Rulebooks: Contents

Rulebooks
Mainboard Rules
Catalist Rules
SGX-ST Rules
Chapter 1 General
Chapter 2 Admission and Registration of Trading Members, Chief Executive Officers and Trading Representatives
Chapter 3 Capital and Financial Requirements
Chapter 4 Operational Requirements
Chapter 5 Trading Practices and Conduct
Chapter 6 Designated Market-Makers
Chapter 7 Listing and Quotation
Chapter 8 Trading
Chapter 9 Settlement
Chapter 10 Requirements on Specific Securities and Futures Contracts
Chapter 11 Cancellation of Contracts and Trades
Chapter 12 Supervision and Enforcement
Chapter 13 Definitions and Interpretation
Directives
Regulatory Notices
Practice Notes
Practice Note 8.13.4 and 8.15.7 Approval of Off-Market Trades in a Security or Futures Contract Subject to Suspension or Trading Halt
Schedule A
CDP Clearing Rules
CDP Settlement Rules
DVP Rules [Entire Rulebook has been deleted]
CDP Depository Rules
Futures Trading Rules
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



  • Practice Note 8.13.4 and 8.15.7 Approval of Off-Market Trades in a Security or Futures Contract Subject to Suspension or Trading Halt

    • 1. Introduction

      • 1.1

        This Practice Note explains the rationale and the circumstances under which SGX-ST may approve the trading of a security or futures contract that is the subject of a suspension or trading halt.

        Added on 3 June 2019.

      • 1.2

        Rule 8.13.4 says securities or futures contract that have been suspended from trading shall not be traded on the Trading System. Except with SGX-ST's approval, a Trading Member must not execute any transactions in a suspended security or futures contract.

        Added on 3 June 2019.

      • 1.3

        Rule 8.15.7 says securities or futures contracts that are subject to a trading halt shall not be traded on the Trading System. Except with SGX-ST's approval, a Trading Member must not execute any transactions in a security or futures contract subject to a trading halt.

        Added on 3 June 2019.

    • 2. Rationale for Rules

      • 2.1

        All market participants should have equal opportunity. The objective of a suspension and trading halt is usually to facilitate proper dissemination of material information to the market place to ensure the operation of a fair market. Hence, SGX-ST Rules 8.13.4 and 8.15.7 stop all trading of a security or futures contract by a Trading Member if the security or futures contract is under suspension or trading halt. However, SGX-ST recognises that there may be circumstances under which off-market trading of the security or futures contract is appropriate.

        Added on 3 June 2019.

    • 3. Circumstances under which SGX-ST may approve off market trades in a security or futures contract subject to suspension or trading halt

      • 3.1

        SGX-ST may, on a case-by-case basis, approve off-market trades in a security or futures contract that is subject to suspension or trading halt, if the buying customer and selling customer are informed of the reasons for suspension or trading halt and there is a reason for the trade beyond simply wanting to trade. Circumstances under which SGX-ST may approve off-market trades include:

        (a) A seller, being in financial difficulty, needs to sell a security, or liquidate a futures contract in relation to a security, that may be suspended for an indefinite period.
        (b) A seller who short-sold a security or futures contract that is subsequently subject to suspension or trading halt, and the clearing house requires the seller to cover the short position within a prescribed period.
        (c) A security or futures contract is suspended prior to delisting on SGX-ST. The minority shareholders may wish to sell the security or futures contract to the majority shareholders.
        (d) The trustee of the estate of a deceased investor needs to liquidate a security or futures contract that may be suspended for an indefinite period.

        Added on 3 June 2019.