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
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

BackText onlyPrint

You need the Flash plugin.

Download Macromedia Flash Player



  • 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.