Rulebooks: Contents

Rulebooks
Mainboard Rules
Catalist Rules
SGX-ST Rules
CDP Clearing Rules
CDP Settlement Rules
DVP Rules [Entire Rulebook has been deleted]
CDP Depository Rules
Futures Trading Rules
Chapter 1 General Matters
Chapter 2 Access and Membership
Chapter 3 Conduct of Members, Approved Traders and Representatives
3. Conduct of Members, Approved Traders and Registered Representatives
3.3 Duties of Members Undertaking Agency Trades
3.3.16 Transfer of Unsuccessful Give-Up Trades to House Account
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
Archive
Rule Amendments

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  • 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 Bank Trading Member or 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:
      (i) in the case of a General Trading Member, 20% of the Member's Free Financial Resources; or
      (ii) in the case of a Bank Trading Member or General Trading Member that holds a licence specified in Rule 2.4.1(b), such other amount as may be prescribed by the Exchange 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 and 22 April 2019.

    • 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:
      (i) annual accounts duly audited by an external auditor in the jurisdiction in which that Member is incorporated or registered to the Exchange;
      (ii) relevant forms in respect of its annual financial audit which it is required to lodge with its Relevant Regulatory Authority, translated into English and in such form prescribed by its Relevant Regulatory Authority, or as prescribed by the Exchange under Rule 3.3.27; and
      (iii) a certificate signed by the external auditor pertaining to the audit conducted by such external auditor, in such form prescribed by the Relevant Regulatory Authority,

      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.
      (b) [deleted]

      Amended on 25 August 2009, 1 April 2014 and 22 April 2019.

    • 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.