relating to the issue of any preference share and repurchase or redemption of any preference share (other than any paid-up irredeemable and non-cumulative preference share capital), drawing down and repayment in part or in full of any Qualifying Subordinated Loan principal, making of any unsecured loan or advance, payment of any dividend or director's fees or increase in any director's remuneration, with the additional condition that in relation to the repurchase or redemption of any preference share (other than any paid-up irredeemable and non-cumulative preference share capital), repayment in part or in full of any Qualifying Subordinated Loan principal, making of any unsecured loan or advance, payment of any dividend or director's fees or increase in any director's remuneration, a General Trading Member shall ensure that the sum of its Financial Resources or Adjusted Net Head Office Funds, as the case may be, are more than 150% of its Total Risk Requirement; and
            (b) a General Trading Member that holds a licence to engage in a Regulated Activity shall not reduce its paid-up ordinary share capital or paid-up irredeemable and non-cumulative preference share capital without the prior written approval of the Exchange.
            (c) A General Trading Member that holds a licence specified in Rule 2.4.1(b) shall notify the Exchange immediately of any action taken that has or may have a financial or capital impact on the General Trading Member and required to be reported to the Relevant Regulatory Authority, or in relation to the events set out in (a) and (b).

            Amended on 25 August 2009, 1 April 2014 and 29 December 2014.

        • 2.6 Technical Matters and Risk Management Controls

          • 2.6.1 Overview

            A Member shall comply with such technical, operational, information technology, security, risk management and other requirements or restrictions as specified in this Rule 2.6 or as prescribed by the Exchange from time to time.

          • 2.6.2 Controlling Access

            A Member shall have security arrangements in place to ensure that unauthorised persons are denied access to the Markets.

            Amended on 15 March 2013.

          • 2.6.2A Adequacy of Systems

            A Member must ensure that its systems and connections to the Markets operate properly, and have adequate and scalable capacity to accommodate trading volume levels.

            Refer to Regulatory Notice 2.6.2A.

            Added on 15 March 2013.

          • 2.6.3 Risk Management and Financial Controls

            (1) A corporate Member is required to have written policies and procedures on risk management controls and demonstrate compliance in the following areas:
            (a) monitoring the credit risks arising from the acceptance of all orders on at least a daily basis;
            (b) monitoring all account activity on an intraday basis;
            (c) 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;*
            (d) having "error-prevention alerts" to bring attention to possible erroneous entries of quantity, price and other data fields;^

            ^ Refer to Practice Note 2.6.3(1)(d).
            (e) defining and managing the Member's sources of liquidity to ensure that there are sufficient liquidity facilities to meet increased settlement obligations;
            (f) limiting the impact of significant market movements through the use of tools such as cash flow projection, stress testing or position limits; and
            (g) maintaining a strict separation between the credit control, trading, dealing and marketing departments so as to ensure independence and mitigate the risks and consequences of conflicts of interests.#

            #Refer to Practice Note 2.6.3(1)(g).
            (2) A Member referred to in Rule 2.6.3(1) must have automated processes in place to monitor at the firm level if the Member is at risk of breaching capital and financial requirements and prudential limits on exposures to a single Customer and a single Contract, so as to restrict trading activity or inject additional capital if necessary.

            Refer to Practice Note 2.6.3(2).

            Amended on 15 March 2013 and 14 November 2016.

          • 2.6.4 Audit Trails and Records

            A Member is required to:—

            (a) maintain complete and accurate records and audit trails to evidence compliance with this Rules, and in accordance with the requirements in this Rules and;
            (i) for a General Trading Member that holds a licence specified in Rule 2.4.1(b), in accordance with the requirements of the Relevant Regulatory Authority. The Trading Member shall immediately notify the Exchange on any changes to such requirements. Notwithstanding the foregoing, the Exchange shall have the discretion to prescribe additional requirements; and
            (ii) for other Members, in accordance with the requirements of the Act;
            (b) not make, or cause to be made, a false or misleading entry, in hardcopy, or electronic form, in any books, records, slips, documents, statements relating to the business, affairs, transactions, conditions, assets or accounts ("the Documents") of a Member;
            (c) make all material entries in any of the Documents;
            (d) not alter or destroy any of the Documents without a valid reason; and
            (e) make records available to the Exchange at such time as the Exchange requires.

            Refer to Regulatory Notice 2.6.4.

            Amended on 15 March 2013 and 1 April 2014.

          • 2.6.5 Accounting and Book-keeping

            A corporate Member shall comply with such accounting, reporting and book-keeping requirements as prescribed by the Exchange from time to time.

          • 2.6.6 Business Continuity Requirements

            The following requirements apply:

            (a) a Member must assess its business and operational risks and maintain adequate business continuity arrangements.
            (b) a Member must document its business continuity arrangements in a business continuity plan.
            (c) a Member's senior management shall be responsible for the Member's business continuity plan. Sufficient awareness of the risks, mitigating measures and state of readiness must be demonstrated by way of an attestation to the Member's Board of Directors. A General Trading Member that holds a licence specified in Rule 2.4.1(b) shall comply with such requirements established by the Relevant Regulatory Authority, if any, and principles of good business practice in relation to this subparagraph.
            (d) a Member must review and test its business continuity plan regularly.
            (e) a Member must appoint emergency contact persons, and furnish the contact information of such persons to the Exchange. The Member's emergency contact persons must be contactable at all times, and must immediately notify the Exchange in the event of emergencies.

            Added on 22 January 2009 and amended on 1 April 2014.

        • 2.7 Fit and Proper Requirements

          • 2.7.1 Directors, Chief Executive Officer and Other Personnel

            A corporate Member shall demonstrate to the reasonable satisfaction of the Exchange that it employs and appoints fit and proper persons* as:

            (a) directors and chief executive officer;
            (b) key personnel who are suitably qualified and experienced to implement, oversee and maintain adequate internal procedures and risk management controls as contemplated under this Rules; and
            (c) Approved Traders and Registered Representatives.

            * The Exchange shall evaluate "Fit and proper" criteria in this Rule 2.7.1 in a manner similar to the MAS Guidelines on Fit and Proper Criteria.

          • 2.7.2 Exchange Approval for Chief Executive Officer and Deputy Chief Executive Officer of General Trading Member

            A corporate General Trading Member shall procure the prior approval of the Exchange with respect to the appointment of its chief executive officer and deputy chief executive officer.

            Amended on 25 August 2009.

          • 2.7.3 Notification of Appointment of Chief Executive Officer or Deputy Chief Executive Officer for Bank Trading Member

            A Bank Trading Member shall notify the Exchange at least seven (7) days prior to the appointment of its chief executive officer or deputy chief executive officer.

            Added on 25 August 2009.

        • 2.8 [Deleted]

          Deleted on 15 March 2013.

        • 2.9 Member Register and Nomenclature

          • 2.9.1 Member Register

            The Exchange shall maintain a register of all Members (the "Register"). The names of Members on the Register which are undertaking Agency Trades or clearing activities shall be available for public inspection. Members on the Register may refer to themselves as "Members of SGX-DT Limited".

          • 2.9.2 Trading Member

            (a) A General Trading Member may describe itself as a "Trading Member of SGX-DT Limited".
            (b) A Bank Trading Member may describe itself as a "Bank Trading Member of SGX-DT Limited".

            Amended on 25 August 2009.

          • 2.9.3 [Rule has been deleted.]

            Deleted on 25 August 2009.

        • 2.10 Clearing Arrangement

          • 2.10.1 Clearing House and Clearing Member Guarantee

            All trades executed on the Markets shall be cleared exclusively by the Clearing House through a Clearing Member pursuant to the Clearing Rules. A Trading Member shall be required to have the requisite clearing arrangement with a Clearing Member.

          • 2.10.2 Revocation of Access Rights

            If a Clearing Member notifies the Exchange that it has suspended or revoked its clearing arrangement with a Trading Member, such Trading Member shall be denied trading access to the Trading System until its clearing arrangement is reinstated with a Clearing Member.

            Amended on 14 November 2016.

        • 2.11 Membership Application

          • 2.11.1 Application

            An application for Membership shall be made to the Exchange in writing and the applicant shall pay the requisite fees prior to admission as a Member. The Exchange may require from the applicant such information, and may institute such investigation to verify information submitted by the applicant, as it deems fit. The Exchange may require the applicant, or one (1) or more representatives of the applicant, to attend an interview by the Exchange.

          • 2.11.2 Publication of Successful Applicants

            Save for individual Trading Members, the Exchange shall publish from time to time the names of successful applicants for Membership by means of a Circular or such other means as the Exchange may determine.

          • 2.11.3 Rejection of Application

            If the Exchange is of the view that the requirements for admission are not met or that the applicant is otherwise not fit for Membership, the Exchange is entitled to reject the application for Membership.

          • 2.11.4 Deemed Domicile

            A Member shall be deemed to have elected domicile at the address stated by it in its application or at the last address subsequently specifically notified by it in writing to the Exchange, as the case may be.

        • 2.12 Fees, Levies and Charges

          • 2.12.1 Imposition of Fees and Notification of Changes to Fees

            The Exchange may, from time to time, impose fees, levies and charges to be paid by Members on such terms as the Exchange may prescribe. The Exchange shall give notice of any changes to fees, levies and charges by means of a Circular or by posting a schedule of fees, levies and charges on the Exchange's website.

          • 2.12.2 Late Interest

            A Member which fails to pay any fees, levies or charges within thirty (30) days of such fees, levies or charges becoming payable shall be notified in writing by the Exchange of such arrears ("Arrears Notice"). Late interest charges at the prevailing interest rate may be imposed by the Exchange on late payments by Members.

          • 2.12.3 Suspension of Rights

            If the arrears are not paid by the Member within ten (10) days of the date of dispatch of an Arrears Notice, the Exchange may suspend Membership rights until all monies for the time being owed by it to the Exchange, together with any other sums that shall accrue due and payable by it and remain unpaid during the period of suspension, have been paid.

        • 2.13 Registration of Approved Traders and Registered Representatives

          • 2.13.1 Registration Criteria for Approved Traders and Registered Representatives

            A Member shall register with the Exchange any person acting on its behalf as an Approved Trader or a Registered Representative. To qualify for registration with the Exchange as an Approved Trader or Registered Representative, each applicant:

            (a) shall be sponsored by its respective corporate Member. If the applicant is an individual Trading Member this requirement shall not apply. For the avoidance of doubt an applicant may only be sponsored by a single corporate Member;
            (b) shall be at least twenty-one (21) years old and be a fit and proper* person;
            (c) shall not have been convicted of any offence involving fraud or dishonesty;
            (d) shall not be an undischarged bankrupt in Singapore or elsewhere;
            (e) where required by the Exchange, shall have completed the relevant training and the Trading Member or the individual applicant shall certify that the applicant is competent to undertake the proposed activities;
            (f) shall hold a licence from or be registered with the Relevant Regulatory Authority for the conduct of relevant regulated activities, unless exempted, and whose license or registration is not suspended, revoked, or expired; and
            (g) shall comply with such other additional requirements as the Exchange deems fit.

            * The Exchange shall evaluate "fit and proper" criteria in this Rule 2.13.1 in a manner similar to the MAS Guidelines on Fit and Proper Criteria.

            Amended on 8 August 2008, 25 August 2009, 29 November 2010 and 1 April 2014.

          • 2.13.1A

            In approving an application to be an Approved Trader or a Registered Representative, the Exchange may consult the Relevant Regulatory Authority.

            Added on 1 April 2014.

          • 2.13.2 Registration of Approved Traders

            Every Approved Trader shall be required to register with the Exchange before he acts or holds himself out as having the authority to execute trades on the Markets for:

            (a) his own account, in the case of an individual Trading Member;
            (b) the House Account of his sponsoring corporate Member;
            (c) a Customer Account on the instruction of a Registered Representative; or
            (d) a Customer Account on the instruction of a Customer, if the Approved Trader is also registered as a Registered Representative.

            For the avoidance of doubt, an Approved Trader shall not hold himself out as a sales representative of the respective Member or undertake any activities of a Registered Representative unless he is so registered with the Exchange as contemplated under this Rules.

          • 2.13.3 Registration of Registered Representatives

            Every Registered Representative shall be required to register with the Exchange before he acts or holds himself out as a sales representative of the respective Member. A Registered Representative shall not act or hold himself out as having the authority to execute trades on the Markets, unless he is registered as an Approved Trader with the Exchange as contemplated under this Rules. Upon being registered as a Registered Representative with the Exchange, a Registered Representative may, in the name of such Member:

            (a) subject to Rule 2.1.4, solicit Customers, solicit or accept orders from Customers, and give advice to Customers for the purchase or sale of contracts; and
            (b) in connection with the purchase or sale of contracts provide feedback on market sentiment or market conditions, quote prices, and provide confirmation to Customers regarding orders which have been executed.

            Amended on 29 November 2010 and 1 April 2014.

          • 2.13.4 Register of Approved Traders and Registered Representatives

            The Exchange shall maintain a register of Approved Traders and Registered Representatives.

          • 2.13.5 Approved Traders and Registered Representatives Obligations

            Approved Traders and Registered Representatives are required to comply with the relevant provisions and other safeguards as prescribed under the Act, this Rules and applicable laws.

          • 2.13.6 Revocation of Registration of Approved Traders and Registered Representatives

            A Member shall immediately notify the Exchange if:

            (a) the licence from or registration with the Relevant Regulatory Authority for the conduct of relevant regulated activities for any of its Approved Traders or Registered Representatives has been revoked, or has expired;;
            (aa) the exemption from the requirement to hold a licence from or to register with the Relevant Regulatory Authority for the conduct of relevant regulated activities for any of its Approved Trader or Registered Representative is withdrawn;
            (ab) the Relevant Regulatory Authority imposes conditions or restrictions on the Approved Trader or Registered Representative in respect of the relevant regulated activities;
            (b) any of its Approved Traders or Registered Representatives is of unsound mind;
            (c) any of its Approved Traders or Registered Representatives is bankrupt;
            (d) any of its Approved Traders or Registered Representatives is subject to a composition or scheme of arrangement with his creditors, whether in or out of Singapore;
            (e) a judgment debt entered against any of its Approved Traders or Registered Representatives remains unsatisfied in whole or in part; or
            (f) the Approved Trader (other than an individual Trading Member) or a Registered Representative ceases to transact business through the Member or ceases to be sponsored by the Member.

            The Exchange may terminate the registration of an Approved Trader or a Registered Representation upon notification under Rule 2.13.6(ab) The registration of an Approved Trader or a Registered Representative shall automatically lapse upon such other notification under Rule 2.13.6, or the cessation of his sponsoring Member's Membership.

            Amended on 25 August 2009, 29 November 2010 and 1 April 2014.

          • 2.13.7 Summary Powers of Suspension of Registration of Approved Traders and Registered Representatives

            Notwithstanding and without prejudice to the powers of the Appeals Committee or the Disciplinary Committee, the Exchange may suspend in whole or in part the privileges of any Approved Trader or a Registered Representative for a period of up to one (1) year upon the occurrence of any of the following events:

            (a) the sponsoring Member's trading privileges are suspended pursuant to Rule 2.15.2;
            (b) an application by an Approved Trader or a Registered Representative for registration contains material errors or omissions or is misleading in a material respect;
            (c) an Approved Trader or a Registered Representative is found guilty in a court of law of misconduct or willful neglect in a manner contrary to the Act or other relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities;
            (d) an Approved Trader or a Registered Representative is convicted of an offence involving fraud or dishonesty;
            (e) an Approved Trader or a Registered Representative files a petition for bankruptcy;
            (f) an Approved Trader or a Registered Representative's licence from or registration with the Relevant Regulatory Authority is suspended;
            (fa) in the case of an Approved Trader or Registered Representative who is exempted from licensing or registration, the Relevant Regulatory Authority imposes conditions or restrictions on the Approved Trader or Registered Representative in respect of the relevant regulated activities;
            (g) an Approved Trader or a Registered Representative fails to pay any fee, levy or charge as prescribed by the Exchange from time to time; or
            (h) an Approved Trader or a Registered Representative acts in a manner which in the Exchange's opinion:
            (i) impairs the goodwill or reputation of the Exchange or any Markets; or
            (ii) impairs the operation of a fair, orderly and transparent market by the Exchange.

            Amended on 25 August 2009, 29 November 2010 and 1 April 2014.

          • 2.13.7A Duty to Notify the Exchange of Matters Concerning Approved Traders and Registered Representatives

            A Member shall immediately notify the Exchange upon the occurrence of any of the events in Rule 2.13.7(c), (d), (e), (f) and (fa).

            Added on 25 August 2009 and amended on 29 November 2010.

          • 2.13.8 Liability of Members

            A Member is responsible for all trades done through it. A corporate Member is responsible for the conduct and execution of trades by its Approved Traders and Registered Representatives and shall monitor and ensure that its Approved Traders and Registered Representatives comply with this Rules. For the avoidance of doubt, the Exchange retains disciplinary and supervisory authority over Approved Traders and Registered Representatives as contemplated in this Rules and applicable laws.

          • 2.13.9 Registration Form

            A Member shall submit an application to register a person as an Approved Trader or a Registered Representative in such form as the Exchange may prescribe from time to time. The Exchange may require from the Member or the prospective Approved Trader or Registered Representative such information, and may institute such investigation to verify information submitted by the Member or the prospective Approved Trader or Registered Representative, as it deems necessary. Registration as an Approved Trader or a Registered Representative of the Member takes effect upon the grant of approval by the Exchange.

        • 2.14 Change of Control of Members

          • 2.14.1 Notification to Exchange

            Unless otherwise provided in this Rules, a corporate Member shall notify, or, where practicable, pre-notify, the Exchange in writing of any Change of Control. "Change of Control" refers to:

            (a) any change in the legal or beneficial ownership of 20% or more of the Member's share capital and any subsequent increase of 5% or more of the Member's share capital;
            (b) any change in circumstances, which will have or may have the effect of altering the control of the Member;
            (c) any change of any director of the Member; or in the case of a Bank Trading Member, any change in the composition of its board of directors or of any director, who is resident in Singapore and/or responsible for its Business Governed by these Rules, due to the appointment, removal or resignation of any of its directors. For the purpose of this Rule 2.14.1(c), a change of director includes a change in the director's appointment from a non-executive director to an executive director;
            (d) the death or bankruptcy of any of its directors, or in the case of a Bank Trading Member, its directors who are resident in Singapore and/or responsible for its Business Governed by this Rules;
            (e) any change in its senior management, or in the case of a Bank Trading Member, its senior management responsible for the Bank Trading Member's Business Governed by this Rules;
            (f) any alteration to the memorandum and articles of association or constitutive documents of the Member, notice of which should be given at least seven (7) days prior to alterations being effected, except in the case of a Bank Trading Member, notification shall be furnished to the Exchange within such time that the Bank Trading Member is required to notify MAS of such alteration under the Banking Act, or any other regulation or directive issued thereunder;
            (g) the engagement or involvement or proposed engagement or involvement in any new business or any change in any of its business(es), or in the case of a Bank Trading Member, any Business Governed by this Rules; and
            (h) any change in its name.

            Amended on 25 August 2009.

          • 2.14.2 Reviewing Suitability

            Upon receipt by the Exchange of any notice of Change of Control from a corporate Member the Exchange shall review the suitability of that Member for Membership in the Exchange. The Exchange may require that Member to furnish such additional information as the Exchange may from time to time consider material in the course of such review.

          • 2.14.3 Suspension of Rights

            If, upon completion of the review referred to in Rule 2.14.2, the Exchange is not satisfied that the corporate Member continues to satisfy the applicable criteria for Membership set forth in Rule 2.3, it may suspend the rights of the corporate Member for up to a period of one (1) year.

            Refer to Exchange's obligation to refer a suspended Member, Approved Trader or Registered Representative to the Disciplinary Committee within 14 days under Rule 7.2.5.

        • 2.15 Resignation, Suspension and Termination of Members

          • 2.15.1 Member's Suspension or Resignation

            The following requirements apply in relation to a Member's suspension or resignation:

            (a) a Member may request the Exchange to temporarily suspend its Membership. A Member shall provide reasons for its request for voluntary suspension. For the avoidance of doubt, an individual Trading Member shall, in all cases, make a request to the Exchange to suspend his Membership, if he intends to act as an Approved Trader for a corporate Trading Member. The Exchange may grant to the requesting Member a temporary suspension of up to twenty-four (24) months, upon such terms and conditions as the Exchange deems fit;
            (b) a Member may cease to be a Member by virtue of giving the Exchange written notice of its wish to resign from Membership (a "Resignation Notice");
            (c) a Member which gives the Exchange a Resignation Notice must provide the Exchange with such information concerning the circumstances of the resignation as, in the opinion of the Exchange, is necessary for the Exchange to determine whether:
            (i) to accept the resignation;
            (ii) to postpone the effective date of the resignation; or
            (iii) without prejudice to the courses of action available to the Exchange under subparagraphs (i) and (ii) above, any other measures should be taken by the Exchange before or after the resignation takes effect;
            and
            (d) notwithstanding anything to the contrary herein, the Exchange may, in its absolute discretion, refuse to accept a Resignation Notice given by a Member or may postpone the effective date if it considers it necessary for the protection of Customers, or otherwise in the interests of the Markets. If the Exchange does so, the Exchange may waive the Member's liability for some or all Exchange fees, levies and charges arising in respect of the period following the date on which its Resignation Notice would otherwise have taken effect.

          • 2.15.2 Summary Powers of Suspension of Trading Privileges of Members

            Notwithstanding and without prejudice to the powers of the Appeals Committee and the Disciplinary Committee, the Exchange may suspend in whole or in part a Member's trading privileges for up to a period of one (1) year upon the occurrence of any of the following events:

            (a) a Member's failure to pay any fees, levies or charges as contemplated under Rule 2.12;
            (b) a Member's application for Membership contains material errors or omissions or is misleading in a material respect;
            (c) a Member fails to satisfy the Exchange that it meets such financial requirements, licensing, risk management or other material obligations as required under this Rules or by the Exchange from time to time; or
            (d) if, in the Exchange's opinion, it is necessary or desirable to protect the financial integrity, reputation or interest of the Markets or to promote the operation of a fair, orderly and transparent market.

          • 2.15.3 Termination of Membership

            The Exchange shall have the power to terminate any Membership upon the occurrence of any of the following events:

            (a) upon the death, mental incapacity, bankruptcy or filing of a bankruptcy petition by any individual Trading Member;
            (b) if a corporate Member becomes insolvent or calls a meeting of its creditors, or enters into an arrangement or composition under insolvency laws or suffers winding up, dissolution or other similar event;
            (c) revocation of a licence by the Relevant Regulatory Authority with respect to the Member's engagement in any Regulated Activity; or
            (d) in the case of a Bank Trading Member, revocation of its licence under the Banking Act or removal of its exemption from holding a CMS licence under the Act.

            Amended on 25 August 2009, 16 July 2012 and 1 April 2014.

          • 2.15.4 Effect of Suspension or Termination

            In the event of suspension or termination of trading privileges, the Exchange may direct the affected Member to Close Out any Open Positions or take such other steps that the Exchange deems fit for the protection of Customers or the maintenance of a fair, orderly and transparent market. The affected Member shall cooperate fully with the Exchange with respect to such directions. A suspension or termination of trading privileges does not in any way affect the liabilities of the Member to the Exchange and other Members and all such liabilities shall subsist until satisfied or discharged.

          • 2.15.5 Accrued Obligations Survive

            A Member which ceases to be a Member shall remain subject to this Rules and to the jurisdiction of the Exchange in respect of acts and omissions while it was a Member and in respect of any investigation or disciplinary proceedings relating thereto (including the application of any Sanction imposed) as if it was a Member.

          • 2.15.6 Exchange to Inform Clearing House

            The Exchange shall promptly inform the Clearing House of the resignation, termination or suspension, as well as of the lifting of such suspension, of the Membership of any Member.

    • Chapter 3 Conduct of Members, Approved Traders and Representatives

      • 3. Conduct of Members, Approved Traders and Registered Representatives

        • 3.1 Overview

          This Chapter is targeted at the ongoing obligations of Members, Approved Traders and Registered Representatives upon admission to or registration with the Exchange. This Chapter is divided into three (3) main parts: (a) duties applicable to all Members, Approved Traders and Registered Representatives; (b) duties applicable to Members engaging in Agency Trades and their Approved Traders and Registered Representatives; and (c) trading practices. The obligations of Members, Approved Traders and Registered Representatives are more onerous when a Member undertakes Agency Trades and handles Customer monies as opposed to when it engages solely in House Trades.

        • 3.2 Duties Applicable to All Members, Approved Traders and Registered Representatives

          • 3.2.1 General Duties of Integrity, Fair Dealing and Care

            When trading on the Markets, Members, Approved Traders and Registered Representatives are required to:

            (a) observe high standards of integrity, market conduct and fair dealing;
            (b) act with due skill, care and diligence; and
            (c) refrain from any act or course of conduct which is likely to harm the reputation of the Markets or any Members.

          • 3.2.2 Constitutive Documents

            A corporate Member shall ensure that its memorandum and articles of association or its constitutive documents conform to this Rules so as to enable that Member to perform the obligations, terms and covenants contemplated in this Rules. A corporate Member shall amend its memorandum and articles of association or its constitutive documents to the extent necessary to ensure consistency with this Rule 3.2.2.

          • 3.2.3 Reporting of Change in Member's Circumstances

            Without prejudice to Rule 2.14.1, a Member shall immediately inform the Exchange in writing of:

            (a) any material change to the information submitted in its application for Membership; or
            (b) any facts or circumstances which may change the legal form or organisation of the Member or its trading activities on the Markets, including (without limitation) any consolidation, re-organisation, merger, change of name, Change of Control or similar event.

          • 3.2.4 Other Reporting Obligations of Members

            A Member shall inform the Exchange in writing immediately if the Member, or any of its Approved Traders, Registered Representatives, directors, officers or employees, as the case may be:

            (a) breaches any provisions of the Act, this Rules or any applicable laws (foreign or local) governing the Member's activities;
            (b) breaches any rules of any other exchange or market (foreign or local) which has jurisdiction over the activities of the Member, its Approved Traders, Registered Representatives, directors, officers or employees;
            (c) breaches any provision involving fraud or dishonesty, whether in or out of Singapore;
            (d) breaches any director's duties as contemplated under common law or otherwise;
            (e) is the subject of a written complaint or investigation involving an allegation of fraud or dishonesty, whether in or out of Singapore;
            (f) is the subject of any disciplinary action taken by the Member involving suspension, termination, withholding of commissions, fines or any other significant limitation of activities;
            (g) engages in conduct that has the effect of circumventing the Act, other relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities or this Rules;
            (h) engages in conduct which is inconsistent with the principles of good business practice;
            (i) engages in conduct which is detrimental to the financial integrity, reputation or interests of the Exchange or the Markets; or
            (j) is insolvent, or is the subject of bankruptcy or winding up proceedings.

            The reporting obligations under this Rule 3.2.4 apply whenever any of the abovementioned events occurs, or threatens to occur.

            Amended on 1 April 2014.

          • 3.2.5 Prohibitions on Conduct of Other Business

            A Member may carry on its business on any market, unless the carrying-on of such business on such market has been prohibited by the Exchange. The Member shall fully comply with the prevailing constitution, rules, by-laws, regulations, customs and practices of such other markets.

          • 3.2.6 Settlement of Margins Due

            A Trading Member shall promptly settle all margin liabilities owed to its sponsoring Clearing Member.

          • 3.2.7 Speculative Long and Short Positions for the Same Contract Month

            A Member shall not be permitted to carry a speculative long position and a speculative short position for the same legal and beneficial owner in the same Contract for the same Contract Month.

          • 3.2.8 Advertising Guidelines

            A Member, Approved Trader and Registered Representative shall ensure that any advertising, market letters or similar information that they issue, in the form and context in which such advertisements, market letters or similar information appear or are used:

            (a) shall be true to the best of their knowledge and belief;
            (b) shall make no promise with respect to profits, always indicating the possibility of losses if profits are mentioned;
            (c) shall not misrepresent their Membership, registration, or the privileges which they enjoy under this Rules, in relation to the Exchange; and
            (d) shall not misrepresent any authorisation, licence or permission which they possess from, or any registration with, the appropriate regulatory body.

            If the Exchange finds any advertising, market letters or similar information issued by a Member, Approved Trader or Registered Representative to be in contravention of this Rule 3.2.8, it may require all such prospective advertising, market letters or similar information issued by that Member, Approved Trader or Registered Representative to be submitted to the Exchange for approval prior to release.

            A General Trading Member that holds a licence specified in Rule 2.4.1(b) shall not direct any advertising, market letters or similar information to deal in securities or Futures Contracts on the Exchange to customers domiciled in Singapore or to the extent that it may be acted upon by persons in Singapore.

            Amended on 29 November 2010 and 1 April 2014.

        • 3.3 Duties of Members Undertaking Agency Trades

          A Member which undertakes Agency Trades shall comply with the following additional obligations.

          • 3.3.1 Customer Account and Know-Your-Customer Requirements

            A Customer Account shall be identified and designated by the full name of the Customer and an account code. Prior to opening a Customer Account, a Member shall satisfy itself that it has:

            (a) obtained key particulars relating to the Customer (and any person authorised to trade for the Customer);
            (b) verified the identity of the Customer and that the Customer has requisite authority to open the account; and
            (c) understood the Customer's risk appetite and investment objectives,

            in a manner consistent with industry best practices on know-your-customer requirements.

            Refer to Regulatory Notice 3.3.1.

          • 3.3.2 Management Approval Required for Opening Customer Accounts

            At least one (1) management staff, or a management staff of a Related Corporation of that Member charged with the account approval function, is required to approve the opening of a Customer Account. Such management staff shall be independent of the Member's sales and dealing functions. The management staff's approval shall be in writing, maintained as a permanent record and obtained prior to the execution of the first trade of the Customer in that account.

          • 3.3.3 Risk Disclosure Statement

            (a) A Member shall obtain a written acknowledgement from its Customer that the Customer is aware of the risks associated with trading in Contracts.
            (b) The written acknowledgement shall:
            (i) in the case of a General Trading Member that holds a licence to engage in a Regulated Activity, contain such requirements as contemplated under the Act;
            (ii) in the case of a General Trading Member that holds a licence specified in Rule 2.4.1(b), contain such requirements as may be prescribed by the Relevant Regulatory Authority. The General Trading Member shall immediately notify the Exchange on any changes to such requirements. Notwithstanding the foregoing, the Exchange shall have the discretion to prescribe additional requirements; and
            (iii) in the case of a Bank Trading Member, contain such requirements as contemplated under the Act and include an acknowledgement by the Customer that the Investor Compensation Scheme contemplated under Part XI of the Act does not apply in relation to the Bank Trading Member.

            Amended on 25 August 2009, 16 July 2012 and 1 April 2014.

          • 3.3.4 Customer Instructions and Power of Attorney

            A Member shall execute orders only upon receipt of instructions from a Customer which has opened accounts with the Member. Unless otherwise authorised by a Customer, the Member shall communicate solely with that Customer in respect of statements, contract notes, or any other information relating to the activities of that Customer. The Member shall obtain a power of attorney or proper written authorisation from its Customer before:

            (a) accepting orders from a third party to trade in that Customer Account; or
            (b) allowing a third party to collect monies, assets, contract notes, cheques or statements on that Customer's behalf.

          • 3.3.5 Customer Education

            Save for Accredited Investors, a Member shall provide its Internet Trading Customers with adequate information, guidance and training with respect to the following matters:

            (a) potential limitations and risks of Internet Trading trading;
            (b) prohibited trading practices;
            (c) system functionalities and order management procedures; and
            (d) Contract Specifications.

            With respect to Accredited Investors, a Member's obligation relates solely to the provision of adequate information, guidance and training in relation to prohibited trading practices.

            Refer to Practice Note 3.3.5.

            Amended on 15 March 2013.

          • 3.3.6 Orders Only Via Registered Representatives

            Other than orders made via Internet Trading by Customers, a Member may only accept orders on behalf of Customers through its Registered Representatives.

            Amended on 15 March 2013.

          • 3.3.7 Accepting Orders without Executing

            A Member or a Registered Representative shall not accept orders from a Customer for contracts without causing such orders to be executed on the relevant markets and in accordance with the rules applicable to such markets. An Approved Trader shall execute such orders in accordance with the rules applicable to such markets.

          • 3.3.8 Recording of Orders

            (a) Unless an order or amendment or cancellation of an order is immediately entered by an Approved Trader into the OMS or such other electronic facility or automated trading system that facilitates trading on markets, as the case may be, a Registered Representative shall immediately record such order, amendment or cancellation.
            (b) The order, amendment or cancellation shall be recorded:
            (i) in the case of a General Trading Member that holds a licence to engage in a Regulated Activity and a Bank Trading Member, on an Order Form. "Order Form" as used herein refers to an order form that is dated, time-stamped and contains such information as required under Regulation 39(3) of the Conduct of Business Regulations and other information as prescribed by the Exchange; and
            (ii) in the case of a General Trading Member that holds a licence specified in Rule 2.4.1(b), in the manner prescribed by the Relevant Regulatory Authority. The General Trading Member shall immediately notify the Exchange on any changes to such requirements. Notwithstanding the foregoing, the Exchange shall have the discretion to prescribe additional requirements.

            Refer to Regulatory Notice 3.3.8.

            Amended on 1 April 2014.

          • 3.3.8A Preventing Unauthorised Changes to Order Information

            A Member must have in place controls to prevent unauthorised changes to order information entered into the Trading System.

            Added on 15 March 2013 and 14 November 2016.

          • 3.3.9 Customer's Statement of Account and Contract Note

            (a) A Member shall issue statements of account and contract notes to its Customers.
            (b) The issuance of statements of account and contract notes shall:
            (i) in the case of a General Trading Member that holds a licence to engage in a Regulated Activity and a Bank Trading Member, comply with the applicable provisions including provisions relating to a Customer's statement of account and contract note in electronic form, as required under the Conduct of Business Regulations. With respect to the issuance of a statement of account or contract note in an electronic form, a Member shall obtain the Customer's prior revocable and informed consent and retain evidence of such Customer's consent. Informed consent refers to a Customer being apprised of the manner of delivery and retrieval of the electronic record and any costs incurred in connection therewith;
            (ii) in the case of a General Trading Member that holds a licence specified in Rule 2.4.1(b), comply with such requirements as prescribed by the Relevant Regulatory Authority, including requirements relating to a customer's statement of account or contract note in electronic form. The General Trading Member shall immediately notify the Exchange on any changes to such requirements. Notwithstanding the foregoing, the Exchange shall have the discretion to prescribe additional requirements.
            (c) At the request of the Exchange, a Member shall produce for inspection the contract note in substantially the same form and containing the same information as was provided to the Customer.

            Amended on 1 April 2014.

          • 3.3.10 Segregation of Customers' Monies and Assets and Fiduciary Obligations

            Subject to Rule 3.3.10(b)(ii), the following requirements apply in relation to a Member's fiduciary obligations to its Customers:

            (a) a Member shall discharge its fiduciary obligations to its Customers by:
            (i) segregating Customers' monies and assets;
            (ii) depositing Customers' monies and assets in trust or custody accounts; and
            (iii) separately accounting for the monies and assets of each Customer;
            and
            (b) a Member shall comply with the following segregation requirements:
            (i) in the case of a General Trading Member that holds a licence to engage in a Regulated Activity and a Bank Trading Member, all segregation requirements under the Act and the Conduct of Business Regulations. Except as allowed under those Regulations, the Member is prohibited from depositing or co-mingling its own monies and assets with its Customers' monies and assets; and
            (ii) in the case of a General Trading Member that holds a licence specified in Rule 2.4.1(b), such segregation requirements as prescribed by the Relevant Regulatory Authority. The General Trading Member shall immediately notify the Exchange on any changes to such requirements. Notwithstanding the foregoing, the Exchange shall have the discretion to prescribe additional requirements.

            "Customer" as used in this Rule 3.3.10 in relation to a General Trading Member that holds a licence to engage in a Regulated Activity and a Bank Trading Member does not include: (a) a director, officer, employee, Approved Trader or Registered Representative of the Member; or (b) an Affiliate of the Member.

            Amended on 1 April 2014 and 2 May 2016.

          • 3.3.11 Trading or Accepting Customer's Monies or Assets After Insolvency

            Unless otherwise approved by the Exchange, a Member shall not trade, accept any Customer's monies or assets, or solicit any new orders after the Member's insolvency.

          • 3.3.12 Customer Margins

            Margins payable by a Clearing Member to the Clearing House shall be governed by the Clearing Rules. For margins applicable to Customers, margin calls and related matters, the following requirements apply:

            (a) a Member shall procure Initial Margins from its Customers, and ensure that its Customers comply with Maintenance Margins for such amounts as required by the Clearing House. "Initial Margins" refers to the minimum amount required to be deposited by Customers with a Member for each: (i) open Contract as prescribed by the Clearing House; or (ii) open contract traded on an exchange other than the Exchange, as prescribed by the relevant exchange or clearing house. "Maintenance Margins" refers to the minimum balance which shall be maintained in a Customer Account subsequent to the deposit of the Initial Margins for that Customer's (i) Open Positions in Contracts as prescribed by the Clearing House, and (ii) Open Positions in contracts traded on exchanges other than the Exchange as prescribed by the relevant exchanges or clearing houses;
            (b) subject to Rule 3.3.12(ba) and (bb), a Member may accept cash, government securities, common stocks, bank certificates of deposit, bank guarantees, bank letters of credit, gold bars, gold certificates and such other instruments as the Clearing House permits from its Customer for meeting the Customer's Initial Margins and Maintenance Margins requirements. Valuation of such instruments shall be in accordance with procedures specified by the Clearing House on the Exchange's website.
            (ba) a General Trading Member that holds a licence to engage in a Regulated Activity and a Bank Trading Member shall not accept the following forms of margins under this Rule:
            (i) bank guarantees or letters of credit issued by a Customer, or a Customer's Related Corporation, which is a bank, for trades incurred in that Customer Account;
            (ii) bank guarantees and letters of credit other than those issued by a bank that holds a valid licence and operates in Singapore under the Banking Act (Cap. 19); and
            (iii) currency and financial instruments denominated in currencies which are subject to exchange controls such that they are illegal tender outside the currency's home country, or are restricted by any form of capital controls;
            (bb) a General Trading Member that holds a licence specified in Rule 2.4.1(b) shall not accept margins in the form of bank guarantees or letters of credit issued by a Customer, or a Customer's Related Corporation, which is a bank, for trades incurred in that Customer Account;
            (c) except for trades which reduce the Customer's Maintenance Margins requirements, a Member shall not allow a Customer to incur any new trade, unless:
            (i) the minimum Initial Margins for the new trade are deposited or are forthcoming within a reasonable period from the trade date; and
            (ii) the Customer's Total Net Equity complies with the Maintenance Margins for its existing Open Positions or additional margins to be posted pursuant to Rule 3.3.12(e) are forthcoming within a reasonable period from the trade date.
            For settlement currency denominated in Japanese Yen, 'reasonable period' in this Rule 3.3.12(c) means a period which shall not exceed three (3) Trading Days from the trade date (T+3). For all other settlement currencies, it means a period which shall not exceed two (2) Trading Days from the trade date (T+2);
            (d) Excess Margins on all Open Positions of a Customer may be utilised by a Member as Initial Margins on a new position of the same Customer. "Excess Margins" refers to credits in excess of Initial Margins;
            (e) a Member shall call for additional margins from a Customer if at any time the Customer's Total Net Equity falls below the Maintenance Margins. Such additional margins posted should be sufficient to bring the relevant account up to the Initial Margins level within a reasonable period. Nothing herein prohibits a Member from making a call for additional margins or imposing a stricter settlement period as it sees fit.

            For settlement currency denominated in Japanese Yen, 'reasonable period' in this Rule 3.3.12(e) means a period which shall not exceed three (3) Trading Days from the date that the Customer's Total Net Equity falls below the Maintenance Margins. For all other settlement currencies, it means a period which shall not exceed two (2) Trading Days from the date that the Customer's Total Net Equity falls below the Maintenance Margins;
            (f) if a Member is unable to contact a Customer, a written notice sent to the Customer at the most recent address furnished by the Customer to the Member shall be deemed sufficient;
            (g) in the event of a Member's failure to obtain margins from the relevant Customers as required under this Rule, a Member may take such necessary actions to rectify the deficiency as it sees fit. The Exchange may also order such Member to immediately Close Out all or such part of the positions of such Customers on its books so as to rectify the deficiency; and
            (h) a Member shall comply with such requirements on the computation and monitoring of a Customer's margins as the Exchange may prescribe.

            Refer to Regulatory Notice 3.3.12

            Amended on 1 April 2014 and 25 January 2017

          • 3.3.13 [Deleted]

            Deleted on 25 January 2017.

          • 3.3.14 Inter-Exchange Cross Margining

            Notwithstanding Rule 3.3.12, a Member may grant margin credit at a rate not exceeding that which is prescribed by the Clearing House, to a Customer which holds long and short positions on futures contracts (on the same underlying) which are traded on the Exchange and another exchange, to the extent that the risk on the position in one (1) exchange is set-off against another ("Inter-exchange Cross Margining") if the following conditions are satisfied:

            (a) the risk-offsetting positions relate to contracts prescribed by the Clearing House as eligible for inter-exchange cross margining;
            (b) the Member ensures that the risk-offsetting positions are carried in Customer Accounts in which the same Customer is the legal and beneficial owner;
            (c) the Member provides for the right of set-off in respect of the Customer's positions with the Clearing House and any other relevant clearing house in its contractual agreements with that Customer;
            (d) the Member, except for a General Trading Member that holds a licence specified in Rule 2.4.1(b), continues to calculate the Counterparty Risk Requirement for each counterparty exposure to the Customer as if margin credit had not been granted;
            (e) the Member continues to maintain adequate liquidity facilities (bank lines and cash balances) to fund the gross margin payable to the Clearing House and any other relevant clearing houses;
            (f) the Member imposes a limit on the amount of margin credit granted to the Customer which should not exceed 20% of the Member's:
            (i) Free Financial Resources; or
            (ii) Net Liquid Capital, in the case of a General Trading Member that holds a licence specified in Rule 2.4.1(b) in respect of Contracts traded on the Exchange;
            (g) the Member has proper internal controls and risk management procedures*, to monitor the credit risk and liquidity risk arising from Inter-exchange Cross Margining. The Exchange reserves the right to impose additional conditions or disallow a Member from offering Inter-exchange Cross Margining if it is not satisfied with the internal controls and risk management procedures of the Member requesting Inter-exchange Cross Margining; and

            *Refer to Regulatory Notice 3.3.14(g).
            (h) the Member notifies the Exchange, prior to offering Inter-exchange Cross Margining to its Customers, that it has complied and will continue to comply with the conditions set forth herein.

            For the avoidance of doubt, Inter-exchange Cross Margining is not allowed for positions carried in Customer Accounts opened with different Members.

            Amended on 1 April 2014.

          • 3.3.15 Transfer of Error Trades to House Account

            The following requirements apply in relation to the transfer of error trades:

            (a) if a Member commits an execution error (other than an error in price), the Member shall duly transfer the error trade out from the Customer Account to the Member's House Account, or such other account as the Exchange may permit;
            (b) if a Member commits an execution error in price such that the price executed is not in accordance with the Customer's instruction, the Member may, after reaching an agreement with the Customer, resolve the error by compensating the Customer through cash or credit adjustment to the Customer Account. However, in a situation where the Customer does not accept cash or credit adjustment but requests the Member to abide by the instructed price, the Member may accede to the request provided that it discloses to the Customer the details of the trade execution error in the contract note issued to the Customer. These details shall include:
            (i) the price that the Member has confirmed to the Customer; and
            (ii) the actual price at which the trade is executed;
            and
            (c) the Member shall maintain proper records to document the details of the error trade, and the review and approval process by its authorised personnel. The Member shall submit to the Exchange on the first Business Day of each week, details of all execution errors in price which occurred in the preceding week where its Customers did not accept cash or credit adjustments, in the form prescribed by the Exchange from time to time.

            Amended on 2 May 2016.

          • 3.3.16 Transfer of Unsuccessful Give-Up Trades to House Account

            A Member may enter into a give-up arrangement with a Customer and an accepting Clearing Member, provided that such arrangement is supported by a duly executed give-up agreement. If an executed trade is not successfully given up to and accepted by the accepting Clearing Member by the end of the Trading Day following the trade date (T+1), the Member shall transfer the give-up trade to a designated account meant for unsuccessful give-up trades. This designated account shall be a House Account, or such other account as the Exchange may permit. The Member shall conduct regular reviews and take action to clear the designated account.

            Refer to Regulatory Notice 3.3.16.

            Amended on 2 May 2016.

          • 3.3.16A Separate Accounts

            A Member must maintain separate accounts for each Person whose account is carried on the books of the Member.

            Added on 26 April 2013.

          • 3.3.17 Reporting of Account Identity

            A Member shall submit to the Clearing House, in the manner as prescribed from time to time, the identities of the owners or controlling parties of any House Account or Customer Account which:

            (a) is used for trading of Contracts or carrying of Contracts; or
            (b) contains positions required to be reported pursuant to this Rules as prescribed by the Clearing House.

            Refer to Regulatory Notice 3.3.17; 3.3.18; 3.3.26; 3.3.27.

            "Customer Account" as used in this Rule 3.3.17 does not include an account owned by: (a) a director, officer, employee, Approved Trader or Registered Representative of the Member; or (b) an Affiliate of the Member. "House Account" as used in this Rule 3.3.17, is an account which is not a Customer Account as defined in this Rule 3.3.17.

            Amended on 2 May 2016.

          • 3.3.18 Reporting of Open Positions

            The following requirements apply in relation to the reporting of Open Positions:

            (a) a Member shall submit to the Exchange a daily report of Open Positions. Such report shall be in such form as the Exchange may prescribe from time to time*; and

            * Refer to Regulatory Notice 3.3.17; 3.3.18; 3.3.26; 3.3.27.
            (b) upon request by the Exchange, a Member shall obtain the information required by this Rule regarding the ownership and control of Open Positions within any Omnibus Account and any sub-account of any Omnibus Account. However, if the Omnibus Account holder does not want the identity of any sub-account holder to be disclosed to its carrying Member, the Omnibus Account holder may apply to the Exchange for a special identification for the sub-account thereof, for reporting Open Positions covered within this Rule through its carrying Member.

          • 3.3.19 Omnibus Accounts

            A Member may carry Omnibus Accounts subject to such requirements and procedures as the Exchange may prescribe from time to time.

          • 3.3.20 Limits on Omnibus Accounts

            The Exchange may place limitations on a Member carrying Omnibus Accounts depending on:

            (a) the number of Omnibus Accounts carried and volume of business of the Member; and
            (b) the financial condition of the Member and the Omnibus Account holders in light of requirements or standards determined by the Exchange. A Member that carries Omnibus Accounts shall ensure that the Omnibus Accounts are operated at all times in accordance with this Rules including the relevant rules on position limits and shall, without prejudice to any other liability it may incur, indemnify the Exchange in relation to any claim referable to such violation.

          • 3.3.21 Disclosures Relating to Omnibus Accounts

            An Omnibus Account holder shall at all times disclose to the Member carrying that account the gross long and short positions held in that Omnibus Account in each contract. Such Member shall immediately notify the Exchange and shall promptly comply with all orders of the Exchange if the Omnibus Account holder fails to make such disclosure. A Member that carries Omnibus Accounts shall ensure that its Omnibus Account holders are aware of this Rule.

          • 3.3.22 Audit Trail

            A Member shall be required to produce a complete audit trail of transactions, from the receipt of an order to its settlement, when so requested by the Exchange.

            Refer to Regulatory Notice 2.6.4.

          • 3.3.23 Record Keeping

            A Member shall ensure that data and records are:

            (a) made and kept in a way that is easily retrievable by authorised personnel;
            (b) kept for at least the minimum period required by the Securities and Futures Act, Securities and Futures Regulations, and, in the case of a General Trading Member that holds a licence specified in Rule 2.4.1(b), any other relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities; and
            (c) made available to the Exchange in a timely manner when requested.

            Amended on 1 April 2014.

          • 3.3.23A Register of Securities

            The following requirements apply in relation to the maintenance of a register of securities for Members, Registered Representatives and Approved Traders executing Agency Trades, except for General Trading Members that holds a licence specified in Rule 2.4.1(b) and their Registered Representatives and Approved Traders, that deal in Contracts that are classified as securities under the Act:

            (a) a Member, its Registered Representatives and Approved Traders executing Agency Trades shall maintain a register of securities in accordance with the SFA;
            (b) If asked by the Exchange, a Member, its Registered Representatives and Approved Traders executing Agency Trades shall produce the register for inspection; and
            (c) a Member, its Registered Representatives and Approved Traders executing Agency Trades shall permit the Exchange to take extracts of the register.

            Added on 16 July 2012 and amended on 1 April 2014.

          • 3.3.24 IT and Data Security Requirements

            A Member shall comply with all information technology and data security requirements the Exchange may prescribe from time to time including installing measures to prevent tampering of data and records.

          • 3.3.25 ID Tags and Passwords

            A Member shall issue unique identification tags and passwords to Customers and Approved Traders which have access to the Trading System through that Member.

            Amended on 14 November 2016.

          • 3.3.26 Computations of Financial and Capital Requirements

            A Member shall make and keep as a record, formal computations of its financial and capital requirements. The computations shall be in such form as the Exchange may prescribe and be submitted to the Exchange within such time as stipulated by the Exchange.

            Refer to Regulatory Notice 3.3.17; 3.3.18; 3.3.26; 3.3.27.

          • 3.3.27 Submission of Financial Statements and Other Information to the Exchange

            The Exchange may at any time require a Member to submit to the Exchange financial statements or other information in such form and pertaining to such matters and within such time as stipulated by the Exchange. The Member shall thereafter comply with such directions as the Exchange may in its sole discretion issue.

            Refer to Regulatory Notice 3.3.17; 3.3.18; 3.3.26; 3.3.27.

          • 3.3.28 Certification by Auditor

            The following requirements apply in relation to auditor certification of a Member's accounts:

            (a) a Member shall be required to furnish financial information duly audited by an external auditor in the jurisdiction in which that Member is incorporated or registered to the Exchange, within five (5) months of the end of its financial year or within such longer period as may be permitted in writing by the Exchange. The Member shall submit the information in the following forms:
            (i) in the case of a General Trading Member, the relevant forms which it is required to lodge with its Relevant Regulatory Authority, translated into English, and such other forms as prescribed by the Exchange under Rule 3.3.27; and
            (ii) in the case of a Bank Trading Member,as prescribed by the Exchange under Rule 3.3.27;
            (b) the external auditor shall certify whether, in its opinion:
            (i) the Member has complied with the capital and financial requirements set out in the Act or the relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities, and this Rules;
            (ii) the Member's books of accounts and records are those usual in a business of that nature and appear to have been kept in a proper manner in accordance with relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities or the Act, and this Rules;
            (iii) the financial position of the Member is such as to enable it to conduct its business or, in the case of a Bank Trading Member, its Business Governed by this Rules on sound grounds, having regard to the nature and volume of the business transacted during its past financial year as shown by its books of accounts and records; and
            (iv) the external auditor has obtained all the necessary information and explanations for the proper conduct of the audit and to enable it to furnish the certificate.

            Amended on 25 August 2009 and 1 April 2014.

          • 3.3.29 Reporting Obligations of Auditors

            A Member shall cause the external auditor referred to in Rule 3.3.28 to immediately report to the Exchange if:

            (a) the external auditor becomes aware of any matter which in its opinion adversely affects or may adversely affect the financial position of the Member to a material extent;
            (b) the external auditor becomes aware of any matter which in its opinion constitutes or may constitute a contravention of any provision of the Act, relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities or this Rules, or an offence involving fraud or dishonesty;
            (c) the external auditor becomes aware of any irregularity which in its opinion has or may have a material effect on the accounts, including irregularities that jeopardise the monies or other assets of any Customer; or
            (d) in the external auditor's opinion, the accounting system, internal accounting control and procedures for safeguarding monies or other assets are inadequate and the inadequacies have a material effect on the accounts.

            Amended on 1 April 2014.

          • 3.3.30 Change of Auditors

            (a) A General Trading Member that holds a licence to engage in a Regulated Activity shall obtain the prior written approval of the Exchange in the event of any change of its existing external auditor.
            (b) A Bank Trading Member shall notify the Exchange at least seven (7) days prior to any change of its existing external auditor.
            (c) A General Trading Member that holds a licence specified in Rule 2.4.1(b) shall notify the Exchange at least seven (7) days prior to any change of its existing external auditor. The General Trading Member shall appoint external auditors that are accepted by its Relevant Regulatory Authority.
            (d) If the Exchange is not satisfied with the performance of duties by an external auditor appointed by a Member In relation to the Trading Member's activities on the Exchange, it may:
            (i) at any time direct the Member to remove the external auditor; and
            (ii) direct the holder, as soon as practicable thereafter, to appoint another external auditor.

            Amended on 25 August 2009 and 1 April 2014.

          • 3.3.31 Prohibition Against General Trading Member Acting as Guarantor

            Unless approved by the Exchange, a General Trading Member that holds a licence to engage in a Regulated Activity and its Foreign Branches shall not act as guarantors or furnish a guarantee for the benefit of any Person, including a Related Corporation of such Member. For the avoidance of doubt, this prohibition does not apply to a Clearing Member's obligation to guarantee all trades to the Clearing House.

            A General Trading Member that holds a licence specified in Rule 2.4.1(b) shall notify the Exchange immediately if it acts as guarantors or furnish a guarantee for the benefit of any Person, including a Related Corporation of such Member and such activity has or may have a financial or capital impact on the Trading Member and required to be reported to the Relevant Regulatory Authority.

            Amended on 25 August 2009 and 1 April 2014.

          • 3.3.32 Foreign Branch of General Trading Member

            A General Trading Member licensed under the Act shall satisfy the following requirements prior to opening an overseas branch (the "Foreign Branch") and on a continuous basis:

            (a) maintain $500,000 per branch as "other operational risk requirement" in the calculation of the Operational Risk Requirement.
            (b) procure approvals from MAS and the Exchange to operate a Foreign Branch;
            (c) procure approvals from the primary regulator in the country where the Foreign Branch is located and furnish written documentation of such approval to the Exchange;
            (d) where applicable, procure approvals from the primary regulator in the country where the General Trading Member or the General Trading Member's parent company is incorporated and furnish written documentation of such approval to the Exchange;
            (e) comply with this Rules and such other requirements as imposed by the Exchange on Foreign Branches from time to time;
            (f) ensure that the activities of the Foreign Branch fall within the Regulated Activities which the General Trading Member is authorised to conduct under its CMS Licence, subject to any prohibitions imposed by the Exchange under Rule 3.2.5;
            (g) submit an undertaking in the form prescribed by the Exchange whereby the General Trading Member provides assurances regarding the Foreign Branch's treatment of its Customer Accounts, Customers' funds, position limits and the Exchange's ability to audit and access the books and records of the Foreign Branch;* and

            * Refer to Annex F — Undertaking of Foreign Branch.
            (h) conduct an internal audit at least once every twenty-four (24) months on the Foreign Branch. The General Trading Member shall submit a copy of the internal audit report to the Exchange within one (1) week of the General Trading Member being provided with the same.

            Amended on 25 August 2009 and 29 December 2014.

          • 3.3.33 Application of Rule 3.3

            The following Rules shall not apply to a Trading Member that holds a licence specified in Rule 2.4.1(b).

            Rule Heading
            3.3.1 Customer Account and Know-Your- Customer Requirements
            3.3.2 Management Approval Required for Opening Customer Accounts
            3.3.4 Customer Instructions and Power of Attorney
            3.3.5 Customer Education
            3.3.15 Transfer of Error Trades to House Account
            3.3.31 Prohibition Against General Trading Member Acting as Guarantor

            A Trading Member that holds a licence specified in Rule 2.4.1(b) shall comply with such requirements established by the Relevant Regulatory Authority, if any, and principles of good business practice in relation to the areas set out in Rule 3.3.33.

            Added on 1 April 2014.

        • 3.4 Trading Practices and Conduct Rules of Members, Approved Traders and Registered Representatives

          Market manipulation, market rigging and other forms of trading misconduct set forth in the Act distort the operation of a fair, orderly and transparent market and are serious offences. A Member, Approved Trader or Registered Representative shall at all times observe the trading practices and conduct rules set forth in the Act and this Rules.

          • 3.4.1 Market Manipulation

            A Member, Approved Trader or Registered Representative shall not manipulate or attempt to manipulate the price of a contract or of any underlying, or corner, or attempt to corner, any underlying.

          • 3.4.2 Churning

            A Member, Approved Trader or Registered Representative is prohibited from churning or generating commissions through creating excessive transactions in a Customer's Account.

          • 3.4.3 False Trading, Bucketing, Fraudulent Inducement to Trade and Employment of Fraudulent Device

            A Member, Approved Trader or Registered Representative shall not:

            (a) engage in, or knowingly act with any other Person in, any act or practice that will or is likely to create a false or misleading appearance of active trading in any contract or a false or misleading appearance with respect to the price of any contract;
            (b) knowingly execute, or hold out as having executed, an order for the purchase or sale of a contract, without having effected a bona fide purchase or sale of the contract in accordance with this Rules;
            (c) induce or attempt to induce another person to trade in a contract:
            (i) by making or publishing any statement, promise or forecast that it knows or ought reasonably to know to be false, misleading or deceptive;
            (ii) by any dishonest concealment of material facts;
            (iii) by the reckless making or publishing of any statement, promise or forecast that is false, misleading or deceptive; or
            (iv) by recording or storing in any mechanical, electronic or other device information that is knowingly false or materially misleading;
            or
            (d) directly or indirectly in connection with any trading in a contract:
            (i) employ any device, scheme or artifice to defraud;
            (ii) engage in any act, practice or course of business which operates as a fraud or deception, or is likely to operate as a fraud or deception upon any Person;
            (iii) make any false statement of a material fact; or
            (iv) omit to state a material fact necessary in order to make any statements made, in the light of the circumstances under which they were made, not misleading.

          • 3.4.3A Duty to Monitor for Trading Misconduct

            A Member must have in place processes to review orders and trades for the purpose of detecting suspicious trading behaviour.

            Refer to Practice Note 3.4.3A.

            Added on 15 March 2013.

          • 3.4.4 Duty to Inform Exchange of Prohibited Trading Practices

            A Member, Approved Trader or Registered Representative shall immediately inform the Exchange if it reasonably suspects, or knows of, any commission or attempted commission of the acts prohibited under Rules 3.4.1, 3.4.2 and 3.4.3.

          • 3.4.5 Dissemination of False or Misleading Information

            A Member, Approved Trader or Registered Representative shall not disseminate false or misleading reports concerning market information or conditions that may affect the price of any contract, if the Member, Approved Trader or Registered Representative:

            (a) knows or ought reasonably to know that the information is false or misleading; or
            (b) is reckless about the truth of the information.

            This prohibition includes circulation or aiding in the circulation in any manner of rumours which cast doubt on the integrity of any contract or underlying.

          • 3.4.6 Professional Misconduct

            A Member, Approved Trader or Registered Representative shall not:

            (a) permit the use of the Member's facilities or Membership privileges by another Member, Approved Trader or Registered Representative or non-Member in a manner that impairs the dignity or degrades the good name of the Exchange, or creates a market or other situation detrimental to the Exchange, or effectuates manipulations or cornerings or attempts at either, or to itself do any of the foregoing;
            (b) engage in any conduct which impairs or tends to impair the dignity or the good name of the Exchange;
            (c) commit an act which is substantially detrimental to the interest of the Exchange;
            (d) refuse to comply with an order of the Exchange, the Disciplinary Committee or the Appeals Committee;
            (e) refuse to comply with a final arbitration award;
            (f) fail to answer Customers' complaints promptly and in appropriate detail;
            (g) commit any fraudulent or dishonest act or any act of bad faith;
            (h) act in a dishonourable or uncommercial manner;
            (i) make a material mis-statement to the Exchange, the Disciplinary Committee or the Appeals Committee, or in any information supplied to the Exchange or its officers;
            (j) make, or cause to be made, a false or misleading entry in any books, records, reports, slips, documents or statements relating to the business, affairs, transactions, conditions, assets or accounts of the Member;
            (k) omit from making, for whatever reason, a material entry in any books, records, reports, slips, documents or statements relating to the business, affairs, transactions, conditions, assets or accounts of the Member;
            (l) alter or destroy any books, records, reports, slips, documents or statements relating to the business, affairs, transactions, conditions, assets or accounts of the Member without a valid reason;
            (m) make use of or reveal any confidential information obtained by reason of participating in any investigative proceeding or hearing;
            (n) refuse to appear before the Exchange, the Disciplinary Committee or the Appeals Committee at a duly convened hearing or in connection with any investigation; or
            (o) refuse to fully answer all questions or produce all books and records in relation to any audit, hearing or investigation.

          • 3.4.7 Disclosing Orders Prohibited

            A Member, Approved Trader or Registered Representative shall not disclose an order to any Person, except to the following for official purposes:

            (a) an officer of the Exchange;
            (b) an employee or agent of the Member for the purpose of executing the order;
            (c) the Member's sponsoring Clearing Member for the purpose of clearing the order; or
            (d) such other Persons as required by law.

          • 3.4.8 Good Faith Bids and Offers.

            A Member or an Approved Trader shall not knowingly enter, or cause to be entered, bids or offers into the Trading System other than in good faith for the purpose of executing bona fide transactions.

            Refer to Practice Note 3.4.8.

            Amended on 14 November 2016.

          • 3.4.9 Fictitious Transactions Without Change In Ownership

            The creation of fictitious transactions or the placing of orders which do not involve any change in ownership, or the execution of such an order with knowledge of its character by a Member, Approved Trader or Registered Representative is prohibited. A Member, Approved Trader or Registered Representative shall not accept buying and selling orders at the same time and price from a Customer for the same contract month of the same futures contract or in the case of option contracts, a put or call option contract with the same class of options, the same strike price and expiration month. This Rule does not apply if orders are entered in the following circumstances:

            (a) the orders are from a fund manager whose instructions are intended to switch the contract from one (1) sub-account to another for legitimate commercial reasons;
            (b) the orders will be booked out finally to different beneficial owners; or
            (c) if the Member or the Approved Trader establishes to the Exchange that it was not a purpose of the orders to create a false market.

            Refer to Practice Note 3.4.9.

          • 3.4.10 Overtrading by a Member, Approved Trader or Customer

            The following provisions apply in relation to overtrading:

            (a) a Member shall not execute any trade beyond any limits imposed by that Member's sponsoring Clearing Member, the Exchange, the Clearing House or MAS. A Member shall ensure that its Customers do not trade beyond any limits. A Member shall be guilty of overtrading if such Member or its Approved Trader enters into any trade or trades beyond any limits imposed from time to time by its sponsoring Clearing Member, the Exchange or MAS. If a Member is charged with violating this Rule:
            (i) the Exchange may at its discretion suspend that Member from trading until such time as the Disciplinary Committee or the Appeals Committee has completed the hearing in respect of such charge against such Member;
            (ii) its sponsoring Clearing Member shall, upon being notified by the Exchange or the Clearing House as the case may be, withhold any profits due or owing to such Member from the transaction that resulted in overtrading, or such monies due or owing to such Member as directed by the Exchange or the Clearing House, and shall not release any such profits or monies until the Disciplinary Committee or the Appeals Committee has completed the hearing in respect of the charge against the Member; and
            (iii) without prejudice to the foregoing, the Exchange may, in any case of overtrading, direct the Clearing House to withhold any profits due or owing to any Clearing Member from the transaction that resulted in overtrading, or such monies due or owing to such Member, until the Disciplinary Committee or the Appeals Committee has completed the hearing in respect of the charge against the Member; and
            (b) [deleted]
            (c) each trade entered into beyond any limits imposed by a sponsoring Clearing Member, the Exchange, the Clearing House or MAS shall be deemed to be a distinct and separate violation of this Rule and shall be punishable as such. If a Member is charged by the Exchange for overtrading, it is not necessary for the Exchange to show that the Member intended to overtrade. The act of overtrading is sufficient to constitute an offence under this Rules.

            Amended on 15 March 2013.

          • 3.4.11 Knowingly Taking Advantage of an Error Prohibited

            A Member, Approved Trader or Registered Representative shall not knowingly take advantage of a situation arising from:

            (a) a breakdown or malfunction in any Exchange Systems; or
            (b) error entries made by the Exchange on the Trading System.

            Amended on 14 November 2016.

          • 3.4.12 Deemed Rule Violations

            A Member, Approved Trader or Registered Representative shall be deemed to be in violation of this Rules if it is convicted of any offence relating to fraud, any act of bad faith, dishonest conduct, dishonorable conduct or uncommercial conduct before any court of law.

          • 3.4.13 Front Running — Priority of Customers' Orders

            A Member, Approved Trader or Registered Representative shall not trade in contracts for its own accounts or for an account associated with or connected to that Member, Approved Trader or Registered Representative, if that Member, Approved Trader or Registered Representative also has in hand Customers' orders (including discretion orders) to do the same at the prevailing market price or at the same price. This Rule does not apply if:

            (a) that Member, Approved Trader or Registered Representative has no access to the Customer's order flow information;
            (b) the Customer has prescribed that the order be executed under specified conditions and the order cannot be executed by reason of those conditions; or
            (c) the transaction is entered into in circumstances prescribed by MAS.

            "Customer" as used in this Rule 3.4.13 does not include the Member's Approved Traders, Registered Representatives or Persons associated with or connected to the Member, Approved Trader or Registered Representative.

          • 3.4.14 Trading Against Customers' Orders Prohibited

            A Member, Approved Trader or Registered Representative shall not knowingly effect a transaction to buy from or sell to a Customer any contract for:

            (a) an account in which the Member, Approved Trader or Registered Representative has an interest; or
            (b) the account of any Person associated with or connected to the Member, Approved Trader or Registered Representative.

            This Rule does not apply if the Member, Approved Trader or Registered Representative has first entered the Customer's order into the Trading System and waited at least 10 seconds before entering an opposite order, or if the Member, Approved Trader or Registered Representative has obtained the Customer's prior written consent. "Customer" as used in this Rule 3.4.14 does not include the Member's Approved Traders, Registered Representatives or Persons associated with or connected to the Member, Approved Trader or Registered Representative.

            Amended on 14 November 2016.

          • 3.4.15 Prohibited Conduct

            A Member, a Registered Representative or an Approved Trader shall not participate in any prohibited market conduct or in any insider trading, or knowingly assist a person in such conduct.

            Added on 16 July 2012.

        • 3.5 Inspection and Audit

          • 3.5.1 Scope of Inspection and Audit Rights

            The Exchange, in its discretion, may inspect, audit and take copies of the accounts, books, contracts and other records and documents of that Member to the extent that is necessary or desirable in connection with the discharge of the Exchange's regulatory obligations. The Exchange may also appoint or cause the Member to appoint independent Persons to do the same. Such Person shall report to the Exchange on all or any of the following:

            (a) whether that Member's accounts are being kept and maintained in compliance with this Rules;
            (b) whether that Member's financial position is being maintained in compliance with this Rules;
            (c) whether that Member's business is being conducted in compliance with this Rules;
            (d) whether that Member's accounts, financial position or any non-compliance with this Rules may jeopardize the integrity of the Exchange; and
            (e) such other matter as the Exchange may direct.

          • 3.5.2 Access and Cooperation

            A Member shall cooperate with the Exchange and procure for the Exchange or the duly appointed Person:

            (a) access to its premises or its affiliates' premises, as applicable, to carry out on-site inspections during normal business hours;
            (b) access to the appropriate person for any queries or interviews which the Exchange or the duly appointed Person wishes to conduct in connection with its audit;
            (c) any information or documents which the Exchange or the duly appointed Person considers appropriate for the purpose of investigations; and
            (d) its Customers' full cooperation with the Exchange.

            Amended on 2 May 2016.

          • 3.5.3 Use of Report and Costs

            The Exchange may rely on the information obtained and reports prepared pursuant to Rule 3.5.1 and act on the recommendations set forth therein. The Exchange may also refer a report prepared pursuant to Rule 3.5.1 to the Clearing House or Disciplinary Committee for further action if appropriate. The Exchange may charge a fee for any inspection under Rule 3.5.1. The fee is payable immediately by the Member concerned.

    • Chapter 4 Listing and Trading of Contracts

      • 4. Introduction to Contracts Traded on the Market

        The Exchange offers Contracts which are broadly divided into Futures Contracts and Option Contracts.

        Amended on 26 November 2007.

        • 4.1 Rules Applicable to All Classes of Contracts Listed on the Markets

          • 4.1.1 MAS Approval for Listing

            The Exchange is not authorised to list or permit the trading of any Contract on the Markets without the prior approval of MAS for the listing and trading of such Contract.

          • 4.1.2 De-listing of Contracts

            Subject to the Act, the Exchange may, from time to time and in its absolute discretion, de-list any Contract. If there are no Open Positions in the relevant Contract which the Exchange wishes to de-list, any de-listing shall become effective at such time as the Exchange shall determine. If there are Open Positions in the relevant Contract which the Exchange wishes to de-list, the Exchange may require that such Open Positions be cash settled immediately or restrict trading only to enable the Closing Out of those Open Positions, except to the extent that the Exchange deems such trading to be necessary for the maintenance of a fair, orderly and transparent market.

          • 4.1.3 Dormant Contracts

            The Exchange may designate certain Contracts as dormant Contracts for various reasons including extended periods of illiquidity. Such Contracts are currently not available for trading on the Markets but may become available for trading at a future date.

          • 4.1.4 Contract Specifications and Supremacy

            Each Contract shall be governed by this Rules and the relevant Contract Specifications.* In the event of a conflict between this Rules and the Contract Specifications, this Rules shall prevail.

            *Contract Specifications will be posted on the Exchange's website .

          • 4.1.5 Trading Hours, Opening and Closing Routines and Closing Range

            Trades may only be executed during the hours in which the Markets are open for trading. The Markets' normal trading hours for each Contract are set forth in the relevant Contract Specifications. The Exchange may determine for a Contract:

            (a) the duration of trading sessions;
            (b) the opening and closing routines; and
            (c) the closing range.

          • 4.1.6 Trade Matching Algorithms

            Trade matching algorithms may be specific to the Market and the Contract. The applicable trade matching algorithms are set out more fully in the Regulatory Notice. The Exchange may determine the applicable trade matching algorithms for a Contract. If the Exchange wishes to apply a new or different trade matching algorithm to a new or an existing Contract, the Exchange shall notify all Members of its intention to do so via a Regulatory Notice, at least three (3) weeks prior to the application of such algorithm to a Contract.

            Refer to Regulatory Notice 4.1.6.

            Amended on 26 November 2007.

          • 4.1.7 Strategy Transactions

            Unless otherwise specified by the Exchange, strategy transactions do not set off stops in any Futures Contract except for strategy stop orders. Members shall not combine outright orders received from different principals and execute the orders as strategy transactions.

          • 4.1.8 Error Trades

            An error trade occurs when a transaction is effected on the Trading System as a result of an error in the entry of a bid or offer that is subsequently matched. The following procedures apply in relation to error trades:

            (a) a Member shall take all necessary steps and exercise due diligence in monitoring trades done for any errors;
            (b) a Member requesting an error trade cancellation or price adjustment shall promptly take all necessary mitigating actions to minimize the losses suffered;
            (c) the error trade policy administered by the Exchange may be specific to the Market or a Contract. The Exchange's error trade policies are set out more fully in the Regulatory Notice.* Upon the occurrence of an error trade, the Exchange retains the discretion to cancel or adjust the price of such error trade in accordance with its error trade policy. The Exchange may impose any condition on the cancellation or price adjustment of an error trade, including the charging of fees for requests to cancel or adjust the price of any error trade;

            * Refer to Regulatory Notice 4.1.8.
            (d) the cancellation or price adjustment of an error trade by the Exchange does not affect the Exchange's right to take any disciplinary action against the Member, Approved Trader or Registered Representative who was responsible for the error trade.

            For the avoidance of doubt, the Exchange is not liable for any loss or damage (including consequential loss or damage) which may be suffered as a result of the cancellation or price adjustment of an error trade in accordance with this Rule 4.1.8.

            Amended on 26 November 2007, 19 January 2015 and 14 November 2016.

          • 4.1.9 Withholding and Order Withdrawal

            A Member, Approved Trader or Registered Representative shall not withhold or withdraw from the Trading System any Customer's order or any part of a Customer's order for any reason, unless it is for the benefit of the Customer or pursuant to the Customer's instruction.

            Refer to Practice Note 4.1.9.

            Amended on 14 November 2016.

          • 4.1.10 Cross Trades

            A Member or Approved Trader who knowingly receives buy and sell orders from different Customers at the same time and price, for the same Contract Month of the same Contract, shall first expose the leg which is the better bid or offer than the prevailing bid or offer in the Trading System. If there is no prevailing bid or offer, the Member or Approved Trader shall first expose the leg which has the better price than the last traded price, or if there is no last traded price, the last settlement price. This Rule 4.1.10 does not apply if the orders are entered by:

            (a) different Approved Traders on behalf of different Customers; or
            (b) different Customers directly into the Trading System and the Member or its Approved Trader does not know or have access to that Customer's order flow information.

            However, if the Exchange suspects that a cross trade was pre-arranged in either one of the above circumstances in contravention of Rule 4.1.13, the onus is on the Member or the Approved Trader to show otherwise.

            Refer to Practice Note 4.1.10.

            Amended on 14 November 2016.

          • 4.1.11 Negotiated Large Trades

            The Exchange may, from time to time, designate and approve a Contract for Negotiated Large Trade transactions. Contracts eligible for Negotiated Large Trade transactions shall comply with the minimum volume thresholds, related notification requirements and such other procedures as prescribed by the Exchange from time to time.

            Refer to Regulatory Notice 4.1.11.

          • 4.1.12 Exchange of Underlying for Futures Contracts

            An exchange of Underlying for Futures Contracts shall be permitted upon the satisfaction of the following conditions:

            (a) the transaction is between two parties where one party is the buyer of the Underlying and the Seller of the Futures Contract and the other party is the seller of the Underlying and the Buyer of the Futures Contract;
            (b) the seller of the Underlying has in its possession the Underlying to be delivered;
            (c) the purchase and sale of the Futures Contract shall be simultaneous with the sale and purchase of an equal quantity of the Underlying;
            (d) the transaction is at a price mutually agreed by the transacting parties; and
            (e) the transaction is reported to the Exchange, and the Members maintain a complete record of such transactions together with the relevant memoranda.

          • 4.1.13 Pre-arranged Trades Prohibited

            A Member or Approved Trader shall not make any purchase or sale which has been pre-arranged except for:

            (a) an exchange of Underlying for Futures Contracts as contemplated in this Rules; or
            (b) a Negotiated Large Trade as contemplated in this Rules.

            For the avoidance of doubt, a request for a quote from a designated market maker approved by the Exchange does not constitute a pre-arranged trade.

          • 4.1.14 Contract Settlement

            Settlement of Contracts may either be via cash or physical delivery.

          • 4.1.15 Price Limits and Cooling Off

            The Exchange may prescribe, for certain Contracts, Price Limits which are designed to temporarily restrict trading when the Market(s) becomes volatile. "Price Limit" refers to the maximum price advance or decline during any trading session(s), as provided under the relevant Contract Specifications, upon which the Exchange may signal a Cooling Off Period.

            Save as provided in the relevant Contract Specifications, the Price Limits for a Contract will not apply to a trade in that Contract if it is executed as part of a strategy transaction whereby trades in two or more Contracts that are related to each other are executed simultaneously as a unit on the strategy order book.

            With respect to an Option Contract, trading in the Option Contract shall be halted:

            (a) for the duration of the Cooling Off Period in the underlying Futures Contract; or
            (b) as prescribed in the Contract Specifications.

            "Cooling Off Period" means such period as set forth in the relevant Contract Specifications during which each Contract may be traded at or within its Price Limits. Trading may resume upon the lapse of the Cooling Off Period, for the remainder of the Trading Day, or such other period as may be prescribed in the relevant Contract Specifications.

            Amended on 26 January 2007, 16 July 2012 and 14 November 2016.

          • 4.1.16 Trading Halt

            In the event that trading in the Underlying is halted, or where there has been a major market movement without any apparent economic or fundamental basis for the movement to have occurred, the Exchange may declare a trading halt in the relevant Contract. This is irrespective of whether trading in the Contract has reached the Price Limits.

          • 4.1.17 Position Limits

            The Exchange may, from time to time, establish limits on the positions owned or controlled by any Person or Persons acting in concert with respect to any Contract. A Clearing Member may apply on behalf of any Person for an increase in that Person's position limits, subject to the conditions set forth in the Clearing Rules.

          • 4.1.18 Accumulation of Positions

            With respect to the computation of position limits, the positions of all accounts directly or indirectly owned or controlled by a Person or Persons, and the positions of all accounts of any Person or Persons acting in concert and the positions of all accounts in which a Person or Persons have a proprietary or beneficial interest, shall be accumulated and deemed to be positions of each of such Persons as if each owned or controlled all the accumulated positions individually. The Exchange may from time to time provide exemptions to this Rule 4.1.18.

          • 4.1.19 Daily Settlement Price

            The Daily Settlement Price for each Contract shall be determined by the Clearing House in accordance with the relevant formulae and procedures set out in the relevant Contract Specifications.

          • 4.1.20 Final Settlement Price

            The Final Settlement Price for each Contract shall be determined by the Exchange and the Clearing House in accordance with the relevant formulae and procedures set out in the relevant Contract Specifications. The Final Settlement Price so determined by the Exchange and Clearing House shall be final. If a situation is developing or has developed, which prevents the Exchange or the Clearing House from declaring the Final Settlement Price in accordance with the relevant Contract Specifications, the Exchange and Clearing House shall resolve the Final Settlement Price by such other means as they deem fit.

          • 4.1.21 Modification of Contract Specifications

            The Exchange may modify Contract Specifications in response to market developments. In the event of such modification the Exchange shall provide its Members with no less than two (2) weeks' prior notice before any modification to Contract Specifications takes effect. For the avoidance of doubt, modifications to the calculation of the Final Settlement Price, Price Limits, position limits, accumulation of positions and delivery obligations set forth in any Contract Specifications shall be subject to public consultation and rule amendment procedures as contemplated in the Act.

          • 4.1.22 Emergencies

            (1) If, in the opinion of the Exchange, any Emergency or circumstances calling for emergency action in the interests of maintaining a fair, orderly and transparent market or due performance of a Contract has developed or is developing, the Exchange may take such steps as it sees fit to provide for, correct or check the further development of those circumstances. These steps include the curtailment of trading in any Contract, revocation or suspension of access to the Trading System, suspension of trading in a Market, deferment of delivery under any deliverable Futures Contract, designation of alternate delivery points or the modification of Contract Specifications.
            (2) Without prejudice to the generality of Chapter 1, the Exchange shall not be liable to any Trading Member or any other Person in respect of any damage, loss, cost or expense of whatsoever nature (whether direct, indirect, special or consequential, including without limitation any loss of business, revenue, goodwill, bargain or profit), suffered or incurred by such Trading Member or other Person, arising out of or in connection with the exercise or non-exercise by the Exchange of its powers under Rule 4.1.22 or the determination by the Exchange of the satisfaction or non-satisfaction of any condition for the exercise of such powers.

            Amended on 26 April 2013 and 14 November 2016.

          • 4.1.23 Revocation or Suspension of Access to the Trading System

            The Exchange may revoke or suspend access to the Trading System for such period or periods as the Exchange may determine, if, in the opinion of the Exchange, it is necessary or desirable for the maintenance of a fair, orderly and transparent market.

            Amended on 14 November 2016.

        • 4.2 Default Relating to Contracts

          • 4.2.1 Default in a Cash Settled Futures Contract or Option Contract

            A Buyer or Seller who fails to settle a cash settled Futures Contract or Option Contract, as contemplated under this Rules or the Clearing Rules, shall be in default. In the event of default at Settlement of a cash settled Futures Contract or Option Contract on the part of a Buyer or Seller, the Member shall, unless otherwise provided in this Rules or the Clearing Rules, have the right of Closing Out any Open Position in any Market on behalf of the Buyer or Seller, without further notice and without in any way prejudicing any other legal action for recovery which the Member may take or has taken.

          • 4.2.2 Default in a Deliverable Futures Contract

            A Seller of a deliverable Futures Contract who does not effect delivery as required by this Rules or the Contract Specifications, and a Buyer of a deliverable Futures Contract who does not take delivery as required by this Rules or the Contract Specifications, shall be in default. In the event of default at Settlement of a deliverable Futures Contract, the rights and obligations of the Member of the Buyer or Seller who is in default, shall be as specified in the relevant Contract Specifications.

        • 4.3 Rules Applicable to Option Contracts

          • 4.3.1 Types of Option Contracts

            Option Contracts may be:

            (a) call options or put options; and
            (b) deliverable or cash settled.

          • 4.3.2 Cash Settled Call Option Contract

            In the case of a cash settled call Option Contract:

            (a) the Buyer (taker) of the Option Contract acquires the right to receive an amount equivalent to the difference between the exercise price of the Option Contract and the settlement price in consideration for a contract premium, if the settlement price is higher than the exercise price; and
            (b) in the event that the Buyer of the Option Contract exercises that right, a Seller (grantor) as appointed by the Clearing House in accordance with the Clearing Rules assumes the obligation to pay the amount referred to in Rule 4.3.2(a) to the Buyer.

          • 4.3.3 Cash Settled Put Option Contract

            In the case of a cash settled put Option Contract:

            (a) the Buyer (taker) of the Option Contract acquires the right to receive an amount equivalent to the difference between the exercise price of the Option Contract and the settlement price in consideration for a contract premium, if the settlement price is lower than the exercise price; and
            (b) in the event that the Buyer of the Option Contract exercises that right, a Seller (grantor) as appointed by the Clearing House in accordance with the Clearing Rules assumes the obligation to pay the amount referred to in Rule 4.3.3(a) to the Buyer.

          • 4.3.4 Deliverable Call Option Contract

            In the case of a deliverable call Option Contract:

            (a) the Buyer (taker) of the Option Contract acquires the right to a long futures position in the underlying Futures Contract specified in the contract unit in the relevant Contract Specifications in consideration for a contract premium;
            (b) in the event that the Buyer of the Option Contract exercises that right, a Seller (grantor) as appointed by the Clearing House in accordance with the Clearing Rules shall be vested with a short futures position in the underlying Futures Contract at the same price and in the same settlement month as that assumed by the Buyer of the Option Contract; and
            (c) the Buyer acquires the right to a long futures position at an exercise price agreed between the parties, provided that it is selected from a list of such prices determined under the relevant Contract Specifications.

          • 4.3.5 Deliverable Put Option Contract

            In the case of a deliverable put Option Contract:

            (a) the Buyer (taker) of the Option Contract acquires the right to a short futures position in the underlying Futures Contract specified in the contract unit in the relevant Contract Specifications in consideration for a contract premium;
            (b) in the event that the Buyer of the Option Contract exercises that right, a Seller (grantor) as appointed by the Clearing House in accordance with the Clearing Rules shall be vested with a long futures position in the underlying Futures Contract at the same price and in the same settlement month as that assumed by the Buyer of the Option Contract; and
            (c) the Buyer acquires the right to a short futures position at an exercise price agreed between the parties, provided that it is selected from a list of such prices determined under the relevant Contract Specifications.

          • 4.3.6 American Style and European Style

            The Contract Specifications shall indicate whether an Option Contract is an American Style Option or a European Style Option. An "American Style Option" is an Option Contract that can be exercised at any time before its expiry. A "European Style Option" is an Option Contract that can only be exercised at expiry. This Rules applies to both American Style Options and European Style Options.

          • 4.3.7 Cash Settled Option Contracts which are in-the-Money

            A cash settled Option Contract is in-the-money if the settlement price lies above the exercise price in the case of a call Option Contract, or below the exercise price in the case of a put Option Contract.

          • 4.3.8 Exercise/Expiry of All Option Contracts on Expiration Day

            On the Expiration Day of both cash settled and deliverable Option Contracts, the Clearing House shall, unless otherwise directed by the holder of the Option Contract or otherwise stated in the relevant Contract Specifications:

            (a) exercise all in-the-money Option Contracts; and
            (b) allow all other Option Contracts to expire.

            Amended on 16 July 2012.

    • Chapter 5 Physical Delivery

      • 5. Overview

        This Chapter is only applicable to deliverable Commodity Futures Contracts. This Chapter relates mainly to the Exchange's role as a facilitator in the delivery of Title Documents and the underlying Commodity. The Exchange seeks to mitigate delivery risks by facilitating delivery of Title Documents via the Clearing House and the delivery of the underlying Commodity between the Buyer and the Seller. The Clearing Rules and this Rules focus on the obligations of the Member effecting delivery via the Clearing House, whereas the relevant Contract Specifications focuses on the physical delivery obligations of the Buyer and Seller upon the maturity of the deliverable Commodity Futures Contract.

        Amended on 26 September 2007.

        • 5.1 Title Documents and Physical Delivery Procedures

          • 5.1.1 Payment Against Title Documents

            Each Trading Member shall cooperate with its sponsoring Clearing Member to enable each Clearing Member to effect delivery of Title Documents against payment as contemplated in the Clearing Rules and the relevant Contract Specifications. "Title Documents" refers to bills of lading, title certificates, endorsed warehouse receipts or any other equivalent documents evidencing title to the underlying Commodity and any other documents required to release payment, as contemplated in the relevant Contract Specifications.

            Amended on 26 January 2007.

          • 5.1.2 Duty Of Members To Mitigate Risk Of Non-Delivery

            Prior to the Last Trading Day, each Member shall require evidence from the respective Seller(s) or Buyer(s) having accounts on its books, that all Open Positions which will not be offset on the Last Trading Day shall be completed by delivery of the relevant underlying Commodity. If the Seller(s) or the Buyer(s) fails to provide such evidence, the Member shall, unless entitled to opt otherwise under the relevant Contract Specifications, liquidate the remaining Open Positions on or before the Last Trading Day. Unless otherwise permitted under the relevant Contract Specifications, each Member shall liquidate any and all Open Positions relating to lot sizes less than the minimum size prescribed under the relevant Contract Specifications for physical delivery.

            Amended on 7 December 2015.

          • 5.1.3 No Financing of Performance Deposits or other Escrow Assets

            No General Trading Member shall grant, whether directly or indirectly, any advance, loan or credit facilities to any Buyer or Seller for the purpose of posting Performance Deposits or other Escrow Assets (where applicable) to the Clearing House.

            Amended on 26 January 2007 and 25 August 2009.

          • 5.1.4 Delivery Obligations are Deemed Rules

            Material terms relating to delivery obligations, including those pertaining to delivery dates, quality, quantity, location, acceptance notices or delivery notices as set forth in the relevant Contract Specifications, are deemed incorporated into this Rules by reference herein.

          • 5.1.5 Delivery Default Deemed Rule Violation

            To ensure the integrity of the delivery process as contemplated in this Rules and the Clearing Rules, a Member responsible for a Delivery Default is deemed to have committed a Rule Violation and may be subject to Sanctions as contemplated in Chapter 7 of this Rules.

          • 5.1.6 Passing of Property and Risk

            Property and risk in relation to an underlying Commodity under any deliverable Futures Contract shall pass in accordance with the provisions in the relevant Contract Specifications and, if not so dealt with, the provisions of the Sale of Goods Act (Cap. 393). For the avoidance of doubt, at no time shall property or risk in any underlying Commodity pass to the Exchange.

        • 5.2 Designated Ports, Factories, Surveyors, Samplers, Analysts and Other Organisations and Marks

          The Exchange shall maintain a list of Designated Ports, factories, surveyors, samplers, analysts and other organisations and marks as contemplated in the relevant Contract Specifications. A current and updated list of such Designated Ports, factories, surveyors, samplers, analysts and other organisations and marks shall be available on the Exchange's website. The Exchange may from time to time list or de-list any Designated Ports, factories, surveyors, samplers, analysts or other organisations or marks with regard to existing or new Contract Months or both (unless otherwise provided in the relevant Contract Specifications) as the Exchange may determine in its absolute discretion. "Designated Ports" refers to any of the Exchange-designated ports of loading as indicated in the relevant Contract Specifications.

          Amended on 5 December 2006, 26 January 2007, 26 November 2007 and 13 October 2014.

        • 5.3 Disclaimer of Exchange Liability for Physical Delivery and Warehousing

          • 5.3.1 Title Documents and Transfer of Title

            The Exchange accepts no liability and does not guarantee the satisfactory discharge of any physical delivery obligations under any deliverable Futures Contract. The Exchange further disclaims any liability arising from or in connection with:

            (a) the delivery or non-delivery of Title Documents by any Clearing Member; and
            (b) any irregularities in the transfer of title in the underlying Commodity from the Seller to the Buyer.

          • 5.3.2 Exchange Does Not Check Commodity, Documents or Designated Ports or Factories

            The Exchange is under no obligation to:

            (a) check any Commodity or document received from or delivered through a Clearing Member in relation to an obligation to make or take delivery under an open deliverable Futures Contract; or
            (b) check the availability or suitability of any Designated Ports, factories, surveyors, samplers, analysts or other organisations or marks as identified in the relevant Contract Specifications.

            The Exchange disclaims any liability and does not in any way guarantee quality or suitability of fitness of any Commodity, document, Designated Port, factory, surveyor, sampler, analyst or other organisation or marks.

            Amended on 5 December 2006 and 13 October 2014.

          • 5.3.3 Forged Documents

            The Exchange accepts no liability with respect to any claim arising from:

            (a) forged or irregular documents relating to a deliverable Futures Contract cleared through a Clearing Member; or
            (b) any non-fulfilment of an open deliverable Futures Contract arising from such forgery.

    • Chapter 6 Dispute Resolution and Arbitration

      • 6. Overview

        This Chapter deals with dispute resolution between Members with respect to Contracts traded on the Markets. The Exchange recognises that the fair, speedy and cost-effective resolution of disputes between Members is important to the health of the Markets. Arbitration of such disputes in a neutral forum with the aid of specialist experts instills market confidence. Arbitration involving Contracts shall be before the Singapore International Arbitration Centre ("SIAC")* or such other forums as the parties may agree. The Exchange does not provide any in-house arbitral forum. Under this Rules, arbitration is not compulsory unless a dispute involves a deliverable Commodity Futures Contract. With respect to such Contracts, when any disputing Member elects to resolve the dispute via arbitration before the SIAC, the other disputing Member is compelled to submit to such arbitration. If neither Member elects for arbitration, the Members are free to resolve their dispute in such manner as they deem fit. Save for deliverable Commodity Futures Contracts, this Chapter does not seek to govern dispute resolution between Member and Customer, or between Customers^.#

        * For more information regarding the procedural rules, fees and other matters please refer to www.siac.org.sg.

        ^ With respect to deliverable Commodity Futures Contracts, Customers are bound to submit to arbitration between their respective Members via contractual undertakings provided to their Members.

        #Refer to Rule 6.2.4.

        Amended on 26 November 2007 and 16 July 2012..

        • 6.1 Dispute Resolution Involving Contracts Traded on the SGX-DT Market

          Where any dispute arises from or in connection with a Contract traded on the SGX-DT Market (other than a complaint of a disciplinary nature), the disputing Members shall attempt to settle the dispute through good faith negotiations, failing which the disputing Members may choose to settle the dispute by such other means as they may elect, including arbitration before the SIAC in accordance with the rules of the SIAC.

          Amended on 5 December 2006.

        • 6.2 Dispute Resolution Involving Deliverable Commodity Futures Contracts

          • 6.2.1 Dispute Resolution Involving Deliverable Commodity Futures Contracts

            Where any dispute arises from or in connection with a deliverable Commodity Futures Contract (other than a complaint of a disciplinary nature), the disputing parties shall first attempt to settle the dispute through any applicable claim procedures set forth in the relevant Contract Specifications. In the absence of such claim procedures, the disputing parties shall attempt to settle the dispute through good faith negotiations, failing which at the election of any disputing Member or the Clearing Member of any of the disputing parties, the dispute shall be settled by arbitration before the SIAC in accordance with the rules of the SIAC.

            Amended on 5 December 2006 and 26 November 2007.

          • 6.2.2 Awards Binding on Members and Members' Customers

            The award of the SIAC arbitrator or panel of arbitrators shall be binding on the Members and Customers of the respective Members.

          • 6.2.3 Rule Violation

            The failure or refusal of a Member to arbitrate where the other Member elects to arbitrate under this Rule shall constitute a Rule Violation.

          • 6.2.4 Customers to Submit to Arbitration

            Each Member shall cause its Customers and their respective assigns to agree that where there is a dispute arising from or in connection with a deliverable Commodity Futures Contract:

            (a) the Customers and their respective assigns shall submit to arbitration before the SIAC at the election of their respective Members;
            (b) the award of the arbitrator or panel of arbitrators shall be final and binding on the Customers and their respective assigns; and
            (c) the Customers and their respective assigns shall comply with the applicable post-arbitral procedures set forth in this Rules.

            Amended on 5 December 2006 and 26 November 2007.

        • 6.3 Post-arbitral Award Procedures for Deliverable Commodity Futures Contracts

          • 6.3.1 Service of Notice of Award on the Parties and the Clearing House

            Upon the conclusion of arbitration and the grant of an arbitral award, a notice of the award will be served on the Clearing House and the parties to the arbitration by the SIAC.

          • 6.3.2 Buying Member's Rights to the Performance Deposit

            Where an arbitral award is made in favour of the Buying Member, the Buying Member shall be entitled to:

            (a) claim the Performance Deposit posted by the Selling Member with the Clearing House to the extent that the Performance Deposit satisfies the arbitral award; and
            (b) the return of the Performance Deposit posted by the Buying Member with the Clearing House, without any deduction or set-off.

          • 6.3.3 Use of Performance Deposit to Satisfy Award

            If the Performance Deposit posted by the Selling Member is insufficient to satisfy the arbitral award made in favour of the Buying Member, the Buying Member shall be entitled to pursue the balance of such award against the Selling Member. If such Performance Deposit is greater than the arbitral award made in favour of the Buying Member, the balance of the Performance Deposit shall be returned to the Selling Member.

          • 6.3.4 Selling Member's Rights to the Performance Deposit

            Where the arbitral award is made in favour of the Selling Member (as opposed to the Buying Member), Rules 6.3.2 and 6.3.3 shall apply with references to "Buying Member" and "Selling Member" being changed to "Selling Member" and "Buying Member" respectively. "Selling Member" and "Buying Member" as used in this Rule 6.3 refers to the Clearing Members of the Seller and Buyer respectively.

          • 6.3.5 Procedures Not Applicable if Members elect for Alternative Delivery Procedure

            For the avoidance of doubt, the above procedures do not apply if the Selling Member and the Buying Member have agreed to effect delivery via an Alternative Delivery Procedure.

    • Chapter 7 Adverse Events, Rule Violations and Disciplinary Action

      • 7. Overview of Adverse Events, Rule Violations and Disciplinary Action

        The Exchange's enforcement of this Rules is critical to the health of the Markets. This Chapter sets out the various powers available to the Exchange in connection with its obligation to operate a fair, orderly and transparent market. The Exchange's powers range from temporarily restricting Members' activities to referring the matter to the Disciplinary Committee. The Exchange may exercise various powers as set forth below under two (2) main scenarios — (a) upon the occurrence of an Adverse Event; or (b) where there is a Rule Violation by a Member, Approved Trader or Registered Representative. The powers exercisable by the Exchange upon the occurrence of an Adverse Event are designed to deal swiftly with an unforeseen event. Having exercised such powers as set forth in Rule 7.3, the Exchange may thereafter refer the matter to a Disciplinary Committee if it deems fit. In the event of a Rule Violation, the Exchange's powers are limited to the exercise of certain summary powers prior to the matter being referred to the Disciplinary Committee. In proceedings before the Disciplinary Committee, the Exchange lays a charge against the Member, Approved Trader or Registered Representative concerned, and acts as a prosecutor. To assist in determining if any Rule Violation has occurred, the Exchange also conducts inspections and investigations.

        • 7.1 Adverse Events and Rule Violations

          • 7.1.1 Adverse Events

            The Exchange may exercise any of the powers set forth in Rule 7.3 if any of the following events occur, which adversely impacts on a Member, Approved Trader or Registered Representative's ability to meet its obligations under this Rules (collectively, "Adverse Events"):

            (a) an Emergency;
            (b) a Delivery Default;
            (c) Force Majeure;
            (d) the Clearing House declares an event of default against a Clearing Member as contemplated in Rule 7A.06.5.1 of the Clearing Rules;
            (e) a Member, Approved Trader or Registered Representative is charged before a disciplinary body in any other exchange or regulated market or charged in any court of law in relation to market misconduct;
            (f) a Member, Approved Trader or Registered Representative who trades in non-Exchange instruments such as over-the-counter instruments, foreign exchange instruments or other instruments, whether onshore or offshore, suffers an adverse event which impacts on the Member's ability to meet its financial obligations to the Exchange; or
            (g) any other event which, in the Exchange's opinion, materially impacts or is likely to materially impact on a Member, Approved Trader or Registered Representative's ability to meet its obligations under this Rules.

            Amended on 7 August 2012.

          • 7.1.2 Rule Violations

            All Rule Violations are chargeable before the Disciplinary Committee in accordance with the procedures set forth in this Rules. Rule Violations may also result in the exercise of various powers of the Exchange as set forth in Rule 7.2.

          • 7.1.3 Concurrent Occurrence of Adverse Events and Rule Violations

            An Adverse Event and a Rule Violation are not mutually exclusive and both events may occur concurrently such that any of the Exchange's powers set forth in Rules 7.2 and 7.3 may be invoked.

          • 7.1.4 Rule Violation by Approved Trader or Registered Representative to be deemed Rule Violation by Sponsoring Corporate Member

            Any Rule Violation by any Approved Trader or Registered Representative shall also be deemed to be a Rule Violation by the sponsoring corporate Member for the purpose of proceedings before the Disciplinary Committee. If an Approved Trader or a Registered Representative suffers an Adverse Event, the sponsoring corporate Member shall be deemed to have suffered an Adverse Event.

          • 7.1.5 Notification Obligation

            A Member, Approved Trader or Registered Representative shall immediately notify the Exchange upon the occurrence or threatened occurrence of any Adverse Event or Rule Violation. Upon such notification the Exchange may exercise any of its powers set forth in Rules 7.2 and 7.3 as it deems fit.

          • 7.1.6 Notification of Exercise of Powers by the Exchange

            Except as otherwise provided under this Rules, the Exchange shall:

            (a) notify MAS or any other relevant regulatory body before it exercises any of its powers in relation to an Emergency; and
            (b) notify the Member, Approved Trader or Registered Representative concerned in writing before it exercises any of its powers under this Chapter.

          • 7.1.7 Public Announcement by Exchange

            The Exchange shall notify all Members, Approved Traders, Registered Representatives and the general public via Circulars of the outcome of any proceedings before the Disciplinary Committee or Appeals Committee.

        • 7.2 Exchange's Disciplinary Powers

          • 7.2.1 Disciplinary Action

            (a) If an investigation or inspection reveals that a Member, Approved Trader or Registered Representative has committed a Rule Violation, the Exchange may take any of the following forms of disciplinary action, namely:
            (i) to charge the Member, Approved Trader or Registered Representative before the Disciplinary Committee;
            (ii) to make an offer of composition to the Member, Approved Trader or Registered Representative, if the Rule Violation is indicated in the third column of Schedule A as a compoundable Rule Violation; or
            (iii) to issue a letter of warning to the Member, Approved Trader or Registered Representative.
            (b) If the Member, Approved Trader or Registered Representative does not accept the offer of composition or comply with the terms of the composition within the stipulated time as prescribed by the Exchange, the Exchange may refer the said Member, Approved Trader or Registered Representative to the Disciplinary Committee.

            Amended on 16 May 2011.

          • 7.2.1A Composition by the Exchange.

            (a) The Exchange may make an offer of composition to a Member, Approved Trader or Registered Representative who has committed a Rule Violation. The terms of the offer of composition include payment of a specified sum to the Exchange and may include the fulfillment of any accompanying terms that the Exchange may prescribe.
            (b) Upon payment of the specified sum and fulfillment of the accompanying terms by the Member, Approved Trader or Registered Representative within the stipulated time, no further proceedings shall be taken against that Member, Approved Trader or Registered Representative for that Rule Violation.
            (c) Acceptance of the offer of composition by the Member, Approved Trader or Registered Representative amounts to an admission of liability, and the Member, Approved Trader or Registered Representative will be deemed to have committed the conduct described in the charge.
            (d) In respect of Rule Violations which the Exchange may offer composition, guidelines on the range of composition which the Exchange may offer to a Member, Approved Trader or Registered Representative who has committed a Rule Violation are indicated in Schedule A.
            (e) The Exchange retains the discretion to offer composition to a Member, Approved Trader or Registered Representative of an amount which is lower or higher than the guidelines, except that the amount of composition that the Exchange may offer shall not exceed S$10,000 for each Rule Violation.
            (f) Notwithstanding that a Rule Violation is indicated as being compoundable or may be compoundable under Schedule A, the Exchange retains the discretion not to make an offer of composition to the Member, Approved Trader or Registered Representative and instead, to charge the said Member, Approved Trader or Registered Representative before the Disciplinary Committee.
            (g) If the Exchange has made an offer of composition, it will not commence disciplinary proceedings against a Member, Approved Trader or Registered Representative until after the stipulated period for the offer lapses.

            For the purposes of determining whether a Rule Violation is classified as a first, second, third or subsequent offence under Schedule A, only previous violations under the same Rule will be taken into consideration.

            Added on 16 May 2011.

          • 7.2.2 Investigative Powers

            In determining whether to lay a charge before the Disciplinary Committee or to make an offer of composition, the Exchange may, without notification to any Member, Approved Trader or Registered Representative, commence investigations in accordance with Rule 7.4.

            Amended on 16 May 2011.

          • 7.2.3 Restriction and Supervision of Member's Conduct of Business

            (1) Subject to Rule 7.2.3(2) and in addition to the Exchange's summary powers set forth in Rule 2.15.2, if the Exchange is of the opinion that a Member has, or may have, insufficient assets or liquidity facilities for the conduct of its business, or that a review should be carried out in respect of the management policies or business conduct of a Member, the Exchange may require the Member to operate its business subject to such additional restrictions or conditions as the Exchange may impose, including:
            (a) prohibiting the Member and its Approved Traders or Registered Representatives from entering into a new transaction or settling any transaction without the prior written approval of the Exchange;
            (b) suspending the Member and its Approved Traders or Registered Representatives. Such Member and its Approved Traders or Registered Representatives remain liable to complete all Contracts outstanding at the time of suspension;
            (c) requiring the Member's director(s) to step down from day-to-day conduct of the business affairs of the Member; and
            (d) appointing a manager to manage the business of the Member. The Exchange shall fix the remuneration of the manager, which shall be paid by the Member. The Member is solely responsible for the manager's acts and defaults. The manager shall carry out directions given by the Exchange in relation to the conduct of the Member's business.
            (2) Rule 7.2.3(1) shall only apply to a Bank Trading Member to the extent of its business that is governed by this Rules.

            Amended on 25 August 2009.

          • 7.2.4 Restriction of Activities of Members, Approved Traders or Registered Representatives

            (1) Subject to Rule 7.2.4(2), the Exchange may restrict the activities of any Member or its Approved Traders or Registered Representatives if the Member or its Approved Traders or Registered Representatives are charged before the Disciplinary Committee for any Rule Violation, or charged in any court of law in relation to conduct which would constitute:
            (a) an offence under the Act or relevant applicable laws and regulatory requirements relating to the regulation or business conduct of markets and licenced entities;
            (b) an offence involving fraud or dishonesty, whether in or out of Singapore;
            (c) an offence relating to director's duties; or
            (d) an offence under any relevant law or regulation which governs that Person's other business activities.
            (2) Rule 7.2.4(1) shall only apply in relation to a Bank Trading Member to the extent of its Business Governed by this Rules.

            Amended on 25 August 2009 and 1 April 2014.

          • 7.2.5 Referral to Disciplinary Committee

            If the Exchange suspends the privileges of a Member, Approved Trader or Registered Representative as contemplated in Rules 2.13.7, 2.14.3 or 2.15.2, or exercises any of the powers set forth in Rules 7.2.3 and 7.2.4, the Exchange shall refer the matter to the Disciplinary Committee within fourteen (14) calendar days of such action (the "Summary Referral"). The Summary Referral shall contain an account of (a) the Exchange's exercise of the summary powers; and (b) the grounds for taking action against the Member, Approved Trader or Registered Representative. The Exchange shall provide the Member, Approved Trader or Registered Representative with a copy of the Summary Referral at the same time that such document is provided to the Disciplinary Committee. The Summary Referral shall constitute a notice of charge as contemplated under Rule 7.7.2.

        • 7.3 Exchange's Powers upon Occurrence of Adverse Events

          Unless otherwise specified in this Rules, upon the occurrence of any Adverse Event, the Exchange may exercise any of the following powers as it deems fit:

          • 7.3.1 Liquidation of Positions

            The Exchange may limit trading to liquidation of positions only or order liquidation of all or a portion of the positions in a Member's House Account or Customer Account or both.

          • 7.3.2 Fix Settlement Price

            The Exchange may fix a settlement price for the liquidation of positions in any Contract.

          • 7.3.3 Call for Additional Margins

            The Exchange may require additional margins to be deposited with the Clearing House for any Contract.

          • 7.3.4 Confine or Limit Trading

            The Exchange may confine trading of any Contract to a specific price range or modify Trading Days or hours.

          • 7.3.5 Alter Delivery Conditions

            The Exchange may defer delivery or designate alternative delivery points or procedures or alter conditions of delivery with respect to deliverable Futures Contracts.

          • 7.3.6 Call on Trading Member's Letter of Credit

            If a Trading Member's act or omission results in a Clearing Member defaulting under Rule 7A.01A.1 of the Clearing Rules, the Exchange or the Clearing House, as the case may be, reserves the right to call on any of the Qualifying Letters of Credit posted by the Trading Member to meet its financial requirements set forth in Rule 2.5, and apply the proceeds toward the discharge of liabilities incurred by the Clearing Member to the Clearing House.

            Amended on 7 August 2012 and 29 December 2014.

          • 7.3.7 Other Actions as Deemed Fit

            The Exchange may take such other actions against any Member, Approved Trader or Registered Representative as it deems fit to discharge its regulatory obligations under the Act to maintain a fair, orderly and transparent market.

          • 7.3.8 Exchange's Liability

            Without prejudice to the generality of Chapter 1, the Exchange shall not be liable to any Trading Member or any other Person in respect of any damage, loss, cost or expense of whatsoever nature (whether direct, indirect, special or consequential, including without limitation any loss of business, revenue, goodwill, bargain or profit), suffered or incurred by such Trading Member or other Person, arising out of or in connection with the exercise or non-exercise by the Exchange of its powers under Rule 7.3 or the determination by the Exchange of the satisfaction or non-satisfaction of any condition for the exercise of such powers.

            Amended on 26 April 2013.

        • 7.4 Investigations by the Exchange

          • 7.4.1 Commencement of Investigations

            The Exchange may conduct an investigation if:

            (a) the Exchange is satisfied that any Rule Violation or violation of any other relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities has been, or may have been committed;
            (b) the Exchange receives a complaint involving any Member, Approved Trader or Registered Representative or any Member's director, officer, employee or agent;
            (c) there is a dispute between Members, Approved Traders or Registered Representatives in connection with trading on any market; or
            (d) in the Exchange's opinion, having regard to its obligation to maintain a fair, orderly and transparent market, the circumstances warrant an investigation.

            Amended on 1 April 2014.

          • 7.4.2 Direction to Commence Investigation by MAS

            The Exchange shall conduct an investigation if MAS so directs.

          • 7.4.3 Requirement to Cooperate with Investigations

            The Exchange may direct a Member, Approved Trader, Registered Representative or any Member's director, officer, employee or agent to:

            (a) render all assistance as the Exchange requires, at the Exchange's premises or elsewhere; and
            (b) provide the Exchange with information, books and records which, in the Exchange's opinion, may be relevant to the investigation,

            and that Person shall comply with the Exchange's direction.

          • 7.4.4 Prohibition Against the Furnishing of False Statements or Information to the Exchange

            A Member, Approved Trader, Registered Representative, or any Member's director, officer, employee or agent shall not wilfully make, furnish or permit the making or furnishing of any false or misleading information, statement or report to the Exchange.

          • 7.4.5 Appointment of Exchange Examiners

            The Exchange may appoint any Person or Persons to assist in its investigation (the "Exchange Examiners"). The Exchange may delegate all or any of its powers under this Rule 7.4.5 to the Exchange Examiners. The Exchange Examiners shall report the results of their investigations to the Exchange.

          • 7.4.6 Supply of Information

            The Exchange may direct a Member, Approved Trader or Registered Representative to provide specified information relating to Members' Affairs, transactions relating to Customers and former Customers, and matters pertaining to any contract. Such direction shall be in writing and the Member, Approved Trader or Registered Representative shall provide the information to the Exchange within such period as is specified by the Exchange, being a period of not less than two (2) Business Days after receipt of the Exchange's direction. Information provided to the Exchange under this Rule shall be treated as Confidential Information and subject to the safeguards set forth in Rule 1.4.

        • 7.5 Composition of Disciplinary Committee

          • 7.5.1 Composition of Disciplinary Committee

            The Disciplinary Committee comprises persons appointed by the Board. No director, officer or employee of Singapore Exchange Limited or any of its Related Corporations may be appointed.

          • 7.5.2 Chairman, Deputy Chairman and Secretary of the Disciplinary Committee

            The Board shall appoint a chairman and deputy chairman from among the members of the Disciplinary Committee. In the absence of the chairman, the deputy chairman shall have all the powers of the chairman. The Board shall appoint a Secretary to assist the Disciplinary Committee. "Secretary" within Rules 7.5 and 7.7 refers to an employee of Singapore Exchange Limited, appointed by the Board to the Disciplinary Committee for the purpose of supporting the work of the Disciplinary Committee. For the avoidance of doubt, the Secretary shall not form part of the quorum of the Disciplinary Committee, shall not possess any voting power, and save for record and administrative purposes, shall not participate in the deliberations of the Disciplinary Committee.

          • 7.5.3 Notification of Conflict of Interest by Disciplinary Committee Members

            Members of the Disciplinary Committee shall immediately notify the chairman of any possible conflict of interest in relation to a charge. The chairman shall decide whether the Disciplinary Committee member concerned should attend the hearing of that charge and notify the Board of his decision. The chairman shall also notify the Board and abstain from hearing a charge in which he himself may have a conflict of interest.

          • 7.5.4 Quorum of the Disciplinary Committee

            The Disciplinary Committee has a quorum of three (3) (including the chairman) when the meeting proceeds to business but may complete any business of a meeting with two (2) Disciplinary Committee members. In the case of an equality of votes, the chairman shall be entitled to a casting vote.

        • 7.6 Disciplinary Committee Powers and Related Matters

          • 7.6.1 Jurisdiction of the Disciplinary Committee

            The Disciplinary Committee may hear any case in which it is alleged that a Member, Approved Trader or Registered Representative has:

            (a) committed any Rule Violation;
            (b) breached any other relevant foreign law or regulation which governs the business activities of that Member, Approved Trader or Registered Representative, whether in or out of Singapore;
            (c) any director who has breached his director's duties;
            (d) engaged in any conduct that has the effect of circumventing the Act, relevant applicable laws and regulatory requirements relating to the regulation or business conduct of markets and licenced entities, or this Rules;
            (e) engaged in any conduct which is inconsistent with just and equitable principles of trading; or
            (f) engaged in any conduct detrimental to the financial integrity, reputation or interests of the Exchange or Markets.

            Amended on 1 April 2014.

          • 7.6.2 Powers of the Disciplinary Committee

            If the Disciplinary Committee is satisfied that the Exchange has proved on a balance of probabilities that the Member, Approved Trader or Registered Representative has committed the conduct described in the charge, the Disciplinary Committee may impose one or more of the following Sanctions:

            (a) expelling the Member, Approved Trader or Registered Representative concerned;
            (b) suspending the Member, Approved Trader or Registered Representative concerned;
            (c) imposing a penalty not exceeding S$250,000 on the Member, Approved Trader or Registered Representative concerned, which may be paid in installments;
            (d) reprimanding the Member, Approved Trader or Registered Representative concerned;
            (e) requiring an education program to be undertaken by the Member, Approved Trader or Registered Representative concerned;
            (f) requiring a compliance program to be undertaken by the Member, Approved Trader or Registered Representative concerned;
            (g) imposing any restrictions or conditions on activities that the Member, Approved Trader or Registered Representative concerned undertakes, or, in the case of a Bank Trading Member, undertakes for the Bank Trading Member's Business Governed by this Rules;
            (h) requiring the Member, Approved Trader or Registered Representative concerned to make reimbursement or compensation of up to $250,000 to any Person who has suffered pecuniary loss as a result of the conduct of that Member, Approved Trader or Registered Representative;
            (i) requiring any director of the Member concerned, or in the case of a Bank Trading Member, any director or person in a senior management position who is responsible for its Business Governed by this Rules, to step down from day-to-day conduct of the business affairs of the Member; or
            (j) appointing a manager to manage the business of the Member concerned, or, in the case of a Bank Trading Member, its Business Governed by this Rules. The Disciplinary Committee shall fix the remuneration of the manager, which shall be paid by the Member concerned. The Member concerned is solely responsible for the manager's acts and defaults. The manager shall carry out directions given by the Disciplinary Committee in relation to the conduct of the business of the Member concerned.

            The Disciplinary Committee may also order a stay of any Sanction imposed under this Rule, pending an appeal to the Appeals Committee.

            Amended on 25 August 2009.

          • 7.6.2A Mandatory Minimum Penalties to be Imposed by Disciplinary Committee for certain Rule Violations

            (a) Minimum penalties imposable by the Disciplinary Committee have been stipulated in respect of certain Rule Violations, as set out in the thirteenth column of Schedule A.
            (b) Where a minimum penalty has been stipulated in respect of a particular Rule Violation, if the Disciplinary Committee is satisfied that the Exchange has proved on a balance of probabilities that the Member, Approved Trader or Registered Representative has committed the conduct described in the charge, the Disciplinary Committee:
            (i) shall impose a penalty, pursuant to its power under Rule 7.6.2(c), not lower than the minimum amount as stated in the thirteenth column of Schedule A, for that particular Rule Violation; and
            (ii) may choose to impose, in addition to the penalty in sub-section (i), any one or more of the sanction(s) as set out in Rule 7.6.2.

            Added on 16 May 2011.

          • 7.6.3 Exercise of Power by Disciplinary Committee Due to Breach by Chief Executive Officer, Director or Key Personnel

            The Disciplinary Committee may exercise its powers against a Member if that Member's chief executive officer, any director or key personnel who is suitably qualified and experienced to implement, oversee and maintain adequate internal procedures and risk management controls as contemplated under the Rules commits, or causes that Member to commit any of the acts described in Rule 7.6.1, whether or not such chief executive officer, director or key personnel is so authorised to act on behalf of the Member.

          • 7.6.4 Former Member Bound by Rules for Acts or Omission Before Expulsion

            A former Member, Approved Trader or Registered Representative is bound by this Rules in respect of acts or omissions occurring before expulsion. The Exchange and the Disciplinary Committee retain their respective powers notwithstanding expulsion.*

            * Augments Rule 2.15.5 which refers to Members only.

          • 7.6.5 Notice and Timing of Hearing Before the Disciplinary Committee

            The chairman shall appoint a date, time and place for the hearing. The Exchange and the Person charged shall be given fourteen (14) calendar days' notice of the hearing.

          • 7.6.6 Adjournment of Proceedings

            The Disciplinary Committee may adjourn and reconvene its proceedings as it deems fit.

        • 7.7 Disciplinary Committee Proceedings

          • 7.7.1 Disciplinary Committee Procedures

            Except where it is expressly provided in this Rules, the Disciplinary Committee may establish its own procedures. The procedures established by the Disciplinary Committee shall at all times be consistent with the rules of fairness and principles of natural justice.

          • 7.7.2 Notice of Charge

            The Exchange shall give written notice to a Person charged, setting out the particulars of the charge.

          • 7.7.3 Response to Charge

            (a) The following procedures apply in relation to any proceedings before the Disciplinary Committee:
            (i) the Person charged may submit a defence, which shall be given to the Exchange and the Secretary within fourteen (14) calendar days of the date of the notice of charge;
            (ii) the Exchange may issue a response to the defence, which shall be served on the Person charged and the Secretary within fourteen (14) calendar days of receipt of the defence; and
            (iii) the Person charged may issue a reply to the response, which shall be served on the Exchange and the Secretary within fourteen (14) calendar days of receipt of the response.
            (b) Time to comply with the deadlines may be extended by the chairman of the Disciplinary Committee upon written request, setting out the grounds for the request. Subject to the chairman's direction or approval, such request shall be made at least three (3) Business Days before the expiry of the relevant deadline. Subject to the chairman's approval, the Disciplinary Committee shall disregard any material that is not submitted in compliance with the prescribed deadlines. The decision of the chairman shall be final and binding.
            (c) The Disciplinary Committee may hear a charge and exercise all its powers even if the Person charged does not file a defence or a reply to the response, or is not present at the hearing or any adjourned hearing.

          • 7.7.4 Legal Representation Before Disciplinary Committee

            (a) The Exchange and the Person charged may be represented by an advocate and solicitor.
            (b) The Person charged shall inform the Secretary in writing of the name of such advocate and solicitor at least fourteen (14) calendar days before the hearing of the charge.
            (c) The Disciplinary Committee may seek the advice of an independent advocate and solicitor.

          • 7.7.5 Evidence

            (a) The Exchange and the Person charged may examine and take copies of the evidence which each of them intends to rely on at the hearing.
            (b) The Person charged and its sponsoring corporate Member (if applicable) shall not disclose information received in relation to the charge to any other Person, except the advocate and solicitor of the Person charged for the purpose of the hearing or subsequent appeal, and shall give the Exchange a written undertaking to that effect.

          • 7.7.6 Witnesses, Examination and Cross Examination

            (a) The Exchange and the Person charged may:
            (i) request the attendance of any witness; and
            (ii) examine and cross-examine such witnesses.
            (b) The Disciplinary Committee may, in its absolute discretion:
            (i) request the attendance of any witness; and
            (ii) allow or disallow a request by the Exchange or the Person charged for the attendance of any witness.
            (c) The Disciplinary Committee cannot compel the attendance of a witness.

          • 7.7.7 Disciplinary Committee's Deliberation

            Unless expressly permitted by the chairman of the Disciplinary Committee, the Exchange and the Person charged shall not be present during the deliberation of a charge by the Disciplinary Committee. Failure to observe this Rule 7.7.7 does not vitiate the Disciplinary Committee's decision.

          • 7.7.8 Decision of Disciplinary Committee

            (a) The Exchange and the Person charged are entitled to be present when the Disciplinary Committee announces its decision.
            (b) The Disciplinary Committee shall provide short written grounds of its decision to the Exchange and the Person charged.

          • 7.7.9 Finality of Proceeding or Findings

            No proceeding or determination in respect of a Rule Violation shall be annulled, avoided, called into question or set aside by reason of the fact that the matter under consideration may or should have been dealt with by another committee under the business rules of any other exchange or clearing house, or that the Person concerned was absent from the hearing after having been given notice thereof.

        • 7.8 Appeals

          • 7.8.1 Right of Appeal

            The Exchange or the Person charged may appeal to the Appeals Committee against the decision of the Disciplinary Committee in accordance with the procedures set out in Rule 7.10.

          • 7.8.2 Finality of Appeal

            The decision of the Appeals Committee is final and binding.

        • 7.9 Appeals Committee

          • 7.9.1 Composition of Appeals Committee

            The Appeals Committee comprises persons appointed by the SGX Board and approved by MAS provided that:

            (a) no director, officer or employee of Singapore Exchange Limited or any of its Related Corporations may be appointed;
            (b) a majority are not directors, officers or employees of any Member or any Member's Related Corporation; and
            (c) a majority are not substantial shareholders of Singapore Exchange Limited or its Related Corporations or directors, officers or employees of any substantial shareholder of Singapore Exchange Limited or its Related Corporations.

            Amended on 5 December 2006.

          • 7.9.2 Chairman, Deputy Chairman and Secretary of the Appeals Committee

            The Appeals Committee shall elect a chairman and deputy chairman from among the members of the Appeals Committee. In the absence of the chairman, the deputy chairman shall have all the powers of the chairman. The SGX Board shall appoint a Secretary to assist the Appeals Committee. "Secretary" within Rules 7.9 and 7.10 refers to an employee of Singapore Exchange Limited, appointed by the SGX Board to the Appeals Committee for the purpose of supporting the work of the Appeals Committee. For the avoidance of doubt, the Secretary shall not form part of the quorum of the Appeals Committee, shall not possess any voting power, and save for record and administrative purposes, shall not participate in the deliberations of the Appeals Committee.

            Amended on 5 December 2006.

          • 7.9.3 Notification of Conflict of Interest by Appeals Committee Members

            Members of the Appeals Committee shall immediately notify the chairman of any possible conflicts of interest in relation to an appeal. The chairman shall decide whether the Appeals Committee member concerned should attend the hearing of that appeal and notify the SGX Board of his decision. The chairman shall also notify the SGX Board and abstain from hearing an appeal in which he himself may have a conflict of interest.

            Amended on 5 December 2006.

          • 7.9.4 Quorum of the Appeals Committee

            The Appeals Committee has a quorum of three (3) (including the chairman) when the meeting proceeds to business but may complete any business of a meeting with two (2) Appeals Committee members. In the case of an equality of votes, the chairman shall be entitled to a casting vote.

          • 7.9.5 Powers of the Appeals Committee

            The powers of the Appeals Committee include:

            (a) all the powers of the Disciplinary Committee;
            (b) increasing or reducing penalties, and overturning, varying or upholding any decision of the Disciplinary Committee;
            (c) hearing appeals in accordance with this Rules; and
            (d) dealing with such other matters as the SGX Board refers to it (either generally or in a particular case).

            Amended on 5 December 2006.

          • 7.9.6 Notice and Timing of Hearing Before the Appeals Committee

            The chairman shall appoint a date, time and place for the hearing. The appellant and the respondent shall be given fourteen (14) calendar days' notice of the hearing.

          • 7.9.7 Adjournment of Appeal

            The Appeals Committee may adjourn and reconvene its proceedings as it thinks fit. If the parties to an appeal are not attending the hearing, the Appeals Committee may hear the appeal by way of a resolution in writing.

        • 7.10 Appeals Proceedings

          • 7.10.1 Appeals Committee Procedures

            Except where it is expressly provided in this Rules, the Appeals Committee may establish its own procedures. The procedures established by the Appeals Committee shall at all times be consistent with the rules of fairness and principles of natural justice.

          • 7.10.2 Notice of Appeal and Reply

            (a) The following procedures apply in relation to any appeal before the Appeals Committee:
            (i) the appellant shall give a notice of appeal (setting out the full grounds of appeal) to the respondent and the Secretary within fourteen (14) calendar days of receipt of the Disciplinary Committee's written grounds of decision;
            (ii) the respondent may issue a response to the notice of appeal, which shall be served on the appellant and the Secretary within fourteen (14) calendar days of receipt of the notice of appeal; and
            (iii) the appellant may issue a reply to the response, which shall be served on the respondent and the Secretary within fourteen (14) calendar days of receipt of the response.
            (b) Time to comply with the deadlines may be extended by the chairman of the Appeals Committee upon written request, setting out the grounds for the request. Subject to the chairman's direction or approval, such request shall be made at least three (3) Business Days before the expiry of the relevant deadline. Subject to the chairman's approval, the Appeals Committee shall disregard any material that is not submitted in compliance with the prescribed deadlines. The decision of the chairman is final and binding.
            (c) The Appeals Committee may hear an appeal and exercise all its powers even if the respondent does not file a response or either the respondent or the appellant is not present at the hearing or any adjourned hearing.

          • 7.10.3 Deposit for Appeal

            (a) An appellant (other than the Exchange) shall place a deposit of $1,500 with the Appeals Committee when submitting a notice of appeal.
            (b) The deposit is not refundable unless:
            (i) the appellant informs the Secretary in writing of the withdrawal of the appeal at least seven (7) calendar days before the hearing of the appeal;
            (ii) the appeal is successful; or
            (iii) the chairman of the Appeals Committee agrees to a refund, whether in full or in part.

          • 7.10.4 Appeals by Rehearing

            (a) The Appeals Committee shall determine the appeal by way of rehearing. It shall only rehear that part of the decision of the Disciplinary Committee which is appealed against.
            (b) The Appeals Committee may at its discretion receive evidence that was not presented to the Disciplinary Committee. In exercising its discretion, the Appeals Committee may consider matters including:
            (i) whether the evidence was available at the time of the hearing by the Disciplinary Committee and if so, why it was not introduced at that time;
            (ii) whether the evidence will have an important influence on the result of the hearing; and
            (iii) whether the evidence appears to be credible.

          • 7.10.5 Legal Representation Before Appeals Committee

            (a) The appellant and the respondent may be represented by an advocate and solicitor.
            (b) The Secretary shall be informed in writing of the name of the appellant's or respondent's advocate and solicitor at least fourteen (14) calendar days before the hearing of the appeal.
            (c) The Appeals Committee may seek the advice of an independent advocate and solicitor.

          • 7.10.6 Evidence

            (a) The appellant and the respondent may examine and take copies of the evidence which each of them intends to rely on at the hearing.
            (b) The confidentiality obligation and undertaking under Rule 7.7.5 (b) applies.

          • 7.10.7 Witnesses, Examination and Cross Examination

            (a) The appellant and the respondent may:
            (i) request the attendance of any witness; and
            (ii) examine and cross-examine such witnesses.
            (b) The Appeals Committee may, in its absolute discretion:
            (i) request the attendance of any witness; and
            (ii) allow or disallow a request for the attendance of any witness.
            (c) The Appeals Committee cannot compel the attendance of a witness.

          • 7.10.8 Appeals Committee's Deliberation

            Unless expressly permitted by the chairman of the Appeals Committee, the appellant and the respondent shall not be present during the deliberation of an appeal by the Appeals Committee. Failure to observe this Rule 7.10.8 does not vitiate the Appeals Committee's decision.

          • 7.10.9 Decision of Appeals Committee

            (a) The appellant and the respondent are entitled to be present when the Appeals Committee announces its decision.
            (b) The Appeals Committee shall provide short written grounds of its decision to the appellant and the respondent.

        • 7.11 Payment Of Costs

          • 7.11.1 Award of Costs of Investigations by Disciplinary Committee or Appeals Committee

            The Disciplinary Committee or Appeals Committee may require the Person charged to pay all or part of the costs of the investigation, inspection or hearing.

          • 7.11.2 Duration for Payment of Costs

            The Disciplinary Committee or Appeals Committee may order the costs awarded to be paid within fourteen (14) calendar days.

        • 7.12 Penalty

          • 7.12.1 Period for Payment of Penalty

            A penalty imposed by the Disciplinary Committee or the Appeals Committee shall be paid within fourteen (14) calendar days from the date of notice, or such longer time as the chairman of the Disciplinary Committee or the Appeals Committee (as applicable) permits.

          • 7.12.2 Consequence of Penalty Not Paid Within the Stipulated Time

            If the penalty remains unpaid seven (7) calendar days after the deadline, the Member's access to the Markets or the Approved Trader's or Registered Representative's registration (as the case may be) shall be suspended. The suspension resulting from non-payment of a penalty ends upon full payment of the penalty.

    • Chapter 8 Definitions and Interpretation

      • 8. Definitions and Interpretation

        • 8.1 Definitions

          Capitalized terms used herein and not otherwise defined shall have the meaning set forth herein below.

          Unless the context requires otherwise, where the terms defined in this Rule 8.1 are defined in relation to a holder of a CMS Licence, such definitions shall, with the necessary modifications, apply to a Trading Member as those definitions apply to a holder of a CMS Licence whether or not that Trading Member holds a CMS Licence.

          A   B   C   D   E   F   G   H   I   J   K   L   M   N   O   P   Q   R   S   T   U   V   W   X   Y   Z

          Term Meaning
          A
          Act Refers to the Securities and Futures Act (Cap.289) and accompanying regulations issued pursuant thereto;
          Acceptable Government Securities Refers to securities issued by a government with a Moody's Investors Service sovereign rating of at least Aaa, Standard & Poor's Corporation sovereign rating of at least AAA, Fitch, Inc sovereign rating of at least AAA or such other rating or such other government security as may otherwise be prescribed by and acceptable to the Exchange from time to time.
          Accredited Investor Shall have the meaning ascribed to it under the Act;
          Adjusted Net Head Office Funds When used in reference to:—
          (a) a General Trading Member incorporated outside Singapore that holds a licence to engage in a Regulated Activity, shall bear the meaning ascribed thereto in Regulation 2 of the SFR (Financial and Margin Requirements); and
          (b) a Bank Trading Member incorporated outside Singapore which has satisfied the Net Head Office Funds requirement in Rule 2.5.2(c)(i), shall bear the meaning ascribed thereto in Regulation 2 of the SFR (Financial and Margin Requirements), less the capital requirements for its banking business;
          Adverse Events Shall have the meaning ascribed to it in Rule 7.1.1;
          Affiliate Refers to a Related Corporation of a Member with respect to an account belonging to and maintained wholly for the benefit of that Related Corporation;
          Affiliate Account Refers to an account carried on the books of a Member belonging to and maintained wholly for the benefit of an Affiliate;
          Agency Trade Refers to a trade executed on a Customer Account;
          Aggregate Indebtedness Shall have the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Regulations);
          Aggregate Resources When used in reference to:—
          (a) a Trading Member incorporated in Singapore which has satisfied Rule 2.5.2(b)(i) or Rule 2.5.2(c)(i) by meeting the Base Capital requirement, means its Financial Resources and Qualifying Letter of Credit less its Total Risk Requirement;
          (b) a Trading Member incorporated outside Singapore which has satisfied Rule 2.5.2(b)(i) or Rule 2.5.2(c)(i) by meeting the Net Head Office Funds requirement, means its Adjusted Net Head Office Funds and Qualifying Letter of Credit less its Total Risk Requirement; and
          (c) a Bank Trading Member incorporated outside Singapore which has satisfied Rule 2.5.2(c)(i) by means of cash and/or acceptable government securities deposited with the Clearing House or CDP,
          where the total amount payable under the Qualifying Letter(s) of Credit exceeds 50% of the total risk requirement, the amount in excess shall not be taken into account for determining the aggregate resources in meeting Aggregate Indebtedness.
          American Style Option Shall have the meaning ascribed to it in Rule 4.3.6;
          Alternative Delivery Procedure Shall have the meaning ascribed to it under the relevant Contract Specifications;
          Appeals Committee Refers to a committee established pursuant to this Rules to hear appeals against the decisions of the Disciplinary Committee;
          Approved Exchange Shall have the meaning ascribed to it under the Act;
          Approved Trader Refers to an individual who is either:
          (a) an employee or agent of a corporate Member and is duly authorised to execute House Trades or Agency Trades as the case may be; or
          (b) an individual Trading Member;
          Arrears Notice Shall have the meaning ascribed to it in Rule 2.12.2;
          B
          Bank Refers to a bank licensed under the Banking Act (Cap.19);
          Bank Trading Member Refers to a Bank which is admitted as a Trading Member, with such rights and obligations as set out in Chapter 2 of this Rules. For the avoidance of doubt, a reference to a Bank Trading Member incorporated outside Singapore shall refer to the branch located in Singapore, of a parent bank incorporated outside Singapore.
          Base Capital Shall have the meaning ascribed to it in Regulation 2 of the Financial and Margin Regulations;
          Board Refers to the Board of Directors of the Exchange;
          Business Day Refers to any day other than a Saturday, Sunday or public holiday in Singapore;
          Business Governed by this Rules When used in reference to:—
          (a) a Bank Trading Member incorporated in Singapore or a Bank Trading Member incorporated outside Singapore which has satisfied the net head office funds requirement under Rule 2.5.2(c)(i), shall mean its business involving all derivatives and securities contracts traded on any exchange and OTC contracts novated to any clearing facility; and
          (b) a Bank Trading Member incorporated outside Singapore which has satisfied Rule 2.5.2(c)(i) by depositing cash and/or government securities with the Clearing House, shall mean its business involving derivatives and securities contracts traded on the Exchange and SGX-ST and OTC contracts novated to the Clearing House and CDP;
          Buyer Refers to:
          (a) the direct buying counterparty in a cash-settled Futures Contract;
          (b) the direct buying counterparty in an Option Contract; or
          (c) the direct counterparty responsible for taking delivery of the underlying Commodity in a deliverable Futures Contract;
          Buying Member Shall have the meaning ascribed to it in Rule 6.3.4;
          Bypass Letter of Credit [Deleted]
          Bypass Privileges [Deleted]
          Bypass Subordinated Loan [Deleted]
          C
          CDP Refers to The Central Depository (Pte) Limited;
          CDP Clearing Rules Refers to the clearing rules adopted by The Central Depository (Pte) Limited, as applied, interpreted and implemented by circulars, practice notes and directives issued by The Central Depository (Pte) Limited;
          Change of Control Shall have the meaning ascribed to it in Rule 2.14.1;
          Circular Refers to informational notices issued by the Exchange;
          Clearing House Refers to the Singapore Exchange Derivatives Clearing Limited by whatever name called or its successor and assigns and where the context so requires such authorised personnel acting in its name;
          Clearing Member Refers to any corporation granted clearing privileges by the Clearing House as contemplated in the Clearing Rules;
          Clearing Rules Refers to the collection of rules governing the organisation and operation of the Clearing House, and adopted by the Clearing House, as applied, interpreted and implemented by circulars, practice notes and directives issued by the Clearing House;
          Clearing System Refers to any Clearing House operated system that facilitates (a) the novation of trades to the Clearing House and (b) the settlement of those trades and positions;
          Closing Out To extinguish an Open Position by matching it with an offsetting position and "Close(d) Out" shall have the correlative meaning;
          CMS Licence Refers to the capital markets services licence held by a party for the conduct of such business as contemplated under the Act;
          Committee Member Refers to any constituent member of any of the committees established and operated by the Exchange;
          Commodities Refers to any commodities including metals, energy or agricultural commodities;
          Commodity Futures Contract Refers to any Futures Contract where the Underlying is a Commodity;
          Conduct of Business Regulations Refers to the Securities and Futures (Licensing and Conduct of Business) Regulations;
          Confidential Information Shall have the meaning ascribed to it in Rule 1.4.1;
          Contract Refers to an instrument, contract or transaction, or class of instruments, contracts or transactions approved by MAS for listing and trading on the Markets;
          Contract Month Shall have the meaning ascribed to it in the Clearing Rules;
          Contract Specifications Refers to the commercial and technical terms of a Contract, including the Contract size, Contract Month, trading hours, Underlying, exercise price, minimum price fluctuation, Last Trading Day, settlement basis and method of exercise;
          Unless otherwise stated, Contract Specifications are distinct and separate documents which are not part of this Rules.
          Cooling Off Period Shall have the meaning ascribed to it in Rule 4.1.15;
          Counterparty Risk Requirement Shall have the meaning ascribed to it under the Notice on Risk Based Capital Adequacy Requirements for Holders of Capital Markets Services Licences;
          Customer Unless otherwise indicated in a particular Rule, refers to a Person (including an Affiliate) whose account is carried on the books of a Member except where such Person is the Member itself with respect to the Member's House Account;
          Customer Account Unless otherwise indicated in a particular Rule, refers to an account carried on the books of a Member for a Customer (including an Affiliate Account);
          D
          Daily Settlement Price Refers to the daily price at which a Contract is settled at the end of each Trading Day or at such other time as may be provided in the relevant Contract Specifications;
          Defalcation Shall have the meaning ascribed to it in Rule 1.5.1;
          Delivery Default Shall have the meaning ascribed to it under the relevant Contract Specifications;
          Designated Clearing House Shall have the meaning ascribed to it under the Act;
          Designated Port Shall have the meaning ascribed to it in Rule 5.2;
          Directives Shall have the meaning ascribed to it in Rule 1.10.2;
          Direct Market Access Shall have the meaning ascribed to it in Rule 2;
          Disciplinary Committee Refers to a committee established pursuant to this Rules to hear and adjudicate on violations to this Rules;
          Dual Member Shall have the meaning ascribed to it in Rule 2.2.4 and "Dual Membership" shall have the correlative meaning;
          E
          Effective Date Refers to 22 September 2006;
          Emergency Refers to any circumstances which in the opinion of the Exchange calls for an emergency action and shall include an excessive trading position or unwarranted speculation in any of the Markets, a state of war or threatened hostilities, the introduction of official controls affecting any of the Markets or the performance of any Contract or any change in such controls, a breakdown or failure of the Trading System or any other communication, equipment or market facilities operated by the Exchange or any other undesirable situation or practice that adversely affects market integrity or investor rights;
          Escrow Asset Shall have the meaning ascribed to it in the Clearing Rules;
          European Style Option Shall have the meaning ascribed to it in Rule 4.3.6;
          Excess Margins Refers to credits in excess of Initial Margins;
          Exchange Refers to the Singapore Exchange Derivatives Trading Limited, an Approved Exchange under the Act;
          Exchange-approved OMS Shall have the meaning ascribed to it in Rule 2.1.1;
          Exchange Examiners Refers to persons appointed by the Exchange to assist in its investigations under Rule 7.4.5;
          Exchange Systems Shall have the meaning ascribed to it in Rule 1.6.1;
          Expiration Day With respect to Option Contracts, refers to the day on which Open Positions are Closed Out with reference to the Final Settlement Price;
          F
          Final Settlement Price Refers to the price at which a Contract is settled at maturity pursuant to any procedure prescribed by the Clearing House or the relevant Contract Specifications, as the case may be;
          Financial and Margin Regulations Refers to the Securities and Futures (Financial and Margin Requirements for Holders of Capital Markets Services Licences) Regulations;
          Financial Resources When used in reference to:—
          (a) a General Trading Member that holds a licence to engage in a Regulated Activity, shall bear the meaning ascribed thereto in Regulation 2 of the SFR (Financial and Margin Requirements); and
          (b) a Bank Trading Member which has satisfied the Base Capital or Net Head Office Funds requirement under Rule 2.5.2(c)(i), shall bear the meaning ascribed thereto in Regulation 2 of the SFR (Financial and Margin Requirements) less the capital requirements for its banking business;
          Force Majeure Refers to any event beyond the control of a Member, Buyer or Seller as the case may be, including acts of a civil or military authority, labour disputes, strikes, fires, floods, epidemic diseases, accidents, wars (whether declared or undeclared), acts of the public enemy, riots, perils of the sea, embargoes, restrictions imposed by any governmental authority (including allocations, priorities, requisitions, quotas and price controls) or any acts of God, or as may otherwise be provided in the Contract Specifications;
          Foreign Branch Refers to an overseas branch of a corporate Member as contemplated under Rule 3.3.32;
          Free Financial Resources Shall have the meaning ascribed to it under the Financial and Margin Regulations;
          Futures Contract Refers to any Contract, over any Underlying, designated by the Exchange as a futures contract;
          G
          General Trading Member Refers to a Trading Member with such rights and obligations as set out in Chapter 2 of this Rules. For the avoidance of doubt, a reference to a General Trading Member shall not include a Bank Trading Member.
          H
          Honorary Member Shall have the meaning ascribed in Rule 2.2.5;
          House Account Unless otherwise indicated in a particular Rule, refers to an account in which only the Member is the legal and beneficial owner;
          House Trades Refers to trades executed by Members on their House Account and "House Traders" shall have the correlative meaning.
          I
          Index Contracts Shall have the meaning ascribed to it in Rule 1.6.4;
          Index Provider Shall have the meaning ascribed to it in Rule 1.6.4;
          Initial Margins Shall have the meaning ascribed to it in Rule 3.3.12;
          Inter-exchange Cross Margining Shall have the meaning ascribed to under Rule 3.3.14;
          Internet Trading Trading access to the Markets through internet broking services provided by a Member.
          Irredeemable and Non-Cumulative Preference Share Capital has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements).
          L
          Last Trading Day Refers to the last day on which a Futures Contract may be traded prior to its expiration;
          M
          Maintenance Margins Shall have the meaning ascribed to it in Rule 3.3.12;
          Market Refers to a market as contemplated under the Act that is operated by the Exchange;
          MAS The Monetary Authority of Singapore established under the Monetary Authority of Singapore Act (Cap.186);
          Member Refers to either a Trading Member or a Clearing Member with trading privileges and "Membership" shall have the correlative meaning;
          Members' Affairs Shall have the meaning ascribed to it in Rule 1.4.2;
          N
          Negotiated Large Trades or NLTs Refers to large trades executed outside the Trading System between and among Accredited Investors and Members pursuant to the minimum thresholds and other procedures prescribed by the Exchange;
          Net Head Office Funds When used in reference to:—
          (a) a General Trading Member incorporated outside Singapore that holds a licence to engage in a Regulated Activity, shall have the meaning ascribed to it under the Financial and Margin Regulations; and
          (b) a Bank Trading Member incorporated outside Singapore, shall have the meaning ascribed to it under the Financial and Margin Regulations, provided that its net liability shall include, without limitation, the liability of its Asian Currency Unit;
          Net Liquid Capital Shall mean the financial resources of a General Trading Member that holds a licence specified in Rule 2.4.1(b) computed under such methodology prescribed by the Exchange.
          O
          Old Rules Shall have the meaning ascribed to it Rule 1.12.3;
          OMS Shall have the meaning ascribed to it in Rule 2.1.1;
          Omnibus Account Refers to a single account with one (1) or more sub-accounts, each held by Persons beneficially entitled to positions established under such account;
          Open Position An open position exists where a contract held by a party has not been closed out or where the obligations under a contract are yet to be performed;
          Operational Risk Requirement Shall have the meaning ascribed to it under the Notice on Risk Based Capital Adequacy Requirements for Holders of Capital Markets Services Licences;
          Option Contract Refers to a Contract which grants an option in respect of an Underlying or a Futures Contract;
          Order Form Shall have the meaning ascribed to it in Rule 3.3.8;
          P
          Partner Market Shall have the meaning ascribed to it in Rule 2.1.3;
          Person Refers to any individual, corporation, partnership, statutory body, government ministry, association, trust or entity as the context admits or requires;
          Performance Deposit Refers to the amount, as prescribed in the relevant Contract Specifications, posted by the Clearing Members with the Clearing House, to secure the due delivery and acceptance of the underlying Commodity in a deliverable Futures Contract by their respective Sellers and Buyers. Such deposit shall be in cash or in the form of an irrevocable Letter of Credit or any other security in a form and issued by a bank acceptable to the Clearing House;
          Practice Notes Shall have the meaning ascribed to it under Rule 1.10.2;
          Price Limit Shall have the meaning ascribed to it in Rule 4.1.15;
          Proprietary Trades Refers to trades executed by a Person for its own account;
          Public Register of Representatives Refers to the records of appointed representatives, provisional representatives and temporary representatives kept by the Authority in accordance with the Securities and Futures Act;
          Q
          Qualifying Letter of Credit Shall have the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements);
          Qualifying Subordinated Loan Shall have the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements);
          [Deleted] [Deleted]
          R
          Registered Representative Refers to:
          (a) an individual sponsored by a corporate Member acting or holding himself out as a sales representative in the name of the Member;
          (b) an employee of a Bank acting or holding himself out as a sales representative in the name of a Member which is a Related Corporation of that Bank; or
          (c) a trading representative of a SGX-ST member provided that such SGX-ST member is a Related Corporation of the Member and the Member sponsors the trading representative's application to act as a Registered Representative;
          Regulated Activity Shall have the meaning ascribed to it in Rule 2.4.1;
          Regulatory Notices Shall have the meaning ascribed to it in Rule 1.10.2;
          Register Refers to a register of all Members maintained by the Exchange;
          Related Corporation Shall have the meaning ascribed to it under the Companies Act
          (Cap.50);
          Relevant Regulatory Authority Shall mean:
          (a) the authority(ies) or regulatory body(ies) that regulate(s) a Trading Member's, its Approved Trader, or its Registered Representatives' activities in the country where it is carrying on such activities; and
          (b) where the Trading Member, its Approved Traders, or its Registered Representatives are carrying on regulated activities in Singapore, the MAS;
          Resignation Notice Refers to a Member's written notice of resignation as contemplated under Rule 2.15.1;
          Rules Refers to the collection of rules and accompanying annexes set forth in this rulebook, as applied, interpreted or implemented by Directives, Regulatory Notices and Practice Notes;
          Rule Violation Includes any breach, contravention, default or failure to comply with the Act or the Rules and includes deemed rule violations;
          S
          Sanction Refers to expulsion, suspension, reprimand or such other sanctions that the Disciplinary Committee or Appeals Committee may impose on a Member, Approved Trader or Registered Representative found guilty of a Rule Violation or other misconduct, as contemplated under Rule 7.6.2 or Rule 7.9.5 respectively;
          [deleted] [deleted]
          Secretary Shall have the meaning ascribed to it in Rule 7.5.2 or Rule 7.9.2, as the context requires;
          Securities Rules Refers to the collection of rules governing the organisation and operation of securities market, adopted by SGX-ST, as applied, interpreted and implemented by circulars, practice notes and directives issued by SGX-ST;
          Seller Refers to:
          (a) the direct selling counterparty in a cash-settled Futures Contract;
          (b) the direct selling counterparty in an Option Contract; or
          (c) the direct counterparty responsible for making delivery of the underlying Commodity in a deliverable Futures Contract;
          Selling Member Shall have the meaning ascribed to it in Rule 6.3.4;
          Settlement In relation to a Contract, refers to the procedures for cash settlement or physical delivery as set out in the relevant Contract Specifications and in accordance with the Clearing Rules;
          SGX Board Means the board of directors for the time being of Singapore Exchange Limited or such number of them as have authority to act for the SGX Board;
          SGX-DT Market Refers to the Market owned and operated by the Exchange;
          SGX-ST Refers to Singapore Exchange Securities Trading Limited;
          SI AC Refers to the Singapore International Arbitration Centre;
          Sponsored Access A form of Direct Market Access in which a Member permits its Customer and any other persons to use its member ID to transmit orders for execution directly to the Exchange without using the Member's infrastructure.
          Sufficient Credit [Deleted]
          Summary Referral Shall have the meaning ascribed to it in Rule 7.2.5;
          T
          Title Documents Shall have the meaning ascribed to it in Rule 5.1.1;
          Total Net Equity Refers to the ledger balance of a Customer Account, including adjustments to the account arising from unrealized gains or losses on open positions, and margins deposited by the Customer;
          Total Risk Requirement When used in reference to:—
          (a) a General Trading Member that holds a licence to engage in a Regulated Activity, shall bear the meaning ascribed thereto in Regulation 2 of the SFR
          (Financial and Margin Requirements);
          (b) a Bank Trading Member which has satisfied the Base Capital or Net Head Office Funds requirement under Rule 2.5.2(c)(i), shall bear the meaning ascribed thereto in Regulation 2 of the SFR (Financial and Margin Requirements) except that such Bank Trading Member shall only compute the total risk requirement for all customers' and proprietary positions in derivatives and securities contracts traded on any exchange and OTC contracts novated to any clearing facility; and
          (c) a Bank Trading Member which has satisfied Rule 2.5.2(c)(i) by depositing cash and/or government securities with the Clearing House, shall bear the meaning ascribed thereto in Regulation 2 of the SFR (Financial and Margin Requirements) except that such Bank Trading Member shall only compute the total risk requirement for all customers' and proprietary positions in derivatives and securities contracts traded on the Exchange and SGX-ST, and OTC contracts novated to the Clearing House and CDP;
          Trading Day Any day on which the Exchange is open for trading or deliveries;
          Trading Member Refers to an individual or corporation granted trading privileges by the Exchange, as contemplated in this Rules, and shall include a General Trading Member and a Bank Trading Member;
          Trading System Refers to any Exchange operated electronic platform, comprising (a) an order matching engine; (b) order routing interfaces; and (c) market data interfaces, that facilitates trading on the Markets;
          U
          Underlying Refers to any asset, Commodity, instrument, index, reference rate or any other thing whose price movement determines the value of the Contract;
          User Information Shall have the meaning ascribed to it under the Act.

          Amended on 5 December 2006, 26 January 2007, 26 November 2007, 25 August 2009, 22 February 2010, 29 November 2010, 16 July 2012, 15 March 2013, 26 April 2013, 1 April 2014, 29 December 2014, 2 May 2016 and 14 November 2016.

        • 8.2 Interpretation

          • 8.2.1

            Expressions referring to writing shall be construed as including references to printing, lithography, photography and other modes of representing or reproducing words or data in a visible form.

          • 8.2.2

            Any words importing the singular number only shall, where the context permits, include the plural number and vice versa.

          • 8.2.3

            Any words importing the masculine gender shall include the feminine gender and shall, where the context permits or requires include a partnership or an incorporated company.

          • 8.2.4

            Any reference to the "Exchange's website" in this Rules is to www.sgx.com.

          • 8.2.5

            Any reference to "$" is to Singapore dollars unless otherwise specified.

          • 8.2.6

            In the interpretation of this Rules, an interpretation that promotes the purpose or object underlying the particular Rule (whether that purpose or object is expressly stated in the Rule or not) shall be preferred.

          • 8.2.7

            Any references to "it" or "its" in the context of Members, Customers, Persons, Approved Traders and Registered Representatives shall include the masculine or feminine gender where the context so requires.

          • 8.2.8

            References in this Rules to statutory provisions shall be construed as references to those provisions as modified or re-enacted from time to time and to any subordinate legislation made under such provisions and shall include references to any repealed statutory provisions which have been so re-enacted (whether with or without modification).

          • 8.2.9

            The headings in this Rules are for convenience only and do not affect the construction of this Rules.

    • Chapter 9 Transitional Provisions

      • 9.1 Transitional Provisions

        • 9.1.1 Applicability

          This Rule establishes the transitional provisions relating to Rules 2.5.5, 2.5.7, 3.3.32, 7.3.6 and 8.1 of the Futures Trading Rules that was amended on and in force from 29 December 2014.

          Added on 29 December 2014.

        • 9.1.2 Transitional Arrangements

          Rules 2.5.5, 2.5.7, 3.3.32, 7.3.6 and 8.1 (as amended on and in force from 29 December 2014), except for the definition of Base Capital, shall not apply to a Transitional Trading Member during the Transitional Period, and the aforesaid Rules as in force immediately before 29 December 2014 shall continue to apply to a Transitional Trading Member during the Transitional Period. A reference to any provision of the Financial and Margin Regulations in the aforesaid Rules as in force immediately before 29 December 2014 is to that provision in the Financial and Margin Regulations as in force immediately before 3 April 2013. For avoidance of doubt, the definition of Base Capital applicable to a Transitional Trading Member has the same meaning ascribed in the SFR(Financial and Margin Requirements) as in force on 3 April 2013.

          Added on 29 December 2014.

        • 9.1.3 Transitional Period

          For the purposes of the aforesaid Rules, "Transitional Period" means the period commencing on 3 April 2013 and:—

          (a) in relation to all rule amendments except the definition of Base Capital, till 2 April 2015; or
          (b) ending on such date, before the expiry date stated in Rule 9.1.3(a), specified in a written notice to SGX-DT informing SGX-DT of the Transitional Trading Member's intention to adopt the requirements pursuant to Rule 9.1.4,
          whichever is the earlier.

          Added on 29 December 2014.

        • 9.1.4 Notification by Writing

          For the purpose of Rule 9.1.3(b), the Transitional Trading Member shall notify SGX-DT in writing at least 14 days before the intended date to adopt the requirements.

          Added on 29 December 2014.

        • 9.1.5 Transitional Trading Member

          "Transitional Trading Member" means

          (a) in the case of a Trading Member who is a holder of the Capital Markets Services Licence, is a "specified holder" as defined under Regulation 25 of the Securities and Futures (Financial and Margin Requirements for Holders of Capital Markets Services Licences) (Amendment) Regulations 2013 or a "new holder" as defined under Regulation 26 of the Securities and Futures (Financial and Margin Requirements for Holders of Capital Markets Services Licences) (Amendment) Regulations 2013
          (b) in the case of a Trading Member who is not a holder of the Capital Markets Services Licence, is an existing Trading Member prior to 3 April 2013 or one who applied to be a Trading Member prior to 3 April 2013.

          Added on 29 December 2014.

    • Regulatory Notices

      • Regulatory Notice 2.5.2(b1) — Computation of Net Liquid Capital for Trading Members Referred to in Rule 2.4.1(b)

        Issue Date Cross Reference Enquiries
        Issued on 1 April 2014 Rule 2.5.2(b1) Please contact Member Supervision:—

        Facsimile No : 6538 8273

        1. Introduction

        1.1 Rule 2.5.2(b1) states that a Trading Member that holds a licence specified in Rule 2.4.1(b) must at all times maintain Net Liquid Capital of not less than $1 million.
        1.2 This Regulatory Notice sets out the computation methodology of Net Liquid Capital for a Trading Member that holds a licence specified in Rule 2.4.1(b).

        2. Net Liquid Capital

        2.1 A Trading Member that holds a licence specified in Rule 2.4.1(b) shall compute its Net Liquid Capital as follows:

        COMPUTATION OF NET LIQUID CAPITAL

        Shareholders' Funds1 ____________
        Less:  
        (a) Illiquid assets2 ____________
        (b) Pre-paid expenses3 ____________
        (c) Deposits4 ____________
        (d) Deferred tax assets ____________
        (e) Investments in unquoted securities ____________
        (f) Deficits in clients' accounts less any provisions for bad and doubtful debts5 ____________
        (g) Charged assets6 ____________
        (h) Excess of book value of securities carried in own account over market value ____________
        (i) Current assets doubtful of collection less any provisions already made ____________
        (j) Diminution in the value of securities underwritten ____________
        (k) Unsecured loans and unsecured advances included as current assets ____________
        (l) Unsecured amounts due from each director and his connected person ____________
        (m) Unsecured amounts due from related companies ____________
           
        NET LIQUID CAPITAL ____________

        3. Submission of Financial Statements and Other Information to the Exchange

        3.1. A Trading Member that holds a licence specified in Rule 2.4.1(b) shall submit financial returns in the form as set out in paragraph 2.1.

        Added on 1 April 2014.


        1 Shareholders' funds means the sum of the ordinary paid-up capital, non-redeemable preference share capital and reserves after deduction of any debit balance appearing in the profit and loss account of the Trading Member.

        2 These are assets considered not readily convertible into cash within 30 days which includes intangible assets (goodwill); fixed assets (furniture, fixtures, and building etc.

        3 These include items such as rent and insurance.

        4 Deposits exclude items such as:—

        i. a current account balance, saving account deposit or fixed deposit, including accrued interest, with:
        (a) a bank licensed under the Banking Act (Cap. 19);
        (b) a merchant bank approved as a financial institution under the Monetary Authority of Singapore Act (Cap. 186);
        (c) a finance company licensed under the Finance Companies Act (Cap.108); or
        (d) a bank outside Singapore which is subject is approved, licensed, registered or otherwise regulated by a banking regulatory authority in a foreign jurisdiction to carry on banking business; or
        ii. a deposit with any of the following:
        (a) an approved exchange;
        (b) a recognised exchange;
        (c) a designated clearing house;
        (d) a clearing facility appointed by a recognized exchange; or
        (e) an entity which is a member of any entity referred to in sub-paragraphs (a) to (d);

        where a recognised exchange means an overseas exchange regulated by a financial service regulatory authority of a country or territory specified under Group A in in Table 4 of the Fourth Schedule of the SFR (Financial and Margin Requirements).

        5 Deficits in clients' accounts means—

        iii. For a purchase contract which remains fully or partially unpaid, the excess of the amount owed by the client over the market value of the underlying securities of which the client had failed to take delivery after the due date and of any additional securities lodged by the client with the Trading Member as collateral;
        iv. For a sale contract where the securities is yet to be delivered, the excess of the current market value of the underlying securities sold and any additional securities lodged by the client with the Trading Member as collateral, over the contract value of the sale contract;
        v. Where any purchase or sale contract has been offset by a contra transaction on or before the due date, the amount of loss, if any, on the date on which the contra transaction takes effect;
        vi. Where any purchase or sale contract has been offset by a forced-sale or buying-in transaction after the due date, the amount of loss, if any, arising from the forced-sale or buying-in transaction on the date on which the transaction takes effect;
        vii. In relation to each client's margin account, the amount of margin deficiency determined in accordance with the maintenance margin requirement provided in the Trading Member's agreement with the client; and
        viii. In relation to interest and other receivables arising from securities transactions, the amount which is not secured and which is outstanding for more than 14 calendar days.

        6 Charged assets refer to assets which are subject to a charge under which a third party has a right of retention or sale of the assets upon default of the Trading Member.

      • Regulatory Notice 2.6.2A — Adequacy of Systems

        1. Introduction

        1.1 In accordance with Rule 2.6.2A, a Member must ensure that its systems and connections to the Markets operate properly, and have adequate and scalable capacity to accommodate trading volume levels.

        2. Planning and Assessment Programs to Ensure Adequacy

        2.1 In ensuring the adequacy of systems and connections to the Markets, Members should establish comprehensive planning and assessment programs to test system operation, capacity and security. Members should also have in place arrangements for the employment of appropriate technical expertise to maintain and operate systems and connections to the Markets.
        2.2 The scope of such programs should cover:—
        (a) the establishment of capacity estimates for systems performing automated order routing, execution and market data functions. Such estimates should be based on a suitably long look-back period and historical activity;
        (b) assurance that the system and its functions, including risk controls and error-prevention alerts, have been tested in accordance with prudent business practices before use and following any material change;
        (c) periodically conducting capacity stress tests to determine the behaviour of automated systems under a variety of simulated conditions;
        (d) seeking on a periodic basis the assessment of independent reviewers with regard to whether Members' systems are performing adequately and whether these systems have adequate security. Such independent reviewers may be any persons not involved in the operation of Members' systems who have sufficient technical expertise; and
        (e) implementation of policies for the hiring and training of qualified technical personnel.
        2.3 The programs described in paragraph 2.2 may be established under outsourcing arrangements where appropriate. Members continue to be responsible for ensuring that the respective requirements are adequately met under the outsourcing arrangements.

        Added on 15 March 2013.

      • Regulatory Notice 2.6.3(d) — [Regulatory Notice has been deleted]

        Deleted on 15 March 2013.

      • Regulatory Notice 2.6.4 — Audit Trails and Records

        Issue Date Cross Reference Enquiries
        Added on
        22 September 2006 and amended on 15 March 2013 and 14 November 2016.
        Rule 2.6.4 Please contact Member Supervision:

        Facsimile No : 6538 8273
        E-Mail Address: membersup@sgx.com

        1. Introduction

        1.1 In accordance with Rule 2.6.4, a Member is required to maintain complete and accurate records and audit trails to evidence compliance with this Rules, and in accordance with the requirements in the Act and this Rules.

        2. Storage of Audit Trail Data

        2.1 The Member should keep data and records such that they are easily retrievable by authorised personnel and are stored securely such that no tampering occurs. Backups of records must be kept at a location separate from the original records.
        2.2 The Member must check data and records for quality and accuracy on an on-going basis and correct any quality or accuracy defects detected.
        2.3 The following are examples of proper procedures in maintaining records and audit trails:—
        (a) for electronic storage of audit trail data :
        (i) the Member is able to store or download the data in text delimited or ASCII format or such other format that is readable by the Exchange;
        (ii) the Member is able to print out the data in hard copies;
        (iii) the Member has proper back-up controls for its data and records; and
        (iv) the OMS has dated and clocked all data files placed on storage media to reflect the computer run time of the file;
        and
        (b) for non-electronic storage of audit trail data, the Member has paper records showing all the actions of an order (from the point the order is entered) and the respective times and dates, and there are paper records to reflect the print time and date.

        3. Audit Trail of Transactions

        3.1 A Member shall produce to the Exchange, if asked, a complete audit trail of transactions, from the receipt of an order to its settlement. Unless otherwise required by the Exchange, for trades and orders which occurred within the 6 month period immediately before the request, the records must be provided to the Exchange immediately, and for trades and orders which occurred more than 6 months prior to the request, the records must be provided to the Exchange no later than two business days from the date of request.
        3.2 For a complete audit trail of transactions, a Member must ensure that the following records are captured, where applicable:
        3.2.1 Record of all Fields Relating To Order Entry

        (details of an order)

        1. Trading System ID
        1A. Order date — date order is entered into the OMS
        2. Trade date — date order is executed in the Trading System
        3. Commodity
        4. Commodity month
        5. Commodity year
        6. Call/ put
        7. Strike price
        8. Traded premium
        9. Original quantity — original order size
        10. Transmitted quantity — actual size transmitted to the Trading System or an accessible foreign market
        11. Traded quantity — actual size of order filled
        12. Original order price — price at which order is to be executed
        13. Original trigger price (for stop orders)
        14. Traded price — actual price at which order is executed
        15. Trade type (e.g. outright order, spread order)
        16. Approved Trader/ User id — unique identifier for each user of the OMS. In the case of Direct Market Access, Member should be able to identify where the order is coming from
        17. Order number — unique number assigned to each order sequentially
        18. Clearing Member code
        19. Account number
        20. Status of order at all stages (e.g. original order, amended, filled, unfilled, withdrawn or cancelled, rejected, re-routed for review)
        21. Order type (e.g. Market Order, Limit Order, Stop Order)
        22. Combined order type (e.g. Market — If — Touched order, Market — On — Close order, One — Cancels — the — Other Order)
        23. Order qualifier (e.g. day order, fill or kill, good — till — cancelled, good — till — date, good — till — session)
        24. Buy/ Sell
        25. Time of entry through all processors in the OMS (e.g. time at which order entered into the OMS , time at which order reached the Member's network, time at which order reached the Trading System)
        26. Time of execution
        26A. Counterparty Member identity — for executed orders
        27. Origin
        28. Timestamp for changes made to audit trail records (e.g. to record the time at which the account number, price or quantity of a filled trade in the audit trail file/ record is changed)
        3.2.2 Record of amendment of orders
        1. Details of the change that is made (the newly amended order should be easily traced to the original order)
        2. Time of amendment
        3. User id of the person who enters the original order into the OMS
        4. User id of the person who amends the order (if the order is amended by another user)
        3.2.3 Record of Withdrawal of Orders
        1. Details of the order
        2. Time of withdrawal
        3. User id of the person who enters the original order into the OMS
        4. User id of the person who withdraws the order (if the order is withdrawn by another user)
        3.2.4 Record of Orders Rejected
        1. Details of the order
        2. Time at which order was rejected by the OMS
        3. Time at which order was rejected by the Trading System
        4. Reasons for the rejection of order
        3.2.5 Record of Orders Entered into the Local Order Pad of the OMS

        (where orders that are not released to the Trading System are stored)

        1. Details of the order (as described in paragraph 3.2.1, wherever applicable)
        2. Time at which order was entered into, amended and/or withdrawn from the local order pad
        3. Time at which order was released to the Trading System
        4. Time at which order in the queue was moved back to the local order pad
        3.2.6 Record of Customers' Orders Deferred/ Re-routed to the Member

        (if the OMS allows interception of Customers' orders before releasing the orders to the Trading System)

        1. Details of the order (as described in paragraph 3.2.1, wherever applicable)
        2. Time at which order was intercepted by the Member
        3. Time and details of any subsequent amendment/ withdrawal of the intercepted order
        4. Time at which order was released to the Trading System
        5. User id of the Member's employee who handled the intercepted order
        3.2.7 A "Relative" Key
        1. A unique identifier that will tie together all actions relating to a specific order. This identifier will remain unchanged throughout the lifespan of the order and should be able to link the order to the trade number assigned by the Trading System.
        3.3 For record of times required under this Rules, the Member must ensure that:

        1. the record of times should be to the highest level of precision achievable by the operating system and such record must be accurate at least to the second;
        2. the times captured must not use a clock that can be modified by the person entering the order; and
        3. the time in the OMS should be synchronized with the GPS time adopted by the Exchange. If it is not feasible to synchronize the times, the Member must maintain on record the time difference at the start of each Trading Day so as to facilitate the reconciliation of audit trail logs during audit investigation.

        Amended on 2 May 2011, 15 March 2013 and 14 November 2016.

      • Regulatory Notice 3.3.1 — Customer Account and Know-Your-Customer Requirements

        Issue Date Cross Reference Enquiries
        Added on
        22 September 2006.
        Rule 3.3.1 Please contact Member Supervision:

        Facsimile No : 6538 8273
        E-Mail Address: membersup@sgx.com

        1. Introduction

        1.1 This Regulatory Notice explains the circumstances, conditions and operational procedures that a Member shall observe with respect to the know-your-customer requirements set forth in Rule 3.3.1.

        2. Know-Your-Customer Requirements

        2.1 Individual Customer Account

        Before opening an individual Customer Account, a Member shall:
        (a) obtain particulars of the Customer (and any person authorised to trade for the Customer), including the full name, a copy of the identity card/passport, specimen signature, residential and mailing addresses, telephone numbers, occupation, and the name, address and telephone number of the Customer's employer, and investment objectives (if applicable); and
        (b) take suitable steps to verify the Customer's identity and intention if the Customer does not open the account in person.
        2.2 Corporate Customer Account

        Before opening a corporate Customer Account, a Member shall:
        (a) obtain particulars of the Customer, including the full name, registered and mailing addresses, names and signatures of persons authorised to trade, and investment objectives (if applicable);
        (b) obtain a certified true copy of the certificate of incorporation of the Customer; and
        (c) obtain either (i) or (ii) below, failing which it must note in writing the basis upon which it believes that the Customer may open the account and engage in transactions and that the persons acting for the Customer have been duly authorised to trade on the Customer's behalf:
        (i) a copy of the directors' resolution of the Customer approving the opening of a trading account with the Member and empowering specific directors and officers to:
        (A) trade in futures and options in the Customer Account; and
        (B) execute all documentation for trading and settlement in the account;
        or
        (ii) a power of attorney (in English) certified by a notary public, authorising identified persons to open a trading account and trade on behalf of the Customer.
        2.3 Joint Account
        (a) A Member may allow Customers to open a joint trading account if:—
        (i) each joint account holder is at least 21 years old; and
        (ii) no joint account holder is an undischarged bankrupt.
        (b) A joint account may be operated by not more than two (2) individuals. However, if it is an estate account, it may be operated by all the personal representatives.
        (c) A Member shall maintain the following information:
        (i) particulars of each joint account holder;
        (ii) the names of persons authorised to give trading orders and settlement instructions and receive monies and assets from the Member;
        (iii) the names of persons to whom payments by the Member are to be made; and
        (iv) details of any accounts held in an individual capacity by a joint account holder.
        (d) A Member shall require each joint account holder to specify whether the joint account holder is jointly or severally liable for all debts incurred in a joint account.

      • Regulatory Notice 3.3.8 — Recording of Orders

        Issue Date Cross Reference Enquiries
        Added on
        22 September 2006.
        Rule 3.3.8 Please contact Market Surveillance:

        Mr Kelvin Tan 6236 5907
        Mr Samuel Tan 6236 5909

        1. Introduction

        1.1 This Regulatory Notice sets out the details to be contained in an Order Form, as set forth in Rule 3.3.8(b)(i).

        2. Details on the Order Form

        2.1 In addition to the requirements prescribed in Regulation 39(3) of the Conduct of Business Regulations, the Order Form shall, where applicable, include the following details:
        (a) the Customer's designation, which shall readily identify the account for which the order was given;
        (b) the date and time that the Customer's order, amendment or cancellation was passed from the Registered Representative to the Approved Trader;
        (c) the contract for which the Customer's order was given;
        (d) the contract month of that futures contract;
        (e) the quantity of that futures contract;
        (f) the order type;
        (g) the price (if any) to buy or sell that futures contract;
        (h) in the case of an option contract, the class of options and the strike price; and
        (i) the date and time that the order or amended order was executed

        Amended on 1 April 2014.

      • Regulatory Notice 3.3.12 — Customer Margins

        Issue Date Cross Reference Enquiries
        Added on
        22 September 2006
        and amended on
        25 August 2009, 11 October 2013 and 25 January 2017.
        Rule 3.3.12
        Please contact Member Supervision:

        Facsimile No : 6538 8273
        E-Mail Address: membersup@sgx.com

        1. Introduction

        1.1 The Regulatory Notice sets out the requirements in relation to Rule 3.3.12 ("the Relevant Rule") on the computation and monitoring of Customer margins.

        2. Margin Rates and Acceptable Forms of Margins

        2.1 Margin System

        Standard Portfolio Analysis of Risk Margin System
        2.1.1 The Standard Portfolio Analysis of Risk Margin System ("SPAN") is the risk margin system adopted by the Exchange and the Clearing House. Margin requirements generated by SPAN shall constitute the Exchange's and the Clearing House's minimum margin requirements ("minimum margin requirements").
        2.1.2 SPAN is a risk-based, portfolio approach margining system used to compute minimum overall margin requirements for a portfolio of positions in Contracts. SPAN requirements are computed using risk parameter files which are distributed at least daily by the Clearing House.
        2.1.3 The margin requirements computed under SPAN have two components: the risk component, which accounts for potential changes in the market price and volatility of the Futures Contract, and the equity component, which is the value of the Option Contract marked to the current day's settlement price. If the net option value in a Customer Account is short, it is added to the risk margins to increase the margin requirements. If the net option value is long, it may be applied towards reducing the risk margin requirements.
        2.1.4 All corporate Members are advised to use SPAN for Contracts. Members may use margining systems other than SPAN to compute the minimum margin requirements provided the Members can demonstrate that their systems will always produce margin requirements equal to or greater than the SPAN margin requirements.
        2.2 Margin Rates and Requirements
        2.2.1 Margin rates and requirements on Contracts are prescribed by the Clearing House. Under Rule 3.3.12, Members are required to procure Initial Margins from their Customers and ensure that their Customers comply with Maintenance Margins for such amounts as required by the Clearing House.
        2.2.2 For contracts listed in other exchanges, Members shall ensure that they comply with Initial Margins and Maintenance Margins prescribed by the relevant exchanges or clearing houses.
        2.2.3 [Deleted].
        2.2.4 Members may, at their discretion, set higher margin rates/requirements than that required by the Relevant Rule. Members shall review their internal margin rates/requirements on a continual basis to ensure compliance with the required minimum Initial Margins and Maintenance Margins prescribed under the Relevant Rule.
        2.3 Acceptable Forms of Margins
        2.3.1 Pursuant to Rule 3.3.12, the Clearing House has prescribed a list of instruments which Members may accept from Customers for meeting their required Initial Margins and Maintenance Margins.
        2.3.2 The list of the acceptable instruments and their prescribed maximum valuations can be found on the Exchange's website (http://www.sgx.com).
        2.3.3 Where a Member does not have physical possession of Japanese Government Bonds or securities listed on the First Section of Tokyo Stock Exchange, the Member shall be deemed to have complied with the requirements of Rule 3.3.12 if the Member can obtain written confirmation from a financial institution in Singapore or in Japan, that the financial institution is holding such securities from the Customers, as custodian for the Member concerned.
        2.3.4 Bank certificates of deposits, including fixed deposits, may be accepted as good security under the following terms and conditions:
        (1) the Customer signs a memorandum of charge of its deposits in favour of the Member. The memorandum shall operate as an equitable assignment which entitles the Member to payment out of the monies in the accounts;
        (2) where a memorandum of charge is given by a corporate Customer, the Member shall ensure that the memorandum is registered with the Accounting and Corporate Regulatory Authority ("ACRA") (with the filing of the necessary forms). The Member shall also make a search at ACRA to ensure that there is no prior charge of the same account to other persons;
        (3) the Member shall also ensure that it receives a confirmation from the bank that the required amount is deposited with the bank and has not been subjected to any banker's lien or right of set-off or consideration, or any other lien or charge. The Member shall notify the bank of the memorandum of charge as soon as it is executed so that the bank withholds all further payments to its Customer unless such payments are made with the consent of the Member. The Member shall document proof of such notice; and
        (4) where a memorandum of charge is given by a Customer who is an individual, the Member shall cause the Customer to authorise the bank to disclose to the Member whether there have been notices of earlier charges and the details thereof, if any. This is to ensure that there is no prior charge of the same account to other Persons.
        2.3.5 The Clearing House has prescribed that where gold certificates issued by banks approved by MAS or gold bars are used to margin open short gold futures positions, the maximum valuation of these instruments shall be one hundred (100) percent of market value. If these instruments are used for margining positions other than open short gold futures positions, the maximum valuation of these instruments shall be seventy (70) percent of market value.
        2.3.6 Members are allowed to apply a more conservative valuation (that is, less than the maximum valuation prescribed) on the acceptable instruments.

        3. Margin Calls

        3.1 Issuance of Margin Calls
        3.1.1 Margin calls are issued to collect the required margins to ensure the performance of a contract. A margin call is a request from a Member to a Customer to deposit additional margins.
        3.1.2 Pursuant to Rule 3.3.12, whenever a Customer's Total Net Equity falls below the Maintenance Margins, the Customer Account shall be deemed to be under-margined. The under-margined amount is equal to the difference between the Customer's Initial Margins and the Customer's Total Net Equity. This is the minimum amount that the Member must call from the Customer in order to restore the Customer's Total Net Equity to the Initial Margins level.
        3.1.3 Margin calls shall be made within one Trading Day after the occurrence of the event giving rise to the margin calls.
        3.1.4 A Member may, at their discretion, call for additional margins or issue margin calls on a more frequent basis, including the issuance of intra-day margin calls.
        3.2 Computation of Margin Calls
        3.2.1 In determining margin calls, Customer Accounts shall be reviewed at the close of the Trading Day. All Customer Accounts opened by the same Customer, for the benefit of its own clients shall be combined in one group. All other Customer Accounts opened by the same Customer shall be combined in a separate group. Below is an example to illustrate the treatment of the accounts opened by Customer XYZ under the following scenarios:
        (1) XYZ — proprietary A/C 1
        XYZ — client omnibus A/C 2
        Treatment : A/C 1 and A/C 2 should be treated as separate accounts for the purpose of computing margin calls.
        (2) XYZ — proprietary A/C 1A
        XYZ — proprietary A/C 1B
        Treatment : A/C 1A and A/C 1B should be combined when computing margin calls.
        (3) XYZ — client speculative A/C 2A
        XYZ — client omnibus A/C 2B
        Treatment : A/C 2A and A/C 2B should be combined when computing margin calls.
        3.2.2 If Customer Accounts are not combined in accordance with paragraph 3.2.1 above, there is a risk that the Member may either fail to issue a margin call or understate the amount required under a margin call. This is illustrated below:

        Assume proprietary A/C A & proprietary A/C B are owned by the same Customer:

          A/C A
        $
        A/C B
        $
        Combined
        $
        Total Net Equity 8,000 42,000 50,000
        Initial Margins 26,000 50,000 76,000
        Maintenance Margins 21,000 40,000 61,000
        Under-margined 18,000 Nil 26,000
        Margin Call Required 18,000 Nil 26,000


        In the above example, if the two accounts are not combined, the Customer as a whole would be subjected to a lesser margin call of $18,000 instead of $26,000.
        3.3 Reduction and Deletion of Margin Calls
        3.3.1 A Member may:
        (1) reduce the amount required under a margin call through a receipt of cash and other acceptable forms of margins which are less than the amount required under the margin call. The Customer is still required to meet the remaining amount required under the margin call; and
        (2) consider the total margin call to be satisfied if the Customer's Total Net Equity is equal to or greater than the Customer's Initial Margins as of the close of the Trading Day.
        3.3.2 A Member shall reduce a Customer's oldest outstanding margin call first. Individual margin calls shall be aged separately throughout their existence. A Customer's total margin call is the sum of all individually aged margin calls. A Member's records shall clearly indicate the age of all margin calls issued and outstanding.
        3.3.3 In order to protect the age of outstanding margin calls for re-established positions, the liquidation and re-establishment of positions during the same Trading Day to circumvent the Relevant Rule is not allowed.
        3.4 Recording and Monitoring
        3.4.1 A Member is required to keep written records which should include the following in respect of each Customer:
        (1) all margin calls, whether made in writing or by telephone and the number of days such calls are outstanding; and
        (2) all reductions and deletions of margin calls and the dates they occurred.
        3.4.2 Any manual adjustments made to equity system reports to determine a Customer's margin status (e.g. adjustments to margin requirements, margin calls, etc.) shall be maintained on file.
        3.4.3 Members shall maintain a proper monitoring system to ensure that all Customers who are under-margined are subject to prompt margin calls and that such calls are being properly monitored and followed up in order to restore the relevant Customers' Total Net Equity to the Initial Margins levels.
        3.5 Ageing of Margin Calls
        3.5.1 In ageing margin calls, for the purpose of determining whether calls are met within the reasonable period:

        T = trade date/ date that the Customer's Total Net Equity falls below the Maintenance Margins

        1 = first Trading Day after the date that the Customer's Total Net Equity falls below the Maintenance Margins

        2 = second Trading Day after the date that the Customer's Total Net Equity falls below the Maintenance Margins

        3 = third Trading Day after the date that the Customer's Total Net Equity falls below the Maintenance Margins

        Reasonable period shall have the meaning ascribed to it in Rule 3.3.12.
        3.6 Examples

        The following examples illustrate how margin calls are aged, reduced and deleted.

        Assumptions:
        (1) Customer's Total Net Equity and margin requirements are as of the close of the respective Trading Days indicated.
        (2) The Customer was properly margined on the previous Trading Day (Friday).
        If an individual margin call is required to be issued, the margin call shall equal:
        Initial Margins — Total Net Equity
        Example 1 — Issuing of margin calls due to unfavourable market movements

        Margin calls must be issued no later than one Trading Day after the date that the Customer's Total Net Equity falls below the Maintenance Margins.

          Monday Tuesday Wednesday Thursday
        Total Net Equity 50,000 49,000 44,000 44,000
        Initial Margins 60,000 60,000 60,000 60,000
        Maintenance Margins 50,000 50,000 50,000 50,000
        UNDER-MARGINED Nil 11,000 16,000 16,000
        Unfavourable market movements [UMM] of $1,000 occurred on Tuesday and $5,000 on Wednesday. No margins were deposited.
        CALL RE'QD/(AGE) -0- 11,000 (T) 11,000 (1) 11,000 (2)
        5,000 (T) 5,000 (1)
        Customer Account is under-margined Member must issue margin call of $11,000 no later than today. Member must issue margin call of $5,000 no later than today.
          Additional margin call of $5,000 required due to UMM.  


        Example 2 — Impact on margin calls due to liquidation of positions

        Margin calls cannot be reduced/deleted if the liquidation does not restore the Customer's Total Net Equity to or above Initial Margins.

          Monday Tuesday Wednesday Thursday
        Total Net Equity 45,000 45,000 45,000 45,000
        Initial Margins 60,000 55,000 55,000 50,000
        Maintenance Margins 55,000 53,000 53,000 48,000
        UNDER-MARGINED 15,000 10,000 10,000 5,000
        Positions were liquidated on Tuesday reducing Initial Margins by $5,000 and Maintenance Margins by $2,000 and on Thursday reducing Initial Margins by $5,000 and Maintenance Margins by $5,000. No margins were deposited.
        CALL RE'QD/(AGE) 15,000 (T) 15,000 (1) 15,000 (2) 15,000 (3)
        Margin call cannot be reduced or deleted as the liquidation did not result in Total Net Equity equal to or exceed Initial Margins. Margin call cannot be reduced or deleted as the liquidation did not result in Total Net Equity equal to or exceed Initial Margins.


        Example 3 — Impact on margin calls due to receipt of margin deposits

        Margin calls can be reduced by the amount of margins actually received.

          Monday Tuesday Wednesday Thursday
        Total Net Equity 50,000 45,000 44,000 47,000
        Initial Margins 60,000 60,000 60,000 60,000
        Maintenance Margins 55,000 55,000 55,000 55,000
        UNDER-MARGINED 10,000 15,000 16,000 13,000
        Unfavourable market movements [UMM] of $5,000 occurred on Tuesday and $1,000 on Wednesday. Cash of $3,000 was deposited on Thursday.
        CALL RE'QD/(AGE) 10,000 (T) 10,000 (1) 10,000 (2) 7,000 (3)
        5,000 (T) 5,000 (1) 5,000 (2)
        1,000 (T) 1,000 (1)
        Additional margin call of $5,000 required due to UMM. Additional margin call of $1,000 required due to UMM. Margin call of $10,000 can be reduced by the cash receipt of $3,000.


        Example 4 — Impact on margin calls due to favourable market movements that are less than total margin call outstanding

        Margin calls cannot be reduced/deleted if favourable market movements do not restore the Customer's Total Net Equity to or above Initial Margins.

          Monday Tuesday Wednesday Thursday
        Total Net Equity 55,000 58,000 52,000 58,000
        Initial Margins 60,000 60,000 60,000 60,000
        Maintenance Margins 58,000 58,000 58,000 58,000
        UNDER-MARGINED 5,000 No (see below) 8,000 No (see below)
        Favourable market movements [FMM] of $3,000 occurred on Tuesday. Unfavourable market movements [UMM] of $6,000 occurred on Wednesday. FMM of $6,000 occurred on Thursday. No margins were deposited.
        CALL RE'QD/(AGE) 5,000 (T) 5,000 (1) 5,000 (2) 5,000 (3)
        3,000 (T) 3,000 (1)
        Margin call of $5,000 cannot be reduced or deleted as FMM did not result in Total Net Equity equal to or exceed Initial Margins. Additional margin call of $3,000 required due to UMM. Margin call of $5,000 and $3,000 cannot be reduced or deleted as FMM did not result in Total Net Equity equal to or exceed Initial Margins.


        Example 5 — Impact on margin calls due to favourable market movements that exceed total margin call

        Margin calls can be deleted if favourable market movements restore the Customer's Total Net Equity to or above Initial Margins.

          Monday Tuesday Wednesday Thursday
        Total Net Equity 54,000 51,000 58,000 60,000
        Initial Margins 60,000 60,000 60,000 60,000
        Maintenance Margins 55,000 55,000 55,000 55,000
        UNDER-MARGINED 6,000 9,000 No (see below) -0-
        Unfavourable market movements [UMM] of $3,000 occurred on Tuesday. Favourable market movements [FMM] of $7,000 occurred on Wednesday and $2,000 on Thursday. No margins were deposited.
        CALL RE'QD/(AGE) 6,000 (T) 6,000 (1) 6,000 (2) -0-
        3,000 (T) 3,000 (1)
        Additional margin call of $3,000 required due to UMM. Margin call of $6,000 was not reduced or deleted as FMM did not result in Total Net Equity equal to or exceed Initial Margins. Total margin call of $9,000 deleted as Total Net Equity equals Initial Margins.


        Example 6 — Impact on margin calls due to favourable market movements plus receipt of margins that exceed total margin call

        Margin calls can be deleted if favourable market movements and receipt of margins restore the Customer's Total Net Equity to or above Initial Margins.

          Monday Tuesday Wednesday Thursday
        Total Net Equity 50,000 52,000 52,000 61,000
        Initial Margins 60,000 60,000 60,000 60,000
        Maintenance Margins 58,000 58,000 58,000 58,000
        UNDER-MARGINED 10,000 8,000 8,000 -0-
        Favourable market movements [FMM] of $2,000 occurred on Tuesday. Cash of $9,000 was deposited on Thursday.
        CALL RE'QD/(AGE) 10,000 (T) 10,000 (1) 10,000 (2) -0-
        Margin call of $10,000 was not reduced or deleted as FMM did not result in Total Net Equity equal to or exceed Initial Margins. As both cash receipt and FMM caused Total Net Equity to exceed Initial Margins, the margin call of $10,000 was deleted.

        4. Under-Margined Accounts

        4.1 Acceptance of Orders
        4.1.1 Pursuant to the Relevant Rule, a Member shall only allow a Customer to incur a new trade when the required margins are on deposit or forthcoming within a reasonable period.
        4.1.2 In a situation where a Customer has failed to place margins within the reasonable period, such that the Customer's Total Net Equity is not restored to the Initial Margins level, the Member concerned:
        (1) is required to promptly take all necessary actions including but not limited to closing all or such part of the Customer's positions to restore the Customer's Total Net Equity to the Initial Margins level; and
        (2) shall not accept orders for new trades, including day trades, for such Customers. However, orders which would result in reducing the Customer's Maintenance Margins requirements may be accepted by the Member.
        4.1.3 Where a Customer is meeting a margin call by remitting cash funds, Members shall take into consideration only those funds that they have actually received when determining whether the Customer's Total Net Equity has been restored to the Initial Margins level. Members shall not treat cash funds as received even though the Customer's remittance indicates that the funds would be forthcoming on a future value date. Members are not allowed to use the Customer's confirmation that the funds are forthcoming within the reasonable period to reduce or delete a margin call as the funds have yet to be received.
        4.1.4 For example, if a Member has received indication from the Customer's banker on T + 1, that the Customer has remitted cash of US$1 million for value date T + 4, the Member shall not treat the US$1 million as part of the Customer's ledger balance on T + 1, as the funds would actually be received by the Member only on the value date of T + 4. The amount shall be accounted as part of Customer's ledger balance only on close of business T + 4. In the above example, since the Customer's funds are not forthcoming within the reasonable period (i.e. by the close of business T + 2), the Customer is not allowed to incur any new trade during this period (T + 1 and T + 2) except for trades which reduce the Customer's Maintenance Margins requirements.
        4.1.5 In a situation where a Customer has liquidated all its positions resulting in a negative Total Net Equity, the Member shall not accept orders for the Customer until sufficient funds or acceptable instruments are deposited such that Total Net Equity is no longer negative.
        4.1.6 The following indicates what is the allowable trading activity for a Customer whose Total Net Equity is not restored to the Initial Margins level after a margin call:
        (A) During the reasonable period,
        (i) if the Member receives indication from the Customer that margins are forthcoming within the reasonable period

        Allowable Trading Activity Within The Reasonable Period

        Trading Activity Risk Increasing Risk Neutral Day Trading Risk Reducing
        Allowed for Customer Yes Yes Yes Yes
        (ii) if the Member receives indication from the Customer that margins are forthcoming after the reasonable period or that no funds are forthcoming

        Allowable Trading Activity Within The Reasonable Period

        Trading Activity Risk Increasing Risk Neutral Day Trading Risk Reducing
        Allowed for Customer No No No Yes
        (B) Beyond the reasonable period,

        Allowable Trading Activity Beyond The Reasonable Period

        Trading Activity Risk Increasing Risk Neutral Day Trading Risk Reducing
        Allowed for Customer No No No Yes


        In the above examples:

        A risk increasing trade is the establishment or closure of a position in a contract which increases a Customer's Maintenance Margins requirement (e.g. closing one leg of a spread position).

        A risk neutral trade is the establishment of a position in a contract which does not impact a Customer's Maintenance Margins requirement (e.g. spread trades that do not impact Maintenance Margins requirements).

        A risk reducing trade is the establishment or closure of a position in a contract which reduces the Customer's Maintenance Margins requirement (e.g. liquidation of a naked open position).
        4.2 Prohibition of Financing of Trading Margins
        4.2.1 Under no circumstances shall a Member enter into any financing arrangement with any Customer to allow the Customer to trade without placing the required minimum margins. This shall not apply to a Bank Trading Member.
        4.3 Monitoring Procedures
        4.3.1 A Member is required to maintain proper monitoring and internal control procedures to ensure that the requirements under the Relevant Rule are complied with at all times.
        4.4 Examples
        Assumptions:
        (1) All accounts are Customer Accounts.
        (2) All margin calls are properly issued and aged for the full amount.
        (3) The Customer's Initial Margins and Maintenance Margins remain unchanged.
        (4) The Customer was properly margined on the previous Trading Day (Friday).
        (5) The Customer has indicated that margins are forthcoming within the reasonable period.
        Example 1 — Under-margined beyond reasonable period — Deletion of margin calls

        Trading is allowed within reasonable period but no trading is allowed beyond reasonable period except for risk reducing trades until the Customer's Total Net Equity is restored to the Initial Margins level.

        Week 1

          Monday Tuesday Wednesday Thursday Friday
        AMT U/M 5,000 5,000 5,000 5,000 -0-
        CALL/AGE 5,000 (T) 5,000 (1) 5,000 (2) 5,000 (3)  
        TRADING All* All All RR** All


        * All trading activity
        ** Only risk reducing trades

        Assuming the margin call is in US Dollars, the reasonable period is T + 2, which is as of the close of business on Wednesday. As of Thursday, the Customer cannot be allowed to incur any risk increasing, risk neutral or day trades. The Customer can only be allowed to incur risk reducing trades.

        On Friday, a cash deposit of $5,000 was received to delete the margin call. Once the Customer's Total Net Equity is restored to the Initial Margins level, all trading activities would be allowed.

        Example 2 — Under-margined beyond reasonable period – Deletion and reduction of margin calls

        Trading is allowed within reasonable period but no trading is allowed beyond reasonable period except for risk reducing trades until the Customer's Total Net Equity is restored to the Initial Margins level.

        Week 1

          Monday Tuesday Wednesday Thursday Friday
        AMT U/M 10,000 10,000 10,000 10,000 15,000
        CALL/AGE 10,000 (T) 10,000 (1) 10,000 (2) 10,000 (3) 10,000 (4)
        5,000 (T)
        TRADING All* All All All RR**
        Unfavourable market movements of JPY 5,000 occurred on Friday.


        Assuming the margin call is in Japanese Yen, the reasonable period is T + 3, which is as of the close of business on Thursday. As of the close of business on Thursday, the Customer's Total Net Equity was not restored to the Initial Margins level. Thus on Friday, the Customer can only be allowed to incur risk reducing trades.

        Week 2

          Monday Tuesday Wednesday Thursday Friday
        AMT U/M 15,000 5,000 4,000 1,000 1,000
        CALL/AGE 10,000 (5)
        5,000 (1)
        5,000 (2) 5,000 (3) 2,000 (4) 2,000 (5)
        TRADING RR** All* All RR RR
        Favourable market movements of JPY 1,000 occurred on Wednesday.


        * All trading activity
        ** Only risk reducing trades

        On Tuesday of Week 2, cash deposit of JPY 10,000 was received which deleted the outstanding margin call of JPY10,000. After this, the only margin call of JPY 5,000 is still within the reasonable period of T + 3. Thus during this period, Tuesday and Wednesday, all trading is allowed. On the close of business on Wednesday, the Customer's Total Net Equity was not restored to the Initial Margins level. On Thursday, cash of JPY3,000 was received which reduced the margin call to JPY2,000. As the Customer Account is still under-margined with a margin call of JPY2,000 outstanding beyond the reasonable period, the Customer on Thursday and Friday can only be allowed to incur risk reducing trades.

        5. Omnibus Accounts and Other Margin Policies

        5.1 Omnibus Accounts
        5.1.1 Omnibus Accounts generally contain concurrent long and short positions. Members shall ensure that positions in an Omnibus Account are carried and margined on a gross basis.
        5.1.2 A Member shall obtain and maintain written instructions from undisclosed Omnibus Account holders for positions which are entitled to be margined as spread positions.
        5.1.3 For purchase and sale offsets, a Member shall obtain and maintain written instructions from undisclosed Omnibus Account holders on a daily basis. If no such instructions are received, the Member must assume that the positions belong to separate owners. These positions must be margined on a gross basis.
        5.2 Grouping of Accounts
        5.2.1 For the purpose of margin computation, positions in accounts belonging to the same beneficial owner who may be the Customer or a client of the Customer, may be combined. Concurrent speculative long and short positions may also be netted in such accounts.
        5.2.2 Accounts which are owned by different legal entities e.g. Related Corporations must be treated separately for margin computation purposes.
        5.3 Excess Margins Payments
        5.3.1 Pursuant to Rule 3.3.12, a Member may allow its Customers to withdraw Excess Margins. The withdrawal of Excess Margins must be supported by proper documentation.
        5.3.2 If the net option value is long, it may be applied towards reducing the risk margin requirements. However, option value in excess of Initial Margins cannot be treated as Excess Margins available for disbursement. The computation of Excess Margins available for disbursement treats option value differently from all other margins. This is because option value is not a cash asset and does not form part of Customer's Total Net Equity.
        5.3.3 For example, Customer deposits $1,000 in its account. It then purchases an option contract where the option premium is $1,000. At the time of purchase, the full premium of $1,000 is deducted from its account resulting in zero Total Net Equity. Thus, there are no funds available for withdrawal. The option value of the long option position, which at the time of purchase is $1,000 (option value would vary with passage of time), cannot be available for withdrawal as it does not form part of the Customer's Total Net Equity. Furthermore, the Member would be deemed to be financing the Customer's trades, which is prohibited under these guidelines, in the purchase of the option contract if the option value is allowed to be withdrawn.
        5.3.4 If Total Net Equity is zero or negative, a disbursement cannot be made as there are no funds available. The Member shall use the Customer's latest available Total Net Equity and latest required Initial Margins to determine the amount of Excess Margins available for disbursement, notwithstanding that the Customer (e.g. a Customer in different time zone) has yet to receive the latest Customer statement sent out by the Member. In determining the Excess Margins available for disbursement, the Member shall take into consideration the Customer's incoming remittance and the Member's disbursement based on value dates. If an incoming remittance is accounted for in determining the amount of Excess Margins to be released, the Member shall effect the disbursement only after the receipt of the funds. This means that the value date for the disbursement shall be subsequent to the value date of the Customer's incoming remittance.
        5.3.5 For the purpose of determining the amount of Excess Margins available for disbursement, all Customer Accounts opened by the same Customer, for the benefit of its own clients shall be combined in one group ("Group A"). All other Customer Accounts opened by the same Customer shall be combined in a separate group ("Group B"). If the Member does not combine such accounts, it runs the risk of allowing a Customer to withdraw more funds than what the Customer actually has available with the Member [see Example 4 below for illustration]. Available Excess Margins from Group A cannot be used for disbursement for Group B and vice versa.
        5.4 Payment of Premiums
        5.4.1 A Member shall not accept orders for the purchase of option contracts unless the full amount of premium is on deposit or forthcoming within a reasonable period. For settlement currency denominated in Japanese Yen, 'reasonable period' means a period which shall not exceed three (3) Trading Days from the trade date (T+3). For all other settlement currencies, it means a period which shall not exceed two (2) Trading Days from the trade date (T+2).
        5.5 Examples

        Note: In the computation, if the net option value is greater than the Initial Margin risk component, the maximum amount of Excess Margins available for disbursement shall be equal to the Total Net Equity.

        Example 1 — Excess Margins Payments

        Customer Account Balance
        Total Net Equity $5,000
        Net option value $1,200
        Initial Margins risk component $3,000


        * An Excess Margins payment can be made from the Customer Account for $3,200
        {$5,000 − [($3,000 − $1,200) which = $1,800]}

        Example 2 — Excess Margins Payments

        Customer Account Balance
        Total Net Equity $-0-
        Net option value $9,000
        Initial Margins risk component $7,000


        * As Total Net Equity is zero, no payment can be made.
        {$-0- – [($7,000 - $9,000) which = 0]}. The only margin asset in the Customer Account is long option value which cannot be used to make an Excess Margins payment.

        Example 3 — Excess Margins Payments

        Customer Account Balance
        Total Net Equity $32,800
        Net option value $<12,000>
        Initial Margins risk component $14,000


        * An Excess Margins payment can be made from the Customer Account for $6,800
        {$32,800 − [($14,000 − <$12,000>) which = $26,000]}

        Example 4 − Accounts owned by the same Customer

        Assume client A/C A & client A/C B are owned by the same Customer.

          A/C A
        $
        A/C B
        $
        COMBINED
        $
        Total Net Equity 8,000 80,000 88,000
        Initial Margins 25,000 50,000 75,000
        Maintenance Margins 20,000 40,000 60,000
        Excess Margins for withdrawal (17,000) 30,000 13,000


        If client A/C A and client A/C B are not combined, then the amount of Excess Margins that is available for withdrawal, ie $30,000, is greater than what is actually available for the Customer as a whole.
        5.6 Concurrent Long and Short Positions
        5.6.1 Concurrent long and short positions are long and short positions traded on the same market in the same futures or option contract for the same delivery month or expiration date and, if applicable, having the same strike price.
        5.6.2 A Member may carry concurrent long and short positions as follows:
        (1) all positions held by Omnibus Account holders shall be margined on a gross basis, unless otherwise exempted by the Exchange; and
        (2) in a hedge account in which both the long and short positions are bona fide hedge positions, such positions shall be margined on a net basis, unless otherwise required by other regulatory bodies.
        5.6.3 A Member may carry concurrent long and short hold-open positions for speculative and hedge accounts. Hold-open positions are positions offset at the Exchange but have been held open on the Member's internal bookkeeping records for the convenience of the Customer. As hold-open positions only remain open on the Member's internal records and have been offset at the Exchange, no margin is required. The Member's internal bookkeeping records shall clearly indicate all hold-open positions.

      • Regulatory Notice 3.3.14(g) — Inter-Exchange Cross-Margining

        Issue Date Cross Reference Enquiries
        Added on
        22 September 2006.
        Rule 3.3.14(g) Please contact Member Supervision:

        Facsimile No : 6538 8273
        E-Mail Address: membersup@sgx.com

        1. Introduction

        This Regulatory Notice sets out the internal controls and risk management procedures as required under Rule 3.3.14(g).

        2. Requisite Internal Controls and Procedures

        2.1 A Member shall have proper internal controls and risk management procedures to ensure that:
        (a) the limit on the amount of margin credit granted to a Customer shall be set, approved and regularly reviewed by an authorised staff independent of trading, dealing and marketing functions;
        (b) in setting the limit on the amount of margin credit granted to a Customer, the Member shall take into account possible Maintenance Margin calls and settlement variation losses to be paid to the Clearing House and any other relevant clearing house;
        (c) it strictly observes the limit on the amount of margin credit granted to each Customer; and
        (d) it has proper systems and control procedures to monitor, on a daily basis, the usage of margin credits and the adequacy of its liquidity facilities (bank lines and cash balances) to meet obligations arising from positions held with the Clearing House and any other relevant clearing house, including:
        (i) daily monitoring of each Customer's intra-day and end-of-day use of margin credits to ensure that the limit on the amount of margin credit used is not breached;
        (ii) daily monitoring of all Customers' aggregated intra-day and end-of-day use of margin credits to ensure that the Member's liquidity facilities (bank lines and cash balances), after setting off the Customers' aggregate use of margin credits, are adequate to meet the potential mark-to-market loss for positions carried at any relevant clearing house (excluding the Clearing House), as well as potential mark-to-market loss equivalent to at least two (2) times the Maintenance Margin for positions carried with the Clearing House;
        (iii) generation of reports used for intra-day and end-of-day monitoring in a timely manner and with the following information:
        (A) limit on amount of margin credit granted to each Customer;
        (B) amount of margin credit used by each Customer;
        (C) aggregate limit on amount of margin credit granted for all Customers;
        (D) aggregate amount of margin credit used by all Customers;
        (E) available liquidity facilities (bank lines and cash balances); and
        (F) excess liquid facilities, after setting off the Customers' aggregate use of margin credits;
        and
        (e) remedial procedures are in place should there be any breach of controls, limits and thresholds.

      • Regulatory Notice 4.1.6 — Trade Matching Algorithms Applicable to the SGX-DT Market

        Issue Date Cross Reference Enquiries
        Added on
        22 September 2006 and amended on 14 November 2016.
        Rule 4.1.6 Please contact Product Management:
        Telephone No. : 6236 5308

        1. Introduction

        1.1 This Regulatory Notice deals with trade matching algorithms applied to Contracts traded on the SGX-DT Market.

        2 Trade Matching Algorithms for the SGX-DT Market

        2.1 The Exchange may adopt any one (1) or more of the four (4) algorithms described below to match and allocate orders for Contracts traded on the SGX-DT Market.
        (a) Price/Time Priority Allocation. Orders at the best price (i.e. highest bid/lowest offer) would receive priority over other orders in the same Contract Month/spreads. Orders entered at the same price will then be matched based on time priority.
        (b) Price Point Maker Allocation ("PPM"). Orders which are the first to improve the prevailing bid/offer prices (known as orders with price point maker status) would receive priority over other orders at the same price.
        (c) Market Maker Allocation ("MM"). Orders of designated market makers would receive priority over other orders at the same price.
        (d) Pro-Rata Order and Matching Allocation ("Pro-Rata Order"). Orders entered at the same price would be matched based on the orders' volume contribution to the aggregate volume of all resting orders at that price.
        2.2 All orders entered into the Trading System will be matched in a manner that gives priority to price; i.e. orders at the best price (highest bid/lowest offer) receive priority over other orders in the same Contract Month/spreads.
        2.3 For orders at the same price point, the time priority would apply; i.e. orders entered into the Trading System at the same price will be matched based on time priority, unless any one (1) or more of the trade matching algorithms (PPM, MM and Pro-Rata Order) is applicable.
        2.4 If any one (1) or more of the PPM, MM and/or Pro-Rata Order algorithms is applicable, orders at the same price point would be matched and allocated such that orders with price point maker status, or orders of a designated market maker, or Pro-Rata Orders (as the case may be), would receive priority over other orders entered earlier in time. The priority between the PPM, MM and/or Pro-Rata Order (if more than one (1) trade matching algorithm is applicable) will be notified via a Regulatory Notice.

        Amended on 14 November 2016.

      • Regulatory Notice 4.1.8 — SGX-DT Market Error Trade Policy

        Issue Date Cross Reference Enquiries
        Amended on
        2 July 2007, 16 July 2012, 28 October 2013, 19 January 2015 and 14 November 2016.
        Rule 4.1.8 Please contact:

        Derivatives for policy issues:
        Telephone No. : 236 8888

        Derivatives Market Control ("DMC") for operational issues:
        Telephone No. : 6236 8433
        Facsimile No.: 6536 6480
        Email address : derivatives.mc@sgx.com

        1 Introduction

        1.1 This Regulatory Notice explains the error trade policy applied to Contracts traded on the SGX-DT Market.

        2 Error Trade Policy Applicable to Contracts Traded on the SGX-DT Market

        2.1 General Principles

        2.1.1 An error trade occurs when a transaction is effected on the Trading System as a result of an error in the entry of a bid or offer that was subsequently matched.
        2.1.2 Subject to sub-paragraph 2.1.4, the Exchange will only exercise its discretion to:
        (a) cancel an error trade partially or fully; or
        (b) adjust the trade price of the error trade partially or fully to the nearest limit of the error trade price range,
        if a party to the trade makes a request as specified in sub-paragraph 2.6.1 below, and the trade price falls outside the error trade price range for the Contract for that day. If an error trade is done within the error trade price range, then the trade will stand, and no further action will be taken. The upper and lower limit of the error trade price range is determined in relation to a reference price calculated by the Exchange in accordance with paragraph 2.2.
        2.1.3 However, there will be no trade price adjustments for:
        (a) transactions in strategies listed for trading by the Exchange;
        (b) trades involving implied orders as a result of strategy matching;
        (c) option trades, except those involving designated Option Contracts when the underlying cash market is open for trading; and
        (d) "trade-at-settlement" transactions.
        In relation to error trades in the transactions specified in sub-paragraphs (a)-(d) above, the Exchange may at its discretion, cancel such error trades partially or fully, if a party to the trade makes a request as specified in sub-paragraph 2.6.1 below, and the relevant counterparties to the error trade agree to the cancellation within the time specified by the Exchange.
        2.1.4 Notwithstanding sub-paragraph 2.1.2 and 2.1.3 above, the Exchange retains the power to cancel an error trade partially or fully or adjust the trade price of an error trade if, in the Exchange's opinion, it is desirable to do so, to protect the financial integrity, reputation or interests of the Markets established or operated by the Exchange. The Exchange's discretion to adjust the trade price or cancel a trade, either partially or fully, may be exercised even where the trade is within the error trade price range.
        2.1.5 For the avoidance of doubt, error trades will not be cancelled except as provided for under sub-paragraphs 2.1.3 and 2.1.4.
        2.1.6 A Member shall take all necessary steps and exercise due diligence in monitoring trades done for any errors.
        2.1.7 A Member requesting an error trade cancellation or price adjustment shall promptly take all necessary mitigating actions to minimize the losses suffered.
        2.2 Error Trade Price Range

        Futures Contracts
        2.2.1 The Exchange will approve a list of designated Futures Contracts as set out in Appendix A. For designated Futures Contracts traded when the underlying cash market is open for trading, the dynamic futures reference price shall be the average of the high and low traded prices in the minute before the error trade. If there are no trades in the minute before the error trade, the dynamic futures reference price will be determined by theoretical pricing models using, among other variables, the latest cash index value before the error trade.

        Refer to Appendix A of Regulatory Notice 4.1.8.
        2.2.2 If an error trade occurs in connection with a Futures Contract which is not a designated Futures Contract, or when the error trade occurs in connection with a designated Futures Contract when the underlying cash market is not open for trading, the opening price shall be assigned as the static futures reference price. If the opening price is not available, the Exchange may use other prices that it thinks in its discretion are reasonable. For instance, the Exchange may use the previous day's closing price.
        2.2.3 The Exchange computes the error trade price range for a Futures Contract by taking into account the trading and closing prices of the Contract or any other relevant information (for example, relevant market information in a recent three (3) month period). The upper and lower limits of the error trade price range are determined in relation to the relevant futures reference price.
        2.2.4 The following is an example for the calculation of the dynamic futures reference price in relation to a designated Futures Contract.

        For designated Futures Contracts, it is possible to establish a fairly accurate dynamic reference price when the underlying cash market is open. Therefore, the Exchange will apply a smaller error trade price range, with reference to the dynamic futures reference price. A dynamic futures reference price may be calculated as follows:
        (a) If there are trades in the minute before the error trade, calculate the average of the high & low prices in the last minute as the dynamic futures reference price.
        (b) If the error trade occurs for a contract month other than the spot month, use the theoretical model with the latest cash index value to derive the theoretical spread between the spot month and the error trade contract month. This spread is then added to the spot month reference price calculated using (a) above to derive the dynamic futures reference price.
        (c) If (a) and (b) above are not applicable, calculate the theoretical price of the error trade contract month as the dynamic futures reference price.
        2.2.5 The following is an example for the calculation of the error trade price range in relation to a designated Futures Contract.

        This example uses the Yen-denominated SGX Nikkei Stock Average Futures Contract. Based on an evaluation of historical data the Exchange could set the following:

        Error Trade Price Range of +/- 50 points for the spot quarter month

        Error Trade Price Range of +/- 100 points for other contract months

        The spot quarter month has a narrower error trade price range because its dynamic futures reference price, calculated using market traded prices, will be relatively accurate. The other contract months have a wider error trade price range because the dynamic futures reference price would likely have a theoretical component. A wider range is needed to ensure that bona-fide trades do not fall within the error trade price range. The Exchange may periodically adjust the error trade price range to reflect prevailing market conditions. DMC will broadcast the necessary information to Members in accordance with sub-paragraph 2.2.10.

        Based on the dynamic futures reference price, an erring party's losses from error trades should be limited to fifty (50) points (¥25,000) per lot in the spot quarter month or one hundred (100) points (¥50,000) per lot in other contract months.
        Options Contracts
        2.2.6 The Exchange will approve a list of designated Option Contracts as set out in Appendix A. The option reference price for designated Option Contracts when the underlying cash market is open for trading shall be determined by theoretical pricing models using:
        (a) in the case of an Option Contract that grants an option on a Futures Contract, among other variables, the futures reference price of the underlying Futures Contract and the volatility of the Option Contract implied from the previous settlement price of the option contract.
        (b) in the case of an Option Contract that grants an option on an Underlying, among other variables, the reference price of the underlying index and the volatility of interest rates, dividend, time to maturity and the option strike price.
        2.2.7 The Exchange computes the error trade price range for designated Option Contracts when the underlying cash market is open, by taking into account the trading and closing volatility of the Option Contract or any other relevant information (for example, relevant market information in a recent three (3) month period) to determine a volatility range. The Exchange may, in its discretion, determine different volatility ranges for the purpose of calculating the error trade price range. The option error trade price range shall be determined by theoretical pricing models using, among other variables, the dynamic futures reference price of the underlying Futures Contract and the volatility range. The Exchange may adjust the trade price of an error trade involving designated Option Contracts when the underlying cash market is open for trading in accordance with sub-paragraph 2.1.2(b).
        2.2.7A If an error trade occurs in connection with an Option Contract which is not a designated Option Contract, or when the error trade occurs in connection with a designated Option Contract when the underlying cash market is not open for trading, the opening price shall be assigned as the static option reference price. If the opening price is not available, the Exchange may use other prices that it thinks in its discretion are reasonable. For instance, the Exchange may use the previous day's closing price. The Exchange computes the error trade price range for such Option Contracts by applying a percentage to the option reference price referred to in this sub-paragraph. The Exchange may cancel an error trade involving Option Contracts referred to in this paragraph in accordance with sub-paragraph 2.1.2(a).
        2.2.8 The following is an example for the calculation of the error trade price range in relation to a designated Option Contract.

        For designated Option Contracts, it is possible to establish a fairly accurate dynamic futures reference price when the underlying cash market is open. The option error trade price range is calculated using a theoretical option pricing model with variables including the dynamic reference price of the underlying Futures Contract and a volatility range.

        This example uses the SGX Option Contract on Nikkei Stock Average Futures. The Exchange could set the following volatility range (with reference to the previous day settlement implied volatility):

          Within 1,000 points from at-the-money Other Strikes
        Spot Month +/- 4% +/- 6%
        Other Months +/- 5% +/- 8%


        The option reference price will be calculated using the option pricing model with variables including the dynamic futures reference price of the underlying Futures Contract and the previous day settlement implied volatility.

        In addition, the option error trade price range is subject to a minimum level (to prevent frivolous price adjustments) and a maximum level (to cater to special circumstances for Option Contracts).

        This example uses the SGX Option Contract on Nikkei Stock Average Futures. Based on evaluation of its historical data, the Exchange could set:

        Maximum price range of +/- 100 points for contracts with 6 months or less to expiry
          +/- 200 points for other contract months
        Minimum price range of +/- 30 points


        The Exchange may apply the maximum price range to all Option Contracts that are more than 1,500 points in-the-money and all expiring options on the Monday of the week of expiration to the Last Trading Day. Deep in-the-money Option Contracts have high delta and thus the price change largely mirrors the price change of the underlying. It is thus appropriate to use a fixed error trade price range. In addition, as the Option Contract approaches expiry, small changes in traded option prices cause relatively large changes in traded implied volatility. The result is that the volatility range may not be sufficient to encompass the volatility changes near the expiry of the contract. Based on historical data, the traded implied volatility of the Option Contract would start to change rapidly during the week of expiration. Hence, the maximum price range will generally be imposed during this period. The Exchange may adjust, with prior notice, the maximum price range and applicable circumstances as market conditions change.
        Exchange's discretion
        2.2.9 Notwithstanding sub-paragraphs 2.2.1 to 2.2.8 above, the Exchange retains the discretion to take into account other relevant market information to determine the error trade price range or the reference price, and determine error trade price ranges using any other methodology, if, in the Exchange's opinion, it is desirable to do so to protect the financial integrity, reputation or interests of the Markets established or operated by the Exchange.
        Notification of changes in error trade price range or volatility range
        2.2.10 The Exchange will notify all Members of the error trade price range in terms of absolute prices or percentages, as the case may be, on a daily basis. The Exchange will notify all Members of the volatility range on a quarterly basis. In addition, the Exchange will inform all Members, via circular, of any changes in the size of the error trade price range or volatility range at least one (1) week before effecting such change.
        2.3 Factors That the Exchange may Consider in its Exercise of Discretion
        2.3.1 The Exchange may consider the following factors when deciding whether to adjust the trade price or cancel any trades:
        (a) the difference between the price at which the error trade was done and the preceding traded prices of the Contract;
        (b) market conditions, including market liquidity in the Contract at the time the error trade occurred;
        (c) the monetary loss involved and the financial impact on the parties if the error trade is or is not adjusted or cancelled;
        (d) the reason(s) given by the erring party for the error;
        (e) whether the error trade was caused partially or fully by problems with the Exchange's systems; and
        (f) any other relevant factors.
        2.4 Compensation and Dispute Resolution
        2.4.1 Under sub-paragraph 2.1.3, certain error trades may be cancelled if the counterparties consent to the cancellation. The terms of the cancellation of the error trade (including any compensation payable) are for the relevant parties to agree on. The Exchange will not be involved in this process or in any disputes arising from this process.
        2.5 Administration Fee For Trade Cancellation / Price Adjustment Requests
        2.5.1 A trade review administration fee ("Administrative Fee") of SGD$500 will be imposed on every request received to adjust the price of or cancel an error trade.

        If the Exchange deems the error trade to be serious, it may charge a higher amount than the Administrative Fee.
        2.5.2 The Member shall pay the Administrative Fee to the Exchange within such time specified by the Exchange following its determination of the fee.
        2.6 Procedure For Error Trade(s)
        2.6.1 The Member's authorised co-ordinator1 intending to report an error trade shall:
        (a) contact the DMC within ten (10) minutes from the time the trade is done, and request for the trade to have its price adjusted or cancelled. The Exchange may, in its discretion extend this period depending on the situation; and
        (b) immediately complete the prescribed form and send it by fax or email to DMC.
        2.6.2 Once an error trade has been brought to the attention of the DMC in accordance with this Regulatory Notice, the following procedures will apply:—
        (a) DMC will send an alert to all Trading System terminals indicating that a specified trade may be in error.
        (b) For cancellation of trades, the Exchange will, at its discretion, cancel a trade, either partially or fully, only if all counterparties to the error trade agree to the trade cancellation within fifteen (15) minutes of the alert sent by DMC in sub-paragraph 2.6.2(a) above. The Exchange may extend this period at its sole discretion in situations where it deems appropriate. There will be no trade cancellation beyond 15 minutes after the close of T or T+1 session, as the case may be.
        (c) DMC will send a message to all Trading System terminals of the Exchange's decision in respect of any request to cancel a trade or adjust the trade price.
        2.6.3 The Exchange will not consider any requests to review its decision following an announcement under 2.6.2(c).

        Amended on 16 July 2012, 28 October 2013, 19 January 2015 and 14 November 2016.


        1 A Trading Member intending to report an error trade shall do so via its Clearing Member's authorised co-ordinator.

        • Appendix A To Regulatory Notice 4.1.8

          Designated Futures Contracts

          S/no. Futures Contract
          1 Australian Dollar (AUD) / Japanese Yen (JPY) Futures
          2 Australian Dollar (AUD) / US Dollar (USD) Futures
          3 Chinese Yuan (CNY) / Singapore Dollar (SGD) Futures
          4 Chinese Yuan (CNY) / US Dollar (USD) Futures
          5 Euro (EUR) / Chinese Offshore Yuan (CNH) Futures
          6 Indian Rupee (INR) / US Dollar (USD) Futures
          7 Korean Won (KRW) / Japanese Yen (JPY) Futures
          8 Korean Won (KRW) / US Dollar (USD) Futures
          9 SGD Dollar (SGD) / Chinese Offshore Yuan (CNH) Futures
          10 Taiwan Dollar (TWD) / US Dollar (USD) Futures
          11 Thai Baht (THB) / US Dollar (USD) Futures
          12 US Dollar (USD) / Chinese Offshore Yuan (CNH) Futures
          13 US Dollar (USD) / Japanese Yen (JPY) Futures [Standard size]
          14 US Dollar (USD) / Japanese Yen (JPY) Futures [Titan size]
          15 US Dollar (USD) / Singapore Dollar (SGD) Futures
          16 Yen-denominated Nikkei Stock Average Futures

          Designated Option Contracts

          S/no. Option Contract
          1 Option on SGX Indian Rupee (INR) / US Dollar (USD) Futures
          2 Option on SGX US Dollar (USD) / Chinese Offshore Yuan (CNH) Futures
          3 Option on Yen-denominated Nikkei Stock Average Futures

          Amended on 11 November 2013, 20 October 2014, 31 August 2015, 11 July 2016 and 5 December 2016.

      • Regulatory Notice 4.1.11 — Negotiated Large Trades

        Issue Date Cross Reference Enquiries
        Amended on
        1 August 2007,
        26 September 2007,
        23 January 2008,
        31 March 2009,
        6 April 2009,
        24 June 2009,
        7 December 2009,
        11 January 2010,
        17 June 2010
        and 14 November 2016.
        Rule 4.1.11 Please contact:

        Product Management for policy issues:
        Telephone No. : 6236-8450

        Please contact Clearing House for operational issues: 6538-5319
        Facsimile No: 6533-6163
        Email address : sgxdc_clear@sgx.com

        1. Introduction

        1.1 This Regulatory Notice sets out the minimum volume thresholds, notification requirements and procedures that Persons effecting Negotiated Large Trades or "NLTs" are required to observe.

        2. Minimum Volume Thresholds

        2.1 The minimum volume thresholds for NLTs are set out in Appendix A.

        Refer to Appendix A of Regulatory Notice 4.1.11.
        2.2 A trade consisting of multiple legs within the same Underlying is deemed to be in accordance with the minimum volume threshold if at least one (1) of the legs meets the minimum volume threshold applicable to that leg (see examples below).
        2.3 Trades which are not in accordance with the minimum volume threshold will not be accepted for registration as NLTs and will be rejected.

        Example: Minimum volume threshold for NK Futures = 100 lots
          Minimum volume threshold for NK Options = 25 lots

        (a) The following trade will be in accordance with the minimum volume threshold as one (1) of the legs (NK Options Jan 06 Call 14000) meets the NK Options minimum volume threshold of 25 lots:

        Contract Qty Price
        NK Futures Mar 06 19 lots @ 14200
        NK Options Jan 06 Call 14000 13 lots @ 300
        NK Options Jan 06 Call 14000 12 lots @ 301
        NK Options Feb 06 Put 13750 2 lots @ 610

        (b) The following trade will also be in accordance with the minimum volume threshold as one (1) of the legs (NK Futures Mar 06) meets the NK Futures minimum volume threshold of 100 lots:

        Contract Qty Price
        NK Futures Mar 06 100 lots @ 14200
        NK Options Jan 06 Call 14000 11 lots @ 300
        NK Options Jan 06 Call 14000 12 lots @ 301
        NK Options Feb 06 Put 13750 2 lots @ 610

        3. General Policy

        3.1 Trading Hours
        3.1.1 All NLTs executed during or before the Contract "T" trading hours shall be "T Trades" while NLTs executed after the Contract "T" trading hours shall be "T+1 Trades".
        3.2 Registration of NLTs
        3.2.1 All NLTs shall be registered in accordance with the Clearing Rules.
        3.2.2 [Deleted]
        3.2.3 [Deleted]
        3.3 NLT Execution
        3.3.1 For the purpose of Rule 3.4.9, Members may submit NLT orders from two (2) separate Customers under the same Omnibus Account, provided that the Members' record keeping and audit trails are able to demonstrate the separate beneficial ownership.
        3.3.2 A Member shall ensure that its Customers are aware of and have given their approval for the execution of the Customers' orders via the NLT facility. Where a Member receives a Customer's order that is not a NLT order but meets the requirements of the NLT facility, such Member may execute the Customer's order via the NLT facility provided that such Member has obtained the prior approval from the Customer, either specifically for the transaction or as a general blanket approval (and such blanket approval has not been terminated by the Customer). If a Customer's approval is obtained verbally, the Member shall ensure that a tape recording of the conversation where the Customer's approval was obtained is retained for record keeping purposes. A Member shall also inform its Customers if the Member may be or is a counterparty to the Customer's NLT and obtain the Customer's prior written approval.
        3.3.3 Members may obtain a general blanket approval from their Customers provided the conditions below are met. Members shall disclose to their Customers all NLTs executed pursuant to the general blanket approval. The conditions for obtaining a general blanket approval from the Customer are as follows:
        (a) Members shall inform the Customer that the general blanket approval is subject to compliance with the rules, laws and regulations in the Customer's country of domicile;
        (b) the general blanket approval shall be in writing and shall provide details on the nature and scope of the general blanket approval given;
        (c) Members shall highlight to the Customer the risks and liabilities that the Customer may be exposed to in giving such general blanket approval. In particular, the Member shall highlight that in some instances, NLT orders may not be executed at the best possible price and that the timeliness of order execution may be compromised. The Customer must also be informed that the Customer is obligated to accept all NLTs executed pursuant to the general blanket approval; and
        (d) the Customer shall acknowledge that it has read, understood, and received a copy of the signed general blanket approval.
        3.3.4 In order to ensure that Customers' interests are not compromised, the Members shall, unless their Customers specifically request for a trade to be done through the NLT facility, place all Customers orders on the Trading System for execution. After the Customers' orders have been placed on the Trading System for execution, Members' employees may then seek their Customers' approval to accept the order as an NLT. However, Members may only withdraw an order from the Trading System for subsequent execution as a NLT if the price for the NLT is at least equal to or better than the prevailing bid/offer quoted in the Trading System at the time the order is withdrawn, unless otherwise instructed by Customers.
        3.3.5 Members shall not combine individual Customers' orders in order to meet the NLT minimum volume threshold requirements. Members shall not combine separate Customers' orders of different Contracts to create an inter-commodity spread or strategy transaction. However, individual orders greater than or equal to the minimum volume threshold may be combined by Members to match a larger NLT counter bid/offer, subject to the condition that the NLTs should, upon execution, be individually reported.
        3.3.6 Various price combinations within the same NLT, or within the same leg of an NLT in the case of spreads or combinations, may be used to set an 'average' price, provided that the trade is for the same entity and that each respective price must meet the minimum tick for NLTs as set out in Appendix B.

        Refer to Appendix B of Regulatory Notice 4.1.11.
        3.3.7 [Deleted]
        3.3.8 The Exchange shall have the sole and absolute discretion to cancel or adjust the price of any NLT, even after the registration of the NLT.
        3.4 Publicising of NLT

        The Exchange shall publish information relating to the details of NLTs.
        3.5 NLT Fees

        The standard clearing fees applicable to the relevant Contracts shall be imposed on all NLTs. In addition, a special facility fee charge shall also be imposed on all NLTs.
        3.6 [Deleted]
        3.6.1 [Deleted]
        3.6.2 [Deleted]
        3.7 [Deleted]
        3.7.1 [Deleted]
        3.7.2 [Deleted]
        3.7.3 [Deleted]
        3.7.4 [Deleted]
        3.7.5 [Deleted]

        Amended on 2 May 2011, 6 November 2012, 25 February 2013, 19 September 2016 and 14 November 2016.

        • Appendix A To Regulatory Notice 4.1.11

          Current version: effective from Mar 27 2017 - May 21 2017.

          MINIMUM VOLUME THRESHOLDS FOR NLTS

          Contract Minimum Volume Threshold (Lots)
          Eurodollar Futures and Options 500
          Euroyen Libor Futures Contract maturity up to 2 years: 500
          Contract maturity beyond 2 years: 100
          Spread/Strategy: 100
          Euroyen Libor Options Outrights: 200
          Spread/Strategy: 100
          Euroyen Tibor Futures Contract maturity up to 2 years: 500
          Contract maturity beyond 2 years: 100
          Spread/Strategy: 100
          Euroyen Tibor Options Outrights: 200
          Spread/Strategy: 100
          JADE CPO Futures 20
          Mini JGB Futures and Options 100
          Mini Nikkei 225 Index Futures 5
          MSCI Asia APEX 50 Index Futures 50
          MSCI India Index Futures 50
          MSCI Indonesia Index Futures 50
          MSCI Malaysia Index Futures 50
          MSCI Philippines Index Futures 50
          MSCI Singapore Index Futures 50
          MSCI Singapore Index Options 25
          MSCI Taiwan Index Futures 50
          MSCI Taiwan Index Options 25
          MSCI Thailand Index Futures 50
          Nikkei 225 Index Futures 5
          Nikkei 225 Index Options 5
          Nikkei Stock Average Dividend Point Index Futures 25
          SGX API 4 FOB Richards Bay Coal Futures 10
          SGX API 5 FOB Newcastle Coal Futures 10
          SGX API 8 CFR China Coal Index Futures 10
          SGX AUD/JPY Futures 50
          SGX AUD/USD Futures 50
          SGX Baltic Capesize Time Charter Average (4 routes) Futures 5
          SGX Options on Baltic Capesize Time Charter Average (4 routes) Futures Contract 5
          SGX Baltic Capesize Time Charter Average (5 routes) Futures 5
          SGX Options on Baltic Capesize Time Charter Average (5 routes) Futures 5
          SGX Baltic Capesize Voyage C5 Route Futures Contract 2
          SGX Baltic Handysize Time Charter Average Futures 5
          SGX Options on Baltic Handysize Time Charter Average Futures Contract 5
          SGX Baltic Panamax Time Charter Average Futures 5
          SGX Options on Baltic Panamax Time Charter Average Futures Contract 5
          SGX Baltic Supramax Time Charter Average Futures 5
          SGX Options on Baltic Supramax Time Charter Average Futures Contract 5
          SGX CNY/SGD Futures 20
          SGX CNY/USD Futures 20
          SGX EUR/CNH Futures 20
          SGX Singapore Sling LNG Futures 10
          SGX FTSE China A50 Index Futures 50
          SGX Fuel Oil futures 30
          SGX Hot-Rolled Coil (HRC) Steel CFR ASEAN Index Futures 5
          SGX ICIS LLDPE CFR China Index Futures 5
          SGX ICIS LLDPE CFR S.E.Asia Index Futures 5
          SGX ICIS PP Flat Yarn (Raffia) CFR China Index Futures 5
          SGX ICIS PP Flat Yarn (Raffia) CFR S.E.Asia Index Futures 5
          SGX IHS McCloskey Indonesian Sub-Bit FOB Index Futures 10
          SGX INR/USD Futures 50
          SGX Option on INR/USD Futures 50
          SGX KRW/JPY Futures 50
          SGX KRW/USD Futures 50
          SGX MB Iron Ore CFR China (58% FE Fines) Index Futures 5
          SGX MSCI China Free Index Futures 50 lots
          SGX MSCI China Free Index Options 25 lots
          SGX Nifty 50 Index Futures 50
          SGX Nifty 50 Index Options 25
          SGX Nifty Bank Index Futures 50
          SGX Nifty CPSE Index Futures 50
          SGX Nifty IT Index Futures 50
          SGX Nifty Midcap 50 Index Futures 50
          SGX Panamax Route P2A Timecharter Futures Contract 2
          SGX Panamax Route P3A Timecharter Futures Contract 2
          SGX PLATTS Benzene FOB Korea Futures Contract 5
          SGX Platts Benzene-Naphtha Index Futures 5
          SGX Platts Dated Brent Index Futures 5
          SGX Platts Gasoil FOB Singapore Index Futures 5
          SGX Platts Iron Ore CFR China (Lump Premium) Index Futures 5
          SGX Platts Kerosene FOB Singapore Index Futures 5
          SGX Platts Naphtha CFR Japan Index Futures 5
          SGX Platts Paraxylene-Naphtha Index Futures 5
          SGX PLATTS PX CFR China Index Futures 5
          SGX Platts Singapore Fuel Oil 180cst Index Futures 5
          SGX Platts Singapore Fuel Oil 380cst Index Futures 5
          SGX Robusta Coffee Futures 40
          SGX SGD/CNH Futures 20
          SGX Singapore Regrade Spread Futures 5
          SGX Singapore Visco Spread Futures 5
          SGX THB/USD Futures 50
          SGX TSI CFR China Premium JM25 Coking Coal Futures 5
          SGX TSI FOB Australia Premium Coking Coal Futures 5
          SGX TSI Iron Ore CFR China (58% FE Fines) Index Futures 5
          SGX TSI Iron Ore CFR China (62% Fe Fines) Index Futures 5
          SGX Options on TSI Iron Ore CFR China (62% FE Fines) Index Futures Option Contract 5
          SGX TWD/USD Futures 50
          SGX USD/CNH Futures 20
          SGX Option on USD/CNH Futures 20
          SGX USD/JPY Futures (Standard) 20
          SGX USD/JPY Futures (Titan) 20
          SGX USD/SGD Futures 50
          SGX USEP Monthly Base Load Electricity Futures 10
          SGX USEP Quarterly Base Load Electricity Futures 10
          SICOM RSS 3 Rubber Contract 60
          SICOM TSR 20 Rubber Contract 60
          Straits Times Index Futures 50
          USD Nikkei Index Futures 5

          Amended on 6 December 2010, 16 December 2010, 24 January 2011, 15 February 2011, 16 May 2011, 11 June 2012, 16 July 2012, 25 February 2013, 5 August 2013, 30 September 2013, 21 October 2013, 11 November 2013, 25 November 2013, 16 December 2013, 20 January 2014, 17 February 2014, 3 April 2014, 4 August 2014, 25 August 2014, 1 September 2014, 29 September 2014, 20 October 2014, 2 December 2014, 19 January 2015, 9 February 2015, 9 March 2015, 31 August 2015, 31 August 2015, 5 October 2015, 7 December 2015, 25 January 2016, 1 February 2016, 28 March 2016, 28 March 2016, 29 March 2016, 3 May 2016, 2 June 2016, 11 July 2016, 31 October 2016, 7 November 2016, 5 December 2016, 27 February 2017 and 27 March 2017.

        • Appendix B To Regulatory Notice 4.1.11

          Current version: effective from Mar 27 2017 - May 21 2017.

          MINIMUM TICK SCHEDULE FOR NEGOTIATED LARGE TRADES

          Contract Market Tick Size NLT Tick Size
          Eurodollar Futures and Options Spot
          0.0025 points (US$6.25)
          Subsequent contract months
          0.0050 points (US$12.50)
          All
          0.0001 points (US$0.25)
          Euroyen Libor Futures Spot and subsequent 3 contract months
          0.0025 points (¥625)
          5th contract month onwards
          0.005 points (¥1,250)
          All
          0.001 points (¥250)
          Euroyen Libor Options 0.005 points (¥1,250) 0.001 points (¥250)
          Euroyen Tibor Futures Spot and subsequent 3 contract months
          0.0025 points (¥625)
          5th contract month onwards
          0.005 points (¥1,250)
          All
          0.001 points (¥250)
          Euroyen Tibor Options 0.005 points (¥1,250) 0.001 points (¥250)
          Mini JGB Futures and Options ¥0.01 per ¥100 face value (¥1,000) ¥0.01 per ¥100 face value (¥1,000)
          Mini Nikkei 225 Index Futures 1 index point (¥100) 0.01 index points (¥1)
          MSCI Asia APEX 50 Index Futures 0.5 index points (US$25) 0.01 index points (US$0.50)
          MSCI India Index Futures 0.2 index points (US$10) 0.01 index points (US$0.50)
          MSCI Indonesia Index Futures 5 index points (US$10) 0.01 index points (US$0.02)
          MSCI Malaysia Index Futures 0.25 index points (USD$5) 0.01 index points (US$0.20)
          MSCI Philippines Index Futures 1 index point (US$10) 0.01 index points (US$0.10)
          MSCI Singapore Index Futures and Options 0.05 index points (S$5) 0.01 index points (S$1)
          MSCI Taiwan Index Futures 0.1 index points (US$10) 0.01 index points (US$1)
          MSCI Taiwan Index Options 0.01 index points (US$1) 0.01 index points (US$1)
          MSCI Thailand Index Futures 0.25 index points (US$5) 0.01 index points (US$0.20)
          Nikkei 225 Index Futures 5 index points (¥2,500) 0.01 index points (¥5)
          Nikkei 225 Index Options 1 index point (¥500) 0.01 index points (¥5)
          Nikkei Stock Average Dividend Point Index Futures 0.1 index points (¥1,000) 0.01 index points (¥100)
          SGX API 4 FOB Richards Bay Coal Futures US$0.01 per metric tonne US$0.01 per metric tonne
          SGX API 5 FOB NewCastle Coal Futures US$0.01 per metric tonne US$0.01 per metric tonne
          SGX API 8 CFR China Coal Index Futures US$0.01 per metric tonne US$0.01 per metric tonne
          SGX AUD/JPY Futures ¥ 0.01 (¥ 250) ¥ 0.01 (¥ 250)
          SGX AUD/USD Futures US$0.0001 (US$2.50) US$0.0001 (US$2.50)
          SGX Baltic Capesize Time Charter Average (4 routes) Futures US$1 per day US$1 per day
          SGX Options on Baltic Capesize Time Charter Average (4 routes) Futures Contract US$0.01 per day US$0.01 per day
          SGX Baltic Capesize Time Charter Average (5 routes) Futures US$1 per day US$1 per day
          SGX Options on Baltic Capesize Time Charter Average (5 routes) Futures US$0.01 per day US$0.01 per day
          SGX Baltic Capesize Voyage C5 Route Futures Contract US$0.01 per metric tonne US$0.01 per metric tonne
          SGX Baltic Handysize Time Charter Average Futures US$1 per day US$1 per day
          SGX Options on Baltic Handysize Time Charter Average Futures Contract US$0.01 per day US$0.01 per day
          SGX Baltic Panamax Time Charter Average Futures US$1 per day US$1 per day
          SGX Options on Baltic Panamax Time Charter Average Futures Contract US$0.01 per day US$0.01 per day
          SGX Baltic Supramax Time Charter Average Futures US$1 per day US$1 per day
          SGX Options on Baltic Supramax Time Charter Average Futures Contract US$0.01 per day US$0.01 per day
          SGX CNY/SGD Futures S$0.0001 per 10 Chinese yuan (S$5) S$0.0001 per 10 Chinese yuan (S$5)
          SGX CNY/USD Futures US$0.0001 per 10 Chinese yuan (US$5) US$0.0001 per 10 Chinese yuan (US$5)
          SGX EUR/CNH Futures CNH 0.0001 (CNH 10) CNH 0.0001 (CNH 10)
          SGX Singapore Sling LNG Futures S$0.001 per mmBtu S$0.001 per mmBtu
          SGX FTSE China A50 Index Futures 2.5 index points (US$2.50) 0.01 index points (US$0.01)
          SGX Fuel Oil futures US$0.10 per tonne US$0.10 per tonne
          SGX Hot-Rolled Coil (HRC) Steel CFR ASEAN Index Futures US$0.01 per metric tonne US$0.01 per metric tonne
          SGX ICIS LLDPE CFR China Index Futures US$0.01 per metric tonne US$0.01 per metric tonne
          SGX ICIS LLDPE CFR S.E.Asia Index Futures US$0.01 per metric tonne US$0.01 per metric tonne
          SGX ICIS PP Flat Yarn (Raffia) CFR China Index Futures US$0.01 per metric tonne US$0.01 per metric tonne
          SGX ICIS PP Flat Yarn (Raffia) CFR S.E.Asia Index Futures US$0.01 per metric tonne US$0.01 per metric tonne
          SGX IHS McCloskey Indonesian Sub-Bit FOB Index Futures US$0.01 per metric tonne US$0.01 per metric tonne
          SGX INR/USD Futures 0.01 US cents per 100 rupees (US$2) 0.001 US cents per 100 rupees (US$0.20)
          SGX Option on INR/USD Futures 0.01 US cents per 100 rupees (US$2) 0.001 US cents per 100 rupees (US$0.20)
          SGX KRW/JPY Futures ¥ 0.01 per 1,000 Korean won (¥ 250) ¥ 0.01 per 1,000 Korean won (¥ 250)
          SGX KRW/USD Futures US$0.0001 per 1,000 Korean won (US$2.50) US$0.0001 per 1,000 Korean won (US$2.50)
          SGX MB Iron Ore CFR China (58% FE Fines) Index Futures US$0.01 per metric tonne US$0.01 per metric tonne
          SGX MSCI China Free Index Futures 2 index points (US$10) 0.01 index points
          SGX MSCI China Free Index Options For premium < 100 index points: minimum tick of 0.5 index points (US$2.5).
          For premium >= 100 points: minimum tick of 2 index points (US$10)
          0.01 index points
          SGX Nifty 50 Index Futures 0.5 index points (US$1) 0.01 index points (US$0.02)
          SGX Nifty 50 Index Options 0.5 index points (US$1) 0.01 index points (US$0.02)
          SGX Nifty Bank Index Futures 2 index points (US$2) 0.01 index points (US$0.01)
          SGX Nifty CPSE Index Futures 1 index point (US$5) 0.01 index point (US$0.05)
          SGX Nifty IT Index Futures 5 index points (US$5) 0.01 index point (US$0.01)
          SGX Nifty Midcap 50 Index Futures 1 index point (US$5) 0.01 index points (US$0.05)
          SGX Panamax Route P2A Timecharter Futures Contract US$1 per day US$1 per day
          SGX Panamax Route P3A Timecharter Futures Contract US$1 per day US$1 per day
          SGX PLATTS Benzene FOB Korea Futures Contract US$0.01 per metric tonne US$0.01 per metric tonne
          SGX Platts Benzene-Naphtha Index Futures US$0.01 per metric tonne US$0.01 per metric tonne
          SGX Platts Dated Brent Index Futures US$0.01 per barrel US$0.01 per barrel
          SGX Platts Gasoil FOB Singapore Index Futures US$0.01 per barrel US$0.01 per barrel
          SGX Platts Iron Ore CFR China (Lump Premium) Index Futures US$0.0001 per dry metric tonne unit US$0.0001 per dry metric tonne unit
          SGX Platts Kerosene FOB Singapore Index Futures US$0.01 per barrel US$0.01 per barrel
          SGX Platts Naphtha CFR Japan Index Futures US$0.01 per metric tonne US$0.01 per metric tonne
          SGX Platts Paraxylene-Naphtha Index Futures US$0.01 per metric tonne US$0.01 per metric tonne
          SGX PLATTS PX CFR China Index Futures US$0.01 per metric tonne US$0.01 per metric tonne
          SGX Platts Singapore Fuel Oil 180cst Index Futures US$0.01 per metric tonne US$0.01 per metric tonne
          SGX Platts Singapore Fuel Oil 380cst Index Futures US$0.01 per metric tonne US$0.01 per metric tonne
          SGX Robusta Coffee Futures US$1 per tonne US$1 per tonne
          SGX SGD/CNH Futures CNH 0.0001 (CNH 10) CNH 0.0001 (CNH 10)
          SGX SICOM RSS3 Futures US$0.001 per kg US$0.001 per kg
          SGX SICOM TSR20 Futures US$0.001 per kg US$0.001 per kg
          SGX Singapore Regrade Spread Futures US$0.01 per barrel US$0.01 per barrel
          SGX Singapore Visco Spread Futures US$0.01 per metric tonne US$0.01 per metric tonne
          SGX THB/USD Futures US$0.005 per 1,000 Thai baht (US$5) US$0.005 per 1,000 Thai baht (US$5)
          SGX TSI CFR China Premium JM25 Coking Coal Futures US$0.01 per metric tonne US$0.01 per metric tonne
          SGX TSI FOB Australia Premium Coking Coal Futures US$0.01 per metric tonne US$0.01 per metric tonne
          SGX TSI Iron Ore CFR China (58% FE Fines) Index Futures US$0.01 per metric tonne US$0.01 per metric tonne
          SGX TSI Iron Ore CFR China (62% Fe Fines) Index Futures US$0.01 per metric tonne US$0.01 per metric tonne
          SGX Options on TSI Iron Ore CFR China (62% FE Fines) Index Futures Option Contract US$0.01 per metric tonne US$0.01 per metric tonne
          SGX TWD/USD Futures US$0.0001 per 10 TW$ (US$10) US$0.0001 per 10 TW$ (US$10)
          SGX USD/CNH Futures CNH 0.0001 (CNH 10) CNH 0.0001 (CNH 10)
          SGX Option on USD/CNH Futures CNH 0.0001 (CNH 10) CNH 0.0001 (CNH 10)
          SGX USD/JPY Futures (Standard) ¥ 0.005 (¥ 500) ¥ 0.005 (¥ 500)
          SGX USD/JPY Futures (Titan) ¥ 0.005 (¥ 2,500) ¥ 0.005 (¥ 2,500)
          SGX USD/SGD Futures S$0.0001 (S$2.50) S$0.0001 (S$2.50)
          SGX USEP Monthly Base Load Electricity Futures S$0.01 per MWh S$0.01 per MWh
          SGX USEP Quarterly Base Load Electricity Futures S$0.01 per MWh S$0.01 per MWh
          Straits Times Index Futures 1 index point (S$10) 0.01 index points (S$0.10)
          USD Nikkei 225 Index Futures 5 index points (US$25) 0.01 index points (US$0.05)

          Amended on 6 December 2010, 16 December 2010, 24 January 2011, 15 February 2011, 11 June 2012, 16 July 2012, 25 February 2013, 5 August 2013, 30 September 2013, 21 October 2013, 11 November 2013, 25 November 2013, 16 December 2013, 20 January 2014, 17 February 2014, 3 April 2014, 4 August 2014, 25 August 2014, 1 September 2014, 29 September 2014, 20 October 2014, 2 December 2014, 5 January 2015, 19 January 2015, 9 February 2015, 9 March 2015, 31 August 2015, 31 August 2015, 5 October 2015, 2 November 2015, 7 December 2015, 25 January 2016, 1 February 2016, 28 March 2016, 28 March 2016, 29 March 2016, 4 April 2016, 3 May 2016, 2 June 2016, 4 July 2016, 11 July 2016, 31 October 2016, 14 November 2016, 5 December 2016, 27 February 2017 and 27 March 2017.

      • Regulatory Notice 3.3.17; 3.3.18; 3.3.26; 3.3.27 — Reporting of Account Identity; Reporting of Open Positions; Computations of Financial and Capital Requirements; Submission of Financial Statements and Other Information to the Exchange

        Issue Date Cross Reference Enquiries
        Amended on
        26 December 2007,
        25 August 2009,
        7 December 2009,
        1 April 2014,
        29 December 2014 and
        14 November 2016.
        Rule 3.3.17
        Rule 3.3.18
        Rule 3.3.26
        Rule 3.3.27
        Please contact :

        Risk Management, for Rules 3.3.17 and 3.3.18
        Ms Elaine Tang 6236-8142

        Member Supervision, for Rule 3.3.26 and 3.3.27
        Facsimile No : 6538 8273
        E-Mail Address: membersup@sgx.com

        1. Introduction

        1.1 This Regulatory Notice sets out the conditions and operational procedures pursuant to Rules 3.3.17, 3.3.18, 3.3.26, and 3.3.27.

        2. Electronic Reporting and Submission of Information

        2.1 A Member is required to submit the following information, except that in the case of a Bank Trading Member, the following requirements apply only in respect of the Bank Trading Member's business that is governed by this Rules:
        (a) Rule 3.3.17 : Reporting of Account Identity (BC4A)
        (i) Except for Trading Members that engage solely in House Trades and Proprietary Trades of its Affiliates, a Member is required to submit to the Exchange, using Form BC4A, details of any new account which is used for trading and/or carrying of trades done on Exchange, other exchanges and over-the-counter.
        (ii) If the account is a disclosed omnibus account, Form BC4A must be submitted for each sub-account. However, if the account is an undisclosed omnibus account and the sub-accounts are not used for position reporting, Form BC4A is not required for the sub-account(s). Members need not submit Form BC4A to the Exchange for trading accounts which are to be linked to a position account using the Clearing System.
        (iii) If there are any changes to information stated in a BC4A account that has been submitted previously, the Exchange must be notified as soon as is practicable, within the next business day.
        (iv) Members should notify the Exchange, when an account is closed in their system, as soon as is practicable, to prevent unauthorised trading in the account.
        (v) Form BC4A serves as identification for the holder of the account and no single account number should be assigned to more than one customer, even after the account has been closed.
        (vi) The operational procedures and timelines in relation to the submission and procedure for the completion of Form BC4A are set out in Appendix 2.

        Refer to Appendix 2 of Regulatory Notice 3.3.17; 3.3.18; 3.3.26; 3.3.27.
        (vii) Members are required to put in place internal controls to ensure that the Form BC4A has been properly approved by the Chief Executive Officer ("CEO"), or such senior executive (e.g. Deputy CEO, General Manager or Operations Manager) as is authorised by the CEO, before submission. Approved staff performing the submission of Form BC4A, including the authorised senior executives, should not be directly involved in trading activities. Members are reminded that the primary responsibility for ensuring the accuracy of the Form BC4A submitted falls on the CEOs of the respective Member firms.
        (viii) Any account number used in position reporting must correspond exactly to the account number reported in Form BC4A. Members are required to ensure all information reported under Form BC4A is complete and accurate as the Exchange relies on these records for its risk management and market surveillance programmes. Due care should be exercised in completing the Form.
        (b) Rule 3.3.18 : Reporting of Open Positions (BC3A)

        A Member shall record, using Form BC3A, a daily report of Open Positions in all accounts at the end of each Trading Day. The Form BC3A shall be submitted to the Exchange in accordance with the operational procedures and timelines set out in Appendix 2. For disclosed Omnibus Accounts, a Member shall report the Open Positions in each sub-account.

        Refer to Appendix 2 of Regulatory Notice 3.3.17; 3.3.18; 3.3.26; 3.3.27.
        (c) Rule 3.3.26 : Computations of Financial and Capital Requirements; and Rule 3.3.27 : Submission of Financial Statements and Other Information to the Exchange

        A General Trading Member that holds a licence specified in Rule 2.4.1(b) shall submit to the Exchange monthly Net Liquid Capital financial returns. The General Trading Member shall submit financial returns as set out in the form prescribed by the Exchange in Regulatory Notice 2.5.2(b1).

        General Trading Members and Bank Trading Members shall submit financial returns in the format that the Exchange prescribes. The financial returns shall be submitted by the 14th calendar day of each month, or such longer period as the Exchange may allow. Requests for extensions of time shall be submitted to the Exchange at least three (3) Business Days prior to the due date for submission of the monthly financial returns.

        Members shall submit audited financial returns in the forms prescribed herein on an annual basis, pursuant to Rule 3.3.28.
        2.2 Appendices 2 and 2A set out the details of information which a Member shall submit to the Exchange periodically and the manner in which the information is to be submitted.

        Refer to Appendix 2 and Appendix 2A of Regulatory Notice 3.3.17; 3.3.18; 3.3.26; 3.3.27.
        2.3 The Exchange will inform Members by way of Circular, at least five (5) days before implementation, if there are any changes to the timelines stipulated in Appendix 2 and Appendix 2A.

        Refer to Appendix 2 and Appendix 2A of Regulatory Notice 3.3.17; 3.3.18; 3.3.26; 3.3.27.
        2.4 User IDs

        A User ID is issued to a Member to facilitate electronic submission and downloading via the SGX Data Submission System. The User ID is issued only to a director of the Member. The Member shall use the form in Appendix 3 to inform the Exchange of the name of the director. The form shall be signed by two (2) directors. The director who has been issued with the User ID may authorise other employees of the Member to submit files, provided such authorisation is documented and proper procedures are in place.

        Refer to Appendix 3 of Regulatory Notice 3.3.17; 3.3.18; 3.3.26; 3.3.27.

        A Member shall appoint at least two (2) employees as User ID coordinators who shall liaise with the Exchange on matters relating to User ID and IT security.

        A Member shall use the form in Appendix 3A to inform the Exchange of the names of the User ID coordinators and its authorised signatories for submission of forms in Appendices 2 and 3. The detailed responsibilities of the authorised signatories and coordinators are set out below:

        Refer to Appendix 3A of Regulatory Notice 3.3.17; 3.3.18; 3.3.26; 3.3.27.
        (a) AUTHORISED SIGNATORY
        (i) Review and approve requests for access to SGX Data Submission System.
        (ii) Ensure the timely submission of appropriate requests to the Exchange in the event that the director who is issued with the User ID resigns, transfers or changes his duties/functions.
        (iii) Inform the Exchange to revoke the access (e.g. if staff abuses the access granted to him).
        (b) USER ID COORDINATOR
        (i) Submit requests for the application or deletion of User IDs on behalf of the Member using Appendix 3.
        (ii) Act as the liaison to the Exchange for any IT security incidents or activities, such as:
        (A) User ID compromised;
        (B) User ID account lock-out;
        (C) IT security violations; and
        (D) unauthorised changes to critical systems.
        (iii) Assist the Exchange in its Annual IT Security Verification exercise.
        (iv) Update the Exchange on changes pertaining to the following:
        (A) list of User ID coordinators;
        (B) list of authorised signatories; and
        (C) company name or other information.
        (v) Check that all requests in accordance with Appendix 3 are duly completed and properly authorised before submitting to the Exchange.

        3. Late Fees

        3.1 Where a Member fails to submit any information, returns or reports required under the above Rules, within the prescribed time, there shall be imposed upon the Member a late fee of an amount to be prescribed by the Exchange from time to time, unless an extension of time has been granted.
        3.2 Where a Member fails to submit the requisite financial returns within the prescribed time, there shall be imposed upon the Member a late fee for each day that the returns are not submitted and for which an extension of time has not been granted. The late fee shall be set at an amount which the Exchange may prescribe from time to time.
        3.3 A Member shall be required to resubmit any information, returns or reports required under the above Rules and take such other steps as the Exchange may require upon the Exchange's notification that the information, returns or reports are inaccurate or incomplete.

        • Appendix 1 [Appendix has been deleted.]

          Deleted on 14 November 2016.

        • Appendix 2 to Regulatory Notice 3.3.17; 3.3.18; 3.3.26; 3.3.27 Financial Statements and Other Information to be Submitted by Members Via SGX Data Submission System

          Please click here to view Appendix 2 to Regulatory Notice 3.3.17; 3.3.18; 3.3.26; 3.3.27 Financial Statements and Other Information to be Submitted by Members Via SGX Data Submission System.

          Amended on 1 April 2014, 29 December 2014 and 14 November 2016.

        • Appendix 2A to Regulatory Notice 3.3.17; 3.3.18; 3.3.26; 3.3.27 List of Email Addresses for Receiving Feedback on Submissions (For SGX Data Submission System)

          Please click here to view Appendix 2A to Regulatory Notice 3.3.17; 3.3.18; 3.3.26; 3.3.27 to Regulatory Notice 3.3.17; 3.3.18; 3.3.26; 3.3.27 List of Email Addresses for Receiving Feedback on Submissions (For SGX Data Submission System).

          Amended on 1 April 2014 and 29 December 2014.

        • Appendix 3 to Regulatory Notice 3.3.17; 3.3.18; 3.3.26; 3.3.27 Creation/Deletion of User ID and Reset of Password (For SGX Data Submission System)

          Please click here to view Appendix 3 to Regulatory Notice 3.3.17; 3.3.18; 3.3.26; 3.3.27 Creation/Deletion of User ID and Reset of Password (For SGX Data Submission System).

        • Appendix 3A to Regulatory Notice 3.3.17; 3.3.18; 3.3.26; 3.3.27 List of Authorised Signatories and User ID Coordinators (For SGX Data Submission System)

          Please click here to view Appendix 3A to Regulatory Notice 3.3.17; 3.3.18; 3.3.26; 3.3.27 List of Authorised Signatories and User ID Coordinators (For SGX Data Submission System).

    • Practice Notes

      • Practice Note 2.6.3(1)(c) — Pre-Execution Checks

        Issue Date Cross Reference Enquiries
        Added on
        22 September 2006 and amended on 15 March 2013 and 14 November 2016.
        Rule 2.6.3(1)(c) Please contact Member Supervision:

        Facsimile No : 6538 8273
        E-Mail Address: membersup@sgx.com

        1. Introduction

        1.1 This Practice Note provides further details on the pre-execution checks contemplated in Rule 2.6.3(1)(c).

        2. Pre-Execution Checks

        2.1 Rule 2.6.3(1)(c) requires Members to ensure that automated pre-execution risk management control checks are conducted on all orders, including credit control checks on all orders. The purpose of this is to prevent overtrading and for credit risk management. As such, the checks must be appropriately set to effectively limit the firm's risk exposure arising from all orders (including House orders) to prevent the taking on of excessive risk.
        2.2 [Deleted]
        2.3 Members who authorise Sponsored Access will be able to meet the requirement in Rule 2.6.3(1)(c) by using the appropriate Exchange-hosted pre-execution checks, or by directly setting and controlling the appropriate pre-determined automated limits in the Sponsored Access customer's system, having automated alerts whenever such limits are altered, and by conducting regular post-execution reviews of trades. Members should assess and continue to ensure that the pre-execution risk management control checks are robust on an ongoing basis.
        2.4 Where a Trading Member has allowed its Clearing Member to directly set and control pre-determined automated limits in the Trading Member's system, the Trading Member should have the appropriate internal controls to prevent unauthorised modification of the limits set by the Clearing Member.

        Amended on 15 March 2013 and 14 November 2016.

      • Practice Note 2.6.3(1)(d) — Error-Prevention Alerts

        Issue Date Cross Reference Enquiries
        Added on 15 March 2013 and amended on 14 November 2016. Rule 2.6.3(1)(d) Please contact Member Supervision:

        Facsimile No : 6538 8273
        E-Mail Address: membersup@sgx.com

        1. Introduction

        1.1 This Practice Note explains the types of "error-prevention alerts" contemplated in Rule 2.6.3(1)(d).

        2. Types of Error-Prevention Alerts

        2.1 The types of error-prevention alerts to be made available should include but are not limited to the following:
        (a) maximum quantity per order — to alert Approved Traders and customers of possible erroneous entries in relation to quantity; and
        (b) price alerts — to alert Approved Traders and customers of possible erroneous entries in relation to price.
        2.2 [Deleted]

        Added on 15 March 2013 and amended on 14 November 2016.

      • Practice Note 2.6.3(1)(g) — Procedures for Separation of Key Functions

        Issue Date Cross Reference Enquiries
        Added on
        22 September 2006 and amended on 15 March 2013.
        Rule 2.6.3(1)(g) Please contact Member Supervision:

        Facsimile No : 6538 8273
        E-Mail Address: membersup@sgx.com

        1. Introduction

        1.1 This Practice Note explains the circumstances, conditions and operational procedures pursuant to the requirement to separate the credit control, trading, dealing and marketing departments of the Members, as set forth in Rule 2.6.3(1)(g).

        2 Separation of Key Functions

        2.1 The purpose of separating the Member's various key functions is to mitigate conflicts of interests among these functions, and ensure that there are sufficient checks and balances.
        2.2 Examples of proper separation include:
        (a) access into the dealing or trading room to be restricted to authorised personnel only;
        (b) setting and authorising credit limits on Customers by senior management staff who are independent of trading or marketing functions, and are not related to the Customer in question; and
        (c) setting and authorising trading limits on House Traders by senior management staff other than the House Trader himself.

        Amended on 15 March 2013.

      • Practice Note 2.6.3(2) — Firm-Level Monitoring of Capital and Financial Requirements and Prudential Limits

        Issue Date Cross Reference Enquiries
        Added on 15 March 2013. Rule 2.6.3(2) Please contact Member Supervision:

        Facsimile No : 6538 8273
        E-Mail Address: membersup@sgx.com

        1. Introduction

        1.1 This Practice Note explains the requirement for monitoring potential breaches of capital and financial requirements and prudential limits on exposures to a single Customer and a single Contract set out in Rule 2.6.3 (2).

        2. Firm-Level Monitoring of Capital Requirements and Prudential Limits

        2.1 In an electronic trading environment where orders are processed and routed at speed, Members should use appropriate measures to monitor if the firm is at risk of breaching its capital or financial requirements or any prudential limits, for example:
        (a) setting automated filters on firm-wide aggregated exposures;
        (b) having processes to generate warnings; or
        (c) having processes to route large value orders for review.

        Amended on 15 March 2013.

      • Practice Note 2.6.6 — Business Continuity Requirements

        Issue Date Cross Reference Enquiries
        Added on
        22 January 2009 and
        1 April 2014.
        Rule 2.6.6 Please contact Member Supervision:

        Facsimile No : 6538 8273
        E-Mail Address: membersup@sgx.com

        1. Introduction

        1.1 Rule 2.6.6 requires Members to:
        (i) maintain adequate business continuity arrangements;
        (ii) document business continuity arrangements in a business continuity plan;
        (iii) test and review business continuity plans regularly; and
        (iv) appoint emergency contact persons.
        1.2 The objective is to ensure that Members have the ability to:
        (i) React swiftly to emergency situations; and
        (ii) Maintain critical functions and fulfill obligations to customers and counterparties in the event of major operational disruptions.

        2. Business Continuity Plan

        2.1 Critical Elements of a Business Continuity Plan
        2.1.1 Rule 2.6.6(a) requires Members to maintain adequate business continuity arrangements, and document such arrangements in a business continuity plan. As a guide, a Member's business continuity plan should document the following elements:
        (i) Risk assessment: This includes a comprehensive assessment of business continuity risks (including financial and operational risks) and threat scenarios which may severely disrupt a Member's operations. Such scenarios may include prolonged power outages, IT system software or hardware failures, loss of voice or data communication links, acts of terrorism, and outbreak of infectious diseases;
        (ii) Business impact analysis: This is an evaluation of the impact of the risks and threat scenarios identified in (i) above. The business impact analysis should identify critical business functions (including support operations and related information technology systems) and potential losses (monetary and non-monetary) to enable the Member to determine recovery strategies/priorities and recovery time objectives;
        (iii) Work area recovery: This refers to continuity arrangements for a Member's critical functional capabilities in the event that the Member's primary office becomes inaccessible, for example, availability of a disaster recovery site ready for activation within a reasonable period of time;
        (iv) Crisis communications: This refers to a communications plan for the Member to liaise with its internal and external stakeholders such as employees, customers and regulatory authorities during a crisis;
        (v) Roles and responsibilities: This refers to the identification of a Member's key personnel and management staff, their roles and responsibilities, and reporting lines. Alternates should be identified to cover the responsibilities of absent key personnel.
        (vi) Backup for critical functions*, information technology systems and data;

        * Critical functions refer to business functions whose failure or disruption may incapacitate the firm.
        (vii) Key service providers^: This refers to assessing a Member's dependencies on key service providers in recovery strategies and recovery time objectives, and taking steps to ensure that key service providers are capable of supporting the Member's business, even in disruptions;

        ^ Key service providers refer to third-parties who are performing functions that are not normally carried out by Member firms internally, but are critical to Member firms' ability to carry on business operations. For example, IT system hardware/software vendors.
        (viii) Outsourcing service providers#: This refers to assessing whether the service provider has established satisfactory Business Continuity Plans commensurate with the nature, scope and complexity of the outsourced services; and

        # Outsourcing service providers refer to third parties who are performing functions that would normally be performed by Members firms internally. For example, Operations and Technology.
        (ix) Any other elements that the Member deems necessary to be included in its business continuity plan or which the Exchange may prescribe from time to time.
        2.2 Emergency Response During Crisis
        2.2.1 A Member should establish and maintain a crisis management plan as part of its business continuity plan. The crisis management plan should include (but not be limited to):
        (i) Emergency response procedures;
        (ii) Roles and responsibilities of the crisis management team;
        (iii) Command and control structures; and
        (iv) Salvage and restoration procedures.
        2.2.2 The Exchange may declare a wide-area crisis in the event of a major and widespread incident. When such declaration is made, the Exchange may require a Member to submit status reports to the Exchange. A wide-area crisis may include any incident where the operations of a large number of market participants are disrupted simultaneously.
        2.3 Regular Review, Testing and Training

        2.3.1 Rule 2.6.6(d) requires a Member to review and test its business continuity plan regularly. Members should do so at least once a year to ensure that their business continuity plans remain relevant.
        2.3.2 Where there are material changes to a Member's business activities and operations, the Member should update its business continuity plan accordingly. Regular training should be conducted for staff to be updated and aware of any relevant changes to the Member's business continuity arrangements. As a principle, training should be conducted when:
        (i) changes have been made to the Member firm's BCP; and
        (ii) new staff are recruited.
        Member firms should also conduct refresher courses for existing staff where appropriate.
        2.4 Application to a General Trading Member that holds a licence specified in Rule 2.4.1(b)
        2.4.1 The features of a business continuity plan set out in paragraphs 2.1, 2.2 and 2.3 may not be applicable to a General Trading Member that holds a licence specified in Rule 2.4.1(1)(b). The guidance for such Trading Members is set out in Practice Note 2.6.6; 3.3.3; 3.3.9; 3.3.10; 3.3.23.

        3. Emergency Contact Persons

        3.1 Rule 2.6.6(e) requires a Member to appoint emergency contact persons and furnish the contact information of such persons to the Exchange. Members may appoint an emergency contact person and up to two (2) alternates. A template is attached as Appendix A to this Practice Note for the notification of contact information (postal address, email, telephone, mobile telephone and facsimile numbers) to the Exchange.

        Refer to Appendix A of Practice Note 2.6.6.
        3.2 Members are to ensure that the contact information provided to the Exchange is updated on a semi-annual basis. Nonetheless, where there are changes to a Member's emergency contact persons and contact information, the Member should notify the Exchange immediately in writing.
        3.3 A Member's authorized emergency contact person should immediately notify the Exchange in the event where:
        (i) A Member's business operations are or will be significantly disrupted; and/or
        (ii) A Member's business continuity plan is activated.

        • Appendix A to Practice Note 2.6.6 Business Continuity Management Emergency Contact Person(s)

          Please click here to view Appendix A to Practice Note 2.6.6 Business Continuity Management Emergency Contact Person(s).

      • Practice Note 2.6.6; 3.3.3; 3.3.9; 3.3.10; 3.3.23 — Operational Requirements for Trading Members Referred to in Rule 2.4.1(b)

        Issue Date Cross Reference Enquiries
        Issued on 1 April 2014 Rule 2.6.6
        Rule 3.3.3
        Rule 3.3.9
        Rule 3.3.9A
        Rule 3.3.10
        Please contact Member Supervision:—

        Facsimile No : 6538 8273

        1. Introduction

        1.1. The Exchange requires a Trading Member that does not hold a licence administered by the Monetary Authority of Singapore to meet the following operational requirements set out in the Rules:
        a. maintain complete and accurate records pursuant to Rule 3.3.23;
        b. send its customer a risk disclosure document setting out the risks associated with holding and trading in Contracts pursuant to Rule 3.3.3;
        c. send statements of account and contract notes to its Customers pursuant to Rule 3.3.9;
        d. segregate Customer's money and assets pursuant to Rule 3.3.10.
        A Trading Member that does not hold a licence administered by the Monetary Authority of Singapore may meet the above operational requirements by complying with the applicable comparable requirements prescribed by its Relevant Regulatory Authority.
        1.2. This Practice Note sets out the factors that the Exchange considers relevant when it reviews the requirements that the Trading Member is already subject to at the point of application, and on an ongoing basis, in the overseas market which it is carrying on business (“overseas market”).

        2. Factors that the Exchange considers relevant

        2.1. Complete and accurate records Pursuant to Rule 3.3.23, the Trading Member referred to in paragraph 1.1 should:
        a. keep, or cause to be kept, such books as will sufficiently explain the transactions and financial position of its business and enable true and fair financial statements to be prepared from time to time;
        b. keep, or cause to be kept, such books in such a manner as will enable them to be conveniently and properly audited;
        c. retain such books required by the Relevant Regulatory Authority for a prescribed period.
        2.2. Contract note Pursuant to Rule 3.3.9, the Trading Member referred to in paragraph 1.1 should issue to its Customer a contract note which should contain the following information:
        a. name of the customer;
        b. date on which the purchase or sale of Contracts is entered into;
        c. the price, amount and description of the Contracts; and
        d. settlement amounts.
        In addition, the contract note should be sent to the Customer within a reasonable period from the execution of the trade.
        2.3. Statement of account Pursuant to Rule 3.3.9, the Trading Member referred to in paragraph 1.1 should send to its Customer a statement of account which should contain the following information:
        a. the price, amount and description of the Contracts;
        b. the status and movements of every asset in the Trading Member's custody held for the customer, including any asset deposited with a third party, and the date, reasons of the movement and amount of the asset involved;
        c. the movement and balance of money received on account of the Customer; and
        d. any charges and credits to the Customer's account.
        2.4. Risk disclosure statement Pursuant to Rule 3.3.3, the Trading Member referred to in paragraph 1.1 should provide its Customer a risk disclosure statement which should clearly state the features of Contracts and risks associated with holding and trading these instruments.
        2.5. Customer's money and assets Pursuant to Rule 3.3.10, the Trading Member referred to in paragraph 1.1 should:
        a. segregate Customers' monies and assets from the Trading Member's monies and assets; and
        b. separately account for the monies and assets of each Customer.

        3. Determination of Comparability of Operational Requirements

        3.1. The Exchange may otherwise direct the Trading Member to follow the requirements set out in the Act and the Rules if the operational requirements referred to in paragraph 1.1 above are deemed to be of insufficient comparability.
        3.2. The Exchange has the discretion to prescribe additional requirements where the Exchange is of the opinion that there is insufficient comparability between the Rules, and the requirements prescribed by the Relevant Regulatory Authority.

        4. Business Continuity Requirements

        4.1. In addition to meeting the operational requirements referred to in paragraph 1.1 above, the Exchange also requires the Trading Member referred to in paragraph 1.1 to meet any applicable business continuity plan requirements which are prescribed by the Relevant Regulatory Authority. The Trading Member may further adopt the recommended features in a business continuity plan set out in Practice Note 2.6.6.

        Emergency Contact Persons

        4.2. Rule 2.6.6 requires a Trading Member to appoint emergency contact persons and furnish the contact information of such persons to the Exchange. Members may appoint an emergency contact person and up to two (2) alternates. A template for the notification to the Exchange of contact information of such emergency contact persons (postal address, email, telephone, mobile telephone and facsimile numbers) is attached as Appendix A to this Practice Note.
        4.3. Trading Members are to ensure that the contact information provided to the Exchange is updated on a semi-annual basis. Nonetheless, where there are changes to a Trading Member's emergency contact persons and contact information, the Trading Member should notify the Exchange immediately in writing.
        4.4. A Trading Member's authorized emergency contact person should immediately notify the Exchange in the event where:
        a. A Trading Member's business operations are or will be significantly disrupted; and/or
        b. A Trading Member's business continuity plan is activated.

        Added on 1 April 2014.

        • Appendix A to Practice Note 2.6.6; 3.3.3; 3.3.9; 3.3.10; 3.3.23

          Business Continuity Management Emergency Contact Person(s)

          Company Name: __________________________________________________

          Name Department Designation Office No. Mobile No. E-mail address
                     
                     
                     
                     

          Prepared by:

          _______________________________

          Name: _________________________

          Designation: ___________________

          Added on 1 April 2014.

      • Practice Note 2.8.1 — Direct Market Access And Sponsored Access

        Issue Date Cross Reference Enquiries
        Added on 15 March 2013. Rule 2, Rule 8.1 Please contact Member Supervision:

        Facsimile No : 6538 8273
        E-Mail Address: membersup@sgx.com

        1. Introduction

        1.1 This Practice Note provides further guidance on the definitions of Direct Market Access under Rule 2 and Sponsored Access under Rule 8.1 — Definitions.

        2. Direct Market Access

        2.1 Direct Market Access may take place in the following manner:
        (a) where the Member permits its customer to use its member ID to transmit orders for execution directly to SGX-DT without using the Member's infrastructure. This is known as Sponsored Access.

        (b) where the Member permits its customer to transmit orders electronically to the Member's infrastructure (i.e., system architecture, which may include technical systems and/or connecting systems), where the order is in turn automatically transmitted for execution to a market under the Member's member ID.

        Amended on 15 March 2013.

      • Practice Note 3.3.5 — Customer Education

        Issue Date Cross Reference Enquiries
        Added on 22 September 2006 and amended on 15 March 2013. Rule 3.3.5 Please contact Member Supervision:

        Facsimile No : 6538 8273
        E-Mail Address: membersup@sgx.com

        1. Introduction

        1.1 This Practice Note sets out the areas of information, guidance and training that a Member should ensure that its Internet Trading Customers are provided with.

        2. Information, Guidance and Training

        2.1 A Member should ensure that its Internet Trading Customers are provided with adequate information, guidance and training with respect to the separately enumerated areas below.
        2.2 Potential limitations and risks of Internet Trading, which include:
        (a) possibility of delays in order transmission and confirmation of order execution, and what to do in case of such delays;
        (b) not being able to withdraw erroneous orders in time due to the speed of electronic trading; and
        (c) danger of unauthorised access to a Customer's Internet Trading account and recommended preventive security measures in relation to matters such as the protection of passwords and leaving an Internet Trading screen unattended.
        2.3 Prohibited trading practices, which refer to trading practices prohibited under this Rules, the Act or other Singapore laws.
        2.4 System functionalities and order management procedures, which include:
        (a) system access requirements;
        (b) how to place, modify and withdraw orders;
        (c) types of trading controls e.g. types of error-prevention alerts and how to interpret system alerts; and
        (d) types of credit controls e.g. types of trading limits and how the trading limits are computed.
        2.5 Contract Specifications, which include:
        (a) contract size;
        (b) ticker symbol;
        (c) Contract Months;
        (d) minimum price fluctuation; and
        (e) settlement basis.

        Amended on 15 March 2013.

      • Practice Note 3.3.16 — Transfer of Unsuccessful Give-Up Trades to House Account

        Issue Date Cross Reference Enquiries
        Added on 22 September 2006. Rule 3.3.16 Please contact Member Supervision:

        Facsimile No : 6538 8273
        E-Mail Address: membersup@sgx.com

        1. Introduction

        1.1 This Practice Note sets out the treatment of unsuccessful give-up trades.

        2. Treatment of Unsuccessful Give-Up Trades

        2.1 Members are encouraged to ensure that all give-up trades are promptly and properly booked out by the end of trade date (T). Also, trades meant to be given-up may be done in the Customer's give-up account. If by end of T+1, there are trades which have not been given up to and accepted by the accepting Clearing Member, the Member should transfer such trades to a designated House Account identified as "name of Member/ Unsuccessful Give-up Trades".

      • Practice Note 3.4.3A — Processes for Review of Orders and Trades

        Issue Date Cross Reference Enquiries
        Added on 15 March 2013. Rule 3.4.3A Please contact Member Supervision:

        Facsimile No : 6538 8273
        E-Mail Address: membersup@sgx.com

        1. Introduction

        1.1 This Practice Note provides guidance on what Members should do as part of their processes for post-execution review of orders and trades.

        2. Guidance on processes

        2.1 Members should adopt processes to place suspicious orders and trades on exception reports or to trigger automated alerts for review. Exception reports and alerts should be reviewed by an independent party like a compliance officer or other appropriately qualified person on a regular basis to detect orders and trades or patterns of orders and trades which give rise to the possibility of non-compliance with the Rules. The review process may involve further enquiry with Approved Traders, Registered Representatives and/or customers or reviewing other Approved Trader, Registered Representative or customer-related information such as past trading activity.
        2.2 Members are expected to follow up on suspicious orders and trades, keep on file the result of their review process and report such activity to the Exchange pursuant to Rule 3.4.4. Additionally, Members are expected to take appropriate action, such as advising the Approved Trader, Registered Representative or customer to refrain from such activity, performing a closer monitoring of the account activity of the Approved Trader, Registered Representative or customer and ultimately to close the account if the suspicious activity persists. Members should note that the mere fact that an order has been placed on an exception report does not absolve them from their underlying compliance responsibilities.

        3. Parameters to assist in detecting suspicious trading behaviour

        3.1 The effectiveness of processes to identify suspicious trading behaviour depends to a large extent on the types of parameters and thresholds set. It may be necessary for the officer reviewing orders and trades to understand the strategies employed by the Member's Approved Traders, Registered Representatives or customers in order to determine the appropriate parameters and thresholds
        3.2 Members should employ processes that facilitate the identification of irregular orders/trades regardless of whether they originate from one Approved Trader, Registered Representative or customer or a group of such individuals acting in concert. In addition, they should also be familiar with trading patterns so as to be able to identify irregular trades.
        3.3 In setting parameters, Members should take note of Contracts which are illiquid which make them susceptible to price manipulation.

        Amended on 15 March 2013.

      • Practice Note 3.4.8 — Good Faith Bids and Offers

        Issue Date Cross Reference Enquiries  
        Added on 22 September 2006. Rule 3.4.8 Please contact:

        Market Surveillance
        Mr Christopher Chong 6236-8316
        Ms Sally Lim 6236-5172

        Enforcement
        E-Mail Address : enforcement@sgx.com

        1. Introduction

        1.1 This Practice Note sets out a situation where the Exchange may not consider a bid or offer to be in good faith.

        2. Good Faith Bids and Offers

        2.1 If the Exchange suspects that a bid or offer entered by a Member or Approved Trader is not in good faith for the purpose of executing bona fide transactions, the Member or the Approved Trader would have to satisfy the Exchange otherwise.
        2.2 The following is one (1) of the situations where a price may not be considered as in good faith for the purpose of executing bona fide transactions:
        Market is at 2505 bid and 2507 offer. The Approved Trader enters a 2506 bid and withdraws it within a short span of time with the intention to trigger stop orders or to give a false impression of the market.

        Amended on 25 October 2012 and 7 July 2015.

      • Practice Note 3.4.9 — Fictitious Transactions Without Change in Ownership

        Issue Date Cross Reference Enquiries
        Added on 22 September 2006. Rule 3.4.9 Please contact:

        Market Surveillance
        Mr Christopher Chong 6236-8316
        Ms Sally Lim 6236-5172

        Enforcement
        E-Mail Address : enforcement@sgx.com

        1. Introduction

        1.1 This Practice Note sets out the recommended practice to avoid acting as buyer and seller in the same transaction.

        2. Recommended Practice

        2.1 To avoid acting as buyer and seller in the same transaction, a Member or Approved Trader is encouraged:
        (a) to check all its outstanding orders in the Trading System;
        (b) before entering an order, to withdraw any outstanding order entered by itself or its sponsoring Clearing Member on its behalf, which corresponds and is likely to match against the order which is to be entered; and
        (c) to make use of tools designed to prevent self-trading.

        Amended on 25 October 2012, 7 July 2015 and 14 November 2016.

      • Practice Note 4.1.9 — Procedures for Order Withdrawal

        Issue Date Cross Reference Enquiries
        Added on
        22 September 2006 and amended on 19 January 2015.
        Rule 4.1.9 Please contact Derivatives Market Control ("DMC"):
        Telephone No. : 6236 8433
        Facsimile No : 6536 6480
        E-Mail Address : derivatives.mc@sgx.com

        1. Introduction

        1.1 This Practice Note explains the circumstances, conditions and operational procedures pursuant to which the Exchange would assist Members to effect order withdrawals.
        1.2 As a general practice, Trading Members who face difficulties in effecting their order withdrawals should seek the assistance of their respective Clearing Members to withdraw their orders. For this purpose and where possible, Clearing Members should set up appropriate supervisory access to the trading system to administer such requests.

        2. Technical Fault and Withdrawal by Exchange on Reasonable Efforts Basis

        2.1 In the event of Technical Faults, the Exchange would assist in effecting order withdrawals at the request of the Members and subject to the terms and procedures set forth below. "Technical Faults" as used herein refers to any loss of connection to Exchange Systems which prevents a Member from effecting order withdrawals without the Exchange's assistance.
        2.2 Order withdrawal by the Exchange in the event of Technical Faults would be effected on a reasonable endeavours basis. The Member agrees that the Exchange has no liability for order withdrawals and related activities conducted on behalf of a Member.
        2.3 The Member indemnifies and will keep indemnified the Exchange against all actions, proceedings, claims, demands, damages, costs, expenses and any other amounts against or incurred by the Exchange arising out of or in connection with any action taken or any inaction by the Exchange, or any of the Exchange's officers, employees, agents, delegates or contractors with respect to such order withdrawals.
        2.4 For the avoidance of doubt, nothing in this Practice Note should be construed as limiting a Member's obligation to install and maintain a robust and technically sound system, risk management processes or business continuity plans as required under the Rules or any applicable laws.
        2.5 Members may request the Exchange to withdraw orders at the following levels:
        (a) individual order level; or
        (b) firm-wide order level.

        3. Operational Safeguards and Discrepancies

        3.1 A Member shall comply with the instructions and directions issued by DMC when effecting order withdrawals as contemplated herein. DMC also reserves the right to refuse any such request without providing any reason.
        3.2 All verbal requests for order withdrawals ("Request") shall be recorded by DMC. Members are also required to comply with various operational safeguards and procedures as issued by DMC from time to time including matters relating to the:
        (a) appointment of authorised firm coordinators by Members to effect order withdrawals and the provision of authentication details in connection therewith;
        (b) making of a Request via telephone numbers as designated by DMC;
        (c) submission of an order withdrawal form with the material information as requested by DMC; and
        (d) processing of Requests at firm-wide order level and individual order levels.
        3.3 If a Member finds any discrepancies between the order withdrawal form and the Request, the Member should notify DMC immediately with details of such discrepancies. Depending on the nature of the discrepancy, DMC would generally rely on the voice recording of the Request for its post-withdrawal investigations.

      • Practice Note 4.1.10 — Cross Trades

        Issue Date Cross Reference Enquiries
        Added on
        22 September 2006
        and amended on
        2 July 2007.
        Rule 4.1.10 Please contact:

        Market Surveillance
        Mr Christopher Chong 6236-8316
        Ms Sally Lim 6236-5172

        Enforcement
        E-Mail Address : enforcement@sgx.com

        1. Cross Trades

        1.1 In normal circumstances, the Exchange would consider that a cross trade was not prearranged if there is a time lag of ten (10) seconds between the entry of the first and second legs of the orders. However, if the time lag is less than ten (10) seconds, or the Exchange nevertheless suspects a cross trade was pre-arranged, the Member or the Approved Trader would have to satisfy the Exchange otherwise.
        1.2 The following are examples on the application of Rule 4.1.10:

        The Contract is NKH'06 with a tick size of 5 points.

        Example Existing Bid Existing Offer Last traded price
        (a) 11710 11740 11740
        (b) 11710 11740 11740
        (c) None None 11740


        Example (a)

        The Approved Trader receives buy and sell orders at the same time and at price of 11715. The Approved Trader can expose either the buy or the sell order first.

        Reason: Both the price of buy and sell orders are better than the prevailing 11710 bid and 11740 offer respectively.

        Example (b)

        The Approved Trader receives buy and sell orders at the same time and price at 11740. The Approved Trader shall expose the buy order first.

        Reason: The buy order is a more attractive order than the sell order because there was an existing 11740 offer waiting to be "lifted".

        Example (c)

        The Approved Trader receives buy and sell orders at the same time and price at 11715. The Approved Trader shall expose the sell order first.

        Reason: The sell order has a more attractive price because the opposite trader who "lifts" the offer will be buying at a price lower than the last traded price of 11740. On the contrary, the buy order has a less attractive price because the opposite trader who "hits" the bid will be selling at a price lower than the last traded price of 11740.

        Amended on 25 October 2012 and 7 July 2015.

    • Schedules

      • Schedule A

        • Chapter 2 — Access and Membership

          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 2 — Access and Membership
          2.1 Access and Trading
          2.1.2(a) [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted]
          2.1.2(b) [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted]
          2.1.2(1)(a) Member to have measures covering minimum standards for Direct Market Access 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.
          2.1.2(1)(b) Member to have measures covering procedures on Direct Market Access for relevant persons 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.
          2.1.2(1)(c) Member to have measures providing information on access and applicable laws for Direct Market Access 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.
          2.1.2(1)(d) Member to have measures for legally binding agreement on Direct Market Access 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.
          2.1.2(1)(f) Member to assist the Exchange in any investigation on Direct Market Access in respect of potential violations Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
          2.1.2(2) Member to have conditions restricting who can delegate Direct Market Access and to have conditions passed to other persons via legally binding agreement 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.
          2.1.2(3) Member to provide report by independent reviewer 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.
          2.1.2A(1)(a) Member to keep a Sponsored Access record 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.
          2.1.2A(1)(b) Member to show Sponsored Access record when requested Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
          2.1.2A(1)(c) Member to have measures on specific requirements for Sponsored Access 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.
          2.1.2A(2)(a) Member to have measures to assure status of Sponsored Access customer that delegates 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.
          2.1.2A(2)(b) Member to have measures on specific requirements relating to delegation of Sponsored Access 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.
          2.1.2AB(a) Exchange to direct Member to suspend or terminate Direct Market Access Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
          2.1.2AB(b) Member to have ability to suspend or terminate Direct Market Access Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
          2.1.3 Persons accessing Partner Markets to comply with the applicable rules, laws and regulations governing trading in the Partner Market 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.
          2.1.4(b) Member that holds a licence specified in Rule 2.4.1(b) not to execute Agency Trades for Customers domiciled in Singapore 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.
          2.2 Classes of Membership
          2.2.2 Trading Member to observe this Rules and any requirements prescribed by the Exchange [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.
          2.2.3 Clearing Member to observe this Rules, the Clearing Rules and any requirements as prescribed by the Exchange or the Clearing House [Unless otherwise specified in this Schedule or Schedule A to the Clearing 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.
          2.3 Admission Criteria for Members
          2.3.2(b) Member to notify the Exchange at the time of submission of its application for concurrent membership in another 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.
          2.4 Licensing and Credit Rating Requirements for Members, their Employees and Agent
          2.4.1 General Trading Member, and its employees and agents to procure and maintain requisite licenses and satisfy licensing requirements for engaging in regulated activity Not Compoundable Not Compoundable $10,000
          2.5 Financial Requirements for Members
          2.5.2(b) General Trading Member that holds a licence to engage in a Regulated Activity to comply with financial 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.
          2.5.2(b1)7 General Trading Member that holds a licence specified in Rule 2.4.1(b) to comply with financial 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.
          2.5.2(c) Bank Trading Members to comply with financial 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.
          2.5.4 Member to comply with additional financial, capital and other requirements imposed by the Exchange or the Clearing House Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
          2.5.5 Corporate Member to comply with the prescribed calculation of Financial Resources 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.
          2.5.6(a) Corporate Member to immediately notify the Exchange of material changes to Financial Resources and Adjusted Net Head Office Funds 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.
          2.5.6A(a)8 Corporate Member to immediately notify the Exchange if it fails to meet or becomes aware that it will fail to meet Net Liquid 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.
          2.5.6A(b)9 Corporate Member to comply with directions of the Exchange in respect of its business activities Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
          2.5.6(b) Corporate Member to comply with requirements described under Regulation 7(3) of the Financial and Margin Requirements, imposed by the Exchange. Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
          2.5.6(c) Corporate Member to comply with directions of the Exchange on the submission of statements or operation of business. Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
          2.5.6(d) General Trading Member to comply with the requirements described in Regulation 17(2) of the Financial and Margin Requirements, imposed by the Exchange. Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
          2.5.7 General Trading Member to comply with requirements relating to preference shares, unsecured loans & others 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.
          2.6 Technical Matters & Risk Management Controls
          2.6.1 Member to comply with other requirements or restrictions prescribed by 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.
          2.6.2 Member to have measures for security arrangements on Direct Market Access Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
          2.6.2A r/w Regulatory Notice Member to ensure that systems and connections to the Markets operate properly 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.
          2.6.2 Corporate Member to have security arrangements in place to ensure that unauthorised persons are denied Direct Market Access Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
          2.6.3 [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted]
          2.6.3(1)(a) Corporate Member to monitor credit risks from acceptance of orders at least daily 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.
          2.6.3(1)(b) Corporate Member to monitor account activity on an intraday basis 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.
          2.6.3(1)(c) Corporate Member to have automated pre-execution checks on orders and appropriate internal controls 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.
          2.6.3(1)(d) Corporate Member to have error prevention alerts on orders 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.
          2.6.3(1)(e) Corporate Member to define and manage sources of liquidity 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.
          2.6.3(1)(f) Corporate Member to limit the impact of significant market movements 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.
          2.6.3(1)(g) Corporate Member to maintain a strict separation between credit control, trading, dealing and marketing departments 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.
          2.6.3(2) Corporate Member to have automated processes to monitor capital requirements and prudential limits 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.
          2.6.4 [deleted [deleted [deleted [deleted [deleted [deleted [deleted [deleted [deleted [deleted [deleted [deleted
          2.6.4(a) Member to maintain complete and accurate records in accordance with the 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.
          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 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
          Member to notify Exchange of changes to requirements prescribed by the Relevant Regulatory Authority 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 additional requirements prescribed by the Exchange10 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.
          2.6.4(b) Member not to make false or misleading entries Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
          2.6.4(c) Member to make all material entries in any document Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
          2.6.4(d) Member not to alter or destroy any documents Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
          2.6.4(e) Member to make records available to the Exchange at such time as the Exchange requires Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
          2.6.5 Corporate Member to comply with accounting, reporting and book-keeping 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.
          2.6.6(a) Member to assess its business and operational risks and maintain adequate business continuity arrangements 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.
          2.6.6(b) Member to document its business continuity arrangements in a business continuity plan 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.
          2.6.6(c) Member to demonstrate awareness of risks, mitigating measures and state of readiness by way of attestation to the Board of Directors Compoundable $500 $1,000 $2,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
          Member to comply with such requirements prescribed by the Relevant Regulatory Authority and principles of good business practice Compoundable $500 $1,000 $2,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
          2.6.6(d) Member to review and test its business continuity plan regularly 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.
          2.6.6(e) Member to appoint emergency contact persons and furnish the contact information to the Exchange Compoundable $500 $1,000 $2,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
          Member's emergency person must be contactable at all times Compoundable $500 $1,000 $2,000 N.A. N.A. N.A. N.A. N.A. N.A. N.A.
          Member must notify the Exchange in the event of emergencies 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.
          2.7 Fit and Proper Requirements
          2.7.1 Corporate Member to demonstrate appointment of fit and proper persons as Directors, Chief Executive Officer and other specified personnel 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.
          2.7.2 Corporate General Trading Member to obtain the prior approval of the Exchange for appointment of CEO & Deputy CEO 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.
          2.7.3 Bank Trading Member to notify the Exchange of appointment of CEO & Deputy CEO, within the specified time 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.
          2.8 [deleted]
          2.8.1(d) [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted]
          2.8.1(e) [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted]
          2.8.1(f) [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted]
          2.8.1(g) [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted]
          2.8.1(h) [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted]
          2.8.4 [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted]
          2.8.6(a) [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted]
          2.8.6(b) [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted]
          2.8.6(c) [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted]
          2.13 Registration of Approved Traders & Registered Representatives
          2.13.1 Member to register Approved Traders and 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.
          2.13.2 Approved Trader to register with the Exchange 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.
          2.13.3 Registered Representatives to register with the Exchange 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.
          2.13.6 Member to notify the Exchange of specified occurrences 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.
          2.13.7A Member to nofity the Exchange of specified occurrences 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.
          2.14 Change of Control of Members
          2.14.1(a) Corporate Member to notify the Exchange of change in ownership 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.
          2.14.1(b) Corporate Member to notify the Exchange of changes which may alter the control of the Member 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.
          2.14.1(c) Corporate Member to notify the Exchange of change in director 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.
          2.14.1(d) Corporate Member to notify the Exchange of the death or bankruptcy of a director 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.
          2.14.1(e) Corporate Member to notify the Exchange of any change in senior management 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.
          2.14.1(f) Corporate Member to notify the Exchange of any alteration to constitutive documents 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.
          2.14.1(g) Corporate Member to notify the Exchange of any engagement or involvement in any new business or change in 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.
          2.14.1(h) Corporate Member to notify the Exchange of any change in name 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.
          2.15 Registration, Suspension & Termination of Members
          2.15.4(a) Member to comply with the directions of the Exchange if trading privileges are suspended or terminated 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 15 March 2013 and 1 April 2014.

        • Chapter 3 — Conduct of Members, Approved Traders and Representatives

          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 Internet Trading 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, or in the manner prescribed by the Relevant Regulatory Authority, as applicable, 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.
          Member to notify Exchange of changes to requirements prescribed by the Relevant Regulatory Authority 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.
          Registered Representative to comply with additional requirements prescribed by the Exchange 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.
          3.3.8A Member to have in place processes to prevent unauthorised changes to order info 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.
          3.3.9 Member to comply with the Conduct of Business Regulations or such requirements prescribed by the Relevant Regulatory Authority, as applicable, 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 or to comply with such requirements prescribed by the Relevant Regulatory Authority, as applicable, 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.
          Member to notify Exchange of changes to requirements prescribed by the Relevant Regulatory Authority 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 additional requirements prescribed by the Exchange11 Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
          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 or to comply with segregation requirements prescribed by the Relevant Regulatory Authority, as applicable Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
          Member to notify Exchange of changes to requirements prescribed by the Relevant Regulatory Authority 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 additional requirements prescribed by the Exchange12 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 [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted]
          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 the relevant law and regulatory requirements 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.
          Member that holds a licence specified in Rule 2.4.1(b) to satisfy the notification requirements in relation to acting 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 Other Operational Risk 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.
          3.3.33 Member that holds a licence specified in Rule 2.4.1(b) to comply with such requirements prescribed by the Relevant Regulatory Authority and principles of good business practice in relation to Rule 3.3.1, 3.3.4, 3.3.15 and 3.3.3113 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 that holds a licence specified in Rule 2.4.1(b) to comply with such requirements prescribed by the Relevant Regulatory Authority and principles of good business practice in relation to Rule 3.3.2 and 3.3.514 Compoundable $500 $1,000 $2,000 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
          3.4.3A Member to have to have in place processes to review orders and trades for suspicious trading behaviour 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.
          3.4.4 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, 15 March 2013, 1 April 2014, 29 December 2014 and 25 January 2017.

        • Chapter 4 — Listing and Trading of Contracts

          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 4 — Listing and Trading of Contracts
          4.1 Rules Applicable to All Classes of Contracts Listed on the Markets
          4.1.7 Member not to combine outright orders from different principals and execute them as strategy transactions 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.
          4.1.8 r/w Regulatory Notice Member to comply with procedures relating to error 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.
          4.1.9 Member, Approved Trader or Registered Representative not to withold or withdraw Customer's orders unless the specified conditions are met Not Compoundable Not Compoundable $10,000
          4.1.10 Member or Approved Trader to comply with the requirements relating to cross trades Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
          4.1.11 r/w Regulatory Notice Member, Approved Trader or Registered Representative to comply with the thresholds and the requirements and procedures in relation to the registration of Negotiated Large Trades as provided in the Regulatory Notice and the Clearing 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.
          4.1.12 Member, Approved Trader or Registered Representative to satisfy the conditions relating to the exchange of underlying for Futures Contracts 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.
          4.1.13 Member or Approved Trader not to engage in pre-arranged trades Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000

          Added on 16 May 2011 and amended on 19 September 2016.

        • Chapter 5 — Physical Delivery

          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 5 — Physical Delivery
          5.1 Title Documents and Physical Delivery Procedures
          5.1.1 Member to cooperate with Clearing Member to enable Clearing Member to effect delivery of Title Documents against payment Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
          5.1.2 Member to mitigate risk of non-delivery Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
          5.1.3 General Trading Member not to finance Performance Deposits or other Escrow Assets Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
          5.1.5 Member not to default on delivery Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000

          Added on 16 May 2011.

        • Chapter 6 — Dispute Resolution and Arbitration

          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 6 — Dispute Resolution and Arbitration
          6.2 Dispute Resolution Involving Deliverable Commodity Futures Contracts
          6.2.3 Member not to fail or refuse to arbitrate where the other Member elects to arbitrate under the Rule. Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000
          6.2.4 Member to cause its Customers to submit to Arbitration Not Compoundable Not Compoundable N.A. N.A. N.A. N.A. N.A. N.A. $10,000

          Added on 16 May 2011.

        • Chapter 7 — Adverse Events, Rule Violations & Disciplinary Action

          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 7 — Adverse Events, Rule Violations & Disciplinary Action
          7.1 Adverse Events and Rule Violations
          7.1.5 Member, Approved Trader or Registered Representative to immediately notify the Exchange of any Adverse Event or Rule Violation 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.
          7.2 Exchange's Disciplinary Powers
          7.2.3 Member, Approved Trader and Registered Representative to comply with restrictions or conditions imposed by the Exchange on its business Not Compoundable Not Compoundable $10,000
          7.2.4 Member, Approved Trader or Registered Representative to comply with restrictions on its activities imposed by the Exchange, where it has been charged Not Compoundable Not Compoundable $10,000
          7.3 Exchange's Powers upon Occurrence of Adverse Events
          7.3 Member, Approved Trader or Registered Representative to comply with the requirements of the Exchange upon the occurrence of an Adverse Event Not Compoundable Not Compoundable $10,000
          7.4 Investigations by the Exchange
          7.4.3 Member and its officers, Approved Trader or Registered Representative to cooperate with investigations Not Compoundable Not Compoundable $10,000
          7.4.4 Member, Approved Trader or Registered Representative not to wilfully make, furnish, or permit the making or furnishing of false or misleading information Not Compoundable Not Compoundable $10,000
          7.4.6 Member, Approved Trader or Registered Representative to provide information as required by the Exchange Not Compoundable Not Compoundable $10,000
          7.7 Disciplinary Committee Proceedings
          7.7.5(b) Person charged and sponsoring corporate Member not to disclose information received in relation to the charge and to give written undertaking to that effect Not Compoundable Not Compoundable $10,000
          7.10 Appeals Proceedings
          7.10.6(b) Person charged and sponsoring corporate Member not to disclose information received in relation to the charge and to give written undertaking to that effect Not Compoundable Not Compoundable $10,000

          Added on 16 May 2011.