Rulebooks: Contents

Rulebooks
Mainboard Rules
Catalist Rules
SGX-ST Rules
Definitions and Interpretation
Section A — General
Section B — Market Participants
Section C — Market Structure
Section D — Regulatory Framework
Section E — Other Business Activities
Section F — Transitional Provisions
Directives
Practice Notes
Schedules
CDP Clearing Rules
DVP Rules
CDP Depository Rules
Futures Trading Rules
SGX-DC Clearing Rules
SIAC DT Arbitration Rules
SIAC DC Arbitration Rules
Rule Amendments

BackText onlyPrint

You need the Flash plugin.

Download Macromedia Flash Player



  • SGX-ST Rules

    • Definitions and Interpretation

      • Definitions

        The following terms have the following meanings unless the context requires otherwise:—

        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
        "Accredited Investor" Same meaning as in the Securities and Futures Act.
        "Appeals Committee" The committee appointed by the SGX RegCo Board to exercise the powers in the Supervisory Rules;
        "ASEAN Trading Linkage" Order-routing service provided by SGX-ST to Trading Members, whether directly or through any other person, through which:
        (a) a Trading Member may enter orders directly into a market of a Foreign ASEAN Exchange, as a customer of a member of such Foreign ASEAN Exchange; and
        (b) the customer of a Trading Member to whom the Trading Member has authorised Sponsored Access, may enter orders directly into SGX-ST.
        "Associated Corporation" Any body corporate formed in or out of Singapore in which a Trading Member and its related corporations hold directly or indirectly a beneficial interest of not less than 20% of the issued share capital;
        "Authority" The Monetary Authority of Singapore or other body responsible for the administration of the Securities and Futures Act;
        B
        "Board" Board of Directors of SGX-ST;
        C
        "CDP" The Central Depository (Pte) Limited;
        "Circuit Breaker" in relation to a security or Futures Contract refers to such maximum allowable price advance or decline from a reference price for the security or Futures Contract during the Trading Phase. The maximum allowable price advance or decline from a reference price and the reference price shall be determined by SGX-ST.
        "Clearing Member" A Clearing Member in accordance with the Clearing Rules;
        "Clearing Rules" CDP Clearing Rules as in effect from time to time;
        "Connected Person"
        (a) A person's spouse, son, adopted son, step-son, daughter, adopted daughter, step-daughter, father, mother, brother or sister; or
        (b) A firm , Corporation or company in which any of the persons mentioned in (a) above is in a position to control not less than 20% of the voting power in the firm, Corporation or company, whether such control is exercised individually or jointly;
        "Contract Specifications" means the commercial and technical terms of a Marginable Futures Contract, including the contract size, contract month, underlying security, Last Trading Day and settlement basis. Unless otherwise stated, Contract Specifications are not subject to the rule amendment procedures specified under the SFA.
        "Cooling-Off Period" means a period prescribed by SGX-ST during which trading in a particular security or Futures Contract will be restricted in a manner prescribed by SGX-ST.
        "Corporation" Same meaning as in the Companies Act;
        D
        "Dealer" A Trading Representative who is employed by a Trading Member or its group of companies to deal in securities and/or trade in Futures Contracts;
        "Designated Market-Maker" A market-maker registered with SGX-ST;
        "Designated Futures Contract" Shall have the meaning ascribed to it in Rule 8.8.1;
        "Designated Security" Shall have the meaning ascribed to it in Rule 8.8.1;
        "Direct Business" A trade which is not executed on the Trading System in accordance with Rule 8.7;
        "Directives" Requirements prescribed by SGX-ST;
        "Direct Market Access" Direct access to the Trading System, via an SGX-ST provided or SGX-ST approved order management system through which orders are routed to the Trading System.

        Direct Market Access does not include Internet Trading.
        "Director" Same meaning as in the Companies Act;
        "Disciplinary Committee" The committee appointed by the SGX RegCo Board to exercise the powers in the Supervisory Rules;
        "Discretionary Account" An account carried on the books of a Trading Member in which the customer gives a Trading Representative discretion, which may be absolute or with limits, to purchase or sell securities or trade in Futures Contracts. The discretion may extend to selection, timing terms and price;
        "DVP settlement" Settlement of affirmed trades where payment is made against the transfer;
        E
        "Exchange Link" The electronic means by which:—
        (a) SGX-SPV routes orders for Selected Foreign Securities to the Foreign Portal Dealer and receives orders for Selected SGX Securities from the Foreign Portal Dealer; and
        (b) A Foreign Portal Dealer routes orders for Selected SGX Securities to SGX-SPV and receives orders for Selected Foreign Securities from SGX-SPV;
        F
        "Foreign ASEAN Exchange" Shall have the meaning ascribed to it in Rule 10A.5.2.
        "Foreign Exchange" In relation to the Foreign Market Linkages Rule, means a securities exchange outside Singapore that has agreed to an electronic co-trading, clearing and settlement link of Selected Foreign Securities or Selected SGX Securities with SGX-ST;
        "Foreign Market" In relation to the Foreign Market Linkages Rule, means a market administered by the Foreign Exchange which has access to the market via the Exchange Link;
        "Foreign Portal Dealer" A Foreign Exchange or a related body corporate of Foreign Exchange that acts as an intermediary to allow:—
        (a) Singapore investors to trade, clear and settle Selected Foreign Securities on a Foreign Market; and
        (b) Foreign investors to trade, clear and settle Selected SGX Securities via a Foreign Market;
        "Futures Contract" Refers to a futures contract, as defined under the Securities and Futures Act, which is approved for listing on SGX-ST;
        I
        "Immediate Bargains" Any transaction for delivery at the trade date;
        "Institutional Investor" Same meaning as in the Securities and Futures Act.
        "Internet Trading" Trading access to SGX-ST through internet broking services provided by a Trading Member.
        "Issuer" An entity that is quoted or listed on SGX-ST;
        L
        "Last Trading Day" Refers to the last day on which a Marginable Futures Contract may be traded prior to its expiration;
        "Limit Order" An order to be executed at a specific price or better;
        M
        "Marginable Futures Contract" Refers to a Futures Contract approved for listing on SGX-ST and which is subject to margin requirements;
        "Marginable Securities"
        (a) Securities quoted on SGX-ST;
        (b) Securities quoted on the Non-Listed Securities market;
        (c) Securities quoted on the main board of a securities exchange, of a company with shareholders' funds of not less than $200 million (or equivalent); and
        (d) Any other securities that SGX-ST approves;
        "Market Day" A day on which SGX-ST is open for trading in securities and/or Futures Contracts;
        "Marketable Securities"
        (a) Securities quoted on SGX-ST;
        (b) Securities quoted on the Non-Listed Securities market;
        (c) Securities quoted on the main board of a securities exchange, of a company with shareholders' funds of not less than $200 million (or equivalent); and
        (d) Any other securities that SGX-ST approves;
        "Maximum Spread" In relation to a 2-sided market-making order, the maximum difference allowed by SGX-ST between the bid price and the ask price;
        N
        "Non-Listed Security" Refers to:
        (a) a security listed on an overseas exchange; or
        (b) Singapore Government Securities;

        which are approved by SGX-ST for quotation and trading on the Non-Listed Securities Market;

        "Non-Listed Securities market" A place at which, or a facility by means which, offers or invitations to sell, purchase or exchange a Non-Listed Security are regularly made;
        O
        "Officer" Same meaning as in the Companies Act;
        "Official List" The list of issuers maintained by SGX-ST in relation to the SGX Mainboard or SGX Catalist;
        P
        "Position Account" Shall have the meaning ascribed to it in the Clearing Rules;
        "Practice Notes" Non-binding guidelines that seek to explain the application and interpretation of a Rule.
        “Prescribed Security” Shall have the meaning ascribed to it in Rule 8.2A.1;
        "Public" Persons other than:—
        (a) Directors, Officers, Employees, Trading Representatives, agents or shareholders of the Trading Member and its subsidiary companies; and
        (b) Connected persons to those mentioned in paragraph (a);
        "Public Register of Representatives" [Deleted]
        Q
        "Qualification" The guarantee of a Clearing Member to accept liability for all contracts executed on SGX-ST by a Trading Member which it has qualified;
        R
        "Relevant Regulatory Authority" Shall mean:
        (a) the authority(ies) or regulatory body(ies) that regulate(s) a Trading Member's or its Trading Representatives' activities in the country where it is carrying on such activities; and
        (b) where the Trading Member or its Trading Representatives are carrying on regulated activities in Singapore, the Authority,
        "Remisier" A Trading Representative who has a business arrangement with a Trading Member that holds a Capital Markets Services Licence for dealing in securities or trading in Futures Contracts. A Remisier is not an employee of a Trading Member;
        "Rules" SGX-ST Rules, including, save where expressly indicated otherwise, Directives and Regulatory Notices, and excluding practice notes or any notes or other annotations to the SGX-ST Rules, as the same may be amended, modified, supplemented or replaced from time to time;
        S
        "Selected Foreign Security" A security traded on a Foreign Market that is eligible to be traded via the Service, as agreed between SGX-ST and the Foreign Exchange from time to time;
        "Selected SGX Security" A security traded on SGX-ST that is eligible to be traded via the Service, as agreed between SGX-ST and the Foreign Exchange from time to time;
        "Service" In relation to the Foreign Market Linkages Rule, means the service offered to Trading Members or trading participants of a Foreign Exchange (as the case may be) for co-trading, clearing and settlement of Selected Foreign Securities or Selected SGX Securities;
        "SGX" Singapore Exchange Limited;
        "SGXAccess" The facility for trading on SGX-ST which allows a Trading Member's systems for order management and automated order routing to connect to the Trading System, and to capture market data and news feeds from SGX-ST;
        "SGX RegCo" means Singapore Exchange Regulation Pte. Ltd.;
        "SGX RegCo Board" means board of directors of SGX RegCo;
        "SGX-SPV" A subsidiary of SGX that operates the Service under the Foreign Market Linkages Rule;
        "SGX-ST" Singapore Exchange Securities Trading Limited;
        "SGX-ST approved Order Management System" An order management system that has passed conformance testing and meets appropriate technical specifications as required by SGX-ST.
        "SGX Catalist" The Catalist Board operated by SGX-ST;
        "SGX Mainboard" SGX-ST Mainboard;
        "Specified Securities" Securities, Futures Contracts or classes of securities or Futures Contracts that SGX-ST prescribes for trading by a Designated Market-Maker;
        "Sponsored Access" A form of Direct Market Access in which a Trading Member permits its customer and any other persons to use its member ID to transmit orders for execution directly to SGX-ST without using the Trading Member's infrastructure.
        "Stock Account" The securities account maintained by a Trading Member to house its proprietary securities or structured warrants;
        T
        "Trading Account" An account used for sending orders to the Trading System through an SGX-ST provided or SGX-ST approved order management system.
        "Trading Member" An entity that has been approved as Trading Member in accordance with SGX-ST Rules;
        "Trading Representative" A person who is employed by or acts for or by arrangement with a Trading Member to deal in securities or trade in Futures Contracts;
        "Trading System" Any electronic trading system for the automatic matching of orders designated and approved by SGX-ST for transactions on SGX-ST.

        Amended on 3 April 2008, 23 January 2009, 29 November 2010, 8 July 2011, 18 September 2012, 26 April 2013, 24 February 2014, 24 February 2014, 19 May 2014, 1 July 2014, 29 December 2014, 1 July 2016, 16 September 2016 and 15 September 2017.

      • Interpretation

        (1) Unless the context requires otherwise, terms not defined in these Rules have the same meaning as in the Securities and Futures Act or the Companies Act (Cap. 50).
        (2) A reference to any provisions of the Securities and Futures Act or Securities and Futures Regulations 2002 is to that provision as so modified, amended or re-enacted or contained in any subsequent Act or Regulations.
        (3) The singular includes the plural and vice versa.
        (4) A reference to currency, whether in word or symbol, is to Singapore currency.
        (5) A reference to a day is to a calendar day.
        (6) A reference to a time of day is a reference to Singapore time.

    • Section A — General

      • Chapter 1 — Introduction

        • 1.1 Application of Rules

          • 1.1.1

            The Rules, and any Directives, operate as a binding contract between SGX-ST and each Trading Member, and between a Trading Member and any other Trading Member.

          • 1.1.2

            A person who is not a party to the Rules has no rights under the Contracts (Rights of Third Parties) Act (Cap. 53B) to enforce the Rules, regardless of whether such person has been identified by name, as a member of a class or as answering a particular description.

            Amended on 23 January 2009.

          • 1.1.3

            A person is deemed to be bound by the Rules and any Directives upon approval of the person's admission or registration (where applicable) by SGX-ST.

          • 1.1.4

            A person admitted or registered by SGX-ST must comply with the Rules:—

            (1) in accordance with the spirit, intention and purpose; and
            (2) by looking beyond form to substance.

        • 1.2 Waiver of Rules

          • 1.2.1

            SGX-ST may waive a rule (or part of a rule) to suit the circumstances of a particular case, unless the rule specifies that SGX-ST will not waive it. SGX-ST may grant a waiver subject to such conditions as it considers appropriate. A waiver is only effective if the conditions are satisfied. If a waiver is granted, SGX-ST will notify all Trading Members of the waiver as soon as practicable.

        • 1.3 Alteration of Rules

          • 1.3.1

            The Rules may be amended by the Board in accordance with the Securities and Futures Act.

            Amended on 23 January 2009.

        • 1.4 Directives

          • 1.4.1

            SGX-ST may, from time to time, prescribe Directives to supplement the Rules.

        • 1.5 Practice Notes

          • 1.5.1

            SGX-ST may, from time to time, issue Practice Notes to provide guidance on the interpretation and application of any rule. A practice note does not bind SGX-ST in the application of a rule.

        • 1.6 Transitional Arrangements

          • 1.6.1

            SGX-ST may, from time to time, publish transitional arrangements in relation to any amended or new rule(s).

        • 1.7 Order of Precedence

          • 1.7.1

            The order of precedence of the following instruments applicable to SGX-ST and Trading Members shall be (in descending order of precedence):

            (1) Legislation;
            (2) Rules;
            (3) Directives; and
            (4) Practice Notes.

            Added on 26 April 2013

          • 1.7.2

            In the event of any conflict between the provisions of the aforesaid instruments, the provisions in an instrument with a higher level of precedence shall prevail over the provisions in an instrument with a lower level of precedence.

            Added on 26 April 2013

      • Chapter 2 — Administration

        • 2.1 Powers Of Board

        • 2.2 Delegation and assignment

          Amended on 15 September 2017.

          • 2.2.1

            SGX-ST may delegate, assign or grant authority to exercise any of its rights, powers, authorities and discretions under these Rules, including any right to enforce these Rules, to such person or entity as it may determine in its sole discretion, without consent from any Trading Member.

            Amended on 15 September 2017.

          • 2.2.2

            Where these Rules provide that any power, authority or discretion is to be exercised by the Board, the Board may delegate, assign or grant authority to exercise such power, authority or discretion to any person or entity. The Board may authorise a delegate to sub-delegate.

            Added on 15 September 2017.

        • 2.2.A SGX RegCo's authority

          Added on 15 September 2017.

          • 2.2.A.1

            SGX RegCo shall have the authority to exercise any rights, powers, authorities and discretions under these Rules, including the right to enforce these Rules. In the exercise of any such rights, powers, authorities and discretions under these Rules, SGX RegCo shall be bound to the same extent as the Exchange in respect of any obligations arising from the exercise of such rights, powers, authorities and discretions.

            Added on 15 September 2017.

        • 2.3 Advice of the Securities Industry Council

          • 2.3.1

            SGX-ST will consider (and, if practicable, give effect to) advice tendered by the Securities Industry Council on matters relating to the securities industry.

        • 2.4 Limitation of Liability

          Amended on 15 September 2017.

          • 2.4.1

            None of SGX-ST, SGX RegCo, or their respective Directors, Officers, employees, representatives or agents (the "Relevant Persons") shall be liable to any Trading Member, or any of its customers, for but not limited to:—

            (1) any loss or damage (including consequential loss or damage) which may be suffered or incurred or which may arise directly or indirectly in respect of the supply of goods or services;
            (2) a Trading Member's use of or inability to use the Trading System;
            (3) a failure, error or omission including any loss or damage in respect of:—
            (a) the result of trading on markets provided by SGX-ST, or the suspension, interruption, cancellation or closure of trading, on those markets,
            (b) any inoperability or malfunction of equipment, software or any other product supplied to a Trading Member, or in respect of its installation, maintenance or removal, and
            (c) the exercise of a decision-making power; or
            (4) the acceptance of a Trading Member's resignation or any decision or ruling of the Disciplinary Committee or Appeals Committee exercising their powers.

            Amended on 3 April 2008 and 15 September 2017.

          • 2.4.2

            Without prejudice to the generality of Rule 2.4.1, none of the Relevant Persons (i) makes any warranty, express or implied, or (ii) shall be liable to any person in respect of, or in connection with, any of the following:—

            (1) the originality, accuracy, timeliness or completeness of an Index;
            (2) results to be obtained from the use of an Index, in respect of any index-linked or index-related products, whether in the form of contracts or options;
            (3) the merchantability and fitness for a particular purpose of, or use of, an Index;
            (4) any direct, special, punitive, indirect or consequential damages (including lost profits), even when notified of the possibility of such damages;
            (5) any errors, omissions or delays in calculating or disseminating an Index; and
            (6) trading of any index-linked or index-related products, whether in the form of contracts or options.

            Amended on 15 September 2017.

          • 2.4.3

            In Rule 2.4.2, a reference to an Index is a reference to making, calculating or compiling the Index, or any intra day proxies related or referable thereto, or any information or data included in or referable thereto.

          • 2.4.4

            SGX-ST may require a Trading Member to pay SGX-ST's costs of producing (pursuant to a court order or other legal process) records relating to the business or affairs of a Trading Member, any of its Directors, Officers, Trading Representatives, employees or agents. This applies regardless of who requires the production.

          • 2.4.5

            In Rules 2.4.1, 2.4.2 and 2.4.4, references to SGX-ST include SGX-ST's subsidiaries, related companies and holding company.

        • 2.5 Indemnity

          Amended on 15 September 2017.

          • 2.5.1

            Each Trading Member indemnifies each of SGX-ST, SGX RegCo, and their respective Directors, Officers, employees, representatives and agents ("Indemnified Persons") against any loss or liability reasonably incurred or suffered by an Indemnified Persons where such loss or liability arose out of or in connection with:—

            (1) any breach by the Trading Member of its obligations under the Rules or any Directives; or
            (2) any wilful, unlawful, reckless or negligent act or omission by the Trading Member.

            Amended on 26 April 2013 and 15 September 2017.

          • 2.5.2

            Without prejudice to the generality of Rule 2.5.1, in the event that any legal, arbitration or other proceedings are brought to impose any liability on all or any of 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 (including without limitation Trading Representatives) or agents, the Trading Member shall reimburse the relevant Indemnified Person for:—

            (1) all expenses and legal fees incurred by or on behalf of the Indemnified Person in connection with such proceedings;
            (2) any payment made by or on behalf of the Indemnified Person with the approval of the Trading Member in connection with any settlement of such proceedings; and
            (3) any payment made by or on behalf of the Indemnified Person as a result of any order, award or judgment made in such proceedings.

            The Trading Member shall render such co-operation as the Indemnified Person reasonably requires in respect of such proceedings including without limitation the production of any document or records.

            Amended on 26 April 2013 and 15 September 2017.

          • 2.5.3

            Without prejudice to Rule 2.5.2, the Trading Member shall pay to an Indemnified Person, if the Indemnified Person so requires, the costs incurred by or on behalf of the Indemnified Person of producing or obtaining, pursuant to a court order or other legal process, records relating to the business or affairs of a Trading Member or any of its Directors, Officers, representatives (including without limitation Trading Representatives), employees or agents, regardless of the party requiring such production or obtainment.

            Amended on 26 April 2013 and 15 September 2017.

        • 2.6 Supply of Information to SGX-ST

          • 2.6.1

            SGX-ST may request a Trading Member to provide information or records for the discharge of SGX-ST's duties or the protection of investors and public interest. Such information or records include the terms and circumstances of, and parties to any dealings in securities or trades in Futures Contracts by a Trading Member's customers or former customers, and the terms of employment or contract and duties of a person acting for a Trading Member. The information or records must not contain untrue statements, be misleading or omit material statements.

            Amended on 3 April 2008.

          • 2.6.2

            The Trading Member must provide the information or records to SGX-ST as SGX-ST specifies.

        • 2.7 Disclosure of Information by SGX-ST

          • 2.7.1

            SGX-ST will take all reasonable measures to protect information provided to it by or on behalf of a Trading Member under the Rules from unauthorised use or disclosure.

          • 2.7.2

            Disclosure of information by SGX-ST is not unauthorised use or disclosure if it:—

            (1) is approved by the Authority and is to any governmental agency or regulatory authority (in or out of Singapore) which requests that SGX-ST provide the information for the proper exercise of powers relating to:—
            (a) the governance of Trading Members; or
            (b) trading of securities or futures contracts (in or out of Singapore);
            (2) is required under any Singapore law or any order of any Singapore court or authority in Singapore;
            (3) is publicly available at the time of disclosure to or by SGX-ST;
            (4) is in relation to the enforcement of the Rules or adjudication of a matter;
            (5) is to SGX-ST's holding company or a wholly-owned subsidiary of the holding company; or
            (6) is additionally authorised by the Authority to be disclosed or furnished under the Securities and Futures Act.

            Amended on 3 April 2008 and 23 January 2009.

          • 2.7.3

            Nothing in Rule 2.7.2 limits what may at common law otherwise constitute authorised use or disclosure of information.

          • 2.7.4

            For avoidance of doubt, Rules 2.7.1 and 2.7.2 also apply to information provided to SGX-ST in relation to trading in a Foreign Market via the Exchange Link.

        • 2.8 Registers Maintained by SGX-ST

          • 2.8.1

            SGX-ST will maintain the following registers:—

            (1) Register of Trading Members
            (2) Register of Designated Market-Makers
            (3) Register of Market-Making Representatives
            (4) Register of Approved Executive Directors
            (5) Register of Trading Representatives
            (6) Any other registers as SGX-ST determines.

          • 2.8.2

            An entry in a Register will be deleted by SGX-ST when a person ceases membership or registration.

        • 2.9 Fidelity Fund Maintained by SGX-ST

          • 2.9.1

            SGX-ST will establish and administer a fidelity fund in accordance with Part XI of the Securities and Futures Act.

      • Chapter 3 — Listing and Quotation

        • 3.1 The Official List

          • 3.1.1

            The Official List of SGX-ST consists of companies admitted to (and not removed from) the Official List of the SGX Mainboard and the Official List of SGX Catalist.

            Amended on 3 April 2008.

          • 3.1.2

            SGX-ST may, in its absolute discretion, admit, refuse, suspend or remove the official listing of an entity. The decision of SGX-ST is final. SGX-ST is not obliged to give any reasons.

          • 3.1.3

            SGX-ST's powers include:—

            (1) imposing sanctions prescribed in the SGX-ST Listing Manual on a listed company or any Director of such company in respect of any breach of the SGX-ST Listing Manual;
            (2) transferring any entity from the Official List of SGX Catalist to the Official List of SGX Mainboard in accordance with the SGX-ST Listing Manual and vice versa; and
            (3) imposing conditions or restrictions prescribed in these Rules or the SGX-ST Listing Manual, on the trading of securities or Futures Contracts listed on SGX Mainboard or SGX Catalist, including:
            (a) the classes of investors or persons who are allowed to trade in particular classes of securities or Futures Contracts;
            (b) moratoria on the trading of particular classes of securities or Futures Contracts for such periods of time as prescribed by SGX-ST; and
            (c) such other conditions or restrictions as SGX-ST prescribes for the maintenance of a fair, orderly and transparent market.

            Amended on 1 February 2007 and 3 April 2008.

          • 3.1.4

            Trading Members and Trading Representatives shall comply with all prescribed conditions and restrictions imposed under Rule 3.1.3(3).

            Added on 1 February 2007.

        • 3.2 Non-Listed Securities

          • 3.2.1

            A Non-Listed Security may be quoted for trading on the Non-Listed Securities market on such conditions as SGX-ST prescribes.

            Amended on 3 April 2008.

          • 3.2.2

            All trades in Non-Listed Securities are subject to the Rules and any Directives.

            Amended on 3 April 2008.

          • 3.2.3

            A Non-Listed Security is quoted in the currency SGX-ST prescribes.

            Amended on 3 April 2008.

          • 3.2.4

            SGX-ST may, at its absolute discretion, approve, refuse, suspend or withdraw the quotation of a Non-Listed Security. The decision of SGX-ST is final. SGX-ST is not obliged to give any reasons.

            Amended on 3 April 2008.

          • 3.2.5

            Without limiting Rule 3.2.4, if a Non-Listed Security is declared a Designated Security (or equivalent) or is declared to be cornered (or equivalent) in the foreign stock exchange on which it is listed, SGX-ST will suspend it (including on such terms that it deems necessary) as soon as SGX-ST is aware of the declaration.

            Amended on 3 April 2008.

          • 3.2.6

            A contract note for a trade in a Non-Listed Security must state that the company:—

            (1) is not listed on SGX-ST, and
            (2) is not subject to SGX-ST's listing requirements.

            Amended on 3 April 2008.

          • 3.2.7

            The delivery and settlement of trades in Non-Listed Securities are subject to the Settlement Rules in Chapter 9. SGX-ST may vary the delivery and settlement terms.

            Amended on 3 April 2008.

        • 3.3 Futures Contracts Listed and Traded on SGX-ST

          • 3.3.1

            SGX-ST may operate a futures market and list Futures Contracts for trading on the Trading System.

            Amended on 3 April 2008.

    • Section B — Market Participants

      • Chapter 4 — Trading Members

        • 4.1 Admission Criteria

          • 4.1.1

            To be eligible for admission as a Trading Member, an applicant must:—

            (1) unless otherwise exempted, procure and maintain the requisite licence(s) from the Relevant Regulatory Authority, to engage in regulated activities, including where appropriate trading in futures contracts, as follows:
            (a) where it is a Corporation carrying on business in Singapore, a Capital Markets Services Licence; or
            (b) where it is a Corporation not carrying on business in Singapore and not incorporated in Singapore, and it or its employees and agents does not engage in regulated activities in Singapore, a licence from a Relevant Regulatory Authority in the country where it is carrying on business. If SGX-ST is of the view that the regulatory requirements arising from the licence are not comparable to those contemplated under the Act and these Rules, it shall have the discretion to prescribe additional requirements;
            (2) be qualified by a Clearing Member (unless it is admitted as a Clearing Member);
            (3) satisfy the capital and financial requirements SGX-ST prescribes;
            (4) upon admission, appoint at least 1 Approved Executive Director; and
            (5) have facilities and staff adequate for expeditious and orderly trading, operations and activities.

            Amended on 3 April 2008, 19 May 2014 and 29 December 2014.

        • 4.2 Application Procedures

          • 4.2.1

            To become a Trading Member, an applicant must apply to SGX-ST in the form SGX-ST prescribes.

          • 4.2.2

            The applicant must inform SGX-ST in writing of the Clearing Member who has agreed to qualify it (unless it is admitted as a Clearing Member). The applicant must submit to SGX-ST the documentation supporting the agreement.

          • 4.2.3

            SGX-ST may, in its absolute discretion, approve or reject an application to be a Trading Member. SGX-ST is not obliged to give any reasons.

          • 4.2.4

            Without derogating from Rule 4.2.3, SGX-ST may reject an application to be a Trading Member if:—

            (1) the applicant does not provide information relating to the application as SGX-ST requires;
            (1A) any information or document that is furnished by the applicant to SGX-ST is false or misleading;
            (2) the applicant, its substantial shareholders or head office, is in the course of being wound up, or a resolution to do so is passed by shareholders, or a court order is made, to wind it up, whether in or out of Singapore;
            (3) execution against the applicant, its substantial shareholders or head office, in respect of a judgment debt has been returned unsatisfied in whole or in part, whether in or out of Singapore;
            (4) the applicant, its substantial shareholders or head office, has entered into an arrangement or composition with its creditors that is still in operation, whether in or out of Singapore;
            (5) a receiver, a receiver and manager, judicial manager or such other person having similar powers and duties, has been appointed, whether in or out of Singapore, in relation to any property of the applicant, its substantial shareholders or head office;
            (6) SGX-ST is not satisfied with the financial standing of the applicant, its substantial shareholders or head office;
            (7) SGX-ST is not satisfied with the manner in which the applicant's business is to be conducted;
            (8) the applicant, any of its Officers, substantial shareholders or head office breaches any provision involving fraud or dishonesty, whether in or out of Singapore;
            (9) the applicant, any of its Officers, substantial shareholders or head office has been convicted of an offence under the Securities and Futures Act or any other relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities;
            (10) the applicant, any of its Officers, substantial shareholders or head office is the subject of an investigation involving an allegation of fraud or dishonesty, whether in or out of Singapore;
            (11) SGX-ST is not satisfied as to the educational or other qualification or experience of the Officers of the applicant;
            (12) SGX-ST is not satisfied with the applicant's record of past performance;
            (13) SGX-ST is not satisfied that the applicant, any of its Officers, substantial shareholders or head office is a fit and proper person;
            (14) SGX-ST has reason to believe that the applicant or any of its Officers or employees may not perform the functions efficiently, honestly and fairly;
            (15) SGX-ST has reason to believe that the applicant may not act in the best interests of its customers; or
            (16) in SGX-ST's opinion, it would be contrary to the interests of the public to admit the applicant as a Trading Member.

            Amended on 12 October 2005 and 19 May 2014.

        • 4.3 Appeals

          • 4.3.1

            If SGX-ST rejects an application to be a Trading Member, the applicant may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

            Amended on 15 September 2017.

        • 4.4 Register of Trading Members

          • 4.4.1

            An applicant approved by SGX-ST as a Trading Member will have its name entered in the Register of Trading Members. SGX-ST will notify all Trading Members of the effective date of a Trading Member's admission.

        • 4.5 Trading Rights

          • 4.5.1

            A Trading Member has access to markets established or operated by SGX-ST or such markets as SGX-ST specifies.

          • 4.5.2

            A Trading Member does not have the right to clear and settle contracts concluded on SGX-ST.

          • 4.5.3

            Subject to Rule 4.5.4, a Trading Member may deal in securities or Futures Contracts for 1 or more of the following:—

            (1) customers;
            (2) its proprietary accounts; and
            (3) proprietary accounts of its related corporations or Associated Corporations.

            Amended on 3 April 2008 and 19 May 2014.

          • 4.5.4

            A Trading Member that holds a licence specified in Rule 4.1.1(1)(b) shall not deal in securities or Futures Contracts for customers domiciled in Singapore.

            Added on 19 May 2014.

        • 4.5A Direct Market Access

          • 4.5A.1

            A Trading Member may authorise Direct Market Access for its customers in respect of markets established by or operated by SGX-ST or such markets as SGX-ST specifies.

            Added on 18 September 2012.

          • 4.5A.2 Conditions Governing Direct Market Access

            (1) For every customer that a Trading Member authorises Direct Market Access for, the Trading 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 SGX-ST in any investigation into potential violations of these Rules and applicable laws. Such assistance shall be timely and shall include, but is not limited to, the provision of information to SGX-ST relating to the identity and address of any person who may be responsible for the execution of an order or trade.
            (2) Where a Trading Member permits the delegation of Direct Market Access by its authorised customer and any other persons, the Trading Member must include in the legally binding agreement referred to in Rule 4.5A.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 4.5A.2(1)(a) to (f).
            (3) SGX-ST may require a Trading Member to provide to SGX-ST a report by an independent reviewer on the Member's compliance with Rules 4.5A.2, 4.5A.3 and 4.5A.4(2).

            Added on 18 September 2012 and amended on 15 March 2013.

          • 4.5A.3 Conditions Governing Sponsored Access

            (1) Where a Trading Member authorises Sponsored Access for its customers, in addition to the requirements set out in Rule 4.5A.2, the Trading Member must:—
            (a) maintain a register recording the identity and address of all customers with Sponsored Access;
            (b) produce to SGX-ST the register referred to in Rule 4.5A.3(1)(a) at such time as SGX-ST requires; and
            (c) have measures in place for each customer to comply with the requirements set out in Rule 4.6.22, Rule 12.1.1, Directive No. 4, Directive No.5 and any other requirement set out by SGX-ST relating to the order management system.
            (2) Where a Trading Member permits the delegation of Sponsored Access by its authorised customer and any other persons:—
            (a) the Trading 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 4.5A.3(2)(a)(i), that such persons are Trading Members of SGX-ST, and that such persons shall only be permitted to delegate Sponsored Access to their related corporations; and
            (b) the Trading Member must include in the legally binding agreement referred to in Rule 4.5A.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 4.5A.3(1)(a) and subject to the requirements set out in Rule 4.5A.3(1)(c).

            For the purpose of this Rule 4.5A.3, "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 18 September 2012 and amended on 15 March 2013.

          • 4.5A.4 Suspension and Termination of Direct Market Access

            (1) SGX-ST may suspend or terminate, or direct a Trading Member to suspend or terminate a person's Direct Market Access:—
            (a) where the person has failed to assist SGX-ST with an investigation in accordance with Rule 4.5A.2(1)(f);
            (b) in the interest of a fair, orderly and transparent market; or
            (c) where the person has caused the Trading Member to breach requirements in the Rules.
            (2) A Trading 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 4.6.4 or any other reason.

            Added on 18 September 2012 and amended on 15 March 2013.

        • 4.5B Controlling Access

          • 4.5B.1

            A Trading Member must have security arrangements in place to ensure that unauthorised persons are denied access to markets established by or operated by SGX-ST or such markets as SGX-ST specifies.

            Added on 18 September 2012.

        • 4.6 Obligations of A Trading Member

          • 4.6.1 Compliance

            A Trading Member must:—

            (1) comply with the Rules, and any Directives SGX-ST prescribes; and
            (2) continue to satisfy the admission criteria.

          • 4.6.2 Acts as Principal

            A Trading Member contracts as principal as regards the other Trading Member when it trades on SGX-ST.

          • 4.6.3 Contracts

            (1) A Trading Member enters contracts in accordance with the Rules, Clearing Rules and any Directives SGX-ST prescribes.
            (2) A Trading Member must honour all contracts:—
            (a) entered by or through it on the Trading System; and
            (b) via Direct Business.

            Amended on 3 April 2008.

          • 4.6.4 Good Business Practice

            A Trading Member must adhere to the principles of good business practice in the conduct of its business.

          • 4.6.5 Responsibility to SGX-ST

            A Trading Member is responsible to SGX-ST for:—

            (1) any liability to SGX-ST of its Directors, Officers, Trading Representatives, employees and agents; and
            (2) the acts and omissions of its Directors, Officers, Trading Representatives, employees and agents.

          • 4.6.6 Supervision

            A Trading Member must supervise its Trading Representatives, employees and agents.

          • 4.6.7 Establish Procedures and Systems

            A Trading Member must:—

            (1) establish and maintain procedures and systems to prevent any breach of the Rules and Directives by its Directors, Officers, Trading Representatives, employees or agents;
            (2) establish and maintain adequate internal control systems, including for reconciliation of physical scrip for securities traded on SGX-ST at least monthly; and
            (3) ensure that its Trading Representatives, employees, agents or any other person carrying out or enforcing its procedures and systems reasonably discharges his or her duties and obligations.

            Amended on 19 May 2014.

          • 4.6.7A Risk Management and Financial Controls

            (1) A Trading Member must 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) ensuring that:
            (i) automated pre-execution risk management control checks are conducted on all orders, including credit control checks on all orders;
            (ii) there are appropriate internal controls for the setting and modification of any parameters of such automated pre-execution risk management control checks;
            (c) having error-prevention alerts to bring attention to possible erroneous entries of quantity, price and other data fields; and
            (d) defining and managing the Trading Member's sources of liquidity to ensure that there are sufficient liquidity facilities to meet settlement obligations.
            (2) A Trading Member referred to in Rule 4.6.7A(1) must have automated processes in place to monitor at the firm level if the Trading Member is at risk of breaching capital and financial requirements and prudential limits on exposures to a single customer and a single security, so as to restrict trading activity or inject additional capital if necessary.

            Refer to Practice Note 4.6.7A(2).

            Added on 18 September 2012 and amended on 15 March 2013.

          • 4.6.8 Change in Control

            (1) A Trading Member must inform SGX-ST in writing as soon as it becomes aware of:—
            (a) any transaction that will result in a change in the legal or beneficial ownership of 20% or more of the Trading Member's issued share capital, and any subsequent increase of 5% or more of the Trading Member's issued share capital; or
            (b) any change that may have the effect of altering control of the Trading Member.
            (2) If control of a Trading Member changes, SGX-ST may restrict or revoke the Trading Member's trading rights on any grounds described in Rules 4.2.4(2) to (6), (8) to (10) and (13).
            (3) If SGX-ST revokes the Trading Member's trading rights, the Trading Member may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

            Amended on 15 September 2017.

          • 4.6.9 Reporting

            A Trading Member must inform SGX-ST in writing immediately if it or any of its Directors, Officers, Trading Representatives, employees, or agents:—

            (1) breaches the Securities and Futures Act or Securities and Futures Regulations or any other relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities;
            (2) breaches the Rules or Directives;
            (3) breaches any relevant law or regulation which governs that person's other business activities;
            (4) breaches the rules of any other exchange;
            (5) breaches any provision involving fraud or dishonesty, whether in or out of Singapore;
            (6) breaches director's duties;
            (7) is the subject of a written complaint involving an allegation of fraud or dishonesty, whether in or out of Singapore;
            (8) is the subject of an investigation involving an allegation of fraud or dishonesty, whether in or out of Singapore;
            (9) is the subject of any disciplinary action taken by the Trading Member involving suspension, termination, withholding of commissions, fines or any other significant limitation of activities;
            (10) engages in conduct that has the effect of circumventing the Securities and Futures Act, Securities and Futures Regulations, any other relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities, the Rules, or Directives;
            (10A) has had its licence to conduct the relevant regulated activities suspended, revoked, or expired, or in the case where it is exempted from holding a licence, the Relevant Regulatory Authority withdraws the exemption or imposes conditions or restrictions on it in respect of the relevant regulated activities;
            (11) engages in conduct which is inconsistent with the principles of good business practice;
            (12) engages in conduct detrimental to the financial integrity, reputation or interests of SGX-ST , or markets established or operated by SGX-ST; or
            (13) is insolvent, or has been issued a bankruptcy or winding up proceeding.

            Notwithstanding the foregoing, SGX-ST may require a Trading Member to inform SGX-ST from time to time in respect of any other matters and in such form as SGX-ST determines.

            Amended on 19 May 2014.

          • 4.6.10 Payment

            A Trading Member must pay SGX-ST all fees, levies and charges SGX-ST prescribes. SGX-ST may reduce or waive any fee, levy or charge.

          • 4.6.11 Approved Executive Director

            A Trading Member must inform SGX-ST in writing at least 7 days before an Approved Executive Director ceases to act. If the cessation is with immediate effect, the Trading Member must inform SGX-ST in writing the same day.

          • 4.6.12 Directors

            A Trading Member must inform SGX-ST in writing of a change in the composition of its board of Directors within 7 days of the change.

          • 4.6.13 Trading Representatives

            A Trading Member must:—

            (1) register with SGX-ST persons who deal in securities or trade in Futures Contracts as Trading Representatives (unless exempted by SGX-ST);
            (2) where it engages a Remisier, enter into a written agency agreement with that Remisier. The agreement must address the following:—
            (a) the amount of commission payable to the Remisier;
            (b) the amount of security deposit to be given by the Remisier to the Trading Member;
            (c) responsibility for any losses or liabilities as a result of any acts or omissions of the Remisier; and
            (d) charges that may be levied by the Trading Member on its Remisier;
            (3) inform SGX-ST in writing at least 7 days before a dealer converts to a Remisier or vice versa. SGX-ST may vary or waive the notice period; and
            (4) [Deleted.]
            (5) [Deleted.]
            (6) inform SGX-ST in writing no later than the day on which the Trading Representative ceases to act. If the cessation is with immediate effect, the Trading Member must inform SGX-ST in writing the same day.

            Amended on 3 April 2008 and 29 November 2010.

          • 4.6.14 Memorandum and Articles of Association

            A Trading Member must inform SGX-ST in writing at least 7 days before any change to its Memorandum and Articles of Association takes effect.

          • 4.6.15 Other Businesses

            (1) A Trading Member must inform SGX-ST in writing at least 14 days before it engages in, or holds any substantial shareholding in, any other business.
            (2) A Trading Member must ensure that the engagement (and any actions taken under it) or shareholding does not breach the Securities and Futures Act, Securities and Futures Regulations, the Rules, any Directives or any relevant law or regulation.
            (3) A Trading Member must supply SGX-ST with any information SGX-ST requires regarding the engagement or acquisition of shareholding.
            (4) If SGX-ST objects to the engagement or acquisition of shareholding, a Trading Member must not proceed with it. SGX-ST may extend the period specified in Rule 4.6.15(1). If extended, the Trading Member must not proceed with the engagement or acquisition of shareholding before the expiry of the extended period.
            (5) If an engagement or shareholding, in SGX-ST's opinion, is detrimental to the financial integrity, reputation or interests of SGX-ST, the Trading Member concerned, or markets established or operated by SGX-ST, SGX-ST may require the Trading Member to end it.
            (6) If SGX-ST objects to the engagement or acquisition of shareholding or requires a Trading Member to end it, the Trading Member may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

            Amended on 15 September 2017.

          • 4.6.16 Register of Securities

            (1) A Trading Member that holds a Capital Markets Services Licence must maintain a register of securities in accordance with the Securities and Futures Act. The register must include Futures Contracts.
            (2) If asked by SGX-ST, a Trading Member must produce the register for inspection.
            (3) A Trading Member must permit SGX-ST to take extracts of the register.

            Amended on 3 April 2008, 19 May 2014 and 29 December 2014.

          • 4.6.17 Business Name

            A Trading Member must inform SGX-ST in writing at least 7 days before it effects any change in its business name or contact details.

          • 4.6.18 Issue of Shares

            A Trading Member must not issue or allot partly paid shares.

          • 4.6.19 Voluntary Liquidation

            A Trading Member must not commence voluntary liquidation without the prior written approval of SGX-ST.

          • 4.6.20 Trading Member Ceases to Carry on Business

            (1) Upon written request, SGX-ST may allow a Trading Member to cease carrying on business while retaining its membership for such period as SGX-ST specifies. Upon expiry of such period, the Trading Member must recommence business in Singapore.
            (2) During the period of cessation of business, the Trading Member must not hold itself out or engage in any act that may give the impression that it is an active Trading Member.
            (3) SGX-ST will waive continuing compliance of Rules 4.1.1(1) and (5) during the period the Trading Member ceases to carry on business.

            Amended on 23 January 2009 and 19 May 2014.

          • 4.6.21 Business Continuity Requirements

            (1) A Trading Member must assess its business and operational risks and maintain adequate business continuity arrangements.
            (2) A Trading Member must document its business continuity arrangements in a business continuity plan.
            (3) A Trading Member's senior management shall be responsible for the Trading 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 Trading Member's Board of Directors. A Trading Member that holds a licence specified in Rule 4.1.1(b) shall comply with such requirements established by the Relevant Regulatory Authority, if any, and principles of good business practice in relation to this Rule 4.6.21(3).
            (4) A Trading Member must review and test its business continuity plan regularly.
            (5) A Trading Member must appoint emergency contact persons, and furnish the contact information of such persons to SGX-ST. The Trading Member's emergency contact persons must be contactable at all times, and must immediately notify SGX-ST in the event of emergencies.

            Refer to Practice Note 4.6.21.

            Added on 22 January 2009 and amended on 19 May 2014.

          • 4.6.22 Adequacy of Systems

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

            Refer to Directive No. 5.

            Added on 18 September 2012.

        • 4.7 Qualification by A Clearing Member

          • 4.7.1 Qualified by a Clearing Member

            (1) A Trading Member must not execute a contract on SGX-ST unless it is qualified by a Clearing Member.
            (2) At any time, a Trading Member must be qualified by no more than 1 Clearing Member.
            (3) A Trading Member must immediately inform SGX-ST in writing if:—
            (a) it is not qualified by a Clearing Member; or
            (b) its qualifying Clearing Member is replaced by another Clearing Member. The Trading Member must submit to SGX-ST a copy of the written agreement between the new qualifying Clearing Member and itself.

          • 4.7.2 Clearing of Contracts by Qualifying Clearing Member

            A Trading Member must ensure all contracts concluded on SGX-ST are submitted to its qualifying Clearing Member for clearing.

        • 4.8 Resignation

          • 4.8.1 Procedures

            If a Trading Member intends to resign, it must:—

            (1) give SGX-ST at least 30 days' written notice, stating the proposed date of resignation. SGX-ST may vary or waive the notice period. If the resignation is accepted, SGX-ST will notify all Trading Members of the effective date of resignation;
            (2) not enter into any contract 7 Market Days from the date of notice except with the written approval of SGX-ST;
            (3) satisfy SGX-ST that it has taken, or will take, steps for the orderly winding down of its business with SGX-ST; and
            (4) satisfy SGX-ST that it has fulfilled or is able to fulfill:—
            (a) its obligations to SGX-ST; and
            (b) its obligations to its customers as SGX-ST may specify. For avoidance of doubt, a Trading Member must continue to comply with the Rules, and any Directives as may be imposed by SGX-ST until resignation.

          • 4.8.2 Acceptance of Resignation by SGX-ST

            SGX-ST need not accept the resignation of a Trading Member if it is:—

            (1) conducting an investigation under the Rules, investigating a complaint, or has initiated disciplinary proceedings against the Trading Member; or
            (2) not satisfied that the Trading Member has fulfilled or is able to fulfill:—
            (a) its obligations to SGX-ST; and
            (b) its obligations to its customers as SGX-ST may specify.

          • 4.8.3 Deletion from Register

            If SGX-ST accepts a Trading Member's resignation, the Trading Member's name will be deleted from the Register of Trading Members upon the effective date of resignation.

        • 4.9 Cessation of Trading Access

          • 4.9.1

            A Trading Member's access to markets established or operated by SGX-ST ceases if:—

            (1) a resolution is passed by its shareholders, or a court order is made, to wind it up;
            (2) an arrangement or composition is entered into with its creditors under any law relating to bankruptcy or insolvency;
            (3) it is not qualified by a Clearing Member or its qualification by a Clearing Member has been suspended;
            (4) it is suspended;
            (5) it ceases to carry on business pursuant to Rule 4.6.20;
            (6) it is declared a defaulter pursuant to Chapter 14; or
            (7) licence(s) to conduct the relevant regulated activities from the Relevant Regulatory Authority lapses or is revoked, or in the case where it is exempted from holding a licence, the Relevant Regulatory Authority withdraws the exemption.

            Amended on 29 November 2010, 11 January 2011 and 19 May 2014.

          • 4.9.2

            SGX-ST will notify all Trading Members of the effective date of cessation and the date of reinstatement (if applicable).

          • 4.9.3

            A Trading Member whose access to markets established or operated by SGX-ST has ceased must continue to comply with the relevant Rules, and any Directives.

        • 4.10 Obligations of a Former Trading Member

          • 4.10.1

            A former Trading Member remains liable to SGX-ST and its customers for any liabilities incurred under the Rules or Directives during the period of its membership. The former Trading Member also remains subject to disciplinary actions for any offence committed during the period of its membership.

      • Chapter 5 — Designated Market-Maker

        • 5.1 Registration Criteria

          • 5.1.1

            To be eligible for registration as a Designated Market-Maker, an applicant must be a Corporation that is deemed appropriate by SGX-ST.

        • 5.2 Application Procedures

          • 5.2.1

            To become a Designated Market-Maker in respect of Specified Securities, an applicant must apply to SGX-ST in the form SGX-ST prescribes.

          • 5.2.2

            SGX-ST may, in its absolute discretion, approve or reject an application to be a Designated Market-Maker. SGX-ST is not obliged to give any reasons.

          • 5.2.3

            The approval of a Designated Market-Maker is valid for such period as SGX-ST prescribes.

          • 5.2.4

            Without derogating from Rule 5.2.2, SGX-ST may reject an application to be a Designated Market-Maker if:—

            (1) the applicant does not provide information relating to the application as SGX-ST requires;
            (1A) any information or document that is furnished by the applicant to SGX-ST is false or misleading;
            (2) the applicant, its substantial shareholder or head office, is in the course of being wound up, or a resolution to do so is passed by shareholders, or a court order is made, to wind it up, whether in or out of Singapore;
            (3) execution against the applicant, its substantial shareholder or head office, in respect of a judgment debt has been returned unsatisfied in whole or in part, whether in or out of Singapore;
            (4) the applicant, its substantial shareholder or head office, has entered into an arrangement or composition with its creditors that is still in operation, whether in or out of Singapore;
            (5) a receiver, a receiver and manager, judicial manager or such other person having similar powers and duties, has been appointed, whether in or out of Singapore, in relation to any property of the applicant, its substantial shareholders or head office;
            (6) SGX-ST is not satisfied with the financial standing of the applicant, its substantial shareholders or head office;
            (7) SGX-ST is not satisfied with the manner in which the applicant's business is to be conducted;
            (8) the applicant, any of its substantial shareholders or head office breaches any provision involving fraud or dishonesty, whether in or out of Singapore;
            (9) the applicant, any of its substantial shareholders or head office has been convicted of an offence under the Securities and Futures Act or any other relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities;
            (10) the applicant, any of its substantial shareholders or head office is the subject of an investigation involving an allegation of fraud or dishonesty, whether in or out of Singapore;
            (11) SGX-ST is not satisfied with the applicant's record of past performance;
            (12) SGX-ST is not satisfied that the applicant, any of its substantial shareholders or head office is a fit and proper person;
            (13) SGX-ST has reason to believe that the applicant may not perform the functions efficiently, honestly and fairly;
            (14) SGX-ST has reason to believe that the applicant may not act in the best interests of its customers;
            (15) the applicant, unless exempted, does not procure and maintain the requisite licence(s) with the Authority;
            (16) the applicant is not regulated in a jurisdiction with regulatory standards comparable to those contemplated under the Securities and Futures Act and these Rules;
            (17) the applicant is not regulated in a jurisdiction where the regulator or supervisory authority has information sharing and co-operation arrangements with the Authority; or
            (18) in SGX-ST's opinion, it would be contrary to the interests of the public to register the applicant as a Designated Market-Maker.

            Amended on 12 October 2005 and 19 May 2014.

        • 5.3 Appeals

          • 5.3.1

            If SGX-ST rejects an application to be a Designated Market-Maker, the applicant may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

            Amended on 15 September 2017.

        • 5.4 Register of Designated Market-Makers

          • 5.4.1

            An applicant approved by SGX-ST as a Designated Market-Maker will have its name entered in the Register of Designated Market-Makers. SGX-ST will notify all Designated Market-Makers and Trading Members of the effective date of the Designated Market-Maker's registration.

        • 5.5 Obligations of A Designated Market-Maker

          • 5.5.1 Compliance

            A Designated Market-Maker must:—

            (1) comply with this Chapter, and any Directives SGX-ST prescribes; and
            (2) continue to satisfy the registration criteria.

          • 5.5.2 Proprietary Accounts

            A Designated Market-Maker may make a market in Specified Securities for 1 or more of the following:—

            (1) its proprietary accounts;
            (2) proprietary accounts of its related corporations or Associated Corporations; and
            (3) customers if it holds a Capital Markets Services Licence or is exempt under the Securities and Futures Act or Securities and Futures Regulations.

            In this Rule, an Associated Corporation means any body corporate formed in or out of Singapore in which the Designated Market-Maker and its related corporations hold directly or indirectly a beneficial interest of not less than 20% of the issued share capital.

            Amended on 29 December 2014.

          • 5.5.3 Bid and Offer Quotations

            A Designated Market-Maker must publish on the Trading System competitive bid and offer quotations:—

            (1) on a continuous basis or in such manner as SGX-ST prescribes to provide for an adequately liquid market (with suitable disclosure to investors);
            (2) within the maximum spread; and
            (3) for not less than the minimum quantity that SGX-ST prescribes.

            Refer to Directive No. 3.

            Amended on 3 April 2008.

          • 5.5.4 Execution of Trades

            If a Designated Market-Maker is not a Trading Member, its trades in any Specified Securities must be routed through a Trading Member.

          • 5.5.5 Market-Making Representative

            A Designated Market-Maker must appoint at least 1 person as its market-making representative to receive and execute orders on its behalf. The person must be registered with SGX-ST as a market-making representative.

          • 5.5.6 Periodic Returns

            A Designated Market-Maker must submit periodic returns as SGX-ST requires.

          • 5.5.7 Auditors' Report

            If asked, a Designated Market-Maker must provide an independent auditors' report to SGX-ST. This is for SGX-ST to review the Designated Market-Maker's performance or suitability as a Designated Market-Maker. The report may relate to the Designated Market-Maker's financial standing, personnel or internal control procedures.

          • 5.5.8 Payment

            A Designated Market-Maker must pay all fees, levies and charges SGX-ST prescribes. SGX-ST may reduce or waive any fee, levy or charge.

          • 5.5.9 Notification of Adverse Changes

            A Designated Market-Maker shall immediately notify SGX-ST if any of the following occurs, or is likely to occur:

            (1) any of the events under Rule 5.2.4; and
            (2) the inability of the Designated Market-Maker to satisfy any of its registration criteria and obligations as a Designated Market-Maker under this Rules.

            Added on 27 May 2013.

        • 5.6 Suspension or Restriction of Trades in Specified Security

          • 5.6.1

            SGX-ST may suspend or restrict trading in any or all Specified Securities in accordance with Rule 8.10 or Rule 8.11. It may do so for 1 or more markets or 1 or more trading sessions or any part of a trading session.

          • 5.6.2

            Specified Securities which have been suspended from trading or subject to a trading halt cease to be traded on the Trading System.

            Amended on 3 April 2008.

          • 5.6.3

            Except with SGX-ST's approval, a Designated Market-Maker must not make a market in a Specified Security which is suspended or subject to a trading halt. SGX-ST may specify conditions under which the Designated Market-Maker is permitted to do so.

          • 5.6.4

            If SGX-ST imposes restrictions on trades in any Specified Securities, a Designated Market-Maker must not make a market in Specified Securities that will breach the restrictions.

        • 5.7 Suspension and Restriction of Activities

          • 5.7.1

            SGX-ST may suspend or restrict the activities of a Designated Market-Maker for such period as SGX-ST specifies if the Designated Market-Maker:—

            (1) fails to continue to satisfy the registration criteria;
            (2) fails to comply with Rules 5.5, 5.6.3, 5.6.4 or any Directives;
            (3) fails to comply with the Rules or any Directives in its capacity as a Trading Member (if applicable);
            (4) is suspended in its capacity as a Trading Member (if applicable);
            (5) defaults on any trade in Specified Securities or any other securities or Futures Contracts;
            (6) in SGX-ST's opinion, is in financial or operating difficulty;
            (7) is suspected of manipulating or distorting the market for a Specified Security or attempting to do so;
            (8) is the subject of a written complaint involving an allegation of fraud or dishonesty, whether in or out of Singapore;
            (9) is the subject of an investigation involving an allegation of fraud or dishonesty, whether in or out of Singapore; or
            (10) engages in conduct detrimental to the financial integrity, reputation or interests of SGX-ST, or markets established or operated by SGX-ST.

            Amended on 3 April 2008.

        • 5.8 Revocation of Registration

          • 5.8.1

            SGX-ST may revoke the registration of a Designated Market-Maker in the circumstances under Rules 5.7.1(1)–(7) or if the Designated Market-Maker:—

            (1) breaches any provision involving fraud or dishonesty, whether in or out of Singapore; or
            (2) is expelled as a Trading Member as a result of disciplinary proceedings.

        • 5.9 Notification of Action and Appeal

          • 5.9.1

            If SGX-ST takes action against a Designated Market-Maker under Rule 5.7.1 or 5.8.1, it will inform the Designated Market-Maker in writing. Such action shall be effective on the date specified in the written notification.

          • 5.9.2

            If SGX-ST revokes the registration of a Designated Market-Maker under Rule 5.8.1, the Designated Market-Maker may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

            Amended on 15 September 2017.

        • 5.10 Disciplinary Proceedings

          • 5.10.1

            A failure to comply with Chapter 5, or any applicable Rules or Directives, is a breach and may be subject to disciplinary action.

          • 5.10.2

            A Designated Market-Maker and a registered market-making representative are bound by the Supervisory Rules in Chapter 14 of these Rules and must comply with any disciplinary decision as if it were a Trading Member and he or she were a Trading Representative respectively.

            Amended on 23 January 2009.

        • 5.11 Resignation

          • 5.11.1 Procedures

            (1) A Designated Market-Maker who intends to resign from making a market for a Specified Security must give at least 30 days' written notice to SGX-ST, stating the proposed date of resignation. SGX-ST may vary or waive the notice period. SGX-ST will notify all Designated Market-Makers and Trading Members of the effective date of resignation.
            (2) A Designated Market-Maker must continue to comply with this Chapter, and any Directives as may be imposed by SGX-ST until resignation.

          • 5.11.2 Acceptance of Resignation by SGX-ST

            SGX-ST needs not accept the resignation of a Designated Market-Maker if it is:—

            (1) conducting an investigation under the Rules, investigating a complaint, or has initiated disciplinary proceedings against the Designated Market-Maker, or
            (2) not satisfied that the Designated Market-Maker has fulfilled or is able to fulfill all its obligations to SGX-ST.

          • 5.11.3 Deletion from Register

            If SGX-ST accepts a Designated Market-Maker's resignation, the Designated Market-Maker's name will be deleted from the Register of Designated Market-Makers upon the effective date of resignation.

        • 5.12 Obligations of a Former Designated Market-Maker

          • 5.12.1

            A former Designated Market-Maker remains liable to SGX-ST and its customers (if applicable) for any liabilities incurred under the Rules or Directives during the period of its registration in respect of a Specified Security. The former Designated Market-Maker also remains subject to disciplinary action for any offence committed during the period of its registration.

      • Chapter 6 — Approved Executive Director

        • 6.1 Appointment and Registration

          • 6.1.1

            (1) A Trading Member must appoint at least 1 person as Approved Executive Director to be registered with SGX-ST. SGX-ST may, in its absolute discretion refuse to register an appointed person as an Approved Executive Director. SGX-ST is not obliged to give any reasons..
            (2) Subject to Rule 6.1.1(2A), the Approved Executive Director must be approved by the Authority as an Executive Director in accordance with the Securities and Futures Act.
            (2A) Where the Trading Member does not hold a Capital Markets Services Licence, it shall appoint a fit and proper person that is a senior management responsible for the Trading Member's business activities on SGX-ST for which it holds a licence specified in Rule 4.1.1(b) as an Approved Executive Director.
            (3) The Approved Executive Director is to be responsible for ensuring that the Trading Member complies with the Rules, and any Directives that SGX-ST prescribes.

            Amended on 19 May 2014 and 29 December 2014.

          • 6.1.2

            Upon registration, an Approved Executive Director is deemed to have agreed to be bound by the Rules, or any Directives SGX-ST prescribes.

        • 6.2 Obligations of an Approved Executive Director

          • 6.2.1 Compliance

            An Approved Executive Director must comply with the Rules, and any Directives SGX-ST prescribes.

          • 6.2.2 Payment of Fees

            An Approved Executive Director must pay SGX-ST all fees, levies and charges as SGX-ST prescribes. SGX-ST may reduce or waive any fee, levy or charge.

          • 6.2.3 Other Businesses

            (1) An Approved Executive Director must inform SGX-ST in writing at least 14 days before he or she engages in, or holds any substantial shareholding in, any other business that might potentially conflict with being an Approved Executive Director. The Approved Executive Director must ensure that the proposed engagement or shareholding is agreed to by his or her Trading Member.
            (2) The engagement (and any actions taken under it) or shareholding must not breach the Securities and Futures Act, Securities and Futures Regulations, the Rules, any Directives or any relevant law or regulation.
            (3) An Approved Executive Director must supply SGX-ST with any information it requires regarding the engagement or acquisition of shareholding.
            (4) If SGX-ST objects to the engagement or acquisition of shareholding, an Approved Executive Director must not proceed with it. SGX-ST may extend the period specified in Rule 6.2.3(1). If extended, the Approved Executive Director must not proceed with the engagement or acquisition of shareholding before the expiry of the extended period.
            (5) If an engagement or shareholding, in SGX-ST's opinion, is detrimental to the financial integrity, reputation or interests of SGX-ST, the principal Trading Member or its customers, SGX-ST may require the Approved Executive Director to end it.
            (6) If SGX-ST objects to the engagement or acquisition of shareholding or requires an Approved Executive Director to end it, the Approved Executive Director may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

            Refer to Directive No. 1.

            Amended on 15 September 2017.

        • 6.3 Automatic De-Registration

          • 6.3.1

            An Approved Executive Director will automatically cease to be registered as an Approved Executive Director if he or she:—

            (1) becomes of unsound mind;
            (2) is made bankrupt, whether in or out of Singapore;
            (3) is disqualified from holding office as a Director under the Securities and Futures Act, the Companies Act (Cap. 50) or any other relevant applicable laws;
            (4) ceases to be an Executive Director or senior management responsible for the Trading Member's business activities on SGX-ST of the Trading Member;
            (5) is subject to a compromise or scheme of arrangement with his or her creditors, whether in or out of Singapore;
            (6) has execution in respect of a judgment debt returned unsatisfied in whole or in part; or
            (7) breaches any provision involving fraud or dishonesty, whether in or out of Singapore.

            Amended on 19 May 2014.

        • 6.4 Deletion from Register

          • 6.4.1

            An Approved Executive Director who ceases to hold office will have his or her name deleted from the Register of Approved Executive Director upon the effective date of cessation.

        • 6.5 Obligations of a Former Approved Executive Director

          • 6.5.1

            A former Approved Executive Director remains liable to SGX-ST for any liabilities incurred under the Rules or Directives during the period of his or her registration. The former Approved Executive Director also remains subject to disciplinary actions for any offence committed during the period of his or her registration.

      • Chapter 7 — Trading Representative

        • 7.1 Registration Criteria

          • 7.1.1

            To be eligible for registration as a Trading Representative, an applicant must:—

            (1) be at least 21 years old;
            (2) be a fit and proper* person;
            (3) possess a good track record of business conduct (if applicable);
            (4) hold a licence from or be registered with the Relevant Regulatory Authority for the conduct of relevant regulated activities, unless exempted, and whose licence or registration is not suspended, revoked or expired. If SGX-ST 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;
            (5) not be a person whose registration or licence has previously been revoked by an exchange or a regulatory body, whether in or out of Singapore; and
            (6) not be an undischarged bankrupt, whether in or out of Singapore.

            Amended on 3 April 2008, 29 November 2010 and 19 May 2014.


            * SGX-ST shall evaluate "fit and proper" criteria in this Rule 7.1.1 in a manner similar to the MAS Guidelines on Fit and Proper Criteria.

        • 7.2 Application Procedures

          • 7.2.1

            To become a Trading Representative, an applicant must apply to SGX-ST in the form SGX-ST prescribes. The application must be supported by a Trading Member as his or her principal.

          • 7.2.2

            SGX-ST may, in its absolute discretion, approve or reject an application to be a Trading Representative. SGX-ST is not obliged to give any reasons.

          • 7.2.3

            In approving an application to be a Trading Representative, SGX-ST may consult the Relevant Regulatory Authority.

            Amended on 19 May 2014.

          • 7.2.4

            Without derogating from Rule 7.2.2, SGX-ST may reject an application to be a Trading Representative if:—

            (1) the applicant does not provide information relating to the application as SGX-ST requires;
            (1A) any information or document that is furnished by the applicant to SGX-ST is false or misleading;
            (2) execution against the applicant in respect of a judgment debt has been returned unsatisfied in whole or in part;
            (3) the applicant has entered into an arrangement with his or her creditors that is still in operation, whether in or out of Singapore;
            (4) SGX-ST is not satisfied with the financial standing of the applicant;
            (5) the applicant breaches any provision involving fraud or dishonesty, whether in or out of Singapore;
            (6) the applicant has been convicted of an offence under the Securities and Futures Act or any other relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities;
            (7) the applicant is the subject of an investigation involving an allegation of fraud or dishonesty, whether in or out of Singapore;
            (8) SGX-ST is not satisfied that he or she is a fit and proper person;
            (9) SGX-ST has reason to believe that the applicant may not perform the functions efficiently, honestly and fairly;
            (10) SGX-ST has reason to believe that the applicant may not act in the best interests of the Trading Member or the Trading Member's customers; or
            (11) in SGX-ST's opinion, it would be contrary to the interests of the public to register the applicant as a Trading Representative.

            Amended on 12 October 2005 and 19 May 2014.

        • 7.3 Appeals

          • 7.3.1

            If SGX-ST rejects an application to be a Trading Representative, the applicant's principal Trading Member may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

            Amended on 15 September 2017.

        • 7.4 Register of Trading Representatives

          • 7.4.1

            An applicant approved by SGX-ST as a Trading Representative will have his or her name entered in the Register of Trading Representatives.

          • 7.4.2

            Upon registration, a Trading Representative is deemed to have agreed to be bound by the Rules, or any Directives SGX-ST prescribes.

        • 7.5 Obligations of a Trading Representative

          • 7.5.1 Compliance

            A Trading Representative must comply with the Rules, and any Directives SGX-ST prescribes.

          • 7.5.2 Acting for a Trading Member

            A Trading Representative must act for only 1 Trading Member.

          • 7.5.3 Good Business Practice

            A Trading Representative must adhere to the principles of good business practice in the conduct of his or her business affairs.

          • 7.5.4 Payment of Fees

            A Trading Representative must pay SGX-ST all fees, levies and charges as SGX-ST prescribes. SGX-ST may reduce or waive any fee, levy or charge.

          • 7.5.5 Register of Securities

            (1) A Trading Representative sponsored by a Trading Member that holds a Capital Markets Services Licence must maintain a register of securities in accordance with the Securities and Futures Act. The register must include Futures Contracts.
            (2) If asked by SGX-ST, a Trading Representative must produce the register for inspection.
            (3) A Trading Representative must permit SGX-ST to take extracts of the register.

            Amended on 3 April 2008, 19 May 2014 and 29 December 2014.

          • 7.5.6 Other Businesses

            (1) A Trading Representative must inform SGX-ST in writing at least 14 days before he or she engages in, or holds any substantial shareholding in, any other business that might potentially conflict with being a Trading Representative. The Trading Representative must ensure that the proposed engagement or shareholding is agreed to by his or her Trading Member.
            (2) The engagement (and any actions taken under it) or shareholding must not breach the Securities and Futures Act, Securities and Futures Regulations, the Rules, any Directives or any relevant law or regulation.
            (3) A Trading Representative must supply SGX-ST with any information it requires regarding the engagement or acquisition of shareholding.
            (4) If SGX-ST objects to the engagement or acquisition of shareholding, a Trading Representative must not proceed with it. SGX-ST may extend the period specified in Rule 7.5.6(1). If extended, the Trading Representative must not proceed with the engagement or acquisition of shareholding before the expiry of the extended period.
            (5) If an engagement or shareholding, in SGX-ST's opinion, is detrimental to the financial integrity, reputation or interests of SGX-ST, the principal Trading Member or its customers, SGX-ST may require the Trading Representative to end it.
            (6) If SGX-ST objects to the engagement or acquisition of shareholding or requires a Trading Representative to end it, the Trading Representative may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

            Refer to Directive No. 1.

            Amended on 15 September 2017.

          • 7.5.7 Contact Details

            A Trading Representative must inform SGX-ST in writing of any change in his or her residential or mailing address or contact numbers within 7 days of the change.

        • 7.6 Remisier's Deposit

          • 7.6.1

            A Remisier must give a deposit of at least $30,000 to the Trading Member. It must be in the form of cash, Marketable Securities or a guarantee from a bank or financial institution operating in Singapore.

            Amended on 23 January 2009.

          • 7.6.2

            A Trading Member may require a Remisier to increase the amount of deposit or restrict the Remisier's volume of business if, in the Trading Member's opinion, the deposit is not enough for the volume of business transacted by the Remisier.

        • 7.7 De-Registration

          Amended on 19 May 2014.

          • 7.7.1

            A Trading Representative will automatically cease to be registered as a Trading Representative if he or she:—

            (1) becomes of unsound mind;
            (2) is made bankrupt, whether in or out of Singapore;
            (3) is subject to a compromise or scheme of arrangement with his or her creditors, whether in or out of Singapore;
            (4) has execution in respect of a judgment debt returned unsatisfied in whole or in part;
            (5) breaches any provision involving fraud or dishonesty, whether in or out of Singapore;
            (6) has had his or her licence from or registration with the Relevant Regulatory Authority revoked, or his or her licence from or registration with the Relevant Regulatory Authority has expired; or
            (7) in the case of a Trading Representative who is exempted from licensing or registration, has had his or her exemption from the Relevant Regulatory Authority withdrawn

            Amended on 29 November 2010 and 19 May 2014.

          • 7.7.2

            The Exchange may terminate the registration of a Trading Representative if the Relevant Regulatory Authority imposes conditions or restrictions on the Trading Representative in respect of the relevant regulated activities.

            Added on 19 May 2014.

        • 7.8 Deletion from Register

          • 7.8.1

            A Trading Representative who ceases to act for his or her Trading Member will have his or her name deleted from the Register of Trading Representatives upon the effective date of cessation.

        • 7.9 Obligations of a Former Trading Representative

          • 7.9.1

            A former Trading Representative remains liable to SGX-ST for any liabilities incurred under the Rules or Directives during the period of his or her registration. The former Trading Representative also remains subject to disciplinary actions for any offence committed during the period of his or her registration.

    • Section C — Market Structure

      • Chapter 8 — Trading

        • 8.1 Trading

          • 8.1.1

            A security or Futures Contract listed or quoted on SGX-ST must be traded through the Trading System or as otherwise allowed under this Chapter.

            Amended on 3 April 2008.

        • 8.2 Trading Hours

          • 8.2.1

            The trading hours and the application of the market phases are as published by SGX-ST. SGX-ST may vary the trading hours and application of the market phases.

            Refer to Practice Note 8.2.1.

          • 8.2.2

            The market phases are as follows:—

            (1) Pre-Open/Pre-Close

            This phase allows order entry, order modification, and withdrawal of orders but no matching of orders.
            (2) Non-Cancel

            No order entry and amendment are allowed in this phase. All existing orders are matched at a single price according to the algorithm set by SGX-ST. All unmatched orders, except at the close of trading, are carried over to the next phase.
            (3) Trading

            This phase allows order entry, order modification, and withdrawal of orders. All orders are matched in accordance with price priority, subject to Rule 8.10A, followed by time priority.
            (4) Adjust

            This phase allows order entry, order modification, and withdrawal of orders. At the end of the phase, orders will be matched at a single price based on the algorithm set by SGX-ST. All unmatched orders will be carried over to the next phase.

            Refer to Practice Note 8.2.2.

            Amended on 24 February 2014 and 16 September 2016.

          • 8.2.3

            SGX-ST will publish how the algorithm operates.

            Refer to Practice Note 8.2.1.

        • 8.2A Closing Price of Prescribed Securities

          • 8.2A.1

            A Prescribed Security refers to such security, Futures Contract or product or class of securities, Futures Contracts or products that SGX-ST may prescribe.

            Refer to Practice Note 8.2A.2.

            Added on 24 February 2014.

          • 8.2A.2

            The closing price of a Prescribed Security shall be determined in accordance with the relevant formula and procedures applicable to each Prescribed Security, as determined by SGX-ST from time to time. In arriving at such formula and procedure, SGX-ST may take into account factors, including but not limited to:

            (1) the last traded price;
            (2) prevailing bids and offers during the trading phase and/or closing routine; and/or
            (3) price data derived from pricing models, as selected or established by SGX-ST from time to time.

            Refer to Practice Note 8.2A.2.

            Added on 24 February 2014.

          • 8.2A.3

            Notwithstanding the foregoing, SGX-ST shall reserve the right to amend the closing price of any Prescribed Security if it so deems necessary.

            Added on 24 February 2014.

          • 8.2A.4

            Without limiting Rule 2.4.1, SGX-ST (including SGX-ST's subsidiaries, related companies and holding company), its Directors, Officers, employees and agents make no warranty, express or implied, and shall have no liability to any person in respect of, or in connection with, the closing price of a Prescribed Security, including without limitation:

            (1) the accuracy, reliability or timeliness of the closing price of a Prescribed Security;
            (2) the merchantability and fitness of the closing price of a Prescribed Security for a particular purpose;
            (3) any direct, special, punitive, indirect or consequential damages (including lost profits) in relation to use of or reliance on the closing price of a Prescribed Security, even when notified of the possibility of such damages; and/or
            (4) any errors, omissions or delays in calculating, determining or disseminating the closing price of a Prescribed Security.

            Added on 24 February 2014.

        • 8.3 Orders

          • 8.3.1

            Except for the unit share market, the minimum order size is 1 board lot. Orders may be in multiples of a board lot.

          • 8.3.2

            An order for the unit share market may be matched in any quantity of less than 1 board lot.

          • 8.3.3

            Unless otherwise determined by SGX-ST, the minimum bid size of the following products shall be as follows:

            S/N Product Price Range ($) Minimum Bid Size ($)
            1 Stocks (excluding preference shares), Real Estate Investment Trusts (REITS), business trusts, company warrants and any other class of securities or Futures Contracts not specified in this Rule 8.3.3 Below 0.20 0.001
            0.20–0.995 0.005
            1.00 and above 0.01
            1A Structured warrants Below 0.20 0.001
            0.20–1.995 0.005
            2.00 and above 0.01
            2 Exchange traded funds and exchange traded notes All $0.01 or $0.001 as determined by SGX-ST
            3 Debentures, bonds, loan stocks and preference shares All $0.001

            For the avoidance of doubt, the minimum bid sizes above apply to securities and Futures Contracts denominated in all currencies, except the Hong Kong Dollar ("HKD"), Renminbi ("RMB") or Japanese Yen ("JPY"). For securities and Futures Contracts traded in HKD, RMB and JPY, the minimum bid sizes shall as far as practicable be aligned to the minimum bid sizes applicable in Hong Kong and Japan respectively.

            Amended on 24 December 2007, 3 April 2008, 4 July 2011, 20 July 2012 and 13 November 2017.

          • 8.3.4

            Each order entered into the Trading System must specify the Position Account code, the Trading Account code and the price and quantity of the security or Futures Contract.

            Amended on 3 April 2008 and 1 July 2016.

          • 8.3.5

            Each entered order is given a unique order number by the Trading System.

            Amended on 3 April 2008.

        • 8.4 Trading Basis of Securities

          • 8.4.1

            Unless otherwise indicated, trading of securities is on a "cum" basis.

          • 8.4.2

            All securities which are designated by CDP as eligible for clearance or settlement on a book entry basis will be traded on an "ex" basis for 3 Market Days before and up to the book closing date for an entitlement. All other securities will be traded on an "ex" basis 5 Market Days (if there is a branch register in Singapore) or 7 Market Days before and up to the book closing date for an entitlement.

            Amended on 3 April 2008.

          • 8.4.3

            A buyer (seller) of securities on an "ex" ("cum") basis has no right to that entitlement.

          • 8.4.4

            A buyer (seller) of securities on a "cum" ("ex") basis who has not received that entitlement may claim the entitlement from the seller (buyer).

        • 8.5 Inviolability of Contracts

          • 8.5.1

            A contract made on SGX-ST can be cancelled only in accordance with this Rule. For avoidance of doubt, a contract is not cancelled if:—

            1) delivery fails;
            (2) payment is not made on delivery; or
            (3) the share registrar refuses to register a transfer.

          • 8.5.2

            SGX-ST may cancel a contract in any of the following circumstances:—

            (1) the Trading Members to an error trade (Rule 8.6) have agreed to the cancellation;
            (2) if a material mistake led to the error trade (Rule 8.6) and SGX-ST is satisfied that the trade should be cancelled;
            (3) there is prima facie evidence of fraud or wilful misrepresentation in relation to the contract; or
            (4) in SGX-ST's opinion, it is desirable to cancel the contract to protect the financial integrity, reputation or interests of the markets established or operated by SGX-ST.

          • 8.5.3

            SGX-ST may impose any conditions it thinks appropriate for the cancellation of a contract.

          • 8.5.4

            SGX-ST may reprimand or impose a fine not exceeding $2,000 on a Trading Representative or Trading Member who causes a contract to be cancelled. Action under this Rule is in addition to other actions which SGX-ST is entitled to take against the Trading Representative or Trading Member.

        • 8.6 Errors

          • 8.6.1

            An error trade refers to a transaction effected on the Trading System as follows:

            (1) as a result of an error in the entry the volume of an order; or
            (2) as a result of an error in the entry of the price of an order; or
            (3) where SGX-ST deems the transaction to be an error trade.

            Amended on 3 April 2008 and 15 September 2017.

          • 8.6.2

            If an error trade occurs:—

            (1) the Trading Member who made the error must immediately contact the counterparty Trading Member and seek its agreement to cancel the trade;
            (2) both Trading Members must immediately take all necessary actions to minimise any potential market impact caused by the error trade; and
            (3) both Trading Members must inform SGX-ST of the error as follows:
            (a) by telephone within thirty (30) minutes from the time the error trade occurred; and
            (b) in writing on the same day that the error trade occurred. Written notification must include details of the security or Futures Contract name, price, volume, trade number and time of the error trade. The Trading Member who made the error must also provide reasons for the error.

            Amended on 3 April 2008.

          • 8.6.3

            Where the Trading Members cannot agree to the cancellation of an error trade, a Trading Member may request SGX-ST to review the error trade. The following procedures apply:

            (1) the matter must be referred to SGX-ST within sixty (60) minutes from the time the error trade occurred or before 18:00 hours on that trading day, whichever is earlier; and
            (2) the requesting Trading Member must inform the counterparty Trading Member that it has referred the matter to SGX-ST.

            Amended on 3 April 2008.

          • 8.6.3A

            Notwithstanding Rules 8.6.2(3) and 8.6.3(1), SGX-ST may in its discretion allow such extension of time for the submitting of information or requests relating to error trades as it deems appropriate, taking into account:

            (1) the number of error trades referred to SGX-ST pursuant to Rule 8.6.3;
            (2) the complexity of the circumstances surrounding the error trade(s); and
            (3) any other factors which SGX-ST considers relevant.

            Added on 24 February 2014.

          • 8.6.4

            SGX-ST will not review an error trade referred to it by a Trading Member, where the error trade falls at or within the upper and lower limits of a no-cancellation range applied pursuant to Rule 8.6.4A

            Amended on 24 February 2014.

          • 8.6.4A

            Subject to Rule 8.6.4B, a no-cancellation range will be applied to the following instruments:

            (1) structured warrants; and
            (2) all other securities and Futures Contracts, excluding bonds.

            Added on 24 February 2014.

          • 8.6.4B

            SGX-ST retains the discretion to apply or remove no-cancellation ranges from instruments listed for trading on SGX-ST.

            Added on 24 February 2014.

          • 8.6.5 [Rule has been deleted.]

            Deleted on 24 February 2014.

          • 8.6.6 [Rule has been deleted.]

            Deleted on 24 February 2014.

          • 8.6.7

            The requesting Trading Member must pay a trade review fee of $1,000 for each referral accepted for review by SGX-ST, regardless of the outcome of the review.

            Amended on 24 February 2014.

          • 8.6.8

            Notwithstanding Rule 8.6.7, SGX-ST may grant a waiver of the trade review fee where it deems appropriate.

          • 8.6.9

            Notwithstanding Rules 8.6.4, 8.6.13, 8.6.13A and 8.6.13B, SGX-ST may review the validity of any transaction effected on the Trading System where SGX-ST deems that the cancellation of the error trade is necessary for the proper maintenance of a fair and orderly market.

            Amended on 24 February 2014.

          • 8.6.10 [Rule has been deleted.]

            Deleted on 24 February 2014.

          • 8.6.11 [Rule has been deleted.]

            Deleted on 24 February 2014.

          • 8.6.12

            SGX-ST may consider the following factors when deciding whether to cancel an error trade under Rules 8.6.13, 8.6.13A and 8.6.13B:

            (1) the difference between the price at which the error trade was done and the preceding traded price of the security or Futures Contract;
            (2) the market liquidity in the security or Futures Contract at the time the error trade occurred;
            (3) where the trade involves a Futures Contract, the trading behaviour of the underlying security;
            (4) the monetary loss involved if the trade is or is not cancelled;

            (5) the difference between the time the erroneous order was entered and the time it was matched;
            (6) the number of counterparty customers involved;
            (7) whether the force key was used when entering the erroneous order into the Trading System;
            (7A) the impact on the settlement process;
            (7B) in the case of bonds, the rating, interest rate, coupon rate, maturity date and yield curve;
            (8) the reason(s) given for the error; and
            (9) any other factors which SGX-ST considers relevant.

            Amended on 24 February 2014.

          • 8.6.13

            Error trades in structured warrants that are referred to SGX-ST will be reviewed in accordance with the following Rules:

            (1) For the purposes of Rule 8.6.4A, the no-cancellation range for structured warrants is determined as the wider of the following:
            (a) a lower limit of twenty (20) minimum bid sizes less than the Reference Price, and an upper limit of twenty (20) minimum bid sizes higher than the Reference Price; or
            (b) a lower limit of 75% of the Reference Price, and an upper limit of 125% of the Reference Price.
            (2) The Reference Price of the no-cancellation range for structured warrants will be determined as follows:
            (a) the average of the last quoted bid price and the last quoted offer price for the structured warrant immediately preceding the error trade; or
            (b) the average of the market prices as quoted by at least three (3) Designated Market-Makers of structured warrants. The Designated Market-Makers will be selected randomly by SGX-ST, but will not include any Designated Market-Maker who is involved in the error trade which is under review.
            (3) Where SGX-ST is of the view that no appropriate or reliable Reference Price is available, SGX-ST will not establish a no-cancellation range for that error trade.
            (4) Upon receiving a request to review an error trade involving structured warrants, SGX-ST will consider the validity of the error trade. SGX-ST may, in its discretion, make a determination that the error trade is to be cancelled, having regard to the factors set out in Rule 8.6.12.
            (5) For the purposes of this Rule 8.6, "structured warrants" includes any structured warrants, certificates and any other structured products listed under Chapter 5 of the SGX-ST Listing Manual, whether or not they are classified as futures contracts under the SFA.

            Amended on 24 February 2014.

          • 8.6.13A

            Error trades in all other securities or Futures Contracts, excluding bonds, will be reviewed in accordance with the following Rules:

            (1) For the purposes of Rule 8.6.4A, the no-cancellation range for the security or Futures Contract is determined as the wider of the following:
            (a) a lower limit of twenty (20) minimum bid sizes less than the Reference Price, and an upper limit of twenty (20) minimum bid sizes higher than the Reference Price; or
            (b) a lower limit of 95% of the Reference Price, and an upper limit of 105% of the Reference Price.
            (2) Subject to Rule 8.6.13A(3), the Reference Price of the nocancellation range for the security or Futures Contract will be the price of the last good trade.
            (3) SGX-ST may, in its discretion, use an alternative price as the Reference Price for the no-cancellation range if:
            (a) the price of the last good trade is not available; or
            (b) SGX-ST deems the price of the last good trade to be unreliable or inappropriate as a Reference Price.

            (4) Where SGX-ST is of the view that no appropriate or reliable Reference Price is available, SGX-ST will not establish a no-cancellation range for that error trade.
            (5) Upon receiving a request to review an error trade involving the security or Futures Contract, SGX-ST will consider the validity of the error trade. SGX-ST may, in its discretion, make a determination that the error trade is to be cancelled, having regard to the factors set out in Rule 8.6.12.

            Added on 24 February 2014.

          • 8.6.13B

            Upon receipt of a request to review an error trade in bonds, SGX-ST will consider the validity of the error trade. SGX-ST may, in its discretion, make a determination that the error trade is to be cancelled, having regard to the factors in Rule 8.6.12.

            Added on 24 February 2014.

          • 8.6.14 [Rule has been deleted.]

            Deleted on 24 February 2014.

          • 8.6.15 [Rule has been deleted.]

            Deleted on 24 February 2014.

          • 8.6.16 [Rule has been deleted.]

            Deleted on 24 February 2014.

          • 8.6.17

            SGX-ST will:

            (1) notify the market of error trades reported to SGX-ST and whether an error trade remains valid or has been cancelled; and
            (2) notify the Trading Members who are counterparties to an error trade of its determination pursuant to Rules 8.6.13, 8.6.13A and 8.6.13B by telephone and in writing.

            Added on 24 February 2014.

          • 8.6.18

            SGX-ST will not consider any request to review its decision following the notifications under Rule 8.6.17.

            Added on 24 February 2014.

        • 8.7 Direct Business

          • 8.7.1

            A Trading Member may only execute Direct Business that is:—

            (1) at least:—
            (a) 50,000 units of securities or Futures Contracts, or in the case of Marginable Futures Contracts, 50,000 units of the underlying; or
            (b) $150,000 in terms of contract value;
            (2) a book-out trade from an error account to remedy an error; or
            (3) to complete a customer's order that was partially filled in the market, provided the original order met the minimum size in Rule 8.7.1(1) above.

            Amended on 3 April 2008 and 23 January 2009.

          • 8.7.2

            Direct Business may be transacted between:—

            (1) 2 Trading Members;
            (2) 2 customers of a Trading Member; or
            (3) a Trading Member and its customer.

          • 8.7.3

            SGX-ST may vary the size or value of trades under this Rule.

          • 8.7.4

            Direct Business must be reported through the married trade reporting system of the Trading System under Rule 8.7.5. The price, quantity, counterparty, and other details as required under Rule 8A.3.1 must be reported.

            Amended on 3 April 2008 and 11 March 2013.

          • 8.7.5

            Direct Business must be reported within 10 minutes of execution save that Direct Business executed after market close must be reported in the first 20 minutes of the Opening Routine on the following Market Day.

            Amended on 7 June 2010 and 13 November 2017.

          • 8.7.6

            SGX-ST may suspend Direct Business on any or all securities or Futures Contracts. SGX-ST may specify conditions under which Direct Business is permitted for securities or Futures Contracts.

            Amended on 3 April 2008.

        • 8.8 Designated Securities and Futures Contracts

          • 8.8.1

            The Board may declare publicly a listed or quoted security or Futures Contract to be a "Designated Security" or "Designated Futures Contract" if, in its opinion, there has been manipulation of the security or Futures Contract (or its underlying), excessive speculation in the security or Futures Contract (or its underlying), or it is otherwise desirable in the interests of markets established or operated by SGX-ST.

            Amended on 3 April 2008.

          • 8.8.2

            The Board may impose any conditions it thinks fit on dealing in a Designated Security or trading in a Designated Futures Contract. A condition applies from the date of declaration to all contracts of the Designated Security or Designated Futures Contract entered into on or after the date of declaration, or as indicated by the Board. For avoidance of doubt, the conditions may include:—

            (1) a requirement that Trading Members obtain margins from each customer in respect of the customer's dealing in the Designated Security or trading in a Designated Futures Contract;
            (2) [deleted];
            (3) a restriction on dealing in a Designated Security or trading in a Designated Futures Contract by a Trading Member if its outstanding contracts in that Designated Security exceed 5% of the paid-up capital of the company whose securities are designated or, in the case of a Designated Futures Contract, of the company whose securities comprise the underlying, or any other percentage the Board prescribes; or
            (4) a prohibition on any sale unless the seller holds the Designated Security or Designated Futures Contract, or in the case of a Designated Futures Contract, the underlying. A seller holds the security, Futures Contract, or underlying if, at the time of sale, he has the securities, Futures Contracts, or underlying in an account maintained with CDP (if scripless), or delivers the share certificates and executed transfer forms to the Trading Member.

            Amended on 3 April 2008 and 1 July 2014.

          • 8.8.3

            If asked, a Trading Member must give SGX-ST particulars of all its dealings in Designated Securities or trades in Designated Futures Contracts and of the customers involved. The Trading Member must do so by the next business day after being asked or as required.

            Amended on 3 April 2008.

          • 8.8.4

            The Board may rescind or vary a declaration at any time. It will make the decision public.

        • 8.9 Corner

          • 8.9.1

            The Board may declare a corner in a listed or quoted security if, in its opinion:—

            (1) a single interest or a group has acquired control of enough of the supply of the security that it can only be obtained for delivery at prices, or on terms, dictated by the single interest or group; or
            (2) it is otherwise desirable in the interests of markets established or operated by SGX-ST.

          • 8.9.2

            The Board may impose any conditions it thinks fit on existing ready market or Futures Contracts on a cornered security or on dealing in a cornered security. For avoidance of doubt, the conditions may include:—

            (1) from time to time extending (or further extending) the due date for delivery; or
            (2) declaring that contracts will be cash settled (not delivered). The Board may direct the terms of the cash settlement or apply the following terms (in whole or in part) as it thinks fit:—
            (a) in the case of a seller who contracted to sell for less than the fair settlement price, the seller must pay the buyer the difference between the fair settlement price and the contract price;
            (b) in the case of a seller who contracted to sell for more than the fair settlement price, the buyer must pay the seller the difference between the contract price and the fair settlement price;
            (c) in the case of a buyer who contracted to buy for less than the fair settlement price, the seller must pay the buyer the difference between the fair settlement price and the contract price; and
            (d) in the case of a buyer who contracted to buy for more than the fair settlement price, the buyer must pay the seller the difference between the contract price and the fair settlement price.

            Amended on 3 April 2008.

          • 8.9.3

            If the Board imposes a condition that contracts are to be cash settled, it must establish a Settlement Committee to advise on the fair settlement price.

          • 8.9.4

            A Settlement Committee must comprise no less than 5 persons, including at least:—

            (1) 2 members of the Board;
            (2) 1 public accountant; and
            (3) 1 advocate and solicitor.

            The quorum of the Settlement Committee is all members when the meeting proceeds to business, but the Settlement Committee may complete the business with any 3 present.

          • 8.9.5

            A Settlement Committee may include such other persons as the Board thinks fit.

          • 8.9.6

            A Settlement Committee may hear evidence as it thinks proper and relevant to the discharge of its functions.

          • 8.9.7

            A Settlement Committee must report its findings to the Board. The findings are advisory only. The Board will accept the Settlement Committee's recommendation on the fair settlement price, unless it has good reasons to reject it. The Board may refer a matter to the Settlement Committee for further consideration, before deciding on the fair settlement price.

          • 8.9.8

            The fair settlement price determined by the Board is final and binding on all parties to any outstanding ready market or Futures Contract on the cornered security.

            Amended on 3 April 2008.

        • 8.10 Suspension and Restriction of Trading

          • 8.10.1

            SGX-ST may suspend or restrict trading in any or all listed or quoted securities or Futures Contracts. It may do so for 1 or more markets or 1 or more trading sessions or any part of a trading session. It may do so in any of the following circumstances:—

            (1) in SGX-ST's opinion, the market is not orderly, informed or fair or circumstances are about to occur that may result in there not being an orderly, informed or fair market;
            (2) SGX-ST releases an announcement in relation to an Issuer which, in SGX-ST's opinion, is market sensitive;
            (3) an Issuer requests, and SGX-ST agrees to, the suspension;
            (4) access to the Trading System is generally restricted;
            (4A) where Rule 8.10A applies;
            (5) any of the circumstances in Rule 1303 of the SGX-ST Listing Manual apply;
            (6) functions of SGX-ST are, or are threatened to be, severely and adversely affected by a physical emergency such as fire, terrorist activities, power failures, communication or transportation breakdowns, or computer malfunctions; or
            (7) in SGX-ST's opinion, it is in the public interest.

            Refer to Practice Note 8.10.1.

            Amended on 3 April 2008 and 24 February 2014.

          • 8.10.1A

            SGX-ST may restrict trading by such means as it considers appropriate, including placing the market into an Adjust Phase.

            Added on 16 September 2016.

          • 8.10.2

            A suspension and a trading restriction may be lifted by SGX-ST at any time.

            Amended on 16 September 2016.

          • 8.10.3

            Securities or Futures Contracts which have been suspended from trading cease to 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.

            Refer to Practice Note 8.10.3.

            Amended on 3 April 2008.

          • 8.10.4

            Unmatched orders in a security or Futures Contract in the Trading System may lapse in the event of a suspension of that security or Futures Contract, as determined by SGX-ST..

            Refer to Practice Note 8.10.1

            Amended on 3 April 2008 and 16 September 2016.

          • 8.10.5

            Where SGX-ST has suspended or restricted trading in all listed or quoted securities or Futures Contract in 1 or more markets, SGX-ST may extend a trading session for the market when trading recommences.

            Amended on 3 April 2008, 8 April 2014 and 16 September 2016.

          • 8.10.6

            Securities or Futures Contracts subject to suspension will be placed in Adjust Phase for a minimum of 15 minutes before trading recommences.

            Amended on 3 April 2008.

        • 8.10A Circuit Breakers and Cooling-Off Periods

          • 8.10A.1

            SGX-ST may prescribe, for certain securities and Futures Contracts, Circuit Breakers which are designed to temporarily restrict trading in these securities and Futures Contracts.

            Added on 24 February 2014.

          • 8.10A.2

            SGX-ST shall impose a Cooling-Off Period on such security or Futures Contract referred to in Rule 8.10A.1 if an incoming order seeks to be matched, either partially or fully, with an existing order in the Trading System at a price outside the Circuit Breaker.

            Added on 24 February 2014.

          • 8.10A.3

            Where the Cooling-Off Period is activated pursuant to Rule 8.10A.2, the following will apply:

            (1) the incoming order referred to in Rule 8.10A.2 will not be matched with the existing order in the Trading System at a price outside the Circuit Breaker; and
            (2) such quantity of the incoming order which is not filled at the commencement of the Cooling-Off Period will be rejected by the Trading System.

            Added on 24 February 2014.

        • 8.11 Trading Halts

          • 8.11.1

            A trading halt may be imposed by SGX-ST at the request of an Issuer.

            Refer to Practice Note 8.10.1.

          • 8.11.1A

            A trading halt may be imposed by SGX-ST on a security or Futures Contract when its underlying, or such instrument on the same underlying as SGX-ST may prescribe, is subject to a Cooling-Off Period pursuant to Rule 8.10A.2.

            Added on 24 February 2014.

          • 8.11.2

            A trading halt may be lifted by SGX-ST at any time.

          • 8.11.3

            A trading halt may be changed to a suspension by SGX-ST at any time.

          • 8.11.4

            A trading halt may be imposed for up to 3 Market Days or such other short extension as SGX-ST agrees.

          • 8.11.5

            A trading halt is for a minimum duration of 30 minutes or such period SGX-ST prescribes.

            Amended on 21 September 2011.

          • 8.11.6

            A trading halt operates in the same way as an Adjust Phase.

          • 8.11.7

            Securities or Futures Contracts which are subject to a trading halt cease to 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.

            Refer to Practice Note 8.10.3.

            Amended on 3 April 2008.

        • 8.12 Suspension of Trading Member and Prohibition of Dealings

          • 8.12.1

            SGX-ST may prohibit or limit a Trading Member from entering orders on the Trading System for a period not exceeding 14 days if the Trading Member:—

            (1) fails to continue to satisfy the admission criteria;
            (2) defaults on any transaction in securities or Futures Contracts on SGX-ST; or
            (3) is, in SGX-ST's opinion, in operating difficulty.

            Amended on 3 April 2008.

          • 8.12.2

            If SGX-ST takes action against a Trading Member under Rule 8.12.1, it will inform the Trading Member in writing.

        • 8.13 Open Interface Applications

          • 8.13.1

            A Trading Member who has access into the Trading System via SGXAccess or such other open interface applications must comply with the requirements SGX-ST prescribes.

            Amended on 3 April 2008.

      • Chapter 8A — Marking of Sell Orders

        • 8A.1 Definitions

          • 8A.1.1

            In this chapter, "Short Sell Order" refers to any sell order where the seller does not own in full the quantity of the security to be sold at the time of placing the order.

            Added on 11 March 2013.

        • 8A.2 Ownership of Securities

          • 8A.2.1

            For the purposes of Rule 8A.1.1, a seller shall be deemed to own a security if:

            (a) he is the legal or beneficial owner of the security, unless such ownership is pursuant to a securities borrowing agreement;
            (b) he:
            (i) has purchased or has entered into an unconditional contract to purchase the security, but has not yet received delivery of such security;
            (ii) has tendered other securities for conversion or exchange or has issued irrevocable instructions to convert or exchange other securities into the security, but has not yet received delivery of such security;
            (iii) has a right or an obligation to purchase the security under an option and such option has been exercised, but has not yet received delivery of such security; or
            (iv) has a right or warrant to subscribe for the security and such right or warrant has been exercised, but has not yet received delivery of such security; and
            the delivery referred to in (i) to (iv) would, in the ordinary course, be before the settlement of the sale of the security; or
            (c) he has lent a security pursuant to a securities lending agreement as a result of which he is no longer the legal or beneficial owner but has a right of recall under the securities lending agreement.

            Added on 11 March 2013.

        • 8A.3 Marking of Sell Orders

          • 8A.3.1

            All sell orders for securities shall be marked to indicate whether it is a Short Sell Order or otherwise. A Trading Member and its Trading Representative shall not enter a sell order in the Trading System if a customer has not indicated whether the sell order is a Short Sell Order or a normal sell order.

            Added on 11 March 2013.

          • 8A.3.2

            The requirement to mark sell orders as set out in Rule 8A.3.1 shall include Direct Business reported through the married trade reporting system of the Trading System pursuant to Rule 8.7

            Added on 11 March 2013.

          • 8A.3.3

            A Trading Member shall ensure that the necessary procedures and systems are implemented to facilitate compliance with the obligations set out in Rule 8A.3.1.

            Added on 11 March 2013.

        • 8A.4 Exemptions

          • 8A.4.1

            SGX-ST may, at its discretion, exempt any specific security from the requirement to mark as set out in Rule 8A.3.1.

            Added on 11 March 2013.

          • 8A.4.2

            SGX-ST may, at its discretion, waive the requirement to mark sell orders for:

            (a) market makers; or
            (b) such class of market participants that SGX-ST may determine in its discretion from time to time.

            Added on 11 March 2013.

          • 8A.4.3

            A Trading Member shall not be required to comply with Rule 8A.3.1 in respect of sell orders from such market participants or in such securities as exempted by SGXST.

            Added on 11 March 2013.

        • 8A.5 Publication of Report

          • 8A.5.1

            SGX-ST shall report before the start of each Market Day the aggregate volume of Short Sell Orders matched and executed for the preceding Market Day and in respect of each security for which marking is required.

            Added on 11 March 2013.

          • 8A.5.2

            SGX-ST may subsequently report corrections to such aggregate volume of Short Sell Orders matched and executed that have been reported pursuant to Rule 8A.5.1.

            Added on 11 March 2013.

        • 8A.6 Reporting of Erroneously Marked Sell Orders

          • 8A.6.1

            A Trading Member may submit a report of erroneously marked sell orders through such facility that is provided by SGX-ST.

            Added on 11 March 2013.

          • 8A.6.2

            A Trading Member shall ensure that the report:

            (a) adheres to the requirements for submission established by SGX-ST; and
            (b) is complete and accurate.

            Added on 11 March 2013.

      • Chapter 9 — Settlement

        • 9.1 Mode of Settlement

          • 9.1.1

            Unless otherwise specified by SGX-ST, delivery and settlement for trades in securities or Futures Contracts which are designated by CDP as eligible for clearance or settlement on a book entry basis are by book entry at CDP.

            Amended on 3 April 2008.

          • 9.1.2

            Delivery of physical certificates is not accepted for trades in securities or Futures Contracts which are designated by CDP as eligible for clearance or settlement on a book entry basis.

            Amended on 3 April 2008.

          • 9.1.3

            A securities account must be maintained with CDP by customers who trade in securities or Futures Contracts which are designated by CDP as eligible for clearance or settlement on a book entry basis and Trading Members who trade in such securities or Futures Contracts for their own account. The securities account may be maintained directly with CDP or with a depository agent.

            Amended on 3 April 2008.

          • 9.1.4

            Unless otherwise agreed between a customer and a Trading Member, trades are settled in the currency of quotation at the exchange rate determined by the Trading Member on the date of settlement.

        • 9.2 Relationship Between Trading Member and Customer

          • 9.2.1

            A selling customer must look only to the Trading Member, who executes the trade, in relation to all obligations in connection with that trade, including payment of sale proceeds.

            Amended on 23 January 2009.

          • 9.2.2

            A buying customer must look only to the Trading Member, who executes the trade, in relation to all obligations in connection with that trade, including delivery of securities or in the case of a deliverable Futures Contract, the relevant underlying. A buying customer must pay the Trading Member who executes the trade.

            Amended on 3 April 2008 and 23 January 2009.

          • 9.2.3

            If a selling customer fails to deliver, buying-in will be instituted against the selling customer according to the Clearing Rules.

        • 9.3 Relationship Between Trading Member and Clearing Member

          • 9.3.1

            A selling Trading Member must look only to the Clearing Member who qualifies it in relation to all obligations in connection with its trades, including payment of sale proceeds.

            Amended on 23 January 2009.

          • 9.3.2

            A buying Trading Member must look only to the Clearing Member who qualifies it in relation to all obligations in connection with its trades, including for delivery of securities or in the case of a deliverable Futures Contract, the relevant underlying.

            Amended on 3 April 2008 and 23 January 2009.

        • 9.4 Settlement Dates

          • 9.4.1

            The normal timetable for settlement of trades is as follows:—

            Type of Trade Delivery by selling customer Payment to selling customer Delivery to buying customer Payment by buying customer Force-sale against customer Buying in against customer
            Other DVP Other Other DVP Other DVP Other
            Immediate Bargains 5 pm on T - T+1 or against delivery, whichever is later 3 pm on T+1 - T+1 - T+2 T+1
            Ready Market for securities and
            Futures Contracts cleared by CDP
            T+3 T+3 or against delivery, whichever is later T+4 or against delivery, whichever is later T+3 T+3 T+3 T+4 T+4 T+3
            Marginable
            Futures
            Contracts
            LTD+3 - LTD+4 or against delivery whichever is later LTD+3 - LTD+ 3 - LTD+ 4 LTD+3
            Ready Market for other securities 12.30 pm on T+3 - T+4 or against delivery, whichever is later 3 pm on T+4 - T+4 - T+5 T+3

            Where T is the trade date and LTD is the Last Trading Day as defined in Chapter 19 (and hence, T+3/LTD+3 is the third Market Day after trade date/Last Trading Day).

            Amended on 3 April 2008, 23 January 2009 and 20 November 2009.

          • 9.4.2

            SGX-ST may change the trading period and settlement date for Immediate Bargains and ready market trades.

          • 9.4.3

            A Trading Member may withhold delivery to a buying customer until payment has been cleared and the proceeds received.

          • 9.4.4

            The normal timetable for force-sale against a customer will not apply if:—

            (1) A Trading Member reasonably expects full payment from the buying customer. In such a case, the Trading Member may defer force-sale for up to 4 Market Days (for DVP Settlement) or 2 Market Days (for other trades); or
            (2) A Trading Member has allowed a buying customer to effect a corresponding sale position after the purchase but not later than the due date of the purchase contract.

          • 9.4.5

            A Trading Member exercising its discretion under Rule 9.4.4 must not engage in imprudent credit practices.

          • 9.4.6

            The following rules apply to force-sales (whether effected under the normal timetable or under Rule 9.4.4):—

            (1) A Trading Member has discretion as to the price, and volume put up for sale, at any time;
            (2) A Trading Member need not give notice of the force-sale to the buying customer;
            (3) A Trading Member is not liable to the buying customer for any loss or damage arising out of the exercise of its discretion; and
            (4) A Trading Member may recover the losses and expenses incurred in the force-sale from the buying customer.

        • 9.5 Trades Under Physical Delivery

          • 9.5.1 [Rule has been deleted.]

            Deleted on 26 April 2013.

          • 9.5.2 [Rule has been deleted.]

            Deleted on 26 April 2013.

          • 9.5.3

            Contracts in Singapore Government securities and Asian Currency Bonds are settled as agreed between the parties.

          • 9.5.4

            Contracts with a member of an overseas securities exchange are settled as agreed between the parties.

        • 9.6 Delivery Versus Payment ("DVP") Settlement

          • 9.6.1

            DVP settlement is subject to the DVP Rules issued by CDP.

      • Chapter 10 — Foreign Market Linkages

        • 10.1 Definitions

          • 10.1.1

            In this Chapter, "Order" means:—

            (1) in respect of a Selected Foreign Security, an order placed via the Exchange Link by SGX-SPV with a Foreign Portal Dealer to buy or sell that Selected Foreign Security; and
            (2) in respect of a Selected SGX Security, an order placed via the Exchange Link by a Foreign Portal Dealer with SGX-SPV to buy or sell that Selected SGX Security.

            Amended on 23 January 2009.

        • 10.2 Application of Chapter

          • 10.2.1

            A Trading Member (except SGX-SPV) and a Trading Representative are bound by this Chapter or any Directives when accessing a Foreign Market via the Exchange Link to execute Orders in a Selected Foreign Security.

          • 10.2.2

            SGX-SPV is bound by this Chapter to the extent that it is expressly referred to.

          • 10.2.3

            This Chapter does not apply to the ASEAN Trading Linkage.

            Added on 18 September 2012.

        • 10.3 Access to Foreign Markets

          • 10.3.1

            Subject to the provisions of this Chapter, a Trading Member may access a Foreign Market via the Exchange Link to execute Orders in a Selected Foreign Security.

          • 10.3.2

            SGX-ST may at any time, if it thinks fit:—

            (1) direct SGX-SPV to suspend or end a Trading Member's or a Trading Representative's access to a Foreign Market via the Exchange Link;
            (2) direct a Trading Member or Trading Representative to access the Foreign Market via the Exchange Link only on conditions that SGX-ST may specify; or
            (3) reinstate or re-establish a Trading Member's or a Trading Representative's access to a Foreign Market via the Exchange Link and if it sees fit, on conditions that SGX-ST may specify.

          • 10.3.3

            The Trading Member, Trading Representative and SGX-SPV must act on a direction of SGX-ST.

        • 10.4 Role and Responsibilities of SGX-SPV

          • 10.4.1

            SGX-SPV must be a Trading Member and a Clearing Member for the purpose of facilitating Orders pertaining to a Selected SGX Security for execution in SGX-ST (inbound) and Orders pertaining to a Selected Foreign Security for execution in a Foreign Exchange (outbound).

          • 10.4.2

            SGX-SPV must be admitted as a Trading Member of SGX-ST if SGX-ST is satisfied that the following conditions have been, or will be, met:—

            (1) SGX-SPV has, or has access to, adequate facilities or staff for:—
            (a) the expeditious and orderly transaction of business when trading in Selected Foreign Securities on a Foreign Market; and
            (b) management of the risks;
            (2) security arrangements are adequate to prevent unauthorised persons from accessing the systems and facilities relating to the Service;
            (3) the Authority has been notified of the intention to admit SGX-SPV and has not raised any objection; and
            (4) SGX-SPV holds any licence required by the Authority.

          • 10.4.3

            In relation to SGX-SPV as a Trading Member, SGX-ST will carry out its functions and exercise its powers in a like manner to the way it would carry out its functions in respect of other Trading Members, recognising the limited functions that SGX-SPV is intended to perform. SGX-SPV will not apply for an exemption, waiver or other exercise of discretion under the SGX-ST Rules unless it has first notified the Authority.

          • 10.4.4

            For outbound Orders, SGX-SPV:—

            (1) must receive and route Orders from a Trading Member via the Exchange Link to the Foreign Portal Dealer for entry into the trading system of the Foreign Market;
            (2) must provide electronic trade confirmation to the Trading Member in respect of an Order executed in the Foreign Market;
            (3) without affecting the settlement procedures between CDP and a Clearing Member, must make payment denominated in the Foreign Market currency or deliver securities in accordance with the home exchange rules (as a customer of the Foreign Portal Dealer), as may be owed by it to the Foreign Portal Dealer;
            (4) must effect delivery in accordance with the Clearing Rules. However, if SGX-SPV's obligations to deliver are delayed owing to a breakdown, error or malfunction of the systems or procedures of, or otherwise in connection with the Exchange Link, SGX-SPV must effect delivery as soon as practicable after rectification of the breakdown error or malfunction; and
            (5) is not required to comply with the rule that requires all transactions in securities to be due on the third Market Day following the date of the trade (T+3).

          • 10.4.5

            For inbound Orders, SGX-SPV, in its capacity as agent for the Foreign Portal Dealer, must:—

            (1) receive and route an Order from the Foreign Portal Dealer via the Exchange Link into the Trading System;
            (2) provide electronic trade confirmation to the Foreign Portal Dealer as soon as practicable after the Order is matched on the Trading System;
            (3) clear all trades resulting from the execution of the transactions as a Clearing Member of CDP; and
            (4) comply with the settlement procedures between CDP and a Clearing Member.

            Amended on 3 April 2008.

          • 10.4.6

            SGX-SPV may close out a position or correct an error if, in its opinion, it is necessary or desirable to manage risks prudently or meet requirements for the operation of the Service.

          • 10.4.7

            (1) The following Rules do not apply to SGX-SPV:—
            Rule Heading
            4.1.1 Admission Criteria (as a Trading Member)
            4.6.1(2) Compliance (with admission criteria)
            4.6.5 Responsibility to SGX-ST
            4.6.11 Approved Executive Director
            4.6.12 Directors
            4.6.14 Memorandum and Articles of Association
            4.6.17 Business Name
            4.6.18 Issue of Shares
            4.6.19 Voluntary Liquidation
            6.16.5 Approved Executive Director
            9.5 Trades under Physical Delivery
            11.111.14 Capital and Financial Requirements
            12.3 Customer Accounts
            12.4 Trading Authority
            12.6 Contract Notes
            12.7 Statement of Account to Customers
            12.11 Customer's and Remisier's Money
            12.12 Customer's and Remisier's Assets
            12.17.4 Trading by Employees and Agents
            12.21 Use of Office Premises
            13.5 Arrangement with Customers
            13.12 Identification & Password
            Chapter 19 of these Rules  
            (2) For avoidance of doubt, nothing in Rule 10.4.7 prevents SGX-ST from waiving or modifying the Rules for SGX-SPV, provided Rule 10.4.3 is complied with.

            Amended on 23 January 2009.

        • 10.5 Obligations of a Trading Member

          • 10.5.1

            When accessing a Foreign Market via the Exchange Link to trade in Selected Foreign Securities, a Trading Member:—

            (1) transacts with SGX-SPV as principal;
            (2) is not relieved of any obligation or liability otherwise applicable to it;
            (3) is solely responsible for the accuracy of details of Orders and other trading messages that are entered by it or on its behalf; and
            (4) owes its obligation in relation to Orders to SGX-SPV.

          • 10.5.2

            The following Rules apply to an Order executed on a Foreign Market via the Exchange Link by SGX-SPV:—

            (1) the settlement obligations are owed by the Trading Member (if it is a Clearing Member) or its qualifying Clearing Member to CDP instead of SGX-SPV; and
            (2) SGX-SPV's settlement obligations are owed to CDP.

          • 10.5.3

            A Trading Member is responsible for its Order, regardless of whether the Trading Member authorised the sending of the Order.

        • 10.6 Core Trading Principles

          • 10.6.1

            The primary object of the core trading principles is to promote proper and orderly trading of Selected Foreign Securities via the Exchange Link.

          • 10.6.2

            Rule 10.6 applies to:—

            (1) a Trading Member and a Trading Representative when trading in a Selected Foreign Security on a Foreign Market via the Exchange Link;
            (2) Orders placed via the Exchange Link; and
            (3) SGX-SPV in relation to Orders placed by it under Rule 10.4.6.

          • 10.6.3 Prevention of Disorderly Markets

            (1) A Trading Member or a Trading Representative must not enter bids or offers in Selected Foreign Securities on a Foreign Market via the Exchange Link that may result in, or have the effect of, creating a disorderly market in those securities.
            (2) When accessing a Foreign Market via the Exchange Link to trade in Selected Foreign Securities, a Trading Member or a Trading Representative must:—
            (a) ensure that an authorised person is available at all relevant times to communicate with SGX-SPV;
            (b) not intentionally or deliberately take advantage of any situation resulting from a breakdown, error or malfunction of the systems, procedures or otherwise of or in connection with the Exchange Link; and
            (c) comply with any instructions or directions issued by SGX-ST.

          • 10.6.4 Market Manipulation and False Market

            (1) A Trading Member or a Trading Representative must not engage in, or knowingly act with any other person in, any act or practice that will or is likely to:—
            (a) create a false or misleading appearance of active trading in any Selected Foreign Securities; or
            (b) lead to a false market on a Foreign Market.
            (2) A Trading Member must immediately inform SGX-ST if it reasonably suspects, or knows of, any attempted market manipulation or creation of a false market in a Selected Foreign Security via the Exchange Link. A Trading Member must not participate, or knowingly assist others, in any operation which might have such a result.

          • 10.6.5 Dealings in Suspended Securities

            Unless agreed by the Foreign Exchange concerned, a Trading Member and a Trading Representative must not trade, or make a market in, any Selected Foreign Security on the Foreign Market via the Exchange Link if that security is suspended.

          • 10.6.6 Cancellation of Contracts

            (1) A Trading Member may instruct SGX-SPV to request the Foreign Portal Dealer to cancel a contract made on a Foreign Market via the Exchange Link only in the circumstances allowable under the rules, customs or usages of the Foreign Market.
            (2) The Trading Member must meet any costs incurred in connection with the cancellation.

          • 10.6.7 Corner

            A Trading Member must not act itself or with 1 or more persons in concert with the object of securing or acquiring control of any security on a Foreign Market that the same cannot be obtained for delivery on existing contracts except at prices or on terms dictated by such person or persons.

          • 10.6.8 Short Selling

            A Trading Member must not short sell any Selected Foreign Security on a Foreign Market except as permitted by the Foreign Exchange concerned.

          • 10.6.9 Designated Securities

            A Trading Member must comply with any conditions on dealing imposed in a Foreign Market in relation to securities that may have been subject to manipulation or excessive speculation.

        • 10.7 Non-Compliance with Core Trading Principles

          • 10.7.1

            SGX-ST may undertake any investigation or inspection or take any other action under its Rules if it becomes aware of possible or alleged non-compliance with the core trading principles under Rule 10.6.

        • 10.8 No Liability

          Amended on 15 September 2017.

          • 10.8.1

            None of SGX-ST, SGX-SPV, SGX RegCo, or their respective Directors, Officers, employees, representatives or agents shall be liable to a Trading Member or other person in respect of any loss or damage (including consequential loss or damage) which may be incurred, or arise directly or indirectly, in connection with:—

            (1) the Service;
            (2) inability to use the Service; or
            (3) any failure, error or omission on the part of SGX-SPV.

            Amended on 15 September 2017.

          • 10.8.2

            The limitation of liability under Rule 10.8 includes any loss or damage arising in connection with:—

            (1) trading on the Foreign Market;
            (2) suspension, interruption, cancellation or closure of trading on the Foreign Market;
            (3) inoperability or malfunction of equipment, software or other product supplied to a Trading Member;
            (4) the installation, maintenance or removal of equipment, software or other product supplied to a Trading Member; or
            (5) the accuracy of information transmitted via the Exchange Link.

          • 10.8.3

            Rule 10.8 does not affect:—

            (1) rights against the Clearing Fund or Fidelity Fund; and
            (2) rights of a Foreign Exchange or Foreign Portal Dealer under any written agreement with SGX-SPV.

      • Chapter 10A — ASEAN Trading Linkage

        • 10A.1 Definitions

          • 10A.1.1

            In this Chapter:—

            “Originating Participant” means a Trading Member who is granted participation privileges by SGX-ST to the ASEAN Trading Linkage, for the execution of orders and trades on a market of a Foreign ASEAN Exchange as a customer of a member of such Foreign ASEAN Exchange.

            “Sponsoring Participant” means a Trading Member who is granted participation privileges by SGX-ST to the ASEAN Trading Linkage for the purposes of enabling its Sponsored Access customer to gain access to SGX-ST via the ASEAN Trading Linkage infrastructure.

            Added on 18 September 2012.

        • 10A.2 Application of Chapter

          • 10A.2.1

            A Trading Member who has been granted participation privileges by SGX-ST to the ASEAN Trading Linkage and its Trading Representatives are bound by this Chapter in respect of all activities undertaken in connection with the ASEAN Trading Linkage.

            Added on 18 September 2012.

        • 10A.3 Eligibility for Participation

          • 10A.3.1

            Any Trading Member may participate in the ASEAN Trading Linkage as an Originating Participant, subject to the provision of such information and documentation as SGX-ST may require.

            Added on 18 September 2012.

          • 10A.3.2

            A Trading Member may participate in the ASEAN Trading Linkage as a Sponsoring Participant if it is also a Clearing Member, subject to the provision of such information and documentation as SGX-ST may require.

            Added on 18 September 2012.

        • 10A.4 Compliance

          • 10A.4.1

            A Trading Member participating in the ASEAN Trading Linkage must, at all times, comply with these Rules and the Securities and Futures Act in carrying on its business in connection with the ASEAN Trading Linkage.

            Added on 18 September 2012.

          • 10A.4.2

            Without prejudice to the generality of Rule 10A.4.1, a Sponsoring Participant must comply with the requirements under these Rules applicable to the authorisation of Sponsored Access to its customer.

            Added on 18 September 2012.

          • 10A.4.3

            Without prejudice to the generality of Rule 10A.4.1, in trading for its customers via the ASEAN Trading Linkage, an Originating Participant must comply with all provisions in the Securities and Futures Act applicable to the conduct of its business.

            Added on 18 September 2012.

          • 10A.4.4

            Without prejudice to the generality of Rule 10A.4.1, in trading on a market of a Foreign ASEAN Exchange via the ASEAN Trading Linkage, an Originating Participant must comply with all provisions in the Securities and Futures Act applicable to market conduct on such markets.

            Added on 18 September 2012.

        • 10A.5 Available Markets

          • 10A.5.1

            SGX-ST may, at its discretion, determine the products listed or quoted on SGX-ST which may be available for trading via the ASEAN Trading Linkage.

            Added on 18 September 2012.

          • 10A.5.2

            The Foreign ASEAN Exchanges refers to such exchanges and market operators as SGX-ST may prescribe.

            Added on 18 September 2012.

          • 10A.5.3

            Unless prohibited or otherwise excluded by the Foreign ASEAN Exchanges, all products listed or quoted on the Foreign ASEAN Exchanges are available for trading via the ASEAN Trading Linkage.

            Added on 18 September 2012.

        • 10A.6 No Liability

          Amended on 15 September 2017.

          • 10A.6.1

            Without prejudice to Rule 2.4, none of SGX-ST, SGX RegCo, or their respective Directors, Officers, employees, representatives or agents shall be liable to a Trading Member or other person in respect of any loss or damage (including consequential loss or damage) which may be incurred, or arise directly or indirectly, in connection with:—

            (1) the ASEAN Trading Linkage;
            (2) inability to use ASEAN Trading Linkage; or
            (3) any failure, error or omission on the part of SGX-ST.

            Added on 18 September 2012 and amended on 15 September 2017.

          • 10A.6.2

            The limitation of liability under Rule 10A.6 includes any loss or damage arising in connection with:—

            (1) trading on any market of a Foreign ASEAN Exchange;
            (2) suspension, interruption, cancellation or closure of trading on any market of a Foreign ASEAN Exchange, or any product listed on such market;
            (3) inoperability or malfunction of equipment, software or other product supplied to a Trading Member;
            (4) the installation, maintenance or removal of equipment, software or other product supplied to a Trading Member; or
            (5) the accuracy of information transmitted via the ASEAN Trading Linkage.

            Added on 18 September 2012.

    • Section D — Regulatory Framework

      • Chapter 11 — Capital and Financial Requirements

        • 11.1 Definitions and Interpretation

          Amended on 29 December 2014.

          • 11.1.1

            In this Chapter,

            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
            "Adjusted net head office funds" has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements).
            "Aggregate indebtedness" has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements).
            "Aggregate resources" means
            (1) in the case of a Trading Member incorporated in Singapore, its financial resources and qualifying letters of credit referred to in Rule 11.4.6 less its total risk requirement; and
            (2) in the case of a Trading Member incorporated outside Singapore that holds a capital markets services licence, its adjusted net head office funds and qualifying letters of credit referred to in Rule 11.4.6 less its total risk requirement.
            "Average aggregate resources" means the average of the aggregate resources on the last day of each of the three months preceding the previous month.
            B
            "Base capital" has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements).
            C
            "Capital Markets Services Licence" has the meaning ascribed to it in the SFA.
            "Counterparty risk requirement" has the meaning ascribed to it in the Notice on Risk Based Capital Adequacy Requirements for Holders of Capital Markets Services Licences.
            E
            "Exchange" means SGX-ST or any other market or organisation (whether an exchange, association, body corporate or unincorporated or otherwise) responsible for administering a market in securities, commodities, options, derivatives or any other financial instrument whose contracts are cleared by, or novated to CDP.
            F
            "Financial resources" has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements).
            I
            "Irredeemable and Non-Cumulative Preference Share Capital" has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements).
            N
            "Net head office funds" has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements).
            "Net liquid capital" means the financial resources of a Trading Member that holds a licence specified in Rule 4.1.1(1)(b) computed under such methodology prescribed by SGX-ST.
            O
            "Operational risk requirement" has the meaning ascribed to it in the Notice on Risk Based Capital Adequacy Requirements for Holders of Capital Markets Services Licences.
            Q
            "Qualifying Letter of Credit" has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements).
            "Qualifying subordinated loan" has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements).
            R
            "Recognised group A securities exchange" means an overseas securities exchange regulated by a financial services regulatory authority of a country or territory specified in Table 4 of Fourth Schedule of the SFR (Financial and Margin Requirements).
            S
            [deleted] [deleted]
            "SFA" means the Securities and Futures Act (Cap. 289) or any subsidiary legislation promulgated under it or any statutory modification, amendment or re-enactment thereof for the time being in force, or any act or subsidiary legislation which may replace the SFA, and any reference to any provision of the SFA is to that provision as so modified, amended or re-enacted (or as contained in any subsequent act or legislation which may replace the SFA).
            "SFR (Financial and Margin Requirements)" means the Securities and Futures (Financial and Margin Requirements for Holders of Capital Markets Services Licences) Regulations or any statutory modification, amendment or re-enactment thereof for the time being in force, or any regulations which may replace the SFR (Financial and Margin Requirements), and any reference to any provision of the SFR (Financial and Margin Requirements) is to that provision as so modified, amended or re-enacted (or as contained in any subsequent regulations which may replace the SFR (Financial and Margin Requirements).
            "SGX-DC" means Singapore Exchange Derivatives Clearing Limited.
            "Singapore Government securities" means securities issued or proposed to be issued by the Government, and includes—
            (a) any debenture, stock or bond issued or proposed to be issued by the Government;
            (b) any right or option in respect of any debenture, stock or bond referred to in paragraph (a);
            (c) book-entry Government securities as defined in section 2 of the Development Loan (1987) Act (Cap. 81A) or section 2 of the Government Securities Act (Cap. 121A); and
            (d) book-entry Treasury Bills as defined in section 2 of the Local Treasury Bills Act (Cap. 167).
            T
            "Total risk requirement" has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements).

            Amended on 23 January 2009, 19 May 2014 and 29 December 2014.

          • 11.1.2

            Unless the context requires otherwise, where the terms defined in Rule 11.1.1 are defined in relation to a holder of a Capital Markets Services Licence, such definitions shall, with the necessary modifications, apply to a Trading Member, as those definitions apply to a holder of a Capital Markets Services Licence whether or not that Trading Member holds a Capital Markets Services Licence.

            Added on 29 December 2014.

        • 11.1A Financial Requirement for Trading Members

          • 11.1A.1

            The following requirements apply in relation to Trading Members:—

            (1) a Trading Member that holds a Capital Markets Services Licence shall at all times meet the base capital requirements prescribed under Rule 11.2;
            (2) a Trading Member that holds a licence specified in Rule 4.1.1(1)(b) shall at all times meet the net liquid capital requirements prescribed under Rule 11.2A; and
            (3) all Trading Members shall meet such capital, financial and other requirements that SGX-ST may impose under Rule 11.5.

            Added on 19 May 2014 and amended on 29 December 2014.

        • 11.2 Base Capital Requirement

          This Rule 11.2 shall apply to a Trading Member that holds a Capital Markets Services Licence.

          Amended on 19 May 2014 and 29 December 2014.

          • 11.2.1

            A Trading Member shall not cause or permit:—

            (1) where the Corporation is incorporated in Singapore, its base capital; or
            (2) where the Corporation is incorporated outside Singapore, its net head office funds,

            to fall below the base capital requirement.

            Amended on 29 December 2014.

          • 11.2.2

            The base capital requirement of:—

            (1) a Trading Member shall be at least $1 million,
            (2) a Clearing Member shall be at least $5 million,
            (3) a Clearing Member which is also a member of SGX-DC shall be at least $8 million.

          • 11.2.3

            If a Trading Member fails to comply or becomes aware that it will fail to comply with the base capital requirement prescribed under Rule 11.2, or such higher base capital requirement as SGX-ST may have imposed under Rule 11.5, it shall immediately notify SGX-ST.

          • 11.2.4

            Regardless whether or not there has been any notification by a Trading Member under Rule 11.2.3, if the base capital or net head office funds of the Trading Member, as the case may be, is/are below the base capital requirement prescribed under Rule 11.2 or such higher base capital requirement as SGX-ST may have imposed under Rule 11.5, it shall be deemed a breach of a provision of the SGX-ST Rules by the Trading Member. SGX-ST may refer the matter to the Disciplinary Committee, and may take such interim control measures, including but not limited to do all or any of the following, as SGX-ST deems fit and appropriate:—

            (1) require the Trading Member to operate its business subject to such restrictions or conditions as SGX-ST decides;
            (2) suspend the Trading Member for a period SGX-ST decides. The suspension may be announced to all Trading Members. During the suspension, the Trading Member:—
            (a) must not enter into a new transaction without the approval of SGX-ST;
            (b) remains liable to complete all contracts outstanding at the time of suspension. However, it must not deliver any securities or settle any transaction without the approval of SGX-ST.
            (3) require a Director to step down from day-to-day conduct of the business affairs of the Trading Member; and
            (4) appoint a person or persons (which may include a firm of auditors) as Manager to manage the business of the Trading Member. SGX-ST will fix the remuneration of the Manager, which must be paid by the Trading Member. The Trading Member is solely responsible for the Manager's acts and defaults. The Manager must carry out directions given by SGX-ST in relation to the business of the Trading Member, including carrying on the business of the Trading Member in accordance with instructions.

        • 11.2A Net Liquid Capital

          This Rule 11.2A shall apply to a Trading Member that holds a licence specified in Rule 4.1.1(1)(b).

          • 11.2A.1

            A Trading Member that holds a licence specified in Rule 4.1.1(1)(b) shall at all times maintain its net liquid capital above the net capital requirement.

            Added on 19 May 2014.

          • 11.2A.2

            The net liquid capital requirement of such Trading Member shall be not less than $1 million.

            Added on 19 May 2014.

          • 11.2A.3

            If a Trading Member fails to comply or becomes aware that it will fail to comply with the net liquid capital requirement prescribed under Rule 11.2A, or such higher net liquid capital requirement as SGX-ST may have imposed under Rule 11.5, it shall immediately notify SGX-ST.

            Added on 19 May 2014.

          • 11.2A.4

            Regardless whether or not there has been any notification by a Trading Member under Rule 11.2A.3, if the net liquid capital of the Trading Member is below the net liquid capital requirement prescribed under Rule 11.2A or such higher net liquid capital requirement as SGX-ST may have imposed under Rule 11.5, it shall be deemed a breach of a provision of the SGX-ST Rules by the Trading Member. SGX-ST 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 SGX-ST deems fit and appropriate:—

            (1) require the Trading Member to operate its business activities on SGX-ST subject to such restrictions or conditions as SGX-ST decides;
            (2) suspend the Trading Member's business activities on SGX-ST for a period SGX-ST decides. The suspension may be announced to all Trading Members. During the suspension, the Trading Member:—
            (a) must not enter into a new transaction without the approval of SGX-ST;
            (b) remains liable to complete all contracts outstanding at the time of suspension. However, it must not deliver any securities or settle any transaction without the approval of SGX-ST.
            (3) require a Director to step down from day-to-day conduct of the business affairs of the Trading Member on SGX-ST; or
            (4) appoint a person or persons (which may include a firm of auditors) as Manager to manage the business of the Trading Member on SGX-ST. SGX-ST will fix the remuneration of the Manager, which must be paid by the Trading Member. The Trading Member is solely responsible for the Manager's acts and defaults. The Manager must carry out directions given by SGX-ST in relation to the business of the Trading Member, including carrying on the business of the Trading Member in accordance with instructions.

            Added on 19 May 2014.

        • 11.3 Financial Resources Requirement

          This Rule 11.3 shall apply to a Trading Member that holds a Capital Markets Services Licence.

          Amended on 19 May 2014 and 29 December 2014.

          • 11.3.1

            A Trading Member shall not cause or permit:—

            (1) where it is incorporated in Singapore, its financial resources; or
            (2) where it is incorporated outside Singapore, its adjusted net head office funds,

            to fall below its total risk requirement.

            Amended on 29 December 2014.

          • 11.3.2

            Financial resources and adjusted net head office funds shall be calculated in the same manner as prescribed in Regulation 2 of the SFR (Financial and Margin Requirements).

            Amended on 29 December 2014.

          • 11.3.3

            Total risk requirement shall be calculated in the same manner as prescribed in the Notice on Risk Based Capital Adequacy Requirements for Holders of Capital Markets Services Licences.

            Amended on 29 December 2014.

          • 11.3.4 [Rule has been deleted.]

            Deleted on 29 December 2014.

          • 11.3.5

            If a Trading Member fails to comply or becomes aware that it will fail to comply with the financial resources requirement prescribed under Rule 11.3, or such higher financial resources requirement as SGX-ST may have imposed under Rule 11.5, it shall immediately notify SGX-ST.

          • 11.3.6

            Regardless whether or not there has been any notification by a Trading Member under Rule 11.3.5, if the financial resources or adjusted net head office funds of the Trading Member, as the case may be, are below the total risk requirement prescribed under Rule 11.3 or such higher percentage of the total risk requirement as SGX-ST may have imposed under Rule 11.5, it shall be deemed a breach of a provision of the SGX-ST Rules by the Trading Member. SGX-ST may refer the matter to the Disciplinary Committee, and may take such interim control measures, including but not limited to do all or any of the following, as SGX-ST deems fit and appropriate:—

            (1) require the Trading Member to operate its business subject to such restrictions or conditions as SGX-ST decides;
            (2) suspend the Trading Member for a period SGX-ST decides. The suspension may be announced to all Trading Members. During the suspension, the Trading Member:—
            (a) must not enter into a new transaction without the approval of SGX-ST;
            (b) remains liable to complete all contracts outstanding at the time of suspension. However, it must not deliver any securities or settle any transaction without the approval of SGX-ST.
            (3) require a Director to step down from day-to-day conduct of the business affairs of the Trading Member; and
            (4) appoint a person or persons (which may include a firm of auditors) as Manager to manage the business of the Trading Member. SGX-ST will fix the remuneration of the Manager, which must be paid by the Trading Member. The Trading Member is solely responsible for the Manager's acts and defaults. The Manager must carry out directions given by SGX-ST in relation to the business of the Trading Member, including carrying on the business of the Trading Member in accordance with instructions.

          • 11.3.7 Early Warning Requirement on Financial Resources

            A Trading Member shall immediately notify SGX-ST if:—

            (1) in the case where the Trading Member is incorporated in Singapore, its financial resources; or
            (2) in the case where the Trading Member is incorporated outside Singapore, its adjusted net head office funds,

            fall below 120% of its total risk requirement.

          • 11.3.8

            If SGX-ST is notified by a Trading Member under Rule 11.3.7 or becomes aware (whether or not there has been any notification by the Trading Member under Rule 11.3.7) that the Trading Member's financial resources or adjusted net head office funds, as the case may be, have fallen or will fall below 120% of its total risk requirement, or such higher percentage as SGX-ST may have imposed under Rule 11.5, SGX-ST shall be entitled to require the Trading Member to comply with any or all of the directions prescribed under Regulation 7(3) of the SFR (Financial and Margin Requirements).

          • 11.3.9 Notification Requirement on Financial Resources

            A Trading Member shall immediately notify SGX-ST if:—

            (1) in the case where the Trading Member is incorporated in Singapore, its financial resources; or
            (2) in the case where the Trading Member is incorporated outside Singapore, its adjusted net head office funds,

            fall below 150% of its total risk requirement.

          • 11.3.10

            If SGX-ST is notified by a Trading Member under Rule 11.3.9 or becomes aware (whether or not there has been any notification by the Trading Member under Rule 11.3.9) that the Trading Member's financial resources or adjusted net head office funds, as the case may be, have fallen or will fall below 150% of its total risk requirement, or such higher percentage as SGX-ST may have imposed under Rule 11.5, SGX-ST shall be entitled to require the Trading Member to:—

            (1) submit the statements of assets and liabilities, financial resources, total risk requirement, aggregate indebtedness, and such other statements as required by SGX-ST at such interval and for such time frame as determined by SGX-ST; and
            (2) operate its business in such manner and on such conditions as SGX-ST may impose.

          • 11.3.11 [Rule has been deleted.]

            Deleted on 29 December 2014.

        • 11.4 Aggregate Indebtedness Requirement

          This Rule 11.4 shall apply to a Trading Member that holds a Capital Markets Services Licence.

          Amended on 19 May 2014 and 29 December 2014.

          • 11.4.1

            A Trading Member shall not cause or permit its aggregate indebtedness to exceed 1200% of its aggregate resources.

          • 11.4.2

            If a Trading Member fails to comply or becomes aware that it will fail to comply with the aggregate indebtedness requirement prescribed under Rule 11.4, or such lower percentage of aggregate indebtedness over aggregate resources as SGX-ST may have imposed under Rule 11.4, it shall immediately notify SGX-ST.

          • 11.4.3

            Regardless of whether or not there has been any notification by a Trading Member under Rule 11.4.2, if the aggregate indebtedness of the Trading Member exceeds 1200% of its aggregate resources prescribed under Rule 11.4, or such lower percentage of aggregate indebtedness over aggregate resources as SGX-ST may have imposed under Rule 11.5, it shall be deemed a breach of a provision of the SGX-ST Rules by the Trading Member. SGX-ST may refer the matter to the Disciplinary Committee, and may take such interim control measures, including but not limited to do all or any of the following, as SGX-ST deems fit and appropriate:—

            (1) require the Trading Member to operate its business subject to such restrictions or conditions as SGX-ST decides;
            (2) suspend the Trading Member for a period SGX-ST decides. The suspension may be announced to all Trading Members. During the suspension, the Trading Member:—
            (a) must not enter into a new transaction without the approval of SGX-ST;
            (b) remains liable to complete all contracts outstanding at the time of suspension. However, it must not deliver any securities or settle any transaction without the approval of SGX-ST.
            (3) require a Director to step down from day-to-day conduct of the business affairs of the Trading Member; and
            (4) appoint a person or persons (which may include a firm of auditors) as Manager to manage the business of the Trading Member. SGX-ST will fix the remuneration of the Manager, which must be paid by the Trading Member. The Trading Member is solely responsible for the Manager's acts and defaults. The Manager must carry out directions given by SGX-ST in relation to the business of the Trading Member, including carrying on the business of the Trading Member in accordance with instructions.

          • 11.4.4 Early Warning for Aggregate Indebtedness Requirement

            A Trading Member shall immediately notify SGX-ST if its aggregate indebtedness exceeds 600% of its aggregate resources.

          • 11.4.5

            If SGX-ST is notified by a Trading Member under Rule 11.4.4 or becomes aware (whether or not there has been any notification by the Trading Member under Rule 11.4.4) that the Trading Member's aggregate indebtedness has exceeded or will exceed 600% of its aggregate resources, or such lower percentage as SGX-ST may have imposed under Rule 11.5, SGX-ST shall be entitled to require the Trading Member to comply with any or all of the directions prescribed under Regulation 17(2) of the SFR (Financial and Margin Requirements).

          • 11.4.6 Qualifying Letter of Credit

            (1) For the purpose of Rule 11.4, a Trading Member may include 1 or more Qualifying Letter(s) of Credit in its calculation of aggregate resources, subject to the total amount payable under the Qualifying Letter(s) of Credit or 50% of the Trading Member's total risk requirement, whichever is lower.
            (2) For the purpose of Rule 11.4.6(1), a Qualifying Letter of Credit is a legally enforceable and irrevocable letter of credit that is made:—
            (a) (i) in the case of a Trading Member who is not a Clearing Member, in favour of SGX-ST; or (ii) in the case of a Trading Member who is also a Clearing Member, in favour of CDP; and
            (b) issued by a bank approved by, and in a form acceptable to SGX-ST or CDP, as the case may be;
            but does not include any letters of credit provided by the Clearing Member to satisfy Rule 7 of the Clearing Rules of CDP or any other requirement imposed by CDP.
            (3) SGX-ST shall reserve the right to call on any of the letter(s) of credit made in favour of SGX-ST pursuant to Rule 11.4.6 and apply the proceeds thereof in respect of the Trading Member's default to SGX-ST.

            Added on 29 December 2014.

        • 11.5 Powers to Impose Other Requirements

          • 11.5.1

            SGX-ST may prescribe for 1 or more Trading Members, capital, financial and other requirements in excess of the minimum prescribed under Chapter 11 herein on the basis of volume, risk exposure of positions carried, risk concentration, margin policies, nature of business conducted or to be conducted or its membership in any exchange or market and such other criteria as deemed necessary by SGX-ST.

        • 11.6 [Rule has been deleted.]

          Deleted on 30 May 2007.

        • 11.7 Exposure to Single Customer

          This Rule 11.7 shall apply to a Trading Member that holds a Capital Markets Services Licence.

          Amended on 19 May 2014 and 29 December 2014.

          • 11.7.1

            A Trading Member shall immediately notify SGX-ST if the Trading Member's exposure to a single customer exceeds 20% of its average aggregate resources. To reduce the Trading Member's risk exposure to a single customer, SGX-ST shall have the right to impose on the Trading Member such risk management measures as it deems necessary.

          • 11.7.2

            For the purpose of Rule 11.7.1, the full amount of the letter(s) of credit or any part thereof deposited pursuant to Rule 11.4.6 may be taken into account for the calculation of aggregate resources.

            Amended on 29 December 2014.

          • 11.7.3

            In this Rule, "exposure to a single customer" means:—

            (1) in the case of securities carried in a customer's account (other than a margin financing account) carried on the books of a Trading Member::—
            (a) for purchase contracts that remain unpaid:—
            (i) where the securities purchased have not been delivered to the customer, the excess of the contracted price of the securities purchased by the single customer over the aggregate market value of the securities purchased and such other collateral, as prescribed by SGX-ST, which is held by the Trading Member less any amount due and payable by the Trading Member to him; and
            (ii) where the securities purchased have been delivered to the customer, the excess of the contracted price of the securities purchased by the single customer over the aggregate market value of all his collateral, as prescribed by SGX-ST, which is held by the Trading Member less any amount due and payable by the Trading Member to him;
            (b) for sale contracts for which delivery has not been made, the excess of the amount of the market value of the securities sold by the single customer over the aggregate of the market value of any of his collateral, as prescribed by SGX-ST, which is held by the Trading Member and the contracted sale price less any amount due and payable by the Trading Member to him;
            (c) where the contracts referred to in Rule 11.7.3(1)(a) or (b) have been offset by a contra transaction on or before the due date, the exposure shall not include those amounts specified in Rule 11.7.3(1) (a) or (b) in respect of such contracts but shall instead include the amount of the contra loss, if any, on the date on which the contra transaction takes effect; and
            (d) where the contracts referred to in Rule 11.7.3(1)(a) or (b) have been offset by a force-sale or buying-in transaction after the due date, the exposure shall not include those amounts specified in Rule 11.7.3(1) (a) or (b) in respect of such contracts but shall instead include the amount of the loss, if any, arising from the force-sale or buying-in transaction, on the date on which the transaction takes effect;
            (1A) for the purposes of Rule 11.7.3(1) "securities" includes structured warrants;
            (2) the amount of margin deficiency in the single customer's margin financing account carried on the books of the Trading Member as determined in accordance with the margin requirements specified by SGX-ST;
            (3) the amount of margin deficiency in the single customer's options margin account carried on the books of the Trading Member as determined in accordance with the option margin requirements specified by SGX-ST;
            (4) the excess of the amount owed by the single customer in his options trading account carried on the books of the Trading Member over the market value of options held;
            (5) the amount of any unsecured interest owed by the single customer;
            (6) the amount of any unsecured loan, advance and credit facility granted to the single customer;
            (7) where the Trading Member has lent securities to the single customer or is acting as guarantor for the return of securities lent to the single customer, the excess of the amount of the market value of the securities lent to the single customer over the amount of the market value of collateral and cash deposited by the single customer;
            (8) where the Trading Member has deposited collateral with the single customer in respect of securities lent by the single customer or is acting as guarantor for the return of collateral deposited with the single customer in respect of any securities lent by him, the excess of the amount of the market value of collateral and cash deposited with the single customer over the amount of the market value of securities lent by him; and
            (9) the amount of deficiency in relation to margins required in any account of the single customer carried on the books of the Trading Member as determined in accordance with the margin requirements prescribed by the relevant exchange, clearing house or other such relevant financial institution.

            Amended on 3 April 2008, 23 January 2009 and 1 July 2016.

          • 11.7.4

            For the purposes of Rule 11.7.3, a security or futures contract is deemed to be carried in a customer's account (other than a margin account) carried on the books of the Trading Member on the contract date specified in the contract note in respect of the transaction in that security or futures contract or on the exercise date specified in the exercise notice in respect of an option in that security which has been exercised.

            Amended on 23 January 2009 and 1 July 2016.

          • 11.7.5

            In this Rule:—

            "single customer" means, in relation to a customer who is:—

            (1) a person, that person and such group of persons who the first-mentioned person is able to control or influence;
            (2) a Corporation, that Corporation and any other Corporation or group of Corporations which is or are deemed to be related to the first-mentioned Corporation pursuant to section 4(1) of the Companies Act; or
            (3) a person, that person
            (a) and any Corporation whose issued share capital is 50% or more owned by those persons mentioned in Rule 11.7.5(1) or those Corporations mentioned in Rule 11.7.5(2); or
            (b) and any Corporation whose composition of board of directors is controlled by those persons mentioned in Rule 11.7.5(1); and for this purpose the composition of the board of directors shall be deemed to be controlled by those persons, if they, by the exercise of some power exercisable by them without the consent or concurrence or any other person, can appoint or remove all or a majority of the directors of that Corporation,
            but shall not include the Trading Member itself.

        • 11.7A Other Requirements for Exposure to Single Customer

          • 11.7A.1

            This Rule 11.7A shall apply to a Trading Member that holds a licence specified in Rule 4.1.1(1)(b). Such Trading Member shall have in place adequate tools and procedures to monitor its exposure to a single customer. SGX-ST shall have the right to require such Trading Member to demonstrate the adequacy of such tools and procedures as it deems necessary.

            Added on 19 May 2014.

          • 11.7A.2

            The Trading Member shall immediately notify SGX-ST if the Trading Member's exposure to a single customer exceeds its internal threshold.

            Added on 19 May 2014.

          • 11.7A.3

            In this Rule 11.7A, "single customer" and "exposure to a single customer" shall have the meaning ascribed to it in Rule 11.7.

            Added on 19 May 2014.

        • 11.8 Exposure to Single Security

          This Rule 11.8 shall apply to a Trading Member that holds a Capital Markets Services Licence.

          Amended on 19 May 2014 and 29 December 2014.

          • 11.8.1

            A Trading Member shall immediately notify SGX-ST if the Trading Member's exposure to a single security exceeds:—

            (1) in the case where the security is quoted on SGX-ST or any recognised group A securities exchange, 300% of its average aggregate resources;
            (2) in all where the security is quoted other than as specified in Rule 11.8.1(1), 100% of its average aggregate resources;
            (3) in the case where the security is approved for quotation on SGX-ST or any recognised group A securities exchange but has not, as yet, been so quoted:—
            (a) 100% of the average aggregate resources of the Trading Member if its aggregate resources is less than $75 million; or
            (b) 150% of the average aggregate resources of the Trading Member if its aggregate resources is $75 million or more,
            Provided that the exposure under Rule 11.8.1(3) together with the exposure, if any, to securities already quoted, shall not exceed the limit specified in Rule 11.8.1(1); and
            (4) 10% of its average aggregate resources if the security is unquoted, but shall not include any security issued by:—
            (a) any subsidiary of the Trading Member which is established solely for the purpose of providing research, nominee, custodian or trustee services; or
            (b) any other company which SGX-ST may approve.

          • 11.8.2

            To reduce a Trading Member's risk exposure to a single security, SGX-ST shall have the right to impose on the Trading Member such risk management requirements as it thinks fit.

          • 11.8.3

            For the purpose of Rule 11.8.1, the full amount of the letter(s) of credit or any part thereof deposited pursuant to Rule 11.4.6 may be taken into account for the calculation of aggregate resources.

            Amended on 29 December 2014.

          • 11.8.4

            For the purpose of Rule 11.8.1, "exposure to a single security" means:—

            (1) the amount of the single security underwritten or sub-underwritten by or placed with a Trading Member, after deducting the amount which the Trading Member has sub-underwritten or placed 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);
            (d) a company or society registered under the Insurance Act (Cap. 142) to carry on insurance business as an insurer;
            (e) the holder of a Capital Markets Services Licence under the Securities and Futures Act to deal in securities, or trade in futures contracts or for fund management;
            (f) a financial institution outside Singapore which is licensed or regulated by a financial services regulatory authority in the country in which it is domiciled, and has a long-term credit rating of investment grade; and
            (g) any other person, provided that:—
            (i) full payment has been received by the Trading Member for the sub-underwritten, placed, sold or allotted amount; or
            (ii) the sub-underwritten, placed, sold or allotted amount can be offset against collateral received by the Trading Member under a netting agreement.
            (2) the book value of the single security carried long or the market value of the single security carried short in a Trading Member's own account carried on the books of the Trading Member;
            (3) for outstanding options in the single security carried in a Trading Member's own options trading account carried on the books of the Trading Member:—
            (a) the book value of options bought for the account;
            (b) the excess of the market value of the underlying security over the exercise price of uncovered call options written for the account; and
            (c) the excess of the exercise price of put options written for the account over the market value of the underlying security;
            (4) in relation to the single security carried in a customer's cash account carried on the books of the Trading Member, the contract value of the single security to the extent that such amounts have not been paid for, or the market value of the single security to the extent that such securities have not been delivered, whichever is the higher;
            (5) for outstanding options in the single security carried in a customer's options trading account carried on the books of the Trading Member:—
            (a) the contract value of the options bought by the customer to the extent that such amounts have not been paid for;
            (b) the excess of the market value of the underlying security over the exercise price of uncovered call options written by the customer; and
            (c) the excess of the exercise price of put options written by the customer over the market value of the underlying security;
            (6) the net amount of the single security borrowed or lent, as the case may be, by a Trading Member;
            (7) in relation to the single security bought or carried, or deposited as collateral in the margin financing accounts carried on the books of the Trading Member, the margin exposure of a Trading Member to the single security as determined in accordance with the margin financing requirements prescribed by SGX-ST;
            (8) the amount of interest receivable secured by the single security;
            (9) the amount of loans and advances secured by the single security; and
            (10) the amount under subscription by a Trading Member for its own account carried on the books of the Trading Member in relation to the single security which is approved for quotation on SGX-ST or any recognised group A securities exchange but has not, as yet, been so quoted.

            Amended on 23 January 2009, 29 December 2014 and 1 July 2016.

          • 11.8.5

            For the purposes of this Rule, a security is deemed to be carried in a customer's cash account or a Trading Member's own account (such account being an account carried on the books of the Trading Member) on the contract date specified in the contract note in respect of the transaction in that security or on the exercise date specified in the exercise notice in respect of an option in that security which has been exercised.

            Amended on 1 July 2016.

          • 11.8.6

            For the purposes of this Rule, in calculating exposure in any particular security, all outstanding options exercisable into that security shall be included in such computation.

          • 11.8.6A

            For the purposes of Rule 11.8.4(2) and Rule 11.8.4(4), in calculating exposure in any particular security, all futures contracts with that security as an underlying shall be included in such computation.

            Added on 3 April 2008.

          • 11.8.7

            This Rule shall not apply to:—

            (1) securities issued by the Singapore Government or any public authority in Singapore; and
            (2) a Trading Member's arbitrage transactions.

          • 11.8.8

            For the purposes of this Rule, where a security quoted on SGX-ST or any recognised group A securities exchange has been suspended for more than 30 consecutive days, a Trading Member shall not permit its exposure to the security to increase in monetary value above the level subsisting on the thirtieth consecutive day of suspension until such time that the suspension has been lifted.

          • 11.8.9

            In this Rule:—

            "single security" includes ordinary and preference shares, loan stocks, company warrants, structured warrants, transferable subscription rights, bonds, debentures, depository receipts, options and any other debt instruments or equity securities.

            Amended on 3 April 2008.

        • 11.8A Other Requirements for Exposure to Single Security

          • 11.8A.1

            This Rule 11.8A shall apply to a Trading Member that holds a licence specified in Rule 4.1.1(1)(b). Such Trading Member shall have in place adequate tools and procedures to monitor its exposure to a single security. SGX-ST shall have the right to require such Trading Member to demonstrate the adequacy of such tools and procedures as it deems necessary.

            Added on 19 May 2014.

          • 11.8A.2

            The Trading Member shall immediately notify SGX-ST if the Trading Member's exposure to a single security exceeds its internal threshold.

            Added on 19 May 2014.

          • 11.8A.3

            In this Rule 11.8A, "single security" and "exposure to a single security" shall have the meaning ascribed to it in Rule 11.8.

            Added on 19 May 2014.

        • 11.9 Margin Financing

          • 11.9.1

            Subject to the margin financing requirements of this Rule, a Trading Member who is licensed to conduct securities margin financing may extend credit facilities to approved customers for securities transactions.

            Amended on 23 January 2009.

          • 11.9.1A

            (1) In the case of a Trading Member that holds a Capital Markets Services Licence, Rules 11.9.2 to 11.9.16 shall apply; and
            (2) in the case of a Trading Member that holds a licence specified in Rule 4.1.1(1)(b), such requirements as may be prescribed by the Relevant Regulatory Authority shall apply. The Trading Member shall immediately notify SGX-ST on any changes to such requirements. Where no such requirements have been prescribed by the Relevant Regulatory Authority, Rules 11.9.2 to 11.9.16 shall apply. Notwithstanding the foregoing, SGX-ST shall have the discretion to prescribe additional requirements.

            Added on 19 May 2014 and amended on 29 December 2014.

          • 11.9.2

            Margin financing arrangements shall be evidenced in the form of a written agreement executed between the Trading Member and the customer.

            Amended on 23 January 2009.

          • 11.9.3

            A customer who operates a margin financing account with a Trading Member (such account being an account carried on the books of the Trading Member) shall authorise the Trading Member to mortgage, pledge or hypothecate the customer's securities or property for a sum not exceeding the debit balance in the margin financing account and without obligation to retain in its possession or control securities of like character. The Trading Member shall also be given the discretion to sell or dispose of any or all the securities in any manner in order to meet with the prescribed margin financing requirements.

            Amended on 23 January 2009 and 1 July 2016.

          • 11.9.4

            A Trading Member shall not cause or permit any new transaction made in a customer's margin financing account (such account being an account carried on the books of the Trading Member) unless the resulting equity in the account is not less than 140% of the debit balance, or the Trading Member has required the customer to deposit margin in the margin financing account within 2 Market Days from the date of securities transaction to bring the equity to not less than 140% of the debit balance.

            Amended on 23 January 2009 and 1 July 2016.

          • 11.9.5

            The margin deposited by customers with the Trading Member shall be in the form of acceptable collateral and such other instruments as SGX-ST may from time to time prescribe.

            Amended on 10 November 2006.

          • 11.9.6

            (1) A Trading Member shall not cause or permit the equity in a customer's margin financing account (such account being an account carried on the books of the Trading Member) to fall to or below 110% of the debit balance in the customer's margin financing account, unless the Trading Member has immediately required the customer to provide additional margin in the margin financing account within 2 Market Days from the date of notice to increase the equity in the customer's margin financing account to more than 110% of the debit balance in the customer's margin financing account.
            (2) Where the equity in a customer's margin financing account falls to or below 110% of the debit balance in his margin financing account, and that the customer has failed to provide additional margin to increase the equity in his margin financing account to more than 110% of the debit balance in his margin financing account within the prescribed time frame referred to in Rule 11.9.6(1), a Trading Member shall have discretion, including, where appropriate, liquidating the margin financing account including the acceptable collateral deposited to bring the equity to more than 110% of the debit balance without notice to the customer.

            Amended on 10 November 2006, 23 January 2009 and 1 July 2016.

          • 11.9.7 [Rule has been deleted.]

            Deleted on 14 November 2005.

          • 11.9.8

            A Trading Member shall cause daily review to be made of all margin financing accounts carried on the books of the Trading Member to ensure that credit is not over-extended beyond the approved facility and that the margin financing requirements prescribed above are met at all times. For the purpose of computing margin financing requirements in a margin financing account, the last done price of the security on the preceding Market Day, or in the case of a Prescribed Security, the closing price of the Prescribed Security on the preceding Market Day, shall be used. All transactions done on the same day shall be combined on a transaction date basis and the total cost of purchase or the net proceeds of sale including any commission charged and other expenses shall be taken into account for computing margin financing requirements.

            Amended on 23 January 2009, 24 February 2014 and 1 July 2016.

          • 11.9.9

            A Trading Member shall have the discretion to impose higher margin financing requirements on any of its customers.

            Amended on 23 January 2009.

          • 11.9.10

            A customer may withdraw cash or securities from his margin financing account carried on the books of his Trading Member provided that the equity in his account does not fall to 140% of the debit balance or less.

            Amended on 23 January 2009 and 1 July 2016.

          • 11.9.11

            A Trading Member shall not cause or permit:—

            (1) the aggregate of the margin exposures in the margin financing accounts of all customers (such accounts being accounts carried on the books of the Trading Member) to exceed 300%, or such other percentage as SGX-ST may allow, of its free financial resources;
            (2) the aggregate of the margin exposures in the margin financing accounts of all customers in respect of securities, other than securities quoted on SGX-ST, to exceed 100%, or such other percentage as SGX-ST may allow, of its free financial resources; and
            (3) the debit balance in each customer's margin financing account to exceed 20%, or such other percentage as SGX-ST may allow, of its free financial resources.

            Amended on 12 October 2005, 23 January 2009 and 1 July 2016.

          • 11.9.12 [Rule has been deleted.]

            Deleted on 12 October 2005.

          • 11.9.13

            All transactions in a margin account carried on the books of the Trading Member shall be on an immediate or a ready basis. The margin account shall not be used to subscribe for new issue of securities, or to meet margin requirements in respect of Marginable Futures Contracts.

            Amended on 23 January 2009 and 1 July 2016.

          • 11.9.14

            In computing the market value of securities bought and carried in a customer's margin financing account (such account being an account carried on the books of the Trading Member) and the market value of securities deposited as collateral by the margin customer, the Trading Member shall apply such applicable discounts as SGX-ST may prescribe from time to time.

            Amended on 23 January 2009 and 1 July 2016.

          • 11.9.15

            SGX-ST shall have the absolute discretion to vary any or all of the margin financing requirements stipulated in Rule 11.9, and impose such other requirements for margin financing transactions from time to time as it deems fit and appropriate.

            Amended on 23 January 2009.

          • 11.9.16

            In this Rule:—

            Term Meaning
            "debit balance" has the meaning ascribed to it in Regulation 24(6) of the SFR (Financial and Margin Requirements).
            "equity" has the meaning ascribed to it in Regulation 24(6) of the SFR (Financial and Margin Requirements).
            "free financial resources" has the meaning ascribed to it in Regulation 24(6) of the SFR (Financial and Margin Requirements).
            "acceptable collateral" has the meaning ascribed to it in Regulation 24(6) of the SFR (Financial and Margin Requirements).
            "margin exposure" has the meaning ascribed to it in Regulation 24(6) of the SFR (Financial and Margin Requirements).

            Amended on 12 October 2005 and 10 November 2006.

        • 11.10 Submission of Returns

          Amended on 19 May 2014.

          • 11.10.1

            A Trading Member shall submit to SGX-ST financial returns as follows:

            (1) in the case of a Trading Member that holds a Capital Markets Services Licence, submit by the 14th calendar day of each month statements of assets and liabilities, base capital, financial resources, total risk requirement, aggregate indebtedness;
            (2) in the case of a Trading Member that holds a licence specified in Rule 4.1.1(1)(b), submit by the 14th calendar day of each month financial returns based on such computation methodology and in the form prescribed by SGX-ST; and
            (3) and such other statements as SGX-ST may from time to time require in the format specified by SGX-ST.

            Refer to SGX Data Submission Website (https://esub.sgx.com) for the submission template.

            Amended on 3 January 2007, 19 May 2014 and 29 December 2014.

          • 11.10.2

            Where a Trading Member fails to submit the statements required in Rule 11.10.1 within the prescribed time, there shall be imposed upon the Trading Member a late fee of $100 for each day that the statements are not submitted in the prescribed time, unless an extension of time has been granted.

          • 11.10.3

            Requests for extension of time shall be submitted to SGX-ST at least 3 Market Days prior to the due date for submission of the statements.

          • 11.10.4

            A Trading Member shall be required to resubmit the statements and documents prescribed under Rule 11.10.1 and take such other steps as SGX-ST may require upon SGX-ST's notification that the statements and documents are inaccurate or incomplete.

        • 11.11 Annual Financial Audit

          • 11.11.1

            A Trading Member shall:

            (1) in the case of a Trading Member that holds a Capital Markets Services Licence, obtain the written approval of SGX-ST in the event of any change of its existing external auditor; and
            (2) in the case of a Trading Member that holds a licence specified in Rule 4.1.1(1)(b), notify SGX-ST at least seven (7) days prior to any change of its existing external auditor. The Trading Member shall appoint external auditors that are accepted by its Relevant Regulatory Authority.

            Amended on 19 May 2014 and 29 December 2014.

          • 11.11.1A

            If SGX-ST is not satisfied with the performance of duties by an external auditor appointed by a Trading Member in relation to the Trading Member's activities on SGX-ST, it may:

            (i) at any time direct the Trading Member to remove the external auditor; and
            (ii) direct the Trading Member, as soon as practicable thereafter, to appoint another external auditor.

            Added on 19 May 2014.

          • 11.11.2

            A Trading Member shall, within 5 months after the close of the financial year, furnish to SGX-ST the following information:

            (1) relevant forms in respect of its annual financial audit which a Trading Member is required to lodge with its Relevant Regulatory Authority, translated into English, and as prescribed by SGX-ST. In the case of a Trading Member who holds a Capital Markets Services Licence, the forms shall be in the prescribed format under Regulation 27(9) of the SFR (Financial and Margin Requirements);
            (2) audited accounts of the Trading Member and its subsidiaries; and
            (3) a Certificate, signed by the auditor appointed by the Trading Member to carry out an annual financial audit, stating, at a minimum:—
            (a) whether, in the opinion of the auditor, the Trading Member has complied with the relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities, or in the case of a Trading Member that holds a Capital Markets Services Licence, financial requirements as set out in the SGX-ST Rules and SFR (Financial and Margin Requirements);
            (b) whether, in the opinion of the auditor, the Trading 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 the provisions of the SGX-ST Rules relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities, or in the case of a Trading Member that holds a Capital Markets Services Licence, and the SFA;
            (c) whether, in the opinion of the auditor, the financial position of the Trading Member is such as to enable it to conduct its business on sound lines, 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
            (d) whether the auditor has obtained all the necessary information and explanations for the proper conduct of the audit and to enable the auditor to furnish the Certificate.

            Amended on 12 October 2005, 19 May 2014 and 29 December 2014.

          • 11.11.3

            Where, in the performance of his duties, the Trading Member's auditor becomes aware:—

            (1) of any matter which in his opinion adversely affects or may adversely affect the financial position of the Trading Member to a material extent,
            (2) of any matter which in his opinion constitute or may constitute a contravention breach of any provision of the SFA or any other relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities, or an offence involving fraud or dishonesty,
            (3) of any irregularity that has or may have a material effect upon the accounts, including irregularities that jeopardise the moneys or other assets of any customer of the Trading Member, or
            (4) that the accounting system, internal accounting control and procedures for safeguarding moneys or other assets are inadequate and the inadequacies have a material effect on the accounts,

            the auditor shall immediately report the matter to SGX-ST.

            Amended on 19 May 2014.

          • 11.11.4

            (1) Where a Trading Member fails to submit the documents pursuant to Rule 11.11.2 within the specified time, there may be imposed upon that Trading Member a fee of $200 for each day that the statements are not submitted within the prescribed time, unless an extension of time has been granted.
            (2) Requests for extension of time shall be submitted to SGX-ST at least 3 Market Days prior to the due date.

        • 11.12 Provision in Annual Accounts

          • 11.12.1

            A Trading Member which is incorporated in Singapore shall make such provisions in its annual accounts as SGX-ST may from time to time require.

          • 11.12.2 [Rule has been deleted.]

            Deleted on 20 June 2005.

          • 11.12.3 [Rule has been deleted.]

            Deleted on 20 June 2005.

        • 11.13 Other Financial Requirements

          • 11.13.1 Reduction in Paid-Up Ordinary Share Capital or Paid-Up Irredeemable and Non-Cumulative Preference Share Capital

            A Trading Member which is incorporated in Singapore 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 SGX-ST.

            Amended on 10 November 2006 and 29 December 2014.

          • 11.13.2 Preference Shares

            (1) A Trading Member which is incorporated in Singapore shall notify SGX-ST prior to the issue of any preference share.
            (2) A Trading Member which is incorporated in Singapore shall not repay the principal of any preference share (other than any paid-up irredeemable and non-cumulative preference share capital) that is computed as part of its financial resources, through repurchase or redemption:—
            (a) unless the Trading Member notifies SGX-ST within such time before the proposed date of repurchase or redemption as prescribed by the SFR (Financial and Margin Requirements);
            (b) if at the date of repurchase or redemption:—
            (i) its financial resources is less than 150% of its total risk requirement; or
            (ii) its aggregate indebtedness exceeds 600% of its aggregate resources;
            (c) if such repurchase or redemption will cause an event in Rule 11.13.2(2)(b) above to occur; or
            (d) if SGX-ST has prohibited in writing such a repurchase or redemption.

            Amended on 29 December 2014.

          • 11.13.3 Qualifying Subordinated Loan

            (1) A Trading Member shall obtain the prior approval of SGX-ST if it enters a subordinated loan agreement in a format other than the format prescribed by SGX-ST from time to time.
            (2) Where a Trading Member draws down a qualifying subordinated loan, the Trading Member shall notify SGX-ST no later than the date of draw down of the qualifying subordinated loan.
            (3) A Trading Member shall not repay, whether in part or in full, any subordinated loan principal before the maturity date without the prior approval of SGX-ST.
            (4) A Trading Member shall not repay, whether in part or in full, any subordinated loan principal that has matured:—
            (a) unless the Trading Member notifies SGX-ST at least 1 Market Day before the date of repayment;
            (b) if its financial resources is less than 150% of its total risk requirement;
            (c) if its aggregate indebtedness exceeds 600% of its aggregate resources;
            (d) if such a repayment will cause an event in Rule 11.13.3(4)(b) or (c) to occur; or
            (e) if SGX-ST has prohibited in writing such a repayment.

            Amended on 29 December 2014.

          • 11.13.4 Making of Unsecured Loan or Advance, Payment of Dividend or Director's Fees or Increase in Director's Remuneration

            A Trading Member shall not, without the prior written approval of SGX-ST, make any unsecured loan or advance, pay any dividend or director's fees or increase any director's remuneration if:—

            (1) in the case where the Trading Member is incorporated in Singapore:—
            (a) its base capital is less than the base capital requirement as prescribed in Rules 11.2 and 11.5;
            (b) its financial resources is less than 150% of its total risk requirement;
            (c) its aggregate indebtedness exceeds 600% of its aggregate resources;
            (d) such a loan, advance, payment or increase will cause an event in Rule 11.13.4(1)(a), (b) or (c) to occur; or
            (2) in the case where the Trading Member is incorporated outside Singapore:—
            (a) its net head office funds is less than the base capital requirement as prescribed in Rules 11.2 and 11.5;
            (b) its adjusted net head office funds is less than 150% of its total risk requirement;
            (c) its aggregate indebtedness exceeds 600% of its aggregate resources;
            (d) such a loan, advance, payment or increase will cause an event in Rule 11.13.4(2)(a), (b) or (c) to occur.

            Amended on 29 December 2014.

          • 11.13.5

            Rules 11.13.1 to 11.13.4 shall not apply to a Trading Member that holds a licence specified in Rule 4.1.1(1)(b). Such a Trading Member shall notify the Exchange immediately of any actions taken relating to:

            (1) any reduction in paid-up ordinary share capital;
            (2) any issue of any preference share;
            (3) the entry into a subordinated loan agreement in a format other than the format prescribed by SGX-ST from time to time, drawing down on a qualifying subordinated loan or repayment whether in part or in full, any subordinated loan principal before or upon maturity;
            (4) the making of any unsecured loan, advance, payment of dividend or director's fees or increase in director's remuneration, if its net liquid capital requirement is less than its net liquid capital requirement as prescribed in Rule 11.2A or such action will cause its net liquid capital requirement to be less than its net liquid capital requirement; or
            (5) that which has or may have a financial or capital impact on the Trading Member and required to be reported to the Relevant Regulatory Authority.

            Added on 19 May 2014.

        • 11.14 Register of Connected Persons

          • 11.14.1

            A Trading Member that holds a Capital Markets Services Licence licence shall keep a register of its directors and their connected persons. For the purpose of this Rule, a "connected person" has the meaning ascribed to it in Section 2 of the SFA.

            Amended on 19 May 2014 and 29 December 2014.

      • Chapter 12 — Operational Requirements

        • 12.1 Records

          • 12.1.1

            A Trading Member, Director or Trading Representative must:—

            (1) maintain complete and accurate records and audit trails to evidence compliance with
            (a) in the case of a Trading Member that holds a Capital Markets Services Licence, the Rules, and in accordance with the requirements in the Securities and Futures Act, and/or Securities and Futures Regulations or the Rules; and
            (b) in the case of a Trading Member that holds a licence specified in Rule 4.1.1(1)(b), such requirements as may be prescribed by the Relevant Regulatory Authority and the Rules. The Trading Member shall immediately notify SGX-ST on any changes to such requirements. Notwithstanding the foregoing, SGX-ST shall have the discretion to prescribe additional requirements;
            (2) 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 Trading Member;
            (3) make all material entries in any of the Documents; and
            (4) not alter or destroy any of the Documents without a valid reason.

            Refer to Directive No. 4.

            Amended on 18 September 2012, 19 May 2014 and 29 December 2014.

          • 12.1.2

            A Trading Member must ensure the integrity, security and confidentiality in the transmission and storage of all records.

          • 12.1.3

            A Trading Member must make records available to SGX-ST at such time as SGX-ST requires.

            Added on 18 September 2012.

        • 12.2 Confidentiality of Customer's Information

          • 12.2.1

            A Trading Member and its Trading Representative must maintain confidentiality of a customer's information, unless:—

            (1) the prior consent of the customer for the disclosure of the information is obtained;
            (2) the disclosure is for the effective execution of the customer's order;
            (3) the disclosure is necessary for the operations and risk management of the Trading Member if these functions have been outsourced by the Trading Member; or
            (4) the disclosure is required under the law or under the Rules.

          • 12.2.2

            A Trading Member must ensure that a person to whom it discloses a customer's information under Rules 12.2.1(2) and (3) maintains confidentiality of such information.

        • 12.3 Customer Accounts

          • 12.3.1 Individual Customer Account

            Before opening an individual customer account on its books, a Trading Member must:—

            (1) 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
            (2) take suitable steps to verify the customer's identity and intention if the customer does not open the account in person.

            Refer to Practice Note 12.3.1, Practice Note 12.3.1, 12.3.2 and Practice Note 12.3.1, 12.3.4.

            Amended on 1 July 2016.

          • 12.3.2 Corporate Customer Account

            Before opening a corporate customer account on its books, a Trading Member must:—

            (1) 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);
            (2) obtain a certified true copy of the certificate of incorporation of the customer; and
            (3) obtain either:—
            (a) a copy of the directors' resolution of the customer approving the opening of a corporate customer account with the Trading Member and empowering specific directors and officers to:—
            (i) trade in securities or Futures Contracts for the corporate customer account; and
            (ii) execute all documentation for trading and settlement in the corporate customer account;
            (b) a power of attorney (in English) certified by a notary public, authorising identified persons to open a corporate customer account and trade on behalf of the corporate customer; or
            (c) note in writing the basis upon which it believes the corporate customer may open the corporate customer account and engage in transactions and that the persons acting for the corporate customer have been duly authorised to trade on the corporate customer's behalf.

            Refer to Practice Note 12.3.1, 12.3.2.

            Amended on 3 April 2008 and 1 July 2016.

          • 12.3.3 Agency Customer Account

            For an agency customer account carried on the books of a Trading Member, the Trading Member must have on file:—

            (1) the name of the principal; and
            (2) written evidence of the customer's authority to trade for the principal.

            Amended on 1 July 2016.

          • 12.3.4 Joint Customer Account

            (1) A Trading Member may allow customers to open a joint customer account carried on its books if:—
            (a) a joint securities account is opened with CDP;
            (b) each joint customer account holder is at least 18 years old; and
            (c) no joint customer account holder is an undischarged bankrupt.
            (2) A joint customer account may be operated by not more than 2 individual customers. However, if it is an estate account, it may be operated by all personal representatives acting on behalf of the estate of the deceased.
            (3) A Trading Member must maintain the following information:—
            (a) particulars of each joint customer account holder;
            (b) the names of persons authorised to give trading orders and settlement instructions and receive scrip from the Trading Member;
            (c) the names of persons to whom payments by the Trading Member are to be made; and
            (d) details of any customer accounts carried on the books of the Trading Member held in an individual capacity by a joint customer account holder.
            (4) A Trading Member must require each joint customer account holder to specify whether the joint customer account holder is jointly, severally, or jointly and severally liable for all debts incurred in a joint customer account.

            Refer to Practice Note 12.3.1, 12.3.4.

            Amended on 14 May 2009 and 1 July 2016.

          • 12.3.5 Approval of Customer Accounts

            (1) At least 1 senior management staff independent of sales or dealing of a Trading Member, or a senior management staff of a related corporation of that Trading Member charged with the customer account approval function, must approve the opening of a customer account carried on the books of the Trading Member.
            (2) The approval must:—
            (a) be given before the execution of the first trade for the customer; and
            (b) be in writing which includes secured electronic record; and
            (c) form part of the permanent records of the Trading Member.

            Amended on 1 July 2016.

          • 12.3.6 Risk Acknowledgement Statement

            (1) Unless otherwise permitted by the Securities and Futures Act or any other relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities, a Trading Member must obtain a written acknowledgement from a customer that the customer is aware of the risk associated with holding and trading of securities and Futures Contracts. This Rule does not apply to a customer who is an Accredited Investor or Institutional Investor trading only in securities.
            (2) The written acknowledgement shall:
            (a) in the case of a Trading Member that holds a Capital Markets Services Licence, contain such requirements as contemplated under the Securities and Futures Act; and
            (b) in the case of a Trading Member that holds a licence specified in Rule 4.1.1(1)(b), contain such requirements as may be prescribed by the Relevant Regulatory Authority. The Trading Member shall immediately notify SGX-ST on any changes to such requirements. Notwithstanding the foregoing, SGX-ST shall have the discretion to prescribe additional requirements.

            Amended on 3 April 2008, 18 September 2012, 19 May 2014 and 29 December 2014.

          • 12.3.7 Separate Trading Accounts and Account Designation

            (1) A Trading Member must maintain separate Trading Accounts for each customer or each group of joint customers (as the case may be) whose account is carried on the books of the Trading Member.
            (2) Each Trading Account must be identified and designated by the full name of the of the customer(s) whose account is carried on the books of the Trading Member and by a unique Trading Account code, both of which must be reported to SGX-ST before the Trading Account is used to send in any orders.

            Amended on 18 September 2012, 26 April 2013 and 1 July 2016.

          • 12.3.8

            In this Rule 12.3, a customer account on the books of a Trading Member includes an account of a Trading Representative.

            Amended on 1 July 2016.

          • 12.3.9 [Rule has been deleted.]

            Deleted on 1 July 2016.

        • 12.3A Customer Education

          • 12.3A.1

            Save for Accredited Investors and Institutional Investors, a Trading Member must provide its Internet Trading customers with adequate information, guidance and training on:—

            (1) prohibited trading practices;
            (2) potential limitations and risks of Internet Trading;
            (3) system functionalities and order management procedures; and
            (4) market conventions such as minimum bid sizes and board lot sizes.

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

            Added on 18 September 2012.

        • 12.4 Trading Authority

          • 12.4.1

            Before accepting any orders from a third party, a Trading Member must obtain written authorisation from the customer empowering the third party to trade for the customer's account carried on the books of the Trading Member.

            Amended on 1 July 2016.

        • 12.5 Brokerages and Charges

          • 12.5.1

            Unless SGX-ST decides otherwise, the commission rate chargeable for the purchase or sale of securities or Futures Contracts is negotiable.

            Amended on 3 April 2008.

          • 12.5.2

            All charges and expenses, including any fees imposed by CDP and/or SGX-ST, stamp duty and Goods and Services Tax, to be borne by the customer (whether included as part of the brokerage or otherwise) must be accurately disclosed to the customer and agreed between the customer and the Trading Member.

            Amended on 1 July 2016.

        • 12.6 Contract Notes

          • 12.6.1

            A Trading Member must send its customer a contract note for the purchase or sale of securities or Futures Contracts.

            Refer to Practice Note 12.6.1.

            Amended on 3 April 2008, 19 May 2014 and 1 July 2016.

          • 12.6.2

            The contract note must state that the contract is subject to the Rules and Directives of SGX-ST if the trade is:—

            (1) transacted on or through the Trading System; or
            (2) reported to SGX-ST.

            Amended on 3 April 2008.

          • 12.6.3

            In the case of a Trading Member that holds a Capital Markets Services Licence<:

            (1) A contract note must:
            (a) be sent by the next market day;
            (b) contain the information specified in Regulation 42(1B) of the Securities and Futures (Licensing and Conduct of Business) Regulations; and
            (c) show separately, where applicable:
            (i) brokerage charged by the Trading Member;
            (ii) [deleted];
            (iii) stamp duty;
            (iv) Goods and Services Tax;
            (v) any other fees in addition to the brokerage charged by the Trading Member; and
            (vi) any other fees charged by any other party (including CDP and/or SGX-ST) and borne by the customer in addition to the brokerage charged,
            unless otherwise prescribed by SGX-ST from time to time,
            (2) before issuing contract notes in electronic form, the Trading Member must obtain the customer's prior revocable and informed consent. The Trading Member must retain evidence of the customer's consent. To constitute an informed consent, a customer must be told of the manner of delivery and retrieval of the electronic record and any costs that may be incurred.

            Amended on 23 January 2009, 19 May 2014, 29 December 2014 and 1 July 2016.

          • 12.6.4

            In the case of a Trading Member that holds a licence specified in Rule 4.1.1(1)(b), a contract note must comply with such requirements as may be prescribed by the Relevant Regulatory Authority, including requirements relating to a customer's contract note in electronic form. The Trading Member shall immediately notify SGX-ST on any changes to such requirements. Notwithstanding the foregoing, SGX-ST shall have the discretion to prescribe additional requirements.

            Amended on 19 May 2014.

          • 12.6.5

            [Rule has been deleted.]

            Deleted on 19 May 2014.

          • 12.6.6

            [Rule has been deleted.]

            Deleted on 19 May 2014.

          • 12.6.5

            If asked by SGX-ST, a Trading Member must produce the contract notes in substantially the same form and containing the same trading information as were given to customers.

            Amended on 19 May 2014.

        • 12.7 Statement of Account to Customers

          • 12.7.1

            A Trading Member must send its customer (including a Trading Representative) a statement of account on a regular basis, as may be required under the Securities and Futures Act, or any Regulation made thereunder.

            Amended on 19 May 2014 and 1 July 2016.

          • 12.7.2

            A statement of account shall:

            (1) in the case of a Trading Member that holds a Capital Markets Services Licence, contain the information specified in Regulation 40(2) of the Securities and Futures (Licensing and Conduct of Business) Regulations and any other information that SGX-ST prescribes. Before issuing statements of account in electronic form, the Trading Member must obtain the customer's prior revocable and informed consent. The Trading Member must retain evidence of the customer's consent. To constitute an informed consent, a customer must be told of the manner of delivery and retrieval of the electronic record and any costs that may be incurred.
            (2) in the case of a Trading Member that holds a licence specified Rule 4.1.1(1)(b), comply with such requirements as may be prescribed by the Relevant Regulatory Authority, including requirements relating to a customer's statement of account in electronic form. The Trading Member shall immediately notify SGX-ST on any changes to such requirements. Notwithstanding the foregoing, SGX-ST shall have the discretion to prescribe additional requirements.

            Amended on 23 January 2009, 19 May 2014, 29 December 2014 and 1 July 2016.

          • 12.7.3

            [Rule has been deleted.]

            Deleted on 19 May 2014.

          • 12.7.4

            [Rule has been deleted.]

            Deleted on 19 May 2014.

          • 12.7.5

            If asked by SGX-ST, a Trading Member must produce the statement of accounts in substantially the same form and containing the same information as were given to customers.

        • 12.8 Amendment of Contract

          • 12.8.1

            A Trading Member may amend a contract if there is a valid reason for the amendment.

          • 12.8.2

            At least 1 senior management staff independent of sales or dealing of a Trading Member, or a senior management staff of a related corporation of that Trading Member charged with the contract amendment function, must approve the amendment of contract.

          • 12.8.3

            The approval must be given before the contract is amended.

        • 12.9 Communication with Third Parties

          • 12.9.1

            A Trading Member must communicate directly with its customers in respect of statements, contract notes, or all other information, whether in writing or electronically, unless the customer has authorised otherwise in writing.

          • 12.9.2

            A Trading Member must not allow any person other than the customer to collect any cash, share certificates, contract notes, credit or debit notes, cheques or statements, unless the customer has authorised that person in writing.

        • 12.10 Payment to Customers

          • 12.10.1

            All cheques to customers must be crossed, unless:—

            (1) the payee customer requests otherwise in writing; and
            (2) a senior management staff independent of sales or dealing of a Trading Member, or a senior management staff of a related corporation of that Trading Member charged with the payment function, authorises in writing the request.

          • 12.10.2

            A Trading Member must not accept a house cheque (a crossed cheque issued by the Trading Member in favour of a customer) from a customer unless:—

            (1) the customer is the payee of the cheque; and
            (2) the cheque is used to settle an amount owing by the customer to the Trading Member or is deposited into a trust account under Rule 12.11, as directed by the customer.

        • 12.10A Customer's Money and Assets

          • 12.10A.1

            Subject to Rule 12.10A.2, a Trading Member must discharge its fiduciary obligations to its Customers by:

            (1) segregating Customers' monies and assets from the Trading Member's monies and assets;
            (2) depositing Customers' monies and assets in trust or custody accounts; and
            (3) separately accounting for the monies and assets of each Customer.

            Added on 19 May 2014.

          • 12.10A.2

            A Trading Member shall:

            (1) in the case of a Trading Member that holds a Capital Markets Services Licence, comply with such requirements prescribed in Rules 12.11 and 12.12; and
            (2) in the case of a Trading Member that holds a licence specified in Rule 4.1.1(1)(b), comply with such requirements as may be prescribed by the Relevant Regulatory Authority. The Trading Member shall immediately notify SGX-ST on any changes to such requirements. Notwithstanding the foregoing, SGX-ST shall have the discretion to prescribe additional requirements.

            Added on 19 May 2014 and amended on 29 December 2014.

        • 12.11 Customer's and Remisier's Money

          • 12.11.1

            A Trading Member must comply with Part III, Divisions 2 and 4 of the Securities and Futures (Licensing and Conduct of Business) Regulations on customer's money. For the purpose of this Rule, "customer" includes a Remisier, unless otherwise specified.

            Amended on 23 January 2009.

          • 12.11.2

            Regulation 16(1)(b) of the Securities and Futures (Licensing and Conduct of Business) Regulations does not apply to a Remisier. A Trading Member must deposit all money received on account of a Remisier in a trust account.

            Amended on 23 January 2009.

          • 12.11.3

            A Trading Member must designate the accounts maintained with a financial institution specified in Regulation 17 of the Securities and Futures (Licensing and Conduct of Business) Regulations for a customer or a Remisier as a trust account, or customer or Remisier account, as the case may be.

            Amended on 23 January 2009.

          • 12.11.4

            A Trading Member must deposit money received on account of customers in a separate trust account from Remisiers.

            Amended on 23 January 2009.

          • 12.11.5

            A Trading Member must not commingle money received on account of its customers or its Remisiers with its own funds. However, a Trading Member may deposit its own funds into a trust account under the circumstances specified in Regulation 23(1) of the Securities and Futures (Licensing and Conduct of Business) Regulations.

            Amended on 23 January 2009.

          • 12.11.6

            A Trading Member must not withdraw a Remisier's money from a trust account except to:—

            (1) pay the Remisier;
            (2) meet any amount due and payable by the Remisier to the Trading Member;
            (3) reimburse the Trading Member money advanced to the trust account, and any interest and returns that the Trading Member is entitled to, provided the withdrawal does not result in the trust account becoming under-funded; or
            (4) make a payment or withdrawal that is authorised by law.

          • 12.11.7

            A Trading Member must notify the Remisier of the withdrawal made under Rule 12.11.6 by the next business day.

          • 12.11.8

            This Rule shall not apply to a Trading Member that holds a licence specified in Rule 4.1.1(1)(b).

            Added on 19 May 2014.

        • 12.12 Customer's and Remisier's Assets

          • 12.12.1

            A Trading Member must comply with Part III, Divisions 3 and 4 of the Securities and Futures (Licensing and Conduct of Business) Regulations on customer's assets. For the purpose of this Rule, "customer" includes a Remisier, unless otherwise specified.

            Amended on 23 January 2009.

          • 12.12.2

            Regulations 30, 33 and 34 of the Securities and Futures (Licensing and Conduct of Business) Regulations do not apply to a Remisier.

            Amended on 23 January 2009.

          • 12.12.3

            A Trading Member must designate the accounts maintained with a financial institution specified in Regulation 27 of the Securities and Futures (Licensing and Conduct of Business) Regulations for a customer or a Remisier as a trust account, or customer or Remisier account, as the case may be.

            Amended on 23 January 2009.

          • 12.12.4

            A Trading Member must deposit assets of its customers in a separate custody account from Remisiers.

            Amended on 23 January 2009.

          • 12.12.5

            A Trading Member must not commingle the assets of a customer or Remisier with its own assets.

          • 12.12.6

            A Trading Member must not withdraw a Remisier's assets from a custody account except to:—

            (1) return the assets to the Remisier;
            (2) use the assets to meet any amount due and payable by the Remisier to the Trading Member; or
            (3) make a transfer or withdrawal that is authorised by law.

          • 12.12.7

            A Trading Member must notify the Remisier of the withdrawal under Rule 12.12.6 by the next business day.

          • 12.12.8

            For the purpose of this Rule, "Remisier's assets" means any securities and assets (other than money) that are beneficially owned by a Remisier.

          • 12.12.9

            This Rule shall not apply to a Trading Member that holds a licence specified in Rule 4.1.1(1)(b).

            Added on 19 May 2014.

        • 12.13 Reporting of Delinquent Accounts

          • 12.13.1

            A Trading Member that holds a Capital Markets Services Licence must inform SGX-ST (or any third party to whom SGX-ST has outsourced its operational functions) of the particulars of any customer account carried on the books of the Trading Member that it considers to be a delinquent account. SGX-ST (or the third party) may disseminate such information to all other Trading Members that holds a Capital Markets Services Licence.

            Amended on 19 May 2014, 29 December 2014 and 1 July 2016.

        • 12.14 Separation of Front Office and Back Office Functions

          • 12.14.1

            A Trading Member must have processes in place to minimise and manage any conflicts of interest, including but not limited to separating its front office and back office functions to prevent any conflict of interests.

            Amended on 18 September 2012.

        • 12.15 Stock Account

          • 12.15.1

            All purchases and sales of securities or Futures Contracts by a Trading Member for its proprietary account must be made under a separate Stock Account of the Trading Member.

            Amended on 3 April 2008.

          • 12.15.2

            A Stock Account must be operated by a Director, or his designate, who is licensed to trade.

            Amended on 3 April 2008.

          • 12.15.3

            A Trading Member must not allow a Remisier to operate a Stock Account.

            Amended on 3 April 2008.

        • 12.16 [Rule has been deleted.]

          Deleted on 1 July 2016.

        • 12.17 Trading by Employees and Agents

          • 12.17.1

            A Trading Member must require a Director, Officer, Dealer and employee to obtain the prior written approval of a senior management staff independent of sales or dealing of a Trading Member, or a senior management staff of a related corporation of that Trading Member charged with the approval function, for each trade in his or her personal account or an account over which he or she has control or influence (other than a customer's Discretionary Account) (such account(s) being an account carried on the books of the Trading Member).

            Refer to Practice Note 12.17.1.

            Amended on 3 April 2008 and 1 July 2016.

          • 12.17.2

            A Trading Representative of the Trading Member must not execute an order for an account referred to in Rule 12.17.1, unless the order is authorised in writing as required under Rule 12.17.1.

          • 12.17.3

            A Trading Member must require a Director, Officer, Trading Representative or employee of the Trading Member to trade through it. However, if this is impractical, the Trading Member meets this Rule if it has procedures to monitor such trades and it documents the circumstances that give rise to the impracticality.

          • 12.17.4

            A Trading Member must not knowingly buy or sell securities or Futures Contracts for a Director, Officer, Trading Representative or employee of another Trading Member, except with the prior written approval of the other Trading Member.

            Amended on 3 April 2008.

          • 12.17.5

            A Trading Member must have in place procedures to ensure that agents who are privy to confidential information relating to dealing in securities or trading in Futures Contracts, do not use such information to trade for their own benefit.

            Amended on 3 April 2008.

          • 12.17.6

            A Trading Member must have in place procedures to monitor the trading activities of its Directors, Officers, Trading Representatives and employees.

            Refer to Practice Note 12.17.1.

        • 12.18 Compliance Review

          • 12.18.1

            A Trading Member must carry out checks from time to time to ensure compliance with:

            (1) the regulatory requirements of such Relevant Regulatory Authority;
            (2) the Rules, Directives; and
            (3) its policies and procedures.

            Amended on 19 May 2014.

          • 12.18.2

            The checks must be carried out by an internal audit or compliance department/person whose reporting line is independent of dealing, sales and operations.

            Added on 19 May 2014.

        • 12.19 Advertising

          • 12.19.1

            A Trading Member must ensure that any advertising or publicity:—

            (1) is accurate;
            (2) is not misleading;
            (3) does not contain claims that are not externally verifiable; and
            (4) does not tend to bring SGX or its related corporations, or other Trading Members, into disrepute.

          • 12.19.2

            A Trading Member that holds a licence specified in Rule 4.1.1(1)(b) shall not direct any advertising or publicity to deal in securities or Futures Contracts on SGX-ST to customers domiciled in Singapore or to the extent that it may be acted upon by customers in Singapore.

            Added on 19 May 2014.

        • 12.20 Soft Dollar Commissions

          • 12.20.1

            A Trading Member and its Trading Representatives may receive goods and services from a broker for directing business to the broker if:—

            (1) the goods and services can reasonably be expected to assist in the provision of services to the customer;
            (2) records of the goods and services received are maintained; and
            (3) there are appropriate internal controls and procedures for such arrangements.

            Refer to Practice Note 12.20.1.

          • 12.20.2

            A Trading Member may pay for goods and services to customers for directing business to the Trading Member if:—

            (1) records of such payments are maintained;
            (2) there are procedures to control such arrangements; and
            (3) the arrangements do not violate any law, regulation or professional code of ethics on the part of the recipients.

            Refer to Practice Note 12.20.1.

        • 12.21 Use of Office Premises

          • 12.21.1

            A Trading Member must not allow any unauthorised person to use, or operate out of, its office premises.

        • 12.22 Use of Prescribed Forms

          • 12.22.1

            A Trading Member must use forms that SGX-ST prescribes.

        • 12.23 Application of Chapter 12

          • 12.23.1

            The following Rules shall not apply to a Trading Member that holds a licence specified in Rule 4.1.1(1)(b).

            Rule Heading
            12.3.1,
            12.3.2,
            12.3.3,
            12.3.4,
            12.3.5
            Customer Accounts
            12.3A Customer Education
            12.4 Trading Authority
            12.8.2,
            12.8.3
            Amendment of Contract
            12.9 Communications with Third Parties
            12.10 Payment to Customers
            12.15 Stock Account
            [Deleted] [Deleted]
            12.17 Trading by Employees and Agents

            Added on 19 May 2014 and amended on 1 July 2016.

          • 12.23.2

            A Trading Member that holds a licence specified in Rule 4.1.1(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 12.23.1.

            Added on 19 May 2014.

      • Chapter 12A — Position Accounts

        • 12A.1 Definitions

          • 12A.1.1

            In this Chapter 12A:-

            "Authorized Trading Member" means a Trading Member who has been duly authorized under Rule 5A.4 of the Clearing Rules by its qualifying Clearing Member to open and maintain Position Accounts or to open, maintain and allocate positions to Position Accounts, as the case may be.

            "Authorized Account" means the Position Account (of the Authorized Trading Member or of the Authorized Trading Member's customer) that an Authorized Trading Member is authorized by its qualifying Clearing Member to open and maintain or to open, maintain and allocate positions to, under Rule 5A.4 of the Clearing Rules.

            "TPC Trading Member" means a Trading Member who is qualified by a third-party Clearing Member and includes, unless otherwise specified, an Authorized Trading Member.

            Added on 1 July 2016.

        • 12A.2 Position Account Rules apply to Authorized Trading Member

          • 12A.2.1

            Where an Authorized Trading Member is authorized by a Clearing Member to open and maintain Authorized Accounts under Rule 5A.4.1(a) of the Clearing Rules, Rules 5A.1 and 5A.2 of the Clearing Rules shall, with the necessary modifications, apply to the Authorized Trading Member in respect of each Authorized Account, as those provisions apply to the Clearing Member.

            Added on 1 July 2016.

          • 12A.2.2

            Where an Authorized Trading Member is authorized by a Clearing member to open, maintain and allocate positions to the Authorized Accounts under Rule 5A.4.1(b) of the Clearing Rules, Rules 5A.1, 5A.2, 5A.3 and 5A.6 of the Clearing Rules shall, with the necessary modifications, apply to the Authorized Trading Member in respect of each of its Authorized Account, as those provision apply to the Clearing Member.

            Added on 1 July 2016.

        • 12A.3 Position Accounts carrying positions for more than one beneficial owner

          • 12A.3.1

            Subject to Rule 12A.3.2., an Authorized Trading Member shall identify, or ensure that such information is made available, to SGX-ST any underlying beneficial owner and/or any controlling party of any Authorized Account. This shall be provided upon request by SGX-ST within such time as SGX-ST may require.

            Added on 1 July 2016.

          • 12A.3.2

            If the Authorized Account holder does not want the identity of any underlying beneficial owner and/or any controlling party of such account to be disclosed to its Trading Member, the Authorized Account holder may apply to the SGX-ST, through its Trading Member, to provide such information as SGX-ST may require directly to SGX-ST.

            Added on 1 July 2016.

        • 12A.4 Allocation of Trades to Position Accounts

          • 12A.4.1

            Each TPC Trading Member shall instruct its qualifying Clearing Member to allocate the position of each trade executed by the Trading Member to the Trading Member's Position Account or, where the position is of a trade executed for a customer, in accordance with that customer's instructions, as soon as practicable, and in any event no later than such time as may be required for timely and orderly settlement of such trade into the intended Securities Account.

            Refer to Practice Note 12A.4.1, 12A.5.2.

            Added on 1 July 2016.

          • 12A.4.2

            A customer's Position Account must only be used for that customer's positions. However, a TPC Trading Member may instruct its qualifying Clearing Member to sub-allocate a position carried in a Position Account (the "originating Position Account") to another Position Account (the "destination Position Account"), provided that:

            (a)(i) such sub-allocation is in accordance with the instructions of both the account holders of the originating Position Account and destination Position Account (or person(s) authorized to instruct on their behalf); and (ii) the TPC Trading Member receives the booking instruction only after the position has been allocated to the originating Position Account; or
            (b) such sub-allocation is made to remedy an error.

            Added on 1 July 2016.

          • 12A.4.3

            This Rule 12A.4 shall not apply to an Authorized Trading Member who is authorized to allocate trades to the Authorized Accounts under Rule 5A.4.1(b) of the Clearing Rules.

            Added on 1 July 2016.

        • 12A.5 Holding trades for different customers in a Position Account and warehousing of trades

          • 12A.5.1

            A Position Account in the name of the Trading Member may be used to hold positions of trades for different customers, provided that the Trading Member has procedures to ensure fair allocation to the customers.

            Added on 1 July 2016.

          • 12A.5.2

            If a customer's order is unlikely to be completed during a Market Day, the Trading Member may warehouse the customer's trades until the order is completed. The Trading Member must ensure that no customer's trade is warehoused for more than 2 Market Days, unless under exceptional circumstances. In such cases, the Trading Member must document the reasons for the extension of time.

            Refer to Practice Note 12A.4.1, 12A.5.2.

            Added on 1 July 2016.

      • Chapter 13 — Trading Practices and Conduct

        • 13.1 Acting as Principal

          • 13.1.1

            If a Trading Member or its Trading Representative wants to trade as principal with a customer who is not a holder of a Capital Markets Services Licence, the customer must first be informed.

            Amended on 29 December 2014.

          • 13.1.2

            This Rule shall apply only to a Trading Member that holds a Capital Markets Services Licence. Any contract note relating to the above transaction must show that the Trading Member or Trading Representative acted as principal.

            Amended on 19 May 2014 and 29 December 2014.

          • 13.1.3

            This Rule does not apply to trades that are matched on the Trading System without the Trading Member's or Trading Representative's knowledge.

            Amended on 3 April 2008.

        • 13.2 Acting as Agent

          • 13.2.1

            When acting as agent, a Trading Member and its Trading Representative must:—

            (1) carry out the customer's instructions;
            (2) exercise skill, care and diligence;
            (3) act in good faith;
            (4) act in the best interests of customers;
            (5) if asked, disclose all circumstances and risks that could reasonably be expected to affect a customer's decision;
            (6) if asked, inform the customer of the current best bid and offer prices on the Trading System;
            (7) disclose the commission and any benefit directly or indirectly receivable on the transaction;
            (8) not enter into a transaction which may conflict with a duty owed to the customer, unless the customer is informed of the conflict and consents to the transaction; and
            (9) not disclose a customer's order unless:—
            (a) the prior written consent of the customer for the disclosure of the information is obtained;
            (b) the disclosure is for the effective execution of the customer's order;
            (c) the disclosure is necessary for the operations and risk management of the Trading Member if these functions have been outsourced by the Trading Member; or
            (d) the disclosure is required under the law or under the Rules.

            Amended on 3 April 2008.

          • 13.2.2

            A Trading Member must ensure that a person to whom it discloses a customer's order under Rules 13.2.1(9)(b) and (c) maintains confidentiality of such information.

        • 13.3 Separation of Customer and Proprietary Trading Activities

          • 13.3.1

            A Trading Member must have procedures to prevent any conflict of interest between its customer trading activities and proprietary trading activities.

        • 13.4 Customer Orders — Precedence

          • 13.4.1

            A Trading Member or a Trading Representative must not deal in securities or trade in Futures Contracts for his or her own account or for a Prescribed Person's account if the Trading Representative has an unexecuted order on the same terms from a customer. However, this Rule does not apply if:—

            (1) the Trading Member or the Trading Representative does not have access to customer's order flow information while executing for his or her own account or for the Prescribed Person's account;
            (2) the customer has prescribed that the order be executed under specified conditions and the Trading Member or Trading Representative is unable to execute the customer's order by reason of those conditions; or
            (3) the transaction is entered into in prescribed circumstances.

            Refer to Practice Note 13.4.1.

            Amended on 1 July 2005 and 3 April 2008.

          • 13.4.2

            In this Rule, "Prescribed Person" means:—

            (1) the Trading Representative's Trading Member;
            (2) a Director of the Trading Member;
            (3) an Employee or a Trading Representative of the Trading Member;
            (4) a person, a group of persons, a Corporation or a group of Corporations, or family trusts, whom the Trading Member, Director, employee or Trading Representative of the Trading Member is associated with or connected to.

            Amended on 1 July 2005.

          • 13.4.3

            In this Rule, "own account" means an account in which the Trading Member or the Trading Representative has a beneficial interest in.

            Amended on 1 July 2005.

        • 13.5 Arrangement with Customers

          • 13.5.1

            A Trading Member or its Trading Representative must not:—

            (1) accept a share in the profits of a customer's account carried on the books of the Trading Member or have any arrangement with a customer to share in the profits of that account;
            (2) have any arrangement with a third party to allocate profits or losses to a customer's account carried on the books of the Trading Member; or
            (3) lead a customer to believe that the customer will not suffer loss as a result of opening an account or dealings.

            Amended on 1 July 2016.

        • 13.5A Margin Management for Trading Members In Respect of Any Margins from Customers

          • 13.5A.1

            Where the Trading Member collects margins from the customer in connection with trades executed on SGX-ST, regardless of whether it is required to under the Rules, the following shall apply:

            (1) subject to Rule 19.10.5, nothing in these Rules prohibits a Trading Member from imposing margin requirements, hair-cut rates, payment periods for customers to deposit collateral, valuations of positions and collateral, and making calls for additional margins, as it sees fit;
            (2) if a Trading Member is unable to contact a customer to call for margins, a written notice sent to the customer at the most recent address furnished by the customer to the Trading Member shall be deemed sufficient; and
            (3) where a customer fails to meet such margin that the Trading Member may call from the customer, the Trading Member may take actions as it deems appropriate, without giving notice to the customer, to reduce its exposures to the customer. Such actions may include liquidating all or such part of the customer's collateral deposited with the Trading Member, or taking action to offset all or such part of the customer's positions. SGX-ST may also order such Trading Member to immediately to take such action to offset all or such part of the positions of the customer to rectify the deficiency.

            Added on 21 January 2013.

        • 13.6 Unauthorised Trading

          • 13.6.1

            A Trading Representative must not:—

            (1) execute his personal trades in the account of a customer; and
            (2) use a customer's account for third party trading without the customer's prior written authorisation.

        • 13.7 Excessive Trading

          • 13.7.1

            A Trading Member or a Trading Representative, when acting as agent, must not encourage transactions if the sole object is generating commission.

        • 13.8 Market Manipulation and False Market

          • 13.8.1

            A Trading Member or a Trading Representative must not engage in, or knowingly act with any other person in, any act or practice that will or is likely to:—

            (1) create a false or misleading appearance of active trading in any securities or Futures Contracts; or
            (2) lead to a false market in respect of any securities or Futures Contracts. For avoidance of doubt, a false market includes a market in which:—
            (a) information is false, exaggerated or tendentious;
            (b) contrived factors are in evidence, such as buyers and sellers acting in collaboration to bring about artificial market prices; or
            (c) manipulative or fictitious orders, transactions or other devices have been employed.

            Refer to Practice Note 13.8.1.

            Amended on 3 April 2008.

          • 13.8.2

            The following factors are relevant when considering whether an act or practice may breach Rule 13.8.1:—

            (1) whether the proposed transaction will be inconsistent with the history of, or recent trading in, the security or Futures Contract;
            (2) whether the proposed transaction will or may cause or contribute to a material change in the market for or the price of the security or Futures Contract, and whether the person involved or another person with whom the first person is collaborating may directly or indirectly benefit from alterations in the market or price;
            (3) whether the proposed transaction involves the placing of multiple buy and sell orders at various prices higher or lower than the market price, or the placing of buy and sell orders which give the appearance of increased volume;
            (4) whether the proposed transaction will coincide with or is likely to influence the calculation of reference prices, settlement prices and valuations;
            (5) whether parties involved in the proposed transaction are connected;
            (6) whether the buy and sell orders are to be entered at about the same time, for about the same price and quantity (excluding Direct Business);
            (7) whether the proposed transaction will or may cause the price of the security or Futures Contract to increase or decrease, but following which the price is likely to immediately return to about its previous level;
            (8) whether a proposed bid (offer) is higher (lower) than the previous bid (offer) but is to be removed from the market before it is executed;
            (9) whether the volume or size of the proposed transaction is excessive relative to reasonable expectations of the depth and liquidity of the market at the time;
            (10) whether the proposed buy (sell) order is likely to trade with the entire best offer (bid) volume and part of the offer (bid) at the next price level;
            (11) whether the proposed buy (sell) order forms part of a series of orders that successively and consistently increase (decrease) the price of the security or Futures Contract; and
            (12) whether there appears to be a legitimate commercial reason for the proposed transaction.

            Refer to Practice Note 13.8.1.

            Amended on 3 April 2008.

          • 13.8.3

            A Trading Member or a Trading Representative must not enter a buy order or a sell order on the Trading System if there is an existing opposite order from that same Trading Member or Trading Representative in the same security or Futures Contract for the same price. This Rule does not apply if:—

            (1) the Trading Member or Trading Representative knows or ought reasonably knows that the orders are for different beneficial owners;
            (2) the order is a type expressly permitted in a practice note published from time to time by SGX-ST as having a legitimate commercial reason and which is unlikely to create a false market; or
            (3) the Trading Member or Trading Representative can otherwise establish that the purpose for which the order was made was not to create a false market.

            Refer to Practice Note 13.8.1.

            Amended on 3 April 2008.

          • 13.8.4

            A Trading Member or a Trading Representative must not directly or indirectly deal in securities which involve no change of beneficial ownership as defined in Section 197(5) of the Securities and Futures Act, or knowingly execute, or hold himself out as having executed, an order for the bona fide purchase or sale of Futures Contracts without having effected a bona fide purchase or sale of Futures Contracts as defined in Section 207(1) of the Securities and Futures Act. It is a defence if the Trading Member or Trading Representative can show that it, or he or she had no reason to suspect, or no reasonable Trading Member or Trading Representative ought to have suspected or known, that the transaction was a wash sale.

            Amended on 3 April 2008 and 23 January 2009.

          • 13.8.5

            A Trading Member or a Trading Representative must not deal in securities or trade in Futures Contracts in a manner that will or may affect or maintain the price of the securities, Futures Contract or their underlying, with intent to induce other persons to subscribe for, buy or sell the securities or Futures Contracts. This Rule does not apply to stabilising action carried out in accordance with Regulation 3 of the Securities and Futures (Market Conduct) (Exemptions) Regulations.

            Amended on 3 April 2008 and 23 January 2009.

          • 13.8.6

            A Trading Member or a Trading Representative must not disseminate information that is false or misleading if the Trading Member or Trading Representative:

            (1) knows or ought reasonably knows that the information was false or misleading; or
            (2) is reckless about the truth of the information.

          • 13.8.7

            A Trading Member or a Trading Representative must not participate in any prohibited market conduct in securities or Futures Contracts or in any insider trading, or knowingly assist a person in such conduct.

            Amended on 3 April 2008.

          • 13.8.8

            A Trading Member or a Trading Representative must immediately inform SGX-ST if it or he or she reasonably suspects, or knows of, any attempted market manipulation, creation of a false market or insider trading.

          • 13.8.9

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

            Refer to Practice Note 13.8.9.

            Added on 18 September 2012.

        • 13.9 Record of Orders

          • 13.9.1

            A Trading Member or a Trading Representative must ensure that a daily record of orders received from customers is maintained. The record must show the identity of the Trading Representative, account identification of each customer, the specific order, date and the time the order was received, transmitted, amended, and executed or cancelled. For avoidance of doubt, the record may be kept in the order management system.

          • 13.9.2

            A Trading Member must have a robust system to prevent tampering of the audit trail of orders entered into the Trading System.

        • 13.10 Order Entry Person

          • 13.10.1

            A Trading Member may appoint a person to enter orders on the Trading System on instructions given by a Trading Representative or team of Trading Representatives. A Trading Member must ensure that a Trading Representative is supported by no more than 1 order entry person. For avoidance of doubt, an order entry person who supports a Remisier must be appointed by a Trading Member.

            Amended on 3 April 2008.

          • 13.10.2

            A Trading Member must ensure that the order entry person does not:—

            (1) deal in securities or trade in Futures Contracts;
            (2) exercise any discretion over the entry of orders;
            (3) give investment advice or make recommendations to customers;
            (4) accept instructions from customers;
            (5) communicate with customers regarding settlement; or
            (6) collect cash, cheques or share certificates on behalf of the Trading Member, designated Trading Representative(s) or customers.

            Amended on 3 April 2008.

          • 13.10.3

            A Trading Member must provide SGX-ST with the name and identity card/passport number of the order entry persons appointed.

          • 13.10.4

            A Trading Member must inform SGX-ST in writing if an order entry person ceases to act. If possible, at least 7 days prior notice should be given.

        • 13.11 Responsibility for Orders

          • 13.11.1

            A Trading Member is responsible for the accuracy of all orders entered into the Trading System by its Trading Representatives and any order entry person.

            Amended on 3 April 2008.

          • 13.11.2

            A Trading Representative is responsible for the accuracy of orders entered into the Trading System by or on behalf of the Trading Representative.

            Amended on 3 April 2008.

          • 13.11.3

            Orders must be entered in accordance with any procedures SGX-ST prescribes.

          • 13.11.4

            A Trading Member must have in place controls to prevent unauthorised changes to order information entered into the Trading System, including Trading Representative identification numbers.

            Added on 18 September 2012.

        • 13.12 Identification and Password

          • 13.12.1

            A Trading Representative must have a unique identification number of not more than 3 characters and password to enter orders into the Trading System and must maintain confidentiality of the identification number and password.

            Amended on 3 April 2008 and 18 September 2012.

          • 13.12.2

            A Trading Member must submit, upon admission, a list of Trading Representative identification numbers and names to SGX-ST, and notify SGX-ST of any amendments to the list on an ongoing basis.

            Added on 18 September 2012.

        • 13.13 Off Premises Broking

          • 13.13.1

            Before allowing its Trading Representatives to carry out dealing activities outside its office premises, a Trading Member must inform SGX-ST.

          • 13.13.2

            A Trading Member must inform all customers that Trading Representatives are operating away from its office premises and of any resulting limitations that might affect customer service and get written acknowledgement.

          • 13.13.3

            A Trading Member must ensure its Trading Representatives do not misuse customers' accounts for third party trading. In this regard, contract notes and statements must be sent to the customer's residential address, and not to "care-of" address, "PO Box" address or the Trading Representative's address. However, if the customer chooses otherwise, the Trading Member must explain the risk of unauthorised trading to the customer, get written acknowledgement, and monitor the trading activities for any unauthorised trading in customers' accounts.

          • 13.13.4

            Rules 13.13.1 to 13.13.3 shall apply only to a Trading Member that holds a Capital Markets Services Licence. A Trading Member that holds a licence specified in Rule 4.1.1(1)(b) shall comply with such requirements established by the Relevant Regulatory Authority, if any, and principles of good business practice in relation to carrying out dealing activities outside its office premises.

            Added on 19 May 2014 and amended on 29 December 2014.

        • 13.14 Miscellaneous

          • 13.14.1

            A Trading Member and a Trading Representative must not knowingly take advantage of a situation arising from:—

            (1) a breakdown or malfunction in any of SGX-ST's procedures or systems; or
            (2) error entries made by SGX-ST or CDP on the Trading System.

            Amended on 3 April 2008.

      • Chapter 14 — Supervisory Rules

        • 14.1 Exchange Investigations

          • 14.1.1

            SGX-ST may conduct an investigation if:—

            (1) the investigation involves a possible breach of the Securities and Futures Act, Securities and Futures Regulations, any other relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities, Rules, or Directives;
            (2) SGX-ST receives a written complaint involving a Trading Member, Director, Trading Representative, Officer, employee or agent;
            (3) there is a dispute between Trading Members on a trading matter; or
            (4) in SGX-ST's opinion, the circumstances warrant.

            Amended on 19 May 2014.

          • 14.1.2

            SGX-ST will conduct an investigation if the Authority directs.

          • 14.1.3

            SGX-ST may require a Trading Member, any of its Directors, Trading Representatives, Officers, employees or agents to:—

            (1) render all assistance as SGX-ST requires, at SGX-ST's premises or elsewhere; and
            (2) provide SGX-ST with information, books and records which, in SGX-ST's opinion, may be relevant to the investigation.

          • 14.1.4

            A Trading Member, Director, Trading Representative, Officer, employee or agent must not wilfully make, furnish or permit the making or furnishing of any false or misleading information, statement or report to SGX-ST.

          • 14.1.5

            SGX-ST may appoint any person or persons to assist in its investigation (the "Exchange Examiners").

          • 14.1.6

            SGX-ST may delegate all or any of its powers under this Rule to the Exchange Examiner. The Exchange Examiner must report the results of the investigation to SGX-ST.

        • 14.2 Exchange Inspections

          • 14.2.1

            SGX-ST may conduct an inspection on a Trading Member at any time, and may appoint any person or persons to conduct the inspection (the "Exchange Inspectors").

          • 14.2.2

            A Trading Member, Director, Trading Representative, Officer, employee or agent must give the Exchange Inspector access to all information, books and records as requested.

          • 14.2.3

            SGX-ST will give a copy of the inspection report to the Trading Member concerned.

          • 14.2.4

            SGX-ST may charge a fee for the inspection. The fee is payable immediately by Trading Members.

        • 14.3 Disciplinary Action

          • 14.3.1

            If an investigation or inspection reveals that a Trading Member, any of its Directors, Trading Representatives, Officers, employees or agents has breached any Rule or Directive, SGX-ST may take any of the following forms of disciplinary action, namely:

            (1) to charge the Trading Member or an Approved Executive Director (or both) before the Disciplinary Committee;
            (2) to make an offer of composition to the Trading Member or an Approved Executive Director (or both) if the Rule violation is indicated in the third column of Schedule A as a compoundable Rule violation; or
            (3) to issue a letter of warning to the Trading Member or an Approved Executive Director (or both).

            Amended on 16 May 2011.

          • 14.3.2

            If an investigation or inspection reveals that a Trading Representative may have breached any Rule or Directive, SGX-ST may take any of the following forms of disciplinary action, namely:

            (1) to charge the Trading Representative before the Disciplinary Committee;
            (2) to make an offer of composition to the Trading Representative, if the Rule violation is indicated in the third column of Schedule A as a compoundable Rule violation; or
            (3) to issue a letter of warning to the Trading Representative.

            Amended on 16 May 2011.

          • 14.3.3

            If the Trading Member, Approved Executive Director or Trading Representative does not accept the offer of composition or comply with the terms of the composition within the stipulated time as prescribed by SGX-ST, SGX-ST may refer the said Trading Member, Approved Executive Director or Trading Representative to the Disciplinary Committee.

            Added on 16 May 2011.

        • 14.3A Composition by SGX-ST

          • 14.3A.1

            SGX-ST may make an offer of composition to a Trading Member, an Approved Executive Director or a Trading Representative who has breached any Rules. The terms of the offer of composition include payment of a specified sum to SGX-ST and may include the fulfillment of any accompanying terms that SGX-ST may prescribe.

            Added on 16 May 2011.

          • 14.3A.2

            Upon payment of the specified sum and fulfillment of the accompanying terms within the stipulated time, no further proceedings shall be taken against that Trading Member, an Approved Executive Director or a Trading Representative for that Rule violation.

            Added on 16 May 2011.

          • 14.3A.3

            Acceptance of the offer of composition by the Trading Member, an Approved Executive Director or a Trading Representative amounts to an admission of liability and the Trading Member, Approved Executive Director or Trading Representative will be deemed to have committed the conduct described in the charge.

            Added on 16 May 2011.

          • 14.3A.4

            In respect of Rule violations which SGX-ST may offer composition, guidelines on the range of composition which SGX-ST may offer to a Trading Member, an Approved Executive Director or a Trading Representative who has committed a Rule violation are indicated in Schedule A.

            Added on 16 May 2011.

          • 14.3A.5

            SGX-ST retains the discretion to offer composition to a Trading Member, an Approved Executive Director or a Trading Representative of an amount which is lower or higher than the guidelines, except that the amount of composition that SGX-ST may offer shall not exceed S$10,000 for each Rule violation.

            Added on 16 May 2011.

          • 14.3A.6

            Notwithstanding that a Rule violation is indicated as being compoundable or may be compoundable under Schedule A, SGX-ST retains the discretion not to make an offer of composition to the Trading Member, an Approved Executive Director or a Trading Representative and instead, to charge the said Trading Member, an Approved Executive Director or a Trading Representative before the Disciplinary Committee.

            Added on 16 May 2011.

          • 14.3A.7

            If SGX-ST has made an offer of composition, it will not commence disciplinary proceedings against a Trading Member, an Approved Executive Director or a Trading Representative until after the stipulated period for the offer lapses.

            Added on 16 May 2011.

          • 14.3A.8

            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.

        • 14.4 Disciplinary Committee

          • 14.4.1

            The Disciplinary Committee comprises persons appointed by the SGX RegCo Board. No Director, Officer or employee of SGX or any of its related corporations may be appointed.

            Amended on 15 September 2017.

          • 14.4.2

            The SGX RegCo Board determines the Chairman and Deputy Chairman of the committee. In the absence of the Chairman, the Deputy Chairman will have all the powers of the Chairman.

            Amended on 15 September 2017.

          • 14.4.3

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

          • 14.4.4

            The Chairman will appoint a date, time and place for the hearing. SGX-ST and the person charged must be given reasonable notice of the hearing.

          • 14.4.5

            Members of the Disciplinary Committee must notify the Chairman before, or during, the hearing of any possible conflict of interest in relation to a charge. The Chairman will decide whether the member concerned should attend the hearing of that charge. The Chairman must abstain from hearing a charge in which he may have a conflict of interest.

          • 14.4.6

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

          • 14.4.7

            Except where it is expressly provided in the Rules, the Disciplinary Committee may establish its own procedures.

        • 14.5 Disciplinary Committee Powers

          • 14.5.1

            The Disciplinary Committee may exercise its powers against a Trading Member, an Approved Executive Director or a Trading Representative who:—

            (1) breaches the Securities and Futures Act, Securities and Futures Regulations or relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities;
            (2) breaches the Rules or Directives;
            (3) breaches any relevant law or regulation which governs that person's other business activities;
            (4) breaches the rules of any other exchange;
            (5) breaches any provisions involving fraud or dishonesty, whether in or out of Singapore;
            (6) breaches director's duties;
            (7) engages in conduct that has the effect of circumventing the Securities and Futures Act, Securities and Futures Regulations, relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities, the Rules, or Directives;
            (8) engages in conduct which is inconsistent with just and equitable principles of trading; or
            (9) engages in conduct detrimental to the financial integrity, reputation or interests of SGX-ST, or markets established or operated by SGX-ST.

            Amended on 19 May 2014.

          • 14.5.2

            The Disciplinary Committee may exercise its powers against a Trading Member or an Approved Executive Director (or both) if a Director, Trading Representative, Officer, employee or agent breaches, or causes the Trading Member to breach, the Rules or Directives.

          • 14.5.3

            A former Trading Member, Approved Executive Director or Trading Representative is bound by the Rules in respect of acts or omissions occurring before the registration ended or before expulsion. SGX-ST and the Disciplinary Committee retain their respective jurisdiction notwithstanding registration ending or expulsion.

          • 14.5.4

            The powers of the Disciplinary Committee include:—

            (1) expelling a registered person. The Disciplinary Committee may order a registered person to be expelled notwithstanding that he has resigned;
            (2) suspending a registered person;
            (3) imposing a fine not exceeding S$250,000 on a registered person;
            (4) reprimanding (publicly or privately) a registered person;
            (5) requiring an education program to be undertaken;
            (6) requiring a compliance program to be undertaken;
            (7) imposing any restrictions or conditions on activities that a registered person undertakes;
            (8) requiring reimbursement or compensation to be paid;
            (9) ordering payment of fine by installments;
            (10) ordering a stay of the penalty imposed, pending an appeal to the Appeals Committee;
            (11) requiring any Director to step down from day-to-day conduct of the business affairs of the Trading Member; and
            (12) confirming, changing or discharging the appointment of a Manager under Rule 14.12.2(d).

          • 14.5.5

            Mandatory Minimum Penalties to be Imposed by Disciplinary Committee for certain Rule violations

            (1) 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.
            (2) Where a minimum penalty has been stipulated in respect of a particular Rule violation, if the Disciplinary Committee is satisfied that SGX-ST has proved on a balance of probabilities that the Trading Member, an Approved Executive Director or a Trading Representative has committed the conduct described in the charge, the Disciplinary Committee:
            (a) shall impose a penalty, pursuant to its power under Rule 14.5.4(3), not lower than the minimum amount as stated in the thirteenth column of Schedule A, for that particular Rule violation; and
            (b) may choose to impose, in addition to the penalty in subsection (a), any one or more of the sanction(s) as set out in Rule 14.5.4.

            Added on 16 May 2011.

        • 14.6 Disciplinary Committee Proceedings

          • 14.6.1

            SGX-ST will give a person charged a written notice setting out particulars of the charge. In the case of an Approved Executive Director or a Trading Representative, a copy will be given to the Trading Member.

          • 14.6.2 Response to Charge

            (1) The following procedures apply:—
            (a) The person charged may submit a Defence. It must be given to the Secretary of the Disciplinary Committee within 14 days from the date of the Notice of Charge.
            (b) SGX-ST may Respond to the Defence. It must be given to the person charged and the Secretary within 14 days of receipt of the Defence.
            (c) The person charged may Reply to the Response. It must be given to the Secretary within 14 days of receipt of the Response.
            (2) Time to comply with the deadlines may be extended by the Chairman of the Disciplinary Committee or his nominee. A written request for extension must be submitted within the deadline and must set out the grounds. The decision of the Chairman or his nominee is final and binding.
            (3) 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.

          • 14.6.3 Legal Representation before Disciplinary Committee

            (1) SGX-ST and the person charged may be represented by an advocate and solicitor.
            (2) The person charged must tell the Secretary of the Disciplinary Committee in writing of the name of his legal representative at least 14 days before the hearing of the charge.
            (3) The Disciplinary Committee may seek the advice of an advocate and solicitor.

          • 14.6.4 Evidence

            (1) SGX-ST and the person charged may examine, and take copies of, the evidence which each of them intends to rely on at the hearing.
            (2) A person charged and the Trading Member (if applicable) must give SGX-ST a written undertaking not to disclose information received from SGX-ST in relation to the charge to any person, except the legal representative of the person charged for the purpose of the hearing or any appeal.
            (3) A breach of the undertaking constitutes a breach of the Rules.

          • 14.6.5 Witnesses, Examination and Cross Examination

            (1) SGX-ST and the person charged may:—
            (a) examine and cross-examine witnesses; and
            (b) request the attendance of a witness.
            (2) The Disciplinary Committee may, in its absolute discretion:—
            (a) call for the attendance of any witness; and
            (b) allow or disallow a request for the attendance of a witness.
            (3) The Disciplinary Committee cannot compel the attendance of a witness.

          • 14.6.6 Disciplinary Committee's Deliberation

            Unless expressly permitted by the Chairman of the Disciplinary Committee, SGX-ST and the person charged must not be present during the deliberation of a charge by the Disciplinary Committee. Failure to observe this Rule does not vitiate any decision.

          • 14.6.7 Decision of Disciplinary Committee

            (1) SGX-ST and the person charged may be present when the Disciplinary Committee announces its decision.
            (2) The Disciplinary Committee will record short written grounds of decision.
            (3) The Disciplinary Committee will give its written decision to SGX-ST and the person charged.

          • 14.6.8 Notification of Decision

            (1) SGX-ST will notify all Trading Members, Approved Executive Directors and Trading Representatives of all charges established by the Disciplinary Committee (together with such details as SGX-ST thinks appropriate).
            (2) SGX-ST may make the decision public (together with such details as SGX-ST thinks appropriate). For avoidance of doubt, this includes publication of the following information:—
            (a) the particulars of the Trading Member, Approved Executive Director or Trading Representative. In the case of an Approved Executive Director or a Trading Representative, also the particulars of his or her Trading Member at the time;
            (b) the particulars of the charge;
            (c) the underlying facts in respect of the charge;
            (d) the findings and decision of the Disciplinary Committee or the Appeals Committee (as applicable);
            (e) the basis of the findings and decision of the Disciplinary Committee or the Appeals Committee (as applicable); and
            (f) the powers exercised by the Disciplinary Committee or the Appeals Committee (as applicable).
            (3) This Rule operates as irrevocable consent by a Trading Member, an Approved Executive Director and a Trading Representative for SGX-ST to publish or notify a decision. The consent remains valid and effective notwithstanding that the person ceases to be a Trading Member, Approved Executive Director or Trading Representative. A Trading Member, Approved Executive Director or Trading Representative cannot initiate any action or proceeding against SGX-ST or members of the Disciplinary Committee for publishing or notifying a decision under this Rule.

            Amended on 1 January 2005.

        • 14.7 Appeals Committee

          • 14.7.1

            The Appeals Committee comprises persons appointed by the Board of Directors of SGX RegCo and approved by the Authority provided that:—

            (a) no Director, Officer or employee of SGX or any of its related companies may be appointed;
            (b) a majority are not directors, officers or employees of the members of SGX or its subsidiaries; and
            (c) a majority are not substantial shareholders of SGX or directors, officers or employees of any substantial shareholder of SGX.

            Amended on 30 November 2005. and 15 September 2017

          • 14.7.2

            The powers of the Appeals Committee include:—

            (1) all the powers of the Disciplinary Committee;
            (2) increasing or reducing penalties, and overturning, varying or upholding any decision of the Disciplinary Committee;
            (3) hearing appeals in accordance with the Rules; and
            (4) dealing with such other matters as the SGX RegCo Board gives it (either generally or in a particular case).

            Amended on 15 September 2017.

          • 14.7.3

            The Appeals Committee elects a Chairman from among the members.

          • 14.7.4

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

          • 14.7.5

            The Chairman will appoint a date, time and place for the hearing. The appellant and the respondent must be given reasonable notice of the hearing.

          • 14.7.6

            Members of the Appeals Committee must notify the Chairman before, or during, the hearing of any possible conflict of interest in relation to an appeal. The Chairman will decide whether the member concerned should attend the hearing of that appeal. The Chairman must abstain from hearing an appeal in which he may have a conflict of interest.

          • 14.7.7

            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.

          • 14.7.8

            Except where it is expressly provided in the Rules, the Appeals Committee may establish its own procedures.

        • 14.8 Appeals

          • 14.8.1

            SGX-ST or the person charged may appeal against the decision of the Disciplinary Committee.

          • 14.8.2

            A decision of the Appeals Committee is final and binding.

            Amended on 12 October 2005.

        • 14.9 Appeals Proceedings

          • 14.9.1 Notice of Appeal and Reply

            (1) The following procedures apply:—
            (a) The Appellant must give a Notice of Appeal (setting out the full grounds of appeal) to the Respondent and the Secretary of the Appeals Committee within 14 days of receipt of the Disciplinary Committee's written decision under Rule 14.6.7(3).
            (b) The Respondent may Respond. It must be given to the Appellant and the Secretary within 14 days of receipt of the Notice of Appeal.
            (c) The Appellant may Reply to the Response. It must be given to the Respondent and the Secretary within 14 days of receipt of the Response.
            (2) Time to comply with the deadlines may be extended by the Chairman of the Appeals Committee or his nominee. A written request for extension must be submitted within the deadline and must set out the grounds. The decision of the Chairman or his nominee is final and binding.
            (3) The Appeals Committee may hear an appeal and exercise all its powers even if the Respondent does not file a Response or either party is not present at the hearing or any adjourned hearing.

          • 14.9.2 Administrative Fee for Appeal

            (1) An appellant (other than SGX-ST) must pay an administrative fee of $1,500 when submitting a Notice of Appeal.
            (2) The administrative fee is not refundable unless:—
            (a) the appellant tells the Secretary of the Appeals Committee in writing of withdrawal of the appeal at least 7 days before the hearing of the appeal;
            (b) the appeal is successful; or
            (c) the Chairman of the Appeals Committee agrees to a refund, whether in full or in part.

          • 14.9.3 Appeals by Rehearing

            (1) The Appeals Committee will determine the appeal by way of rehearing. It will only rehear that part of the decision of the Disciplinary Committee appealed against.
            (2) The Appeals Committee may receive evidence that was not presented to the Disciplinary Committee. In exercising its discretion, the Appeals Committee will consider whether the evidence was available at the time of the hearing by the Disciplinary Committee and why it was not introduced at that time.

          • 14.9.4 Legal Representation Before Appeals Committee

            (1) An appellant and a respondent may be represented by an advocate and solicitor.
            (2) The Secretary of the Appeals Committee must be informed in writing of the name of the legal representative at least 14 days before the hearing of the appeal.
            (3) The Appeals Committee may seek the advice of an advocate and solicitor.

          • 14.9.5 Evidence

            (1) The parties to an appeal may examine, and take copies of, the evidence which each of them intends to rely on at the hearing.
            (2) The undertaking given under Rule 14.6.4(2) applies.

          • 14.9.6 Witnesses, Examination and Cross Examination

            (1) The parties to an appeal may:—
            (a) examine and cross-examine witnesses; and
            (b) request the attendance of a witness.
            (2) The Appeals Committee may, in its absolute discretion:—
            (a) call for the attendance of any witness; and
            (b) allow or disallow a request for the attendance of a witness.
            (3) The Appeals Committee cannot compel the attendance of a witness.

          • 14.9.7 Appeals Committee's Deliberation

            Unless expressly permitted by the Chairman of the Appeals Committee, the parties to an appeal must not be present during the deliberation of an appeal by the Appeals Committee. Failure to observe this Rule does not vitiate the decision.

          • 14.9.8 Decision of Appeals Committee

            (1) The parties to an appeal may be present when the Appeals Committee announces its decision.
            (2) The Appeals Committee will record short written grounds of decision.
            (3) The Appeals Committee will give its written decision to all parties to an appeal.

        • 14.10 Payment of Costs

          • 14.10.1

            The Disciplinary Committee or Appeals Committee may require the Trading Member, Approved Executive Director or Trading Representative charged to pay all or part of the costs of the investigation, inspection or hearing.

          • 14.10.2

            The Committee may order the costs awarded to be paid within 14 days.

        • 14.11 Fine

          • 14.11.1

            A fine must be paid within 14 days from the date of notice, or such longer time as the Chairman of the Disciplinary Committee or the Appeals Committee (as applicable), or his nominee, permits.

          • 14.11.2

            If a fine remains unpaid 7 days after the deadline, the Trading Member's access to markets established or operated by SGX-ST, the Approved Executive Director's registration, or the Trading Representative's registration (as the case may be), is suspended. The suspension ends upon full payment of the fine.

        • 14.12 Interim Powers of SGX-ST

          • 14.12.1

            Action Against Registered Persons

            (1) SGX-ST may suspend, or otherwise restrict the activities of, a Trading Member, an Approved Executive Director or a Trading Representative if the person is charged with:—
            (a) an offence under the Securities and Futures Act or Securities and Futures Regulations or an offence under any other relevant applicable laws and regulatory requirements relating to the regulation 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) The suspension or restriction ends if the Trading Member, Approved Executive Director or Trading Representative is acquitted or the charge is not proceeded with.

            Amended on 19 May 2014.

          • 14.12.2

            If SGX-ST is of the opinion that:—

            (1) a Trading Member has, or may have, insufficient capital for the conduct of its business; or
            (2) a review should be carried out in respect of a Trading Member's management policies or business conduct in the interests of the Trading Member, SGX-ST, or markets established or operated by SGX-ST,
            SGX-ST may do any or all of the following:—
            (a) require the Trading Member to operate its business subject to such restrictions or conditions as SGX-ST decides;
            (b) suspend the Trading Member for a period SGX-ST decides. The suspension will be announced to all Trading Members. During the suspension, the Trading Member:—
            (i) must not enter into a new transaction without the approval of SGX-ST; and
            (ii) remains liable to complete all contracts outstanding at the time of suspension. However, it must not deliver any securities or settle any transaction without the approval of SGX-ST.
            (c) require any Director to step down from day-to-day conduct of the business affairs of the Trading Member; and
            (d) appoint a Manager to manage the business of the Trading Member. SGX-ST will fix the remuneration of the Manager, which must be paid by the Trading Member. The Trading Member is solely responsible for the Manager's acts and defaults. The Manager must carry out directions given by SGX-ST in relation to the business of the Trading Member, including carrying on the business of the Trading Member in accordance with instructions.

          • 14.12.3 Action Against Defaulters

            (1) SGX-ST may declare a Trading Member to be a defaulter if, in its opinion, the Trading Member:—
            (a) has failed, is unable, or unwilling, to fulfill its obligations to SGX-ST or its customers; or
            (b) is apparently insolvent.
            (2) A Trading Member that commits an act that may result in it being declared a defaulter under Rule 14.12.3(1) must inform SGX-ST immediately. A Trading Member against whom any such act is committed must also inform SGX-ST immediately.
            (3) A Trading Member's access to markets established or operated by SGX-ST ceases if it is declared a defaulter. The access may be reinstated by SGX-ST. The Trading Member remains liable to SGX-ST, other Trading Members and its customers for all obligations incurred before its access ceased.
            (4) SGX-ST will notify all Trading Members of the declaration of default and the reinstatement (if applicable).
            (5) SGX-ST may allow an open transaction with a defaulter to be closed as SGX-ST directs.
            (6) Action under this Rule is in addition to other actions which SGX-ST is entitled to take against the Trading Member.

          • 14.12.4

            Subject to Rule 14.12.5, SGX-ST will notify the Trading Member, Approved Executive Director or Trading Representative in writing before it exercises any of its powers under this Rule.

          • 14.12.5

            If, in SGX-ST's opinion, it is necessary to protect the financial integrity, reputation or interests of SGX-ST, or markets established or operated by SGX-ST, it may exercise its powers under this Rule without prior notice to the Trading Member, Approved Executive Director or Trading Representative. SGX-ST will notify the Trading Member, Approved Executive Director or Trading Representative in writing after it has exercised the powers.

          • 14.12.6

            SGX-ST will refer the matter (together with an account of its exercise of the interim powers) to the Disciplinary Committee for a decision within 14 days of SGX-ST's notification of its actions under this Rule. The Disciplinary Committee proceedings in Rule 14.6 apply. The Disciplinary Committee may expedite the proceedings if it thinks fit. SGX-ST's notification will serve as the written notice under Rule 14.6.1.

        • 14.13 Emergency Powers

          • 14.13.1

            Where SGX-ST deems it necessary or desirable for ensuring a fair and orderly market or for ensuring a safe and efficient clearing facility, or for ensuring the integrity of the market or for proper management of systemic risk in the market, SGX-ST may, in relation to 1 or more Trading Members:

            (1) require that a portion of the positions in respect of Marginable Futures Contract carried in any account(s) on the books of such Trading Member be transferred to the books of 1 or more Trading Members;
            (2) require such Trading Member to liquidate any of the positions carried in any account(s) on its books;
            (3) modify any term in any Contract Specifications, which may include bringing forward the Last Trading Day, or modifying the settlement obligations as set out in Rule 9.4.1;
            (4) require such Trading Member to close any accounts;
            (5) impose such additional capital requirements on such Trading Member as SGX-ST deems necessary or desirable;
            (6) impose such limits and/or conditions to control the activities of such Trading Member as SGX-ST deems necessary or desirable; and
            (7) take such action or require such Trading Member to take such action as SGX-ST deems necessary or desirable.

            Added on 16 September 2016.

          • 14.13.2

            SGX-ST shall, as soon as practicable, notify the Authority of any action taken pursuant to Rule 14.13.

            Added on 16 September 2016 and amended on 15 September 2017.

          • 14.13.3

            Nothing in this rule shall limit the authority of SGX-ST, SGX RegCo or any other committee to act in an emergency situation in accordance with these Rules.

            Added on 16 September 2016 and amended on 15 September 2017.

          • 14.13.4

            Without prejudice to the generality of Chapter 2, SGX-ST 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 third party, arising out of or in connection with the exercise or non-exercise by SGX-ST of its powers under Rule 14.13 or the determination by SGX-ST of the satisfaction or non-satisfaction of any condition for the exercise of such powers.

            Added on 16 September 2016.

    • Section E — Other Business Activities

      • Chapter 15 — Research

        • 15.1 Permissible Activities

          • 15.1.1

            The research department of a Trading Member must engage only in the following activities:—

            (1) research or analysis of securities or Futures Contracts (including recommendations, if any); or
            (2) other activities SGX-ST approves.

            Amended on 3 April 2008.

          • 15.1.1A

            Unless exempt under the Securities and Futures Act or the Securities or Futures Regulations, prior to engaging in research activities, a Trading Member and its research staff must obtain the appropriate licence.

            Added on 3 April 2008.

          • 15.1.2

            A Trading Member must not circumvent this Chapter by entering into any arrangements.

        • 15.1A Application of Chapter

          • 15.1A.1

            This Chapter shall not apply to a Trading Member who holds a licence specified in Rule 4.1.1(1)(b). Such a Trading Member 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 Chapter 15 for its business activities on SGX-ST.

            Added on 19 May 2014.

        • 15.2 Notification Procedures

          • 15.2.1

            A Trading Member must inform SGX-ST in writing at least 14 days before it establishes a research department.

          • 15.2.2

            A Trading Member must supply SGX-ST with any information SGX-ST requires regarding the proposed establishment.

          • 15.2.3

            SGX-ST may limit the scope of activity of the research department.

          • 15.2.4

            SGX-ST may require a Trading Member to end any research activity if:—

            (1) the Trading Member fails to comply with this Chapter; or
            (2) in SGX-ST's opinion, the research activity is detrimental to the financial integrity, reputation or interests of SGX-ST, the Trading Member concerned, or markets established or operated by SGX-ST.

          • 15.2.5

            If SGX-ST requires a Trading Member to end its research activity, the Trading Member may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

            Amended on 15 September 2017.

        • 15.3 Supervision

          • 15.3.1

            A Trading Member must:—

            (1) supervise its research analysts;
            (2) implement written supervisory procedures to ensure that its research analysts comply with this Chapter; and
            (3) implement any procedure, Directive or recommendation by SGX-ST.

          • 15.3.2

            A Trading Member is responsible to SGX-ST for the acts and omissions of its research analysts.

          • 15.3.3

            SGX-ST may limit the scope of activity of a research analyst or direct a Trading Member to replace a research analyst if the person:—

            (1) causes the Trading Member to breach the Rules or Directives;
            (2) engages in conduct detrimental to the financial integrity, reputation or interests of SGX-ST, or markets established or operated by SGX-ST;
            (3) breaches any provision involving fraud or dishonesty, whether in or out of Singapore; or
            (4) is the subject of an investigation involving fraud or dishonesty, whether in or out of Singapore.

          • 15.3.4

            A Trading Member may, within 14 days after it is directed by SGX-ST to replace a research analyst, appeal in writing to the SGX RegCo Board whose decision will be final.

            Amended on 15 September 2017.

        • 15.4 Separation of Research Activities

          • 15.4.1

            A Trading Member's research activities must be separate from its dealing, corporate finance and back office operations. Separation means at least having the following:—

            (1) separate reporting lines in place between the research activities and the other activities;
            (2) adequate restriction of communication and information flow between the research activities and the other activities to avoid influencing research activities;
            (3) adequate procedures to avoid any conflict of interest that may arise from the research activities and the other activities; and
            (4) bonus, salary or other form of compensation to a research analyst not being based on any corporate finance or dealing transaction.

          • 15.4.2

            A Trading Member must implement any procedure, Directive or recommendation by SGX-ST.

        • 15.5 Investment Recommendations

          • 15.5.1

            A Trading Member must:—

            (1) have an adequate basis, supported by research, for making an investment recommendation;
            (2) maintain independence and objectivity in producing a research report or making an investment recommendation; and
            (3) not issue a research report or make an investment recommendation that is not consistent with its research analyst's actual views regarding a subject company.

        • 15.6 Records

          • 15.6.1

            A Trading Member must maintain records of its research report or investment recommendation for 7 years.

        • 15.7 Disclosure

          • 15.7.1

            A Trading Member and a research analyst must disclose:—

            (1) any interest at the date of the dissemination of the research report or investment recommendation in the subject of the report or recommendation. "Interest" includes direct or indirect ownership of securities or Futures Contracts (excluding the amount of securities or Futures Contracts owned), directorships, trustee positions, customer of the Trading Member or any other relationship that may be regarded as creating a potential conflict of interest with the Trading Member's responsibility under Rule 15.5.1(2); and
            (2) any monetary compensation (excluding salary and bonuses) or other benefits receivable in respect of the research report or investment recommendation.

            Amended on 3 April 2008.

        • 15.8 Trade Restrictions

          • 15.8.1

            A Trading Member and a research analyst must not:—

            (1) knowingly buy or sell a security or Futures Contract if the Trading Member or research analyst has material information not generally available to the public in relation to the security or Futures Contract;
            (2) except on instructions from a customer, knowingly buy or sell a security or Futures Contract if the transaction may create a conflict of interest in relation to the Trading Member's duty to its customers;
            (3) procure any person to buy or sell a security or Futures Contract if the Trading Member or research analyst is prohibited under Rules 15.8.1(1) and (2) from doing so; and
            (4) buy or sell a security or Futures Contract contrary to the most recent research report published by the Trading Member unless 3 Market Days have passed since the report was issued. This trading restriction does not apply if:—
            (a) the Trading Member is acting on a customer's express instructions;
            (b) significant news is announced that would change the research report or investment recommendation; or
            (c) the research analyst is in financial difficulty and must sell the security or Futures Contract. The Trading Member must ensure that the research analyst obtains prior written approval of a senior management staff independent of research, dealing or corporate finance for each trade. The Trading Member must also maintain documentation of the financial condition and the decision for 7 years.

            Amended on 3 April 2008.

      • Chapter 16 — Corporate Finance

        • 16.1 Permissible Activities

          • 16.1.1

            Unless exempt under the Securities and Futures Act or the Securities and Futures Regulations, prior to engaging in corporate finance activities, a Trading Member and its corporate finance staff must obtain the appropriate licence and be appropriately registered.

            Amended on 3 April 2008 and 29 November 2010.

          • 16.1.2

            The corporate finance department of a Trading Member must engage only in the following types of activities:—

            (1) Management, underwriting and placement of initial public offering of securities;
            (2) Management, underwriting and placement of rights issues of securities;
            (3) Advising on acquisition and disposal of securities and assets;
            (4) Advising on corporate or debt restructuring; and
            (5) Take-over offers under the Singapore Code on Take-overs and Mergers, if the Trading Member has relevant expertise and experience.

            Amended on 3 April 2008.

        • 16.1A Application of Chapter

          • 16.1A.1

            This Chapter shall not apply to a Trading Member who holds a licence specified in Rule 4.1.1(1)(b). Such a Trading Member 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 Chapter 16 for its business activities on SGX-ST.

            Added on 19 May 2014.

        • 16.2 Notification Procedures

          • 16.2.1

            A Trading Member must inform SGX-ST in writing at least 14 days before it engages in corporate finance activities under Rule 16.1.

          • 16.2.2

            A Trading Member must supply SGX-ST with any information SGX-ST requires regarding the corporate finance activities.

          • 16.2.3

            SGX-ST may limit the scope of activity of the corporate finance department.

          • 16.2.4

            SGX-ST may require a Trading Member to end any of its corporate finance activities if:—

            (1) the Trading Member fails to comply with this Chapter; or
            (2) in SGX-ST's opinion, the corporate finance activity is detrimental to the financial integrity, reputation or interests of SGX-ST, the Trading Member concerned, or markets established or operated by SGX-ST.

          • 16.2.5

            If SGX-ST requires a Trading Member to end any of its corporate finance activities, the Trading Member may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

            Amended on 15 September 2017.

        • 16.3 Staffing

          • 16.3.1

            The corporate finance department must have adequate staff with relevant expertise and experience.

          • 16.3.2

            A Trading Member must:—

            (1) supervise its corporate finance staff;
            (2) implement written supervisory procedures to ensure that its corporate finance staff comply with this Chapter; and
            (3) implement any procedure, Directive or recommendation by SGX-ST.

          • 16.3.3

            A Trading Member is responsible to SGX-ST for the acts and omissions of its corporate finance staff.

          • 16.3.4

            SGX-ST may limit the scope of activity of a corporate finance staff or direct a Trading Member to replace a corporate finance staff if the person:—

            (1) causes the Trading Member to breach the Rules or Directives;
            (2) engages in conduct detrimental to the financial integrity, reputation or interests of SGX-ST, or markets established or operated by SGX-ST;
            (3) breaches any provision involving fraud or dishonesty, whether in or out of Singapore; or
            (4) is the subject of an investigation involving fraud or dishonesty, whether in or out of Singapore.

          • 16.3.5

            A Trading Member may, within 14 days after it is directed by SGX-ST to replace a corporate finance staff, appeal in writing to the SGX RegCo Board whose decision will be final.

            Amended on 15 September 2017.

        • 16.4 Separation of Corporate Finance Activities

          • 16.4.1

            A Trading Member's corporate finance activities must be separate from its dealing, research and back office operations. Separation means at least having the following:—

            (1) separate reporting lines in place between the corporate finance activities and the other activities;
            (2) restriction of communication and information flow between the corporate finance activities and the other activities to avoid leakage of sensitive information;
            (3) adequate procedures to avoid any conflict of interest that may arise from the corporate finance activities and the other activities; and
            (4) access into the corporate finance department be restricted only to the corporate finance staff and any other authorised staff of the Trading Member.

          • 16.4.2

            A Trading Member may have a research analyst assist in a corporate finance project. If so, the Trading Member must have procedures to avoid any conflict of interest.

          • 16.4.3

            Other departments of the Trading member may provide accounting, personnel support and other support services to the corporate finance department but the Trading Member must ensure that confidentiality of corporate finance customers is preserved.

        • 16.5 Setting of Limits

          • 16.5.1

            Underwriting commitment limits must be set by those members of the senior management of the Trading Member who are independent of the corporate finance and dealing departments.

        • 16.6 Confidentiality of Information

          • 16.6.1

            A Trading Member must ensure that corporate finance staff do not divulge any confidential information to any person who is not entitled to receive the information.

          • 16.6.2

            A Trading Member must ensure that corporate finance staff exercise due care to prevent any leak of confidential information.

        • 16.7 Trade Restrictions

          • 16.7.1

            A restricted list of securities on which the corporate finance department is working must be maintained.

          • 16.7.2

            A security must be moved onto the restricted list no later than the date the deal is mandated.

          • 16.7.3

            If circulated, the restricted list may be circulated to only the following persons:—

            (1) corporate finance staff and the person to whom the head of corporate finance reports; and
            (2) Trading Representatives who are authorised to deal for the Trading Member's accounts and the head to whom these Trading Representatives report.

          • 16.7.4

            Staff who are privy to the Restricted List must not deal in securities listed therein, or in any derivative of such securities, either for the Trading Member's account, their own accounts or accounts over which they have control and influence.

            Amended on 3 April 2008.

      • Chapter 17 — Securities Borrowing and Lending

        • 17.1 Application of Chapter

          • 17.1.1

            This Chapter does not apply to a Trading Member:

            (1) when it borrows (lends) securities from (to) a person who is an accredited investor; or
            (2) who holds a licence specified in Rule 4.1.1(1)(b). Such a Trading Member 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 Chapter 17 for its business activities on SGX-ST.

            Amended on 19 May 2014.

        • 17.2 Agreement

          • 17.2.1

            Subject to Rule 17.2.2, before engaging in securities borrowing or lending transactions, a Trading Member must enter into a written agreement with the borrower or lender in accordance with Regulation 45(5) of the Securities and Futures (Licensing & Conduct of Business) Regulations and subject to Rule 17.3.3 which requires the collateral provided or obtained by the Trading Member to be at least 105% of the market value of the securities.

            Amended on 27 January 2012.

          • 17.2.2

            A Trading Member borrowing from an Accredited Investor shall comply with Regulation 45(6) of the Securities and Futures (Licensing & Conduct of Business) Regulations.

            Added on 27 January 2012.

            Amended on 18 September 2012.

        • 17.3 Collateral

          • 17.3.1A

            Except where a Trading Member borrows securities from an Accredited Investor, if a Trading Member borrows or lends securities to any person, it must obtain collateral in accordance with this Rule 17.3 and meet its obligations under Regulation 45(5) of the Securities and Futures (Licensing & Conduct of Business) Regulations.

            Added on 27 January 2012.

            Amended on 18 September 2012.

          • 17.3.1

            A Trading Member must obtain collateral from a borrower of securities by the close of the Market Day before delivering the loaned securities to the borrower.

          • 17.3.2

            The collateral must be in the form as specified in Regulation 45(9) of the Securities and Futures (Licensing & Conduct of Business) Regulations.

            Amended on 23 January 2009 and 27 January 2012.

          • 17.3.3

            The value of collateral obtained from the borrower must be at least 105% of the market value of the loaned securities throughout the period that the securities are lent.

          • 17.3.4

            If the value of collateral falls below 105% of the market value of the loaned securities, a Trading Member must, by the next Market Day, notify the borrower to provide additional collateral to bring the value of collateral to at least 105% of the market value of the loaned securities by the close of the second Market Day from the date of notice. A Trading Member must not allow any new borrowings until the value of the collateral is restored to at least 105% of the market value of the loaned securities.

          • 17.3.5

            A Trading Member may, without notice to the borrower, realise the collateral and apply the proceeds to buy back securities to close off the loan position if:—

            (1) the borrower does not provide the additional collateral by the close of the second Market Day from the date of notice; or
            (2) the collateral value falls below 100% of the market value of the loaned securities, whichever occurs earlier.

          • 17.3.6

            A Trading Member may allow a borrower to withdraw collateral, provided that the remaining collateral value is at least 105% of the market value of the loaned securities after the withdrawal.

          • 17.3.7

            SGX-ST may vary the percentage in Rules 17.3.3, 17.3.4, 17.3.5 and 17.3.6 or apply discounts to the value of collateral.

          • 17.3.8

            A Trading Member may require additional collateral from the borrower or apply discounts to the value of the collateral.

      • Chapter 18 — Exchange Options Trading

        • 18.1 Applicability and Definitions

          • 18.1.1 Applicability

            These Rules shall be applicable to the trading on SGX-ST of Options listed or quoted on SGX-ST, the terms and conditions of such Options, the exercise and settlement thereof, the handling of orders and the conduct of accounts and other matters relating to Options trading. Except as otherwise specified in this Chapter, the Rules and Directives shall, where applicable, apply to the trading of Options on SGX-ST.

          • 18.1.2 Definitions

            In this Chapter, (except where the context otherwise requires):—

            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
            B
            "Buyer"; the term "buyer" in relation to underlying securities refers to the buyer of the underlying securities covered by an exercised Option.
            C
            "Call Option" means an Option which gives the Purchaser thereof the right in accordance with the terms of the Option, to buy a Standard Quantity of the underlying security at the Exercise Price.
            "CDP System" refers to the computerised Central Depository System maintained by CDP whereby transfers of securities are effected on a book-entry basis.
            "Class of Options" or "Class" means in relation to any Option, either:—
            (1) all Call Options covering the same underlying security; or
            (2) all Put Options covering the same underlying security.
            "Customer"; the term "customer" in respect of any Trading Member shall include any Trading Representative, Director, employee or officer of the Trading Member.
            "Closing Purchase Transaction"; the term "closing purchase transaction" means an Option transaction which eliminates the short position created by an opening written transaction.
            "Closing Written Transaction"; the term "closing written transaction" means an Option transaction which eliminates the long position created by an opening purchase transaction.
            D
            "Depository Agent" means an entity registered as a Depository Agent with CDP for the purpose of maintaining sub-accounts for its own account and for the account of others.
            "Distribution"; the term "distribution", unless otherwise determined by SGX-ST, shall mean capital issue, stock split, consolidation, reconstruction, or other similar action (other than cash distribution made out of profits) in respect of any underlying security.
            E
            "Equity Market" means the market in stocks and shares conducted by SGX-ST.
            "Exercise Notice" means a notice (for the time being current) for the exercise of the Options as prescribed from time to time by the OCC, copies of which may be obtained from Trading Members.
            "Exercise Price" means the specified price per unit of the Standard Quantity at which the underlying security may be purchased or sold upon exercise of the Option subject to such adjustments by SGX-ST in accordance with Rule 18.10.
            "Expiration Date" means in relation to an Option, the last Friday of the Expiration Month in relation to such Option or if such day is not a Market Day on which the Equity Market for the underlying security is open for trading, the Market Day preceding that day.
            "Expiration Month" means in relation to an Option, the month in which the Option expires.
            "Explanatory Booklet" means a booklet approved from time to time by SGX-ST to be furnished to each customer of a Trading Member who opens an Options trading account which provides information to investors on the trading of Options.
            L
            "Lodgement"; the term "lodgement" and "lodged" in relation to an Exercise Notice shall refer to the notification of the exercise of an Option to the OCC by the Trading Member in accordance with the Regulations.
            "Long Position"; the term "long position" means the number of outstanding Options of a given Series of Options held by a Purchaser.
            O
            "OCC" means the Options Clearing Company (Pte) Limited or its successor company.
            "Opening Purchase Transaction"; the term "opening purchase transaction" means an Option transaction which creates a long position in the Option.
            "Opening Written Transaction"; the term "opening written transaction" means an Option transaction which creates a short position in the Option.
            "Option" means an option contract which is either a Put Option or a Call Option traded or reported through the Trading System.
            "Options Market" means the market in stock and share options conducted by SGX-ST.
            "Option transaction" means a transaction traded on or reported through the Trading System in relation to the purchase or writing of an Option.
            "Options trading account"; the term "options trading account" means a trading account opened by a customer with a Trading Member for the purpose of trading in Options.
            "Outstanding"; the term "outstanding" in relation to an Option means an Option which has not been the subject of a closing transaction nor been exercised nor reached its Expiration Date.
            P
            "Premium" or "premium" means in relation to an Option transaction, the price per unit of such Option agreed upon between the Purchaser and Writer in such transaction.
            "Purchaser" means in relation to an Option, the purchaser of the Option.
            "Put Option" means an Option which gives the Purchaser thereof the right in accordance with the terms of the Option, to sell a Standard Quantity of the underlying security at the Exercise Price.
            R
            "Regulations" means the Regulations for Options business of the OCC for the time being in force.
            S
            "Same side of the market" means in respect of Options positions either:—
            (1) long positions in Put Options and short positions in Call Options; or
            (2) short positions in Put Options and long positions in Call Options.
            "Seller"; the term "seller" in relation to underlying securities refers to the seller of the underlying securities covered by an exercised Option.
            "Series of Options" or "Series" means all Options of the same Class of Options having the same Exercise Price and Expiration Date.
            "Scrip-Covered Call Option" means a Call Option in which the obligations of the Writer have been fully secured by the deposit of the underlying security to be delivered to the buyer upon an exercise of the said Option.
            "Securities Account" means the securities account maintained by a direct account holder or a Depository Agent with CDP.
            "Short Position"; the term "short position" means the number of outstanding Options of a given Series of Options with respect to which a person is obligated as a Writer.
            "Standard Quantity" means in relation to an Option, the quantity of underlying securities prescribed from time to time by SGX-ST as the number of the underlying securities covered by the Option subject to such adjustments by SGX-ST in accordance with Rule 18.10.
            U
            "Underlying Securities"; the term "underlying securities" in relation to an Option means (in the case of a Call Option) the security which the Purchaser shall be entitled to buy upon the exercise of the Option and which the Writer shall be obligated to deliver or (in the case of a Put Option) the security which the Purchaser shall be entitled to sell upon the exercise of the Option and which the Writer shall be obligated to buy.
            "Uncovered"; the term "uncovered" in relation to any Call Option means that the Call Option is not a Scrip-Covered Call Option.
            W
            "Writer" means in relation to an Option, the seller of the Option.

            Amended on 3 April 2008.

        • 18.2 Option Contracts to be Traded

          • 18.2.1 Approval of Options for Listing or Quotation and Trading

            SGX-ST may from time to time approve for listing or quotation and trading on SGX-ST, Put Options and Call Options in respect of approved underlying securities. Subject to giving prior notification, SGX-ST may remove the listing or quotation of any Series of Options when there are no outstanding positions in such Series.

          • 18.2.2 Approval of Underlying Securities

            SGX-ST may from time to time approve underlying securities as being suitable for Options trading on SGX-ST.

          • 18.2.3 Criteria for Approval of Underlying Securities

            SGX-ST may from time to time establish criteria to be considered in evaluating potential underlying securities for Option transactions. The fact that particular securities may meet the criteria does not necessarily mean that they will be approved as underlying securities. In special situations an underlying security may be approved even though it does not meet all of the criteria established.

          • 18.2.4 Withdrawal of Approval of Underlying Securities

            Whenever SGX-ST determines that underlying securities previously approved for Option transactions do not meet the then current requirements for continuance of such approval or for any other reason should no longer be approved, SGX-ST shall not open for trading any additional Series of Options covering those underlying securities and any opening purchase transactions in Options of that Series previously opened may be prohibited to the extent that SGX-ST shall deem necessary for the maintenance of a fair and orderly market or for the protection of Purchasers or Writers of Options.

        • 18.3 Option Transactions

          • 18.3.1 Registration

            Option transactions shall be registered with the OCC in accordance with its Regulations. An Option shall be deemed to be registered by the issuance of the contract statement by the OCC on behalf of the Trading Member to the Purchaser or Writer thereof.

          • 18.3.2 Responsibility on Registration

            (1) Every Trading Member shall be responsible for the Options registered in the name of such Trading Member for its own account or for the account of its customers.
            (2) Every Trading Member whose Options are registered with the OCC shall be bound by the Regulations. Any breach of the Regulations by the Trading Member shall be liable to be dealt with as if it were a breach of the Rules.

          • 18.3.3 Series of Options Open for Trading

            (1) SGX-ST shall, from time to time, open for trading Series of Options in respect of underlying securities approved for Options trading.
            (2) Only Options of a Series currently open for trading may be purchased or written on SGX-ST.
            (3) The opening of a new Series of Options shall not affect other Series of Options previously opened.
            (4) No transaction in Options of a particular Series shall be made after the close of the Equity Market of the underlying security on the Market Day preceding the Expiration Date of that Series of Options.

          • 18.3.4 Terms of Options

            (1) The Expiration Month and Exercise Price of each Series of Options shall be determined by SGX-ST at the time each Series of Options is first opened for trading.
            (2) The Standard Quantity shall be designated by SGX-ST, and in the absence of such designation the Standard Quantity shall be 1,000 shares.
            (3) Unless SGX-ST otherwise provides, Options shall expire in the months of March, June, September and December and a Series of Options of a given Expiration Month shall generally be opened for trading 3 to 6 months prior to such Expiration Month.
            (4) The Exercise Price of each Series of Options shall be fixed at a price which is reasonably close to the price which the underlying securities are traded on SGX-ST at the time such Series of Options is first opened for trading.
            (5) Additional Series of Options may be opened for trading as the market price of the underlying securities moves substantially from the initial Exercise Price or as determined by SGX-ST from time to time.

          • 18.3.5 Adjustments to Terms

            (1) The Standard Quantity and Exercise Price initially established for a particular Series of Options are subject to adjustment in accordance with Rule 18.10.
            (2) When such adjustments have been determined, announcement thereof shall be made by SGX-ST, effective from the time specified by such announcement.

          • 18.3.6 Suspension of Trading

            (1) The trading on SGX-ST of any or all Classes or Series of Options shall be halted or suspended whenever SGX-ST deems such action appropriate in the interest of maintaining a fair and orderly market and to protect investors.
            (2) Among the factors that may be considered are that:—
            (a) trading in the underlying securities has been halted or suspended on SGX-ST;
            (b) the opening of such underlying securities on SGX-ST has been delayed because of unusual circumstances;
            (c) SGX-ST has been advised that the issuer of the underlying securities is about to make an important announcement affecting such underlying securities; or
            (d) other unusual conditions or circumstances are present.
            (3) Rights to exercise not affected by suspension Unless otherwise decided by SGX-ST, the suspension in trading of Options shall not affect the right of Purchasers to exercise such Options during the period of suspension.

          • 18.3.7 Resumption of Trading

            The trading of Options that have been the subject of suspension under Rule 18.3.6(1) may be resumed upon the determination of SGX-ST that the conditions which led to the suspension are no longer present or that the interests of a fair and orderly market are best served by a resumption of trading.

        • 18.4 Rights and Obligations of Purchasers and Writers

          • 18.4.1

            Subject to the Regulations and in accordance with the Rules and Directives:—

            (1) Call Option

            The Purchaser of a Call Option has the right, beginning 1 Market Day after the Option is registered and expiring on the Expiration Date, to purchase the Standard Quantity of the underlying securities represented by such Option at the Exercise Price from such person as the OCC may from time to time designate. The Writer of a registered Call Option is obligated, upon the allocation to him of an Exercise Notice by the OCC, to sell and deliver the Standard Quantity of the underlying securities represented by such Option to such person as the OCC may from time to time designate.
            (2) Put Option

            The Purchaser of a Put Option has the right, beginning 1 Market Day after the Option is registered and expiring on the Expiration Date, to sell and deliver the Standard Quantity of the underlying securities represented by such Option at the Exercise Price to such person as the OCC may from time to time designate. The Writer of a registered Put Option is obligated, upon the allocation to him of an Exercise Notice by the OCC, to purchase the Standard Quantity of the underlying securities represented by such Option from such person as the OCC may from time to time designate.

          • 18.4.2 Position Limits

            No person shall exceed the position limits prescribed by SGX-ST for outstanding positions in Options. Outstanding positions in Options in excess of the applicable position limits shall be liable to be closed off in accordance with Rule 18.5.6.

        • 18.5 Position Limits

          • 18.5.1 Members Prohibited from Opening Transactions that would Violate Individual Position Limits

            Except with the prior written approval of SGX-ST in each instance, no Trading Member shall, for any account in which it has an interest or for the account of any customer, effect an opening transaction in an Option of any Class dealt on SGX-ST if that Trading Member has reason to believe that as a result of such transaction the Trading Member or its customer would, acting alone or in concert with others directly or indirectly, hold or control or be obligated in respect of an aggregate position (whether short or long) in excess of the individual position limits set out as follows:—

            (1) 2,000 Options on the same side of the market where the issued capital of the issuer of the underlying securities is less than 400 million shares. The aggregate position limit for both sides of the market shall accordingly be 4,000 Options.
            (2) 3,000 Options on the same side of the market where the issued capital of the issuer of the underlying securities is between 400 million and 600 million shares (both numbers inclusive). The aggregate position limit for both sides of the market shall accordingly be 6,000 Options.
            (3) 4,000 Options on the same side of the market where the issued capital of the issuer of the underlying securities is more than 600 million shares. The aggregate position limit for both sides of the market shall accordingly be 8,000 Options.

          • 18.5.2 Market Position Limits

            Notwithstanding Rule 18.5.1 the total number of outstanding Options on both sides of the market of any underlying security shall not exceed 15% of the issued capital of the issuer of the underlying security. This limit shall be known as the market position limit.

          • 18.5.3 Position Limits Subject to Change

            SGX-ST may from time to time vary the individual position and market position limits in Rules 18.5.1 and 18.5.2 respectively by a circular issued to all Trading Members, such new position limits to take effect on such date specified therein. Such new position limits shall not, unless otherwise stated, affect existing Options positions.

          • 18.5.4 Definition of "Control"

            (1) For purposes of aggregation of Option positions under Rule 18.5.1, control may be presumed by SGX-ST:—
            (a) when a person has the power or ability to make investment decisions for an Options trading account; or
            (b) when a person has the power or ability to influence directly or indirectly the investment decisions of any person who makes investment decisions for an Options trading account. A person who has such power or ability shall be presumed to control such account unless and until the presumption is rebutted by evidence and a determination to the contrary has been made by SGX-ST.
            (2) Control will be presumed in the following circumstances:—
            (a) among all parties to a joint account who have authority to act on behalf of the Options trading account;
            (b) when a person holds an ownership interest of 10% or more in a Corporation (ownership interest of less than 10% will not preclude aggregation);
            (c) when Option trading accounts have common directors or management; or
            (d) where a person or entity has the authority to execute transactions in an Options trading account.

          • 18.5.5 Reports Relating to Position Limits

            (1) Each Trading Member shall, when required to do so or if it comes to their knowledge, file with SGX-ST a report, in such form as may be prescribed, giving the name and address of any customer who, on the previous Market Day, holds aggregate long or short positions on the same side of the market in excess of the individual position limits fixed by SGX-ST from time to time. The report shall indicate the number of Options comprising each such position.
            (2) In addition to the reports required under Rule 18.5.5(1), each Trading Member shall report promptly to SGX-ST any instance in which it has reason to believe that a customer, acting alone or in concert with others has exceeded or is attempting to exceed the individual or market position limits established by SGX-ST from time to time.

          • 18.5.6 Closing Off Positions

            Whenever SGX-ST shall determine that a person or group of persons acting in concert holds or controls, or is obligated in respect of, an aggregate position (whether long or short) in all Options of 1 or more Classes or Series dealt in on SGX-ST in excess of the applicable position limits, it may order all Trading Members carrying a position in Options of such Classes or Series for such person or persons to enter into closing transactions in respect of such outstanding positions as expeditiously as possible consistent with the maintenance of a fair and orderly market. Whenever such an order is given, no Trading Member shall accept any order to write, purchase or exercise any Option for the account of the person or persons named in the order, unless in each instance express approval therefor is given by SGX-ST, or until such order is rescinded.

          • 18.5.7 Trading Member's Duty to Inform Customers of Position Limits

            It shall be the responsibility of each Trading Member and Trading Representative accepting orders for opening transactions (purchase or written) in Options to inform customers of the applicable position limits and not to accept orders from any customer if the Trading Member or Trading Representative has reason to believe that the customer, acting alone or in concert with others, has exceeded or is attempting to exceed such position limits.

          • 18.5.8 Limit on Uncovered Short Positions

            Whenever SGX-ST or the OCC shall determine in light of current conditions in the Options Market or in the Equity Market that there are outstanding an excessive number of percent of uncovered short positions in Options of a given Class dealt in on SGX-ST, SGX-ST or the OCC may prohibit any further opening written transactions in Options of that Class unless the short position is created by a Scrip-Covered Call Option and it may prohibit the uncovering of existing Scrip-Covered Call Options in 1 or more Series of that Class as it deems appropriate in the interests of maintaining a fair and orderly market in such Options or in the underlying securities, or otherwise deems advisable in the public interest or for the protection of investors.

          • 18.5.9 Other Restrictions on Option Transactions and Exercises

            SGX-ST or the OCC shall be empowered to impose, from time to time in its discretion, such restrictions on Option transactions or the exercise of Options in 1 or more Series of Options of any Class dealt in on SGX-ST as SGX-ST or the OCC deems advisable in the interests of maintaining a fair and orderly market in Options, or in the underlying securities or otherwise deems advisable in the public interest or for the protection of investors. During the effectiveness of such restrictions, no Trading Member shall, for any account in which it has an interest or for the account of any customer effect any Option transaction or accept Exercise Notices to exercise any Option in contravention of such restrictions.

        • 18.6 Dealings

          • 18.6.1 Trading Hours

            Unless otherwise determined by SGX-ST, the trading hours for Options shall be the same as the Equity Market. SGX-ST may by notice extend or vary the trading hours for the Options Market.

          • 18.6.2 Trading on the Trading System

            (1) When transacting with or on behalf of customers, Trading Members must indicate to the customers the current best bid and ask prices as reflected in the Trading System.
            (2) All Options transactions shall be cleared and settled through the OCC in accordance with its Regulations.

            Amended on 3 April 2008.

          • 18.6.3 Minimum Bids

            Unless otherwise determined by SGX-ST, minimum bids for Options trading shall be the same rate prevailing for minimum bids in the Equity Market.

          • 18.6.4 Direct Business

            (1) All Direct Business in Options must be reported to SGX-ST within 10 minutes of execution through the married trade reporting system of the Trading System.
            (2) SGX-ST trading of Options of any Class shall be limited to the hours during which SGX-ST is open for trading.
            (3) No Trading Member shall effect any crossing or married transaction involving an aggregate of less than 100 Options of the same Class.

            Amended on 3 April 2008.

          • 18.6.5 Settlement of Premiums

            (1) All Purchasers shall pay all Premiums due on Options purchased to their Trading Members by 12.30 p.m. on the Market Day following the Options transaction date.
            (2) Premiums due to Writers on all Options written (except for Scrip-Covered Call Options) may be withheld by Trading Members and applied in set-off (whether partial or whole) against the margins required to be deposited by the Writers.
            (3) All Writers of Scrip-Covered Call Options shall be entitled to receive all Premiums due on such Options from their Trading Members by 12.30 p.m. on the Market Day following the Options transaction date.

          • 18.6.6 Failure by Customers to Pay Premium

            If a customer fails to make payment of the Premiums payable to a Trading Member despite being requested to do so by the Trading Member, then the Trading Member shall be entitled to enter into a closing purchase or written transaction as the case may be, in respect of the same Option for which the Premiums were due, charging any loss arising therefrom (including commissions and other costs) to the defaulting customer.

          • 18.6.7 Failure to Pay Premium or Deliver — Trading Member

            Failure by a customer to pay the Premiums due shall not affect the Trading Member's obligations as the registered holder of the Options to the OCC under the Regulations. The Trading Member affected shall have recourse in accordance with the foregoing Rule 18.6.6.

          • 18.6.8 Closing Transactions

            All closing transactions shall be made through the same Trading Member with whom the opening purchase or opening written transaction is executed or where the outstanding Options position has been transferred to another Trading Member in accordance with Rule 18.7.7 the closing transaction shall be made through that Trading Member.

        • 18.7 Doing Business with the Public

          • 18.7.1 Approval of Customer's Options Trading Account

            (1) No Trading Member shall accept an order from a customer to purchase or write an Option unless the following conditions are satisfied:—
            (a) the customer has opened an Options trading account with the Trading Member on such terms as may from time to time be approved or prescribed by the OCC; and
            (b) such customer owns a Securities Account.
            (2) No Trading Representative of a Trading Member shall recommend to a customer or execute on behalf of a customer an opening Option transaction unless the customer has opened an Options trading account.

          • 18.7.2 Diligence in Opening Account

            Before opening an Options trading account, a Trading Member shall exercise due diligence to learn the essential facts concerning the customer. A record of this information shall be maintained by the Trading Member. Based upon such information, an Executive Director of the Trading Member shall approve in writing the opening of the customer's Options trading account.

          • 18.7.3 Undertaking to be Obtained

            (1) Upon the approval of the customer's Options trading account, a Trading Member shall obtain from the customer a written undertaking, agreement and acknowledgement that:—
            (a) all Options transactions shall be subject to the Rules and Directives of SGX-ST and the Regulations;
            (b) the customer will not violate, either alone or in concert with others, the individual position limits established pursuant to this Rule;
            (c) the customer has received the documents furnished in accordance with Rule 18.7.4 and has read and understood the contents thereof and is aware of the special risks involved in the trading of Options as outlined therein;
            (d) if at any time the customer should exceed the individual position limits prescribed by SGX-ST, his outstanding Options positions in excess of the individual position limit shall be liable to be closed out by the Trading Member and any losses, charges and expenses arising from the closing of his Options positions shall be charged to his account; and
            (e) the customer shall at all times promptly furnish, maintain and top-up such deposits and margins as shall be required by the Trading Member from time to time in respect of the short positions in his Options trading account.
            (2) The OCC may from time to time make such changes and/or prescribe additional items to be included in the said written undertaking, agreement and acknowledgement as it may deem necessary for the efficient functioning of the Options Market.

          • 18.7.4 Documents to be Furnished

            (1) Prior to the approval of the customer's Options trading account, a Trading Member shall furnish the customer with a current Explanatory Booklet. Thereafter each new or revised current Explanatory Booklet and any updates and addenda thereto shall be distributed to every customer having an Options trading account as soon as possible upon receipt of the revised Explanatory Booklet or updates and addenda thereto by the Trading Member.
            (2) Prior to the approval of the customer's Options trading account, a Trading Member shall furnish the customer with a risk disclosure statement which shall be in such form and manner as may from time to time be approved or prescribed by the OCC.

          • 18.7.5 Contract Statements to Customers

            The contract statements for the Option transactions of a Trading Member's customer shall be sent to the customer by the OCC on behalf of the said Trading Member on the next Market Day after an Option transaction date indicating, in respect of each Option transaction:—

            (1) the Option transaction date and quantity of Options purchased or written;
            (2) the underlying securities;
            (3) the Expiration Month;
            (4) the Exercise Price;
            (5) the aggregate Premium due, commission, clearing fees, stamp duties (if any) and any other charges; and
            (6) whether the transaction is an opening or closing transaction.

          • 18.7.6 Required Courses/Fees

            (1) No Trading Representative of a Trading Member shall solicit orders for, advise on trades concerning, or trade for the public in, Options unless he has successfully completed such course or courses of studies as may from time to time be required by SGX-ST to deal in Options.
            (2) SGX-ST may at any time from time to time prescribe a fee which shall be payable before approval for Option trading privileges is granted or continued.

          • 18.7.7 Transfers of Options Positions

            A customer who intends to transfer his outstanding Options position from one Trading Member to another shall obtain the consent to the transfer from the Trading Member with whom he has his outstanding Options positions and shall obtain the transferee Trading Member's consent to accept his outstanding Options positions before the transfer.

          • 18.7.8 Transactions with Issuers

            No Trading Member shall accept an order for the account of any company which is the issuer of underlying securities or for the account of any subsidiary of such company for the writing or purchase of an Option with respect to underlying securities of that issuer.

          • 18.7.9 Due Authorisation for Option Transactions

            No Option transactions shall be effected on behalf of customers without proper authorisation being given by the customers.

          • 18.7.10 Taking of Orders by Customers

            When taking an order, the Trading Member shall establish proper procedures to ensure that the customers' orders shall contain the following details:—

            (1) whether it is a Call or Put Option;
            (2) the underlying security;
            (3) the Expiration Date;
            (4) the Exercise Price;
            (5) the number of Options to be written or purchased; and
            (6) whether the transaction is an opening or closing transaction. Where the customer fails to specify whether it is an opening or closing transaction, the transaction will be deemed to be an opening transaction.

          • 18.7.11 Communication with the Public

            (1) Any communication of the Trading Member with the public which discusses the uses or advantages of Options shall include a warning to the effect that Options may not be suitable for every investor and shall reflect the special risks attendant on Options transactions and Options investment strategies.
            (2) Any statement in such communication that refers to the potential opportunities presented by Options trading shall be balanced by a statement of the corresponding risks.
            (3) Past performance figures, including annualised rates of return, shall be truthful, factual and accurate.
            (4) Projections or predictions of future events shall be clearly labelled or indicated as forecasts and shall contain the bases or assumptions upon which the projection, prediction or forecast is made.

        • 18.8 Margins and Scrip-Covered Call Options

          • 18.8.1 Margins Payable on Opening Written Transactions

            Customers of Trading Members shall be required by Trading Members to deposit proper and adequate margins in respect of any opening written transaction effected on their behalf by the Trading Member as security for the due performance of their obligations as Writers of the Option in accordance with Rule 18.8.3.

          • 18.8.2 Scrip-Covered Call Options

            (1) No margins shall be required to be deposited by Writers of Scrip-Covered Call Options.
            (2) The Writer of a Scrip-Covered Call Option shall submit a request to the CDP through the Trading Member on the prescribed form for a transfer of the underlying securities from the Writer's Securities Account to a Securities Account designated by the Trading Member as security for his obligation to deliver the underlying securities upon an exercise of the Scrip-Covered Call Option.
            (3) The underlying securities shall be released and returned to the Securities Account of the Scrip-Covered Call Option Writer upon request by the said Writer and upon confirmation and endorsement by the Trading Member to the OCC that:—
            (a) the Scrip-Covered Call Option has expired, or
            (b) the short position created by the Scrip-Covered Call Option has been eliminated by a closing purchase transaction, or
            (c) subject to Rule 18.5.8, the said Writer has adequate margins deposited with the Trading Member or deposits additional margins in respect of the said Option in lieu of the underlying securities to be released.
            (4) The Writer shall be entitled to all distributions accruing on the underlying securities.
            (5) Trading Members shall be authorised and entitled to transfer the underlying securities transferred to its Securities Account in accordance with Rule 18.8.2(2) to the OCC subject to the Regulations.

          • 18.8.3 Margin Securities

            Trading Members shall accept the deposit of margin securities from their customers in respect of their opening written transactions on the following terms:—

            (1) The Writer of an Option shall submit a request to the CDP through the Trading Member on the prescribed form for a transfer of the margin securities from the Writer's Securities Account to a Securities Account designated by the Trading Member.
            (2) The margin securities shall be released and returned to the customer's Securities Account upon request made by the customer to the Trading Member who shall confirm and endorse such requests to the OCC on grounds that the customer has adequate margins deposited for his outstanding short positions or has deposited additional margins in lieu of the margin securities to be released.
            (3) The customer shall be entitled to all distributions accruing on margin securities subject to Rule 18.8.3(4).
            (4) A Trading Member shall be entitled to sell or utilise any or all of the margin securities together with any distributions accruing in respect thereof to satisfy any amounts due and owing to the Trading Member by the customer in respect of his Options trading account.
            (5) Trading Members shall be authorised and entitled to transfer the margin securities transferred to its Securities Account in accordance with Rule 18.8.3(1) to the OCC subject to the Regulations.

          • 18.8.4 Margin Requirements

            (1) The OCC may from time to time prescribe the amount of margin required to be deposited in respect of customers' and Trading Members' outstanding short positions and all matters in connection thereto. Trading Members shall adhere to such prescribed margin and all matters prescribed by the OCC and/or the Regulations in connection thereto. Such matters shall include, without limitation:—
            (a) the forms of margin acceptable for deposit;
            (b) the procedures and manner of acceptance, deposit, release and withdrawal of cash deposited as margin, marginable securities and underlying securities of Scrip-Covered Call Options; and
            (c) the establishment and operation of trust accounts for cash deposited as margin by customers.
            (2) All requests for the deposit and release of underlying securities for Scrip-Covered Call Options or margins securities or cash margins shall be made through Trading Members and the OCC or the CDP shall not be obliged to communicate with or take instructions directly from customers of Trading Members.
            (3) All requests for the release of securities or cash margins shall be made on the prescribed form and shall be lodged by the customer with the Trading Member with whom he has deposited the said securities before 12.30 p.m. on any Market Day in order to obtain a release of the securities by 9.00 a.m. the following Market Day, subject to the Trading Member's confirmation and endorsement of the release.

          • 18.8.5 Maintenance of Margin

            (1) The margins deposited, if in the form of marginable securities, shall be marked-to-market daily and Trading Members shall require their customers to top up their margin deposits to maintain the margins at the amounts prescribed by the OCC.
            (2) Where a customer fails to pay the initial margin prescribed by the OCC, the Trading Member shall close off the customer's short position by 5.00 p.m. on the Market Day following the Options transaction date or on such later date as may be allowed by SGX-ST, upon such terms and conditions as the Trading Member may think fit, charging any loss arising therefrom (including commission and other costs) to the defaulting customer.
            (3) Where a customer fails to top up his margin deposits after being requested to do so by a Trading Member, then the Trading Member shall be entitled, and shall, if directed by SGX-ST or the OCC, close off the short position at such time and upon such terms and conditions as it may think fit, charging any loss arising therefrom (including commission and other costs) to the defaulting customer.

          • 18.8.6 Margin Prescribed is Minimum

            The amount of margin prescribed by the OCC is the minimum which must be required initially and subsequently maintained. However, nothing in this Chapter shall be construed as preventing a Trading Member from requiring higher margins from its customers.

        • 18.9 Exercise of Option by Customers

          • 18.9.1 Exercise Cut-Off Time

            For every Series of Options traded on SGX-ST, the exercise cut-off time; being the latest time prior to the expiration of such Series at which a Trading Member will accept exercise instructions from customers, shall be not later than 12.30 p.m. on the Expiration Date.

          • 18.9.2 Exercise through Trading Member

            The holder of an unexpired outstanding Option may exercise the Option only through the Trading Member with whom he has the outstanding long position in the Option by submitting an Exercise Notice duly completed and signed by the exercising Option holder.

          • 18.9.3 Allocation of Exercise Notices to Customers

            (1) Exercise Notices shall be allocated to Trading Members or its customers by the OCC pursuant to the Regulations.
            (2) The allocation of Exercise Notices by the OCC shall be on the basis of computerised random selection.
            (3) Trading Members shall notify their allocated customers on the same Market Day of receipt of an exercise allocation from the OCC of the exercised allocation.

          • 18.9.4 Notification to the OCC of Exercise Notices

            (1) An Exercise Notice shall take effect on the date of its notification to the OCC (the "Exercise Date"). An Exercise Notice shall be notified to the OCC in accordance with the Regulations.
            (2) An Exercise Notice lodged by a customer before 12.30 p.m. with a Trading Member shall be notified to the OCC by 5.00 p.m. on the same day.
            (3) An Exercise Notice lodged by a customer after 12.30 p.m. with a Trading Member shall be notified to the OCC the next Market Day.

          • 18.9.5 Effect of Exercise of Option — Deemed Contract

            Subject to Rule 18.9.7, upon the allocation of an Exercise Notice of an Option, the exercise shall take effect as if it were a purchase and sale of the underlying security on SGX-ST and the Rules and Directives of SGX-ST shall thereafter apply to the exercise as if it were a contract for the purchase and sale of the underlying security.

          • 18.9.6 Option Exercisable Upon Payment of Premium

            Trading Members shall not accept the lodgement of any Exercise Notice by a customer unless and until the aggregate Premium payable in respect of the Option has been paid in full.

          • 18.9.7 Due Date of the Contract for the Underlying Securities Upon Exercise

            Unless otherwise provided by SGX-ST, the due date for the contract for the purchase and sale of the underlying security upon the exercise of an Option shall be the fourth Market Day after the Exercise Date.

        • 18.10 Adjustments

          • 18.10.1 Adjustments in the Event of a Distribution

            In the event of a distribution in respect of any underlying securities, the number of outstanding Options and/or the Standard Quantity and/or the Exercise Price with respect to all Options outstanding in those underlying securities shall be adjusted, effective on the relevant "ex-date" of dealings in the underlying securities in the Equity Market in accordance with this clause.

          • 18.10.2 Rounding Off Fractions

            The adjusted Exercise Price shall be rounded to the nearest 1 cent and the adjusted Standard Quantity shall be rounded to the nearest whole share.

          • 18.10.3 Bonus Issue

            (1) In the case of a bonus issue whereby the issuer of the underlying securities issues 1 or more bonus shares in respect of each existing share, the Standard Quantity shall be increased by the same number of shares issued in respect of each existing share, and the Exercise Price shall be proportionately reduced. No adjustment in the number of Options outstanding shall be made.
            (2) In the case of a bonus issue where the issuer of the underlying securities issues less than 1 bonus share in respect of each existing share, the Exercise Price shall be proportionately reduced. Whenever the Exercise Price has been reduced in accordance with this clause, the Standard Quantity shall be proportionately increased. No adjustment in the number of Options outstanding shall be made.

          • 18.10.4 Rights Issue

            In the case when underlying securities become entitled to rights, the Exercise Price for the underlying securities ex rights shall be calculated by deducting from the Exercise Price for the underlying securities the value of the rights accruing to such underlying securities calculated on the last done price, or in the case where the underlying securities is a Prescribed Security, the closing price, of the underlying securities on the last day on which such underlying securities are traded cum rights, unless otherwise determined by SGX-ST.

            Amended on 24 February 2014.

          • 18.10.5 Other Distribution

            In the case of any distribution for which adjustment is not provided in any of the foregoing clauses, or in the case of any event for which adjustment is provided in one of the foregoing clauses but is not considered by SGX-ST to be appropriate under the circumstances, SGX-ST shall make such adjustments in the Exercise Price, Standard Quantity or number of Options with respect to the Options affected by such event as SGX-ST in its sole discretion determines to be fair to the Purchasers and Writers of such Options.

          • 18.10.6 Dividends

            In the event of a dividend declared in respect of any underlying securities, no adjustments shall be made to the number of outstanding Options or the Standard Quantity or the Exercise Price with respect to all Options outstanding in those underlying securities.

        • 18.11 Delivery and Settlement Procedures in the Event of A Distribution

          In the event of a distribution, delivery and settlement procedures following the lodgement of an Exercise Notice with the OCC shall be as follows:—

          • 18.11.1 Bonus Issue — Exercise Notice during "Cum Bonus" Period

            Where the distribution is in the form of a bonus issue and the Exercise Notice is lodged with the OCC on or after the date the Option Series has commenced trading "cum bonus" but before the "ex date", delivery shall be effected of the Standard Quantity of the underlying securities, including the bonus securities. Where the accruing bonus securities have yet to be received from the issuer, delivery of the bonus securities shall be effected as soon as the issued accruing bonus securities are received from the issuer.

          • 18.11.2 Bonus Issue — Exercise Notice before "Cum Bonus" Period

            Where the distribution is in the form of a bonus issue and the Exercise Notice is lodged with the OCC before the period the Option Series has commenced trading "cum bonus" (notwithstanding the seller be advised of the allocation on or after the Option Series commenced trading "cum") delivery shall be effected of the Standard Quantity of the underlying securities only.

          • 18.11.3 Bonus and Rights Issues — Exercise Notices On or After "Ex Date"

            (1) Where the Exercise Notice in respect of an Option Series entitled to a distribution in the form of a bonus or a rights issue is lodged with the OCC on or after the "ex date", the buyer shall not be entitled to the bonus securities or the rights entitlements.
            (2) Delivery and settlement procedures in respect of exercised Options adjusted in accordance with the provisions of Rule 18.10 shall be in accordance with such procedures as SGX-ST or the OCC may from time to time prescribe.

          • 18.11.4 Rights Issue — Exercise Notice During "Cum Rights" Period

            (1) Where the distribution is in the form of a rights issue and the Exercise Notice is lodged with the OCC on or after the date the Option Series has commenced trading "cum rights" delivery shall be effected of the Standard Quantity of the underlying securities and the rights entitlements arising in respect thereof.
            (2) Where the accruing rights entitlements have yet to be received from the issuer, delivery of the rights entitlements shall be effected as soon as the issued accruing rights entitlements are received from the issuer.

          • 18.11.5 Rights Issue — Exercise Notice Before "Cum Rights" Period

            Where the distribution is in the form of a rights issue and the Exercise Notice is lodged with the OCC before the period the Option Series has commenced trading "cum rights" (notwithstanding the seller be advised of the allocation on or after the Option Series commenced trading "cum") delivery shall be effected of the Standard Quantity of the underlying securities only.

          • 18.11.6 Other Distribution

            In the event of any distribution not covered by the foregoing Rules or in the case of any event in respect of which the foregoing Rules apply but is not considered by SGX-ST to be appropriate under the circumstances, SGX-ST or the OCC shall prescribe such delivery and settlement procedures as SGX-ST or the OCC in its sole discretion determines to be fair to the Purchasers or Writers of such Options.

          • 18.11.7 Dividends

            In the event of a dividend declared in respect of any underlying securities:—

            (1) An Exercise Notice lodged with the OCC prior to the "ex dividend date" of dealings in the underlying securities in SGX-ST shall entitle the buyer to the dividend (notwithstanding that the seller is advised of the allocation on or after the "ex dividend date" of dealings in the underlying securities in SGX-ST).
            (2) An Exercise Notice lodged with the OCC on or after the "ex dividend date" of dealings in the underlying securities in SGX-ST shall not entitle the buyer to the dividend.

          • 18.11.8 Seller of Underlying Securities in Short Position

            In lieu of delivery of the underlying securities where the seller is in a short position, the OCC may from time to time:—

            (1) fix cash settlement prices with respect to the underlying securities; or
            (2) instruct CDP to institute buying-in procedures against the seller in accordance with the Clearing Rules.

        • 18.12 Transaction Costs

          • 18.12.1 Commission on Options

            Unless otherwise determined by SGX-ST, the rates of charge for commission on both opening and closing Option transactions shall be the same as the rates of charge for commission in the Equity Market.

          • 18.12.2 Clearing Fees

            A clearing fee of 0.05% of the aggregate Premium, subject to a maximum fee of $200, shall be payable to the OCC, such clearing fee to be collected and paid by the Trading Member to the OCC. The OCC may, at its discretion, waive or reduce the clearing fees payable by any person trading in Options under a scheme approved by SGX-ST.

          • 18.12.3 Commission and Clearing Fees on Exercise of Options

            The prevailing commission rates pertaining to sale and purchase transactions in the Equity Market shall be applicable to the acquisition or disposition of the underlying securities on the exercise of an Option and shall be calculated on the aggregate Exercise Price of the underlying securities.

          • 18.12.4 Stamp Duty

            (1) Stamp duty (if any) on Option transactions (both opening and closing) shall be borne by the customer for whose account the Option was transacted.
            (2) On exercise of an Option, stamp duty on the contract statement for the acquisition or disposition of the underlying securities shall be payable.

        • 18.13 Miscellaneous

          • 18.13.1 OCC to Issue Notices and Communications

            The OCC shall be empowered to issue notices, guidelines, circulars and announcements in respect of any matter in this Chapter on behalf of SGX-ST.

          • 18.13.2 Disciplinary Action for Breach of Regulations

            Any breach of the Regulations shall be deemed to be a breach of this Chapter and SGX-ST may take disciplinary action in accordance with the Rules against any Trading Member (notwithstanding that it was acting in its capacity as a Clearing Member of the OCC) for violation of the Regulations or for errors, delays and conduct detrimental to the operations of the OCC.

      • Chapter 19 — Marginable Futures Contracts

        • 19.1 Applicability

          • 19.1.1 Applicability

            This Chapter shall be applicable to the listing and trading of Marginable Futures Contracts on SGX-ST, the terms and conditions of such Marginable Futures Contracts, the handling of orders, the conduct of accounts, the settlement thereof, and other matters relating to the listing and trading of Marginable Futures Contracts on SGX-ST. Except as otherwise specified in this Chapter, the Rules, Directives and Practice Notes shall, where applicable, apply to the trading of Marginable Futures Contracts on SGX-ST.

        • 19.2 Listing of Marginable Futures Contracts

          (1) The commercial and technical terms of Marginable Futures Contracts are stated in the Contract Specifications.
          (2) SGX-ST may, from time to time, list any Marginable Futures Contracts for trading.

        • 19.3 Contract Specifications

          (1) Marginable Futures Contracts shall be governed by the Rules and the Contract Specifications for Marginable Futures Contracts. In the event of a conflict between the Rules and the Contract Specifications, the Rules shall prevail.
          (2) SGX-ST may modify the Contract Specifications in response to market developments. In the event of such modification, SGX-ST shall provide its Members with no less than 2 weeks' prior notice before any modification to Contract Specifications takes effect.

        • 19.4 Adjustments Due to Corporate Actions

          (1) In the event where the underlying security of a Marginable Futures Contract undergoes a corporate action or such other event which SGX-ST considers relevant, SGX-ST may prescribe the quantity of underlying security to be delivered, contract price, Last Trading Day, underlying securities to be delivered and such other terms covered under the relevant Marginable Futures Contract Specifications, where necessary.
          (2) As far as practicable, SGX-ST will give prior notice of such adjustments and the effective date.
          (3) Any adjustment determined in accordance with this Rule is final and binding on all parties.

        • 19.5 Selection, Removal and Restrictions on Trading of Marginable Futures Contracts

          • 19.5.1 Nomination of securities

            SGX-ST may, from time to time, nominate an underlying for Marginable Futures Contracts. If SGX-ST decides, for any reason, that an underlying is no longer suitable for Marginable Futures Contracts, SGX-ST shall:—

            (a) not list any new Marginable Futures Contract covering that underlying;
            (b) have the discretion to prohibit Trading Members from opening, or allowing their customers to open, any new position in Marginable Futures Contracts covering that underlying; and
            (c) have the discretion to direct Trading Members to take action to offset, or require their customers to offset, any existing positions in Marginable Futures Contracts covering that underlying.

          • 19.5.2 Removal from Quotation and Restriction of Trading before Last Trading Day

            Subject to giving prior notification, SGX-ST may remove any Marginable Futures Contract from quotation before the Last Trading Day if all positions in such Marginable Futures Contract have been offset. If there are positions in such Marginable Futures Contract that are not offset, SGX-ST may require that such positions be cash settled immediately according to the terms as determined by SGX-ST, or restrict trading only to enable those positions to be offset or to the extent that SGX-ST deems such trading to be necessary or desirable for the maintenance of a fair, orderly and transparent market.

        • 19.6 Trading Halt or Suspension of Trading

          • 19.6.1 Trading Halt or Suspension of Trading

            (1) SGX-ST may halt or suspend the trading of Marginable Futures Contracts if:—
            (a) trading in the underlying has been halted or suspended; or
            (b) SGX-ST deems it necessary or desirable for the maintenance of a fair, orderly and transparent market.
            (2) Unless otherwise decided by SGX-ST, the obligations of the buyers and sellers under the Marginable Futures Contracts which have been halted or suspended shall not be affected during the period of trading halt or suspension.

          • 19.6.2 Resumption of Trading

            The trading of Marginable Futures Contracts which have been halted or suspended under Rule 19.6.1 may be resumed if SGX-ST determines that:

            (1) the conditions which led to the trading halt or suspension are no longer present, or
            (2) resumption of trading will promote the maintenance of a fair, orderly and transparent market.

        • 19.7 [Rule has been deleted.]

          Deleted on 1 July 2016.

          • 19.7.1 [Rule has been deleted.]

            Deleted on 1 July 2016.

        • 19.8 Management of Positions

          • 19.8.1

            A Trading Member must immediately notify SGX-ST of the details of any account carried on its books that exceeds the monitoring thresholds on positions that have not been offset, as prescribed by SGX-ST from time to time. Such monitoring thresholds may be imposed on any account or any single customer, and may include any one or a combination of the following:—

            (1) maximum number of lots of long positions that have not been offset, in gross or net, in any Marginable Futures Contract; and
            (2) maximum number of lots of short positions that have not been offset, in gross or net, in any Marginable Futures Contract.

            "single customer" in this Rule 19.8 shall have the meaning ascribed to it in Rule 11.7.5.

          • 19.8.2

            SGX-ST shall, in the interest of maintaining a fair, orderly and transparent market, monitor the total number of positions that have not been offset, of all accounts opened with all Trading Members in any Marginable Futures Contract on either side (long or short), or both sides of the market, and where appropriate, take action under Rule 19.8.3.

          • 19.8.3

            To reduce a Trading Member's risk exposure in trading and dealing in any Marginable Futures Contracts, or for the purpose of maintaining a fair, orderly and transparent market, SGX-ST shall have the right to impose on the Trading Member such measures as it deems necessary or desirable. The Trading Member must comply with all measures which are imposed by SGX-ST. These may include:—

            (1) additional margin requirements; and
            (2) offsetting existing positions.

          • 19.8.4

            In determining the monitoring thresholds prescribed under Rules 19.8.1 and 19.8.2, and the risk management measures prescribed under Rule 19.8.3, SGX-ST may consider the following factors:—

            (1) matters relating to any position, including the number of issued shares, free float, liquidity or volatility of the underlying;
            (2) the financial position of the Trading Member;
            (3) the Trading Member's credit exposure to a single customer; and
            (4) any such other factors that SGX-ST deems necessary to maintain a fair, orderly and transparent market.

          • 19.8.5

            In computing positions that have not been offset for the purpose of Rule 19.8, 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 the positions of each of such persons as if each owned or controlled all the aggregate positions individually.

        • 19.9 Internal Controls

          • 19.9.1

            A Trading Member must establish and maintain adequate internal control systems to:—

            (1) set credit limits or position limits;
            (2) monitor positions to manage market and credit risks, and comply with notification requirements on monitoring thresholds as prescribed by SGX-ST;
            (3) compute and collect margins, including conducting daily valuation of customers' positions and collateral;
            (4) monitor margin calls;
            (5) manage customers' accounts that are in margin deficit;
            (6) manage customers' accounts that may fail to meet settlement obligations;
            (7) define and manage sources of liquidity to ensure that there are sufficient liquidity facilities to meet increased settlement obligations;
            (8) limit the impact of significant market movements through the use of tools such as cash flow projections, stress testing or credit limits; and
            (9) meet such other requirements as SGX-ST may prescribe from time to time.

        • 19.10 Margin Requirements

          • 19.10.1

            For the purpose of this Rule 19.10:—

            Term Meaning
            "Customer Asset Value" refers to moneys and the market value of assets in a customer's account subject to such hair-cut as specified by SGX-ST.
            "Initial Margins" refers to the minimum amount required to be deposited by customers, as prescribed by CDP, with a Trading Member for positions in Marginable Futures Contracts. This minimum amount is distinct from and in addition to Variation Margins.
            "Maintenance Margins" refers to that component of Required Margins, as determined by CDP, which must be maintained in a customer's account subsequent to the deposit of Initial Margins for that customer's positions in Marginable Futures Contracts.
            "Required Margins" refers to the sum of Maintenance Margins and Variation Margins.
            "Valuation Price" means the official price of Marginable Futures Contracts prescribed by SGX-ST for the purpose of determining Variation Margins.
            "Variation Margins" refers to that component of Required Margins comprising the mark-to-market gains and losses, in relation to the price at which the Marginable Futures Contract was bought or sold, arising from the daily valuation of positions, except that Variation Margins are not required if the Trading Member permits a customer to realise a gain or loss pursuant to executing a trade to offset an existing position.

            A net loss increases the Variation Margins and Required Margins amount, and a net profit decreases the Variation Margins and Required Margins amount.

            In calculating the mark-to-market losses or gains, a Trading Member must use the Valuation Price as determined by SGX-ST.

          • 19.10.2

            (1) A Trading Member must procure Initial Margins from its customers and must require the customers to meet the Required Margins for the purpose of meeting margin requirements of Marginable Futures Contracts within two Market Days from the trade date (T+2). Initial Margins and Required Margins must be met in the form of collateral as prescribed by SGX-ST from time to time. Such collateral must be in the form of cash, government securities, selected common stocks, bank certificates of deposit, gold bars, gold certificates, or such other instruments as SGX-ST permits. Valuation of such collateral must be in accordance with the hair-cut rates prescribed by SGX-ST.
            (2) Except for a Trading Member that holds a licence specified in Rule 4.1.1(1)(b), a Trading Member shall not accept as collateral, 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 for the purpose of meeting margin requirements of Marginable Futures Contracts.

            Amended on 19 May 2014.

          • 19.10.3

            If the Customer Asset Value falls below the Required Margins, the Trading Member must call for additional margins from the customer to bring the Customer Asset Value balance to no less than the sum of Initial Margins and Variation Margins within two Market Days from the date the Customer Asset Value falls below the Required Margins.

          • 19.10.4

            Except for trades which reduce a customer's Required Margins, a Trading Member must not allow a customer to incur any new trade unless:—

            (1) the minimum Initial Margins for the new trade are deposited or the Trading Member has reason to believe that the minimum Initial Margins will be deposited within two Market Days from the trade date (T+2); and
            (2) the Customer Asset Value complies with the Required Margins, or the Trading Member has reason to believe that the additional margins to be deposited pursuant to Rule 19.10.3 will be deposited within two Market Days from the trade date (T+2).

          • 19.10.5

            Trading Members must not set margin requirements that are less stringent than those prescribed by SGX-ST.

            Amended on 21 January 2013.

          • 19.10.6

            Rules 13.5A.1(2) and 13.5A.1(3) shall apply in respect of margins for Marginable Futures Contracts that the Trading Member may call from the customer.

            Amended on 21 January 2013.

          • 19.10.7

            Mark to market gains of a customer may be utilised by the Trading Member to meet Initial Margins for the same customer.

          • 19.10.8

            A Trading Member may allow a customer to withdraw Excess Margins provided such withdrawal will not cause the Customer Asset Value to be less than zero.

            "Excess Margins" refers to the amount of Customer Asset Value that is in excess of the sum of the Initial Margins and Variation Margins.

          • 19.10.9 [Rule has been deleted.]

            Deleted on 21 January 2013.

          • 19.10.10

            A Trading Member must comply with such requirements on the computation and monitoring of a customer's margins as SGX-ST may prescribe.

          • 19.10.11 Under-Margined Accounts

            (1) A Trading Member must immediately notify SGX-ST when the Customer Asset Value in any account does not meet the sum of Initial Margins and Variation Margins by an amount which exceeds the Trading Member's aggregate resources or such other thresholds as may be determined by SGX-ST, except that no notification is required for the Trading Member's own Stock Account.
            (2) SGX-ST may require the Trading Member to submit to SGX-ST information pertaining to any matter in such form and within such time as may be stipulated by SGX-ST.

            Amended on 19 May 2014.

          • 19.10.12 Customer to Comply with Margin Requirements

            For the avoidance of doubt, a Trading Member must require a customer to comply with the margin requirements prescribed under Rule 19.10, even if the customer has entered into an arrangement to meet his delivery obligations in connection with Marginable Futures Contracts.

          • 19.10.13 Prohibition on Margin Financing

            For the avoidance of doubt, a Trading Member must not under any circumstances enter into a financing arrangement with a customer in respect of that customer's margins requirements which would allow the customer to trade without meeting the margin requirements prescribed under Rule 19.10.

        • 19.11 Capital Requirement for Marginable Futures Contracts

          (1) For the purpose of calculating counterparty risk requirements under the Notice on Risk Based Capital Adequacy Requirements for Holders of Capital Markets Services Licences:
          (a) "margin deficiency" referred to in the Notice on Risk Based Capital Adequacy Requirements for Holders of Capital Markets Services Licences is the amount required for the Customer Asset Value to meet the Variation Margin and Maintenance Margin, and in the case where Customer Asset Value is not sufficient to meet Variation Margin, the margin deficiency is the amount of Maintenance Margin; and
          (b) "negative equity" referred to in the Notice on Risk Based Capital Adequacy Requirements for Holders of Capital Markets Services Licences is the amount required for the Customer Asset Value to meet the Variation Margin.
          (2) For the avoidance of doubt, a Trading Member shall compute Total Risk Requirement for Marginable Futures Contracts in the same manner as prescribed in the Notice on Risk Based Capital Adequacy Requirements for Holders of Capital Markets Services Licences.

          Amended on 29 December 2014.

        • 19.12 Prohibited Trading Practices

          • 19.12.1 Overtrading

            The following provisions apply in relation to overtrading:—

            (1) A Trading Member and its Trading Representatives must not execute any trade beyond any limits imposed by SGX-ST, CDP or the Authority. A Trading Member must ensure that its Trading Representatives and its customers do not trade beyond such limits. A Trading Member or its Trading Representative shall be guilty of overtrading if the respective Trading Member or its Trading Representative enters into any trade or trades beyond any limits imposed from time to time by SGX-ST, CDP or the Authority.
            (2) If a Trading Member or Trading Representative is charged with violating this Rule 19.12.1, SGX-ST may at its discretion suspend that Trading Member or Trading Representative from trading until such time as the Disciplinary Committee or the Appeals Committee has completed the hearing in respect of such charge against such Trading Member or Trading Representative;
            (3) Each trade entered into beyond any limits imposed by SGX-ST, CDP or the Authority shall be deemed to be a distinct and separate violation of this Rule and shall be punishable as such. If a Trading Member or Trading Representative is charged by SGX-ST for overtrading, it is not necessary for SGX-ST to show that the Trading Member or Trading Representative intended to overtrade. The act of overtrading is sufficient to constitute an offence under this Rule.

        • 19.13 Settlement of Marginable Futures Contracts

          (1) Chapter 9 shall apply to the delivery and settlement of Marginable Futures Contracts.
          (2) A Trading Member may allow the use of cash collateral deposited by a buying customer for the settlement of the contract value.

        • 19.14 [Rule has been deleted.]

          Deleted on 16 September 2016.

    • Section F — Transitional Provisions

      • Chapter 20 — Transitional Provisions

        • 20.1 Transitional Provisions Regarding Capital and Financial Requirements

          • 20.1.1 Applicability

            This Rule establishes the transitional provisions relating to Rules 11.1, 11.3.2, 11.3.3, 11.3.11, 11.4.6, 11.7.2, 11.8.3, 11.13.1, 11.13.2, 11.13.3, 11.13.4 and 19.11 of the SGX-ST Rules that was amended on and in force from 29 December 2014.

            Added on 29 December 2014.

          • 20.1.2 Transitional Arrangements

            Rules 11.1, 11.3.2, 11.3.3, 11.3.11, 11.4.6, 11.7.2, 11.8.3, 11.13.1, 11.13.2, 11.13.3, 11.13.4 and 19.11 (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 SFR (Financial and Margin Requirements) in the aforesaid Rules as in force immediately before 29 December 2014 is to that provision in the SFR (Financial and Margin Requirements) 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.

          • 20.1.3 Transitional Period

            For the purposes of Rule 20.1.2, “Transitional Period” means the period commencing on 3 April 2013 and:—

            (1) in relation to all rule amendments except the definition of Base Capital, till 2 April 2015; or
            (2) ending on such date, before the expiry date stated in Rule 20.1.3(1), specified in a written notice to SGX-ST informing SGX-ST of the Transitional Trading Member's intention to adopt the requirements pursuant to Rule 20.1.4,
            whichever is the earlier.

            Added on 29 December 2014.

          • 20.1.4 Notification by Writing

            For the purpose of Rule 20.1.3(2), the Transitional Trading Member shall notify SGX-ST in writing at least 14 days before the intended date to adopt the requirements.

            Added on 29 December 2014.

          • 20.1.5 Transitional Trading Member

            "Transitional Trading Member" means

            (1) 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
            (2) 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.

    • Directives

      • Directive No. 1 — Directorship of SGX-ST Listed Companies

        Dates Cross Reference Enquiries
        Issue Date
        1 December 2003

        Effective Date
        1 December 2003

        Amended on
        19 May 2014
        Rules 6.2.3 and 7.5.6 Please contact Member Supervision:—

        Facsimile No : 6538 8273
        E-Mail Address: membersup@sgx.com
        1 In 1991, SGX-ST (formerly known as Stock Exchange of Singapore Limited) introduced 2 policies, in consultation with the Monetary Authority of Singapore, that:—
        (1) prohibited the appointment of Approved Executive Directors and Trading Representatives to the boards of SGX-ST listed companies, and
        (2) prohibited the appointment of a director to an SGX-ST listed company as a director of a Trading Member.
        2 Trading Members are advised that the Exchange has revised these policies. The new requirements, applicable immediately, are set out below.
        3 An Approved Executive Director or a Trading Representative may be appointed as a nonexecutive director of an SGX-ST listed company (but not as an executive director) subject to the following:—
        (1) the Approved Executive Director or Trading Representative furnishing SGX-ST with:—
        (a) an explanation of how conflicts of interest that may arise from the dual appointments have been addressed, and
        (b) an undertaking to disclose to customers the directorship as and when necessary for the discharge of the Approved Executive Director's or Trading Representative's fiduciary responsibility; and
        (2) the Trading Member advising SGX-ST that it is aware of the directorship and is satisfied that conflicts of interest have been sufficiently addressed.
        4 An Approved Executive Director or Trading Representative must inform SGX-ST of the proposed appointment in accordance with SGX-ST Rule 6.2.3 and Rule 7.5.6 respectively.
        5 Possible conflicts of interest that the Approved Executive Director or Trading Representative may need to consider and address under Item 3 above include:—
        (1) When an Approved Executive Director or a Trading Representative is in a position to influence the trading decision of his customers and would recommend the listed company of which he is a director, how does he ensure unbiased advice and full disclosure to his customer?
        (2) When an Approved Executive Director or a Trading Representative possesses information about a listed company that is not generally available to the public and is in a position to influence research recommendations or corporate finance activities, how does he fulfill his obligations in respect of the listed company and Trading Member?
        6 A Trading Member may appoint a director of an SGX-ST listed company as a non-executive director (but not as an executive director).

        Under SGX-ST Rule 4.6.12, the Member must inform SGX-ST of the appointment within 7 days.
        7 An Approved Executive Director or Trading Representative who is a director of an SGX-ST listed company must keep a record of his share transactions in that company. If the Approved Executive Director or Trading Representative is required to maintain a register of securities, that will suffice. SGX-ST may inspect the record at any time or take extracts of it.

      • Directive No. 2 — Remisiers Working in Teams

        Dates Cross Reference Enquiries
        Amended on
        3 April 2008.
          Please contact Member Supervision:—

        Facsimile No : 6538 8273
        E-Mail Address: membersup@sgx.com
        1 We are pleased to inform Trading Members that following consultation with the Monetary Authority of Singapore, Remisiers can now operate in teams and enter orders for each other's customers. Trading Members and their Remisiers who wish to engage in such arrangements must observe the following:—
        (1) Prior to commencement of any team arrangements, Trading Members must approve the teams and furnish SGX-ST with the names of Remisiers who operate in teams and any subsequent updates.
        (2) If a customer's order is passed along a chain of Remisiers, each Remisier must record from and to whom he receives and transmits the order, and the time of such receipt and transmission. Trading Members must ensure that the team Remisiers do not trade ahead of their customers.
        (3) Trading Members must keep customers informed of the team arrangements, and give them the option not to be serviced by Remisiers working in teams. Trading Members should also keep their customers informed of any changes to team compositions.
        (4) Remisiers must be jointly and severally liable if customers' losses are not recovered.
        (5) Trading Members must establish in writing the terms and conditions of each team arrangement with its Remisiers. The terms and conditions must include how possible disputes amongst remisiers working in teams are resolved. Possible disputes that may arise from team arrangements include those in respect of commission allocation, trading errors, and overtrading.
        (6) Trading Members must ensure that their Banker's Guarantees are enforceable.
        (7) Trading Members must ensure that Remisiers working in teams will not compromise their compliance with all relevant legislation and regulations.
        2 Team arrangements increase the risk of a single customer or the team trading beyond the trading limit imposed. In this respect, Trading Members should closely monitor the team to ensure that customers' and Remisiers' trading limits are not exceeded, especially in the case of trades not executed on the Trading System which are not captured real time in the Trading System. Trading Members should also conduct frequent reviews of team operations to ensure that trading irregularities do not occur.

      • Directive No. 3 — Obligations of a Designated Market-Maker

        Dates Cross Reference Enquiries
        Added on
        1 July 2005
        and amended on
        3 April 2008 and 27 May 2013.
        Rule 5.5 Please contact Member Supervision:—

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

        1. Bid and Offer Quotations

        1.1 In accordance with Rule 5.5.3, a Designated Market-Maker must publish on the Trading System competitive bid and offer quotations:—
        (a) on a continuous basis or in such manner as SGX-ST prescribes to provide for an adequately liquid market (with suitable disclosure to investors);
        (b) within the maximum spread; and
        (c) for not less than the minimum quantity that SGX-ST prescribes.
        1.2 In the event a Designated Market-Maker ceases to make bid and offer quotations (whether due to foreseen or unforeseen circumstances), it must:—
        (a) immediately notify SGX-ST of the cessation as well as the reasons for it; and
        (b) make a public announcement of the cessation at the same time.
        1.3 Upon resumption, the Designated Market-Maker must similarly notify SGX-ST and make a public announcement at the same time. At the appropriate juncture, the Designated Market-Maker must make a public announcement of the reasons for cessation of market-making.

        2. Adequate Internal Control Systems

        2.1 A Designated Market-Maker must establish and maintain adequate internal control systems to ensure smooth operation of its market-making activities.
        2.2 A Designated Market-Maker shall pre-notify SGX-ST of any change to its internal control systems which may affect the carrying out of its obligations stipulated under paragraph 1.
        2.3 SGX-ST reserves the right to review current or impose additional requirements if it is not satisfied with the internal control systems of the Designated Market-Maker.

      • Directive No. 4 — Audit Trails and Records

        1. Introduction

        1.1 In accordance with Rule 12.1.1, a Trading Member must maintain proper records and audit trails to evidence compliance with the Rules, and in accordance with the requirements in the Securities and Futures Act, Securities and Futures Regulations, and the Rules.

        2. Storage of Audit Trail Data

        2.1 The Trading Member must 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 Trading 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 Trading Member is able to store or download the data in text delimited or ASCII format or such other format that is readable by SGX-ST;
        (ii) the Trading Member is able to print out the data in hard copies;
        (iii) the Trading Member has proper back-up controls for its data and records;
        (iv) the order management system 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 Trading 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 Trading Member must produce to SGX-ST, if asked, a complete audit trail of transactions, from the receipt of an order to its settlement. Unless otherwise required by SGX-ST, for trades and orders which occurred within the 6 month period immediately before the request, the records must be provided to SGX-ST immediately, and for trades and orders which occurred more than 6 months prior to the request, the records must be provided to SGX-ST no later than two business days from the date of request.
        3.2 For a complete audit trail of transactions, a Trading Member must ensure that the following records are captured, where applicable:

        Record of all Fields Relating To Order Entry

        1. SGXAccess Connection ID
        2. Trader ID and name
        3. Client ID and name — from customer account carried on the books of the Trading Member
        3A. Trading Account code
        3B. Position Account code
        4. User ID and name — used to log into Trading Member's systems
        5. Order ID — assigned by the Trading System
        6. Order type — eg good-till-cancelled order, all-or-none order, etc
        7. Buy/sell
        8. Counter name and quantity to be bought/sold
        9. Order price — including original trigger price for stop orders
        10. Settlement instructions — eg settlement with CPF funds, contra etc
        11. Forced key usage
        12. Flow of order — if order passes through multiple systems prior to reaching the market
        13. Identity of order reviewer — if any
        14. Description of amendments made — if any
        15. Date and time of order entry, and of any actions taken relating to the order — including transmission, rejection, amending, routing, filtering, execution, withdrawal, etc ,and should include orders that are progressively released.
        16. Error messages and subsequent actions taken by the user, reviewer or system
        17. Status of order — such as the order being partially filled, fulfilled, unfilled, withdrawn, amended, rejected, etc
        18. Executed order number — assigned by the Trading System
        19. Traded price — for executed orders
        20. Counter name and quantity bought/sold — for executed orders
        21. Counterparty Trading Member identity — for executed orders
        22. Orders and trades in Trading Member records not stored electronically — to be referenced to Order ID and executed order numbers assigned by the Trading System
        23. Any other relevant records/instructions
        3.3 For record of times required under the Rules, the Trading Member must ensure that:—
        (a) 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;
        (b) the times captured must not use a clock that can be modified by the person entering the order; and
        (c) the time in the order management system should be synchronized with the GPS time adopted by SGX-ST. If it is not feasible to synchronize the times, the Trading 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 and security incident investigations.

        Added on 18 September 2012 and amended on 15 March 2013 and 1 July 2016.

      • Directive No. 5 — Adequacy of Systems

        1. Introduction

        1.1 In accordance with Rule 4.6.22, a Trading Member must ensure that its systems and connections to the Trading System 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 Trading System, Trading Members should establish comprehensive planning and assessment programs to test system operation, capacity and security. Trading Members should also have in place arrangements for the employment of appropriate technical expertise to maintain and operate systems and connections to the Trading System.
        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 Trading 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 Trading 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 18 September 2012 and amended on 15 March 2013.

      • Directive No. 6 — Additional Obligations in respect of American Depository Receipts

        Issue Date Cross Reference Enquiries

        Added on 22 October 2010 and amended on 11 October 2013.

        1 A Trading Member must disclose the risks pertaining to trading in American Depository Receipts ("ADRs") quoted on GlobalQuote in media which the Trading Member may produce in relation to ADRs for its customers. These media include, but are not limited to:—
        (1) investor education programs in relation to ADRs organised by the Trading Member (including seminars, talks, classes, etc.);
        (2) website(s) in relation to ADRs created or maintained by the Trading Member; and
        (3) marketing material(s) in relation to ADRs produced by the Trading Member (including brochures, pamphlets, flyers, etc.).
        2 To facilitate Trading Members' compliance with this Directive, the Exchange will provide Trading Members with a list of risk factors pertaining to trading in ADRs.
        3 In the Directive:—
        (1) "American Depository Receipt" or "ADR" means a U.S. security that represents ownership of shares in an organisation; and
        (2) "GlobalQuote" means a quotation board operated by SGX-ST.

      • Directive No. 7 — Computation of Net Liquid Capital for Trading Members that Hold a Licence Specified in Rule 4.1.1(1)(b)

        Issue Date Cross Reference Enquiries
        Issued on 19 May 2014. Rule 11.1A.1(2)(b)
        Rule 11.10.1(2)
        Please contact Member Supervision:—

        Facsimile No : 6538 8273

        1. Introduction

        1.1. This Regulatory Notice sets out the computation of the net liquid capital requirement for a Trading Member that holds a licence specified in Rule 4.1.1(1)(b) pursuant to Rules 11.1A.1(2)(b)and 11.10.1(2).

        2. Net Liquid Capital

        2.1. A Trading Member that holds a licence specified in Rule 4.1.1(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 Returns to SGX-ST

        3.1. A Trading Member that holds a licence specified in Rule 4.1.1(1)(b) shall submit financial returns in the form as set out in paragraph 2.1 on a monthly basis pursuant to Rule 11.10 and on an annual basis pursuant to Rule 11.11.

        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 Table 4 of the Fourth Schedule of the SFR (Financial and Margin Requirements).
        5 Deficits in clients' accounts means —
        i. 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;
        ii. 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;
        iii. 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;
        iv. 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;
        v. In relation to each client's margin account carried on the books of the Trading Member, the amount of margin deficiency determined in accordance with the maintenance margin requirement provided in the Trading Member's agreement with the client; and
        vi. 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.

        Amended on 1 July 2016.

    • Practice Notes

      • Practice Note — Direct Market Access And Sponsored Access

        Issue Date Cross Reference Enquiries

        Added on 18 September 2012.

        Definitions and Interpretation 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 and Sponsored Access in the Definitions and Interpretations section of the Rules.

        2. Direct Market Access

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

        Added on 18 September 2012.

      • Practice Note 4.6.7A(1)(b) — Pre-Execution Checks

        Issue Date Cross Reference Enquiries

        Added on 18 September 2012 and amended on 15 March 2013 and 1 July 2016.

        Rule 4.6.7A(1)(b) Please contact Member Supervision:

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

        1. Introduction

        1.1 This Practice Note explains the parameters and functions which pre-execution checks may contain as contemplated in Rule 4.6.7A(1)(b).

        2. Pre-Execution Checks

        2.1 Rule 4.6.7A(1)(b) requires Trading Members to ensure that automated pre-execution risk management control checks are conducted on all orders, including credit control checks on all customer orders. The purpose of this is to prevent overtrading. The parameters of such pre-execution checks and filters may include but are not limited to:—
        (a) dollar limit to control the gross buy and sell value and/or net buy/sell value. This limit may be applied to an individual customer, a Trading Representative, a group of related accounts or a proprietary account carried on the books of the Trading Member;
        (b) security limit to control the dollar/quantity exposure to each security. This limit may be used to control concentration risk for each customer and for the Trading Member's accounts as a whole on a per-security basis;
        (c) dollar/quantity limit and price limit for each order. This allows for the detection of errors in inputting orders. For example, if a customer or Trading Representative were to enter an unusually large sized order or an order at a price that is far from the prevailing price, they could be alerted for confirmation of the order before it is accepted by the system; and
        (d) controls to restrict customers to selected markets, order types and securities.
        2.2 By way of illustration, pre-execution risk management control functions may include the following:—
        (a) the ability to adjust credit or quantity limits in real time during a trading session;
        (b) the ability to set permission levels (e.g. access to selected products/ instruments) and revoke the access of a Trading Representative or customer on a real time basis; and
        (c) the ability to intercept orders that exceed credit or trading limits on a real-time basis and trigger error-prevention alerts.
        2.3 Trading Members who authorise Sponsored Access will be able to meet the requirement in Rule 4.6.7A(1)(b) by being able to directly set and control 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. Trading 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.

        Added on 18 September 2012 and amended on 15 March 2013 and 1 July 2016.

      • Practice Note 4.6.7A(1)(c) — Error Prevention

        Issue Date Cross Reference Enquiries

        Added on 18 September 2012 and amended on 24 February 2014.

        Rule 4.6.7A(1)(c) 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 4.6.7A(1)(c).
        2. Types of Error-Prevention Alerts
        2.1 The types of error-prevention alerts to be made available may include but are not limited to the following:—
        (a) maximum quantity per order — to alert Trading Representatives and customers of possible erroneous entries in relation to quantity; and
        (b) price alerts — to alert Trading Representatives and customers of possible erroneous entries in relation to price.
        2.2 Price alerts may include but are not limited to price range checks to alert Trading Representatives and customers when the new order entry price has exceeded:—
        (a) a certain percentage; or
        (b) a certain number of ticks,

        as compared to the most recent of the last traded price, the previous settlement price, the closing price or the opening price, as the case may be.

        Added on 18 September 2012 and amended on 24 February 2014.

      • Practice Note 4.6.7A(2) — Firm-Level Monitoring of Capital and Financial Requirements and Prudential Limits

        Issue Date Cross Reference Enquiries

        Added on 18 September 2012.

        Rule 4.6.7A(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 security set out in Rule 4.6.7A(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, Trading 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.

        Added on 18 September 2012 and amended on 15 March 2013.

      • Practice Note 4.6.21 — Business Continuity Requirements

        Issue Date Cross Reference Enquiries
        Amended on 22 January 2009 and 19 May 2014 Rule 4.6.21 Please contact Member Supervision:

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

        1. Introduction

        1.1 Rule 4.6.21 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 4.6.21(1) 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 SGX-ST 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 SGX-ST may declare a wide-area crisis in the event of a major and widespread incident. When such declaration is made, SGX-ST may require a Member to submit status reports to SGX-ST. 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 4.6.21(4) 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 specified in Rule 4.1.1(1)(b). The guidance for such Trading Members is set out in Practice Note 4.6.21; 12.1.1; 12.3.6; 12.6.4; 12.7.2; 12.10A.2; 12.19.

        3. Emergency Contact Persons

        3.1 Rule 4.6.21(5) requires a Member to appoint emergency contact persons and furnish the contact information of such persons to SGX-ST. 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 SGX-ST.

        Refer to Appendix A of Practice Note 4.6.21.
        3.2 Members are to ensure that the contact information provided to SGX-ST 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 SGX-ST immediately in writing.
        3.3 A Member's authorized emergency contact person should immediately notify SGX-ST 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 4.6.21 Business Continuity Management Emergency Contact Person(s)

          Please click here to view Appendix A to Practice Note 4.6.21 Business Continuity Management Emergency Contact Person(s).

      • Practice Note 4.6.21; 12.1.1; 12.3.6; 12.6.4; 12.7.2; 12.10A.2: Operational Requirements for Trading Members Who Do Not Conduct Business in Singapore

        Issue Date Cross Reference Enquiries
        Added on 19 May 2014 and amended on 1 July 2016. Rule 4.6.21
        Rule 12.1.1
        Rule 12.3.6
        Rule 12.6.4
        Rule 12.7.2
        Rule 12.10A.2
        Please contact Member Supervision:—

        Facsimile No : 6538 8273

        1. Introduction

        1.1. SGX-ST 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 SGX-ST Rules:
        a. maintain complete and accurate records pursuant to Rule 12.1.1(1);
        b. send its customer a risk disclosure document setting out the risks associated with holding and trading of securities and Futures Contracts pursuant to Rule 12.3.6;
        c. send its customer a contract note for the purchase or sale of securities or Futures Contracts pursuant to Rule 12.6.1;
        d. send its customer a statement of account on a regular basis pursuant to Rule 12.7.1;
        e. segregate customer's money and assets pursuant to Rule 12.10A.1.
        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 SGX-ST 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 SGX-ST considers relevant

        2.1. Complete and accurate records Pursuant to Rule 12.1, 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; and
        c. retain such books required by the Relevant Regulatory Authority.
        2.2. Contract note Pursuant to Rule 12.6 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 securities or Futures Contracts is entered into;
        c. the price, amount and description of the securities or Futures Contracts;
        d. settlement amounts;
        e. fees charged by the Trading Member; and
        f. fees charged by any other party(ies) and borne by the customer in addition to the fees charged by the Trading Member.
        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 12.7, 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 securities or Futures 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 carried on the books of the Trading Member..
        2.4. Risk disclosure statement Pursuant to Rule 12.3.6, the Trading Member referred to in paragraph 1.1 should provide its customer a risk disclosure statement which should clearly state the features of securities and Futures Contracts and risks associated with holding and trading these instruments.
        2.5. Customer's money and assets Pursuant to Rule 12.10A, 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 Set Out in Paragraph 1.1

        3.1. SGX-ST may direct the Trading Member to comply with the requirements of the Securities and Futures Act and SGX-ST Rules if the operational requirements referred to in paragraph 1.1 above are deemed to be of insufficient comparability.
        3.2. SGX-ST has the discretion to prescribe additional requirements where SGX-ST is of the opinion that there is insufficient comparability between the SGX-ST 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, SGX-ST 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 4.6.21.

        Emergency Contact Persons

        4.2. Rule 4.6.21(5) requires a Trading Member to appoint emergency contact persons and furnish the contact information of such persons to SGX-ST. Members may appoint an emergency contact person and up to two (2) alternates. A template for the notification to SGX-ST 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 SGX-ST 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 SGX-ST immediately in writing.
        4.4. A Trading Member's authorized emergency contact person should immediately notify SGX-ST 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 19 May 2014 and amended on 1 July 2016.

        • Appendix A to Practice Note 4.6.21; 12.1.1; 12.3.6; 12.6.4; 12.7.2; 12.10a.2

          Please click here to view Appendix A to Practice Note 4.6.21; 12.1.1; 12.3.6; 12.6.4; 12.7.2; 12.10A.2

          Added on 19 May 2014.

      • Practice Note 8.2.1 — Application of Market Phases and Algorithm

        Issue Date Cross Reference Enquiries
        Amended on 17 February 2012, 15 April 2013, 24 February 2014, 16 September 2016 and 13 November 2017. Rules 8.2.18.2.3 Please contact Securities Market Control:—

        Email: securities.mc@sgx.com

        1 Introduction

        1.1 This Practice Note explains the application of the various market phases and the algorithm used by SGX-ST in computing the single price for the Opening Routine, Mid-Day Break, Closing Routine and Adjust Phase.
        1.2 Rule 8.2.1 says the trading hours and the application of the market phases are as published by SGX-ST.
        1.3 Rule 8.2.1 says SGX-ST may vary the trading hours and application of the market phases.
        1.4 Rule 8.2.2 sets out the various market phases.

        Amended on 16 September 2016 and 13 November 2017.

        2 Application of Market Phases

        2.1 Summary of Market Phases
        (1) Normal Day Trading



        * Please see Point 2.2(2) and (3).
        ^ Please see Point 2.3A(2) and (3)
        ** Please see Point 2.5(3) and (4)
        (2) Half-Day Trading



        * Please see Point 2.2(2) and (3).
        ** Please see Point 2.5(3) and (4)

        Amended on 1 August 2011, 26 September 2011, 15 April 2013 and 13 November 2017.

        2.2 Opening Routine
        (1) The Opening Routine is a 30-minute session before normal trading starts at 09:00 hours. It comprises a Pre-Open Phase and a Non-Cancel Phase.
        (2) Pre-Open Phase (08:30 to 08:58–59 hours)
        (a) Orders can be entered, modified or withdrawn in the ready and unit share markets.
        (b) The bid (offer) can be higher (lower) than the offer (bid).
        (c) No matching of orders.
        (d) This phase will end randomly at any time from 08:58 to 08:59 hours.
        (3) Non-Cancel Phase (08:58–59 to 09:00 hours)
        (a) This phase will begin simultaneously with the end of the Pre-Open Phase, which may be at any time from 08:58 to 08:59 hours.
        (aa) No input, amendment and withdrawal of orders.
        (b) Orders that can be matched are matched at a single price computed based on an algorithm set by SGX-ST. The computed price will be the opening price for the day.
        (c) Unmatched orders are carried forward into the morning trading session.

        Amended on 26 September 2011 and 15 April 2013, 16 September 2016 and 13 November 2017.

        2.3 Trading Phase
        (1) For normal day trading, the morning Trading Phase is from 09:00 to 12:00 hours and the afternoon Trading Phase is from 13:00 to 17:00 hours. For half day trading, the Trading Phase is from 09:00 to 12:00 hours.
        (2) Each Trading Phase allows order entry, order modification and withdrawal of orders. Orders are matched in the order of price priority followed by time priority.
        (2A) All unmatched orders after the morning Trading Phase are carried forward to the Mid- Day Break.
        (3) All unmatched orders after the afternoon Trading Phase and after the Trading Phase on half days are carried forward to the Closing Routine.
        2.3A Mid-Day Break
        (1) The Mid-Day Break is a 60-minute session that begins after the morning Trading Phase ends at 12:00 hours, and ends before the afternoon Trading Phase starts at 13:00 hours. It comprises a Pre-Open Phase and a Non-Cancel Phase.
        (2) Pre-Open Phase (12:00 to 12:58–59 hours)
        (a) Orders can be entered, modified or withdrawn in the ready and unit share markets.
        (b) The bid (offer) can be higher (lower) than the offer (bid).
        (c) No matching of orders.
        (d) This phase will end randomly at any time from 12:58 to 12:59 hours.
        (3) Non-Cancel Phase (12:58–59 to 13:00 hours)
        (a) This phase will begin simultaneously with the end of the Pre-Open Phase, which may be at any time from 12:58 to 12:59 hours.
        (b) No input, amendment and withdrawal of orders.
        (c) Orders that can be matched are matched at a single price computed based on an algorithm set by SGX-ST. The computed price will be the opening price for the afternoon trading session.
        (d) Unmatched orders are carried forward into the afternoon trading session.

        Amended on 1 August 2011, 16 September 2016 and 13 November 2017.

        2.4 Adjust Phases
        (1) An Adjust Phase operates upon the lifting of a suspension of a security or Futures Contract pursuant to Rule 8.10.6 and may also be applied pursuant to Rule 8.10.1A.

        (a) The Adjust Phase sets in for 15 minutes. A longer time can be specified.
        (b) Orders can be entered, modified or withdrawn for the ready and unit share markets.
        (c) The bid (offer) can be higher (lower) than the offer (bid).
        (d) Orders that can be matched will be matched at the end of the Adjust Phase at a single price computed based on an algorithm set by SGX-ST before normal trading resumes. Unmatched orders at the end of the Adjust Phase are carried forward into the phase of the market applicable when the Adjust Phase ends.
        (2) However, the behaviour in paragraph 2.4(1)(d) does not apply in the following scenarios:

        (a) When the end of the Adjust Phase coincides with the Opening Routine, Mid- Day Break or Closing Routine. In these circumstances, orders entered are carried forward into and matched accordingly in the respective Opening Routine, Mid- Day Break or Closing Routine.
        (b) When SGX-ST specifies that the Adjust Phase is to be followed immediately by the Non-Cancel Phase. In these circumstances, a Non-Cancel Phase will begin simultaneously with the end of the Adjust Phase, which may be at any time within a one minute window. Orders are carried forward into the Non-Cancel Phase. Orders that can be matched will be matched at a single price computed based on an algorithm set by SGX-ST before normal trading resumes. Unmatched orders at the end of the Non-Cancel Phase are carried forward into the phase of the market applicable when the Non-Cancel Phase ends.

        For illustrative purposes only:



        SGX-ST specifies the Adjust Phase is to be followed immediately by a Non-Cancel Phase and further specifies that the Non-Cancel Phase will begin from 10:15h to 10:16h. In this case, the Adjust Phase will end simultaneously with the beginning of the Non-Cancel Phase at any time from 10:15h to 10:16h. Normal trading will begin at 10:17h.
        (c) When SGX-ST closes the market or suspends trading pursuant to Rule 8.10.1, at the end of the Adjust Phase.
        (3) [Deleted]

        Amended on 1 August 2011 and 15 April 2013, 16 September 2016 and 13 November 2017.

        2.5 Closing Routine
        (1) The Closing Routine is a 6-minute session after trading stops at 17:00 hours for normal day trading, or 12:00 hours for half-day trading. It comprises a Pre-Close Phase and a Non-Cancel Phase.
        (2) All unmatched orders are carried forward to the Closing Routine at 17:00 hours (for normal day trading) or 12:00 hours (for half-day trading).
        (3) Pre-Close Phase (17:00 to 17:04–05 hours/12:00 to 12:04–05 hours)
        (a) Orders can be entered, modified or withdrawn in the ready and unit share markets.
        (b) The bid (offer) can be higher (lower) than the offer (bid).
        (c) No matching of orders.
        (d) This phase will end randomly at any time from 17:04 to 17:05 hours (for normal day trading) or 12:04 to 12:05 hours (for half-day trading).
        (4) Non-Cancel Phase (17:04–05 to 17:06 hours/12:04–05 to 12:06 hours)
        (a) This phase will begin simultaneously with the end of the Pre-Close Phase, which may be at any time from 17:04 to 17:05 hours (for normal day trading) or 12:04 to 12:05 hours (for half-day trading).
        (aa) No input, amendment and withdrawal of orders.
        (b) Orders that can be matched are matched at a single price computed based on an algorithm set by SGX-ST. Unless otherwise specified, the computed price will be the closing price for the day.
        (c) [Deleted]
        (5) This routine is designed to reduce the risk of manipulating closing prices with a single transaction at an unusually high or low price, just before the trading session ends.

        Amended on 26 September 2011 and 15 April 2013 and 24 February 2014, 16 September 2016 and 13 November 2017.

        3 Algorithm Used by SGX-ST to Compute the Single Price at Which Orders at the End of the Opening Routine, Mid-Day Break, Closing Routine and Adjust Phase are Matched

        3.1 The methodology for computing the single price at which orders at the end of the Opening Routine, Mid-Day Break, Closing Routine and Adjust Phase are matched (“Equilibrium Price”) is as follows1:—
        (1) The Equilibrium Price is the price that has the largest tradable volume and the lowest imbalance. “Imbalance” refers to the net difference between the cumulative bid volume and cumulative ask volume. See Example 1.

        Example 1

        Bid Volume Price Ask Volume Cumulative Bid Volume (a) Cumulative Ask Volume (b) Tradable Volume Imbalance (a)-(b) Pressure
        0 3.750 10 340 10 10 330 Buy
        0 3.760 20 340 30 30 310 Buy
        50 3.770 50 340 80 80 260 Buy
        100 3.780 80 290 160 160 130 Buy
        70 3.790 30 190 190 190 0 Nil
        30 3.800 40 120 230 120 70 Sell
        90 3.810 20 90 250 90 160 Sell
        In this example, the Equilibrium Price is $3.790 where the tradable volume is the largest and the imbalance is the lowest. If the highest tradable volume occurs at more than one price the algorithm will then consider imbalance, see sub-paragraph (2).
        (2) If the highest tradable volume occurs at more than one price the Equilibrium Price is the price with the lowest imbalance. See Example 2.

        Example 2

        Bid Volume Price Ask Volume Cumulative Bid Volume (a) Cumulative Ask Volume (b) Tradable Volume Imbalance (a)-(b) Pressure
        0 3.750 10 340 10 10 330 Buy
        0 3.760 20 340 30 30 310 Buy
        50 3.770 50 340 80 80 260 Buy
        100 3.780 110 290 190 190 100 Buy
        70 3.790 20 190 210 190 20 Sell
        30 3.800 40 120 250 120 130 Sell
        90 3.810 20 90 270 90 180 Sell
        In this example, the Equilibrium Price is $3.790 where the tradable volume is the largest (190) and the imbalance is the lowest (20).

        If market orders are present a situation may arise in which the lowest imbalance occurs at “Market Price”, see sub-paragraph (2A).

        If the highest tradable volume and lowest imbalance occur at more than one price the algorithm will then consider market pressure, see sub-paragraph (3).
        (2A) If market orders are present and the market order volume on one side exceeds the cumulative order volume on the opposite side there would be a Market Order Surplus. This means that the lowest imbalance occurs at “Market Price”. In this situation, one tick will be added on the side with the Market Order Surplus and that would be the Equilibrium Price. See Example 2A.

        Example 2A

        Bid Volume Price Ask Volume Cumulative Bid Volume (a) Cumulative Ask Volume (b) Tradable Volume Imbalance (a)-(b) Pressure
          MKT   50 0      
          3.750 10 50 10 10 40 Buy
          3.760   50 10 10 40 Buy
          3.770 10 50 20 20 30 Buy
        10 3.780   50 20 20 30 Buy
          3.790   40 20 20 20 Buy
        10 3.800   40 20 20 20 Buy
          3.810   30 20 20 10 Buy
        30 MKT   30 20 20 10 Buy


        In this example, the lowest imbalance (10) occurs where market order bid volume (30) exceeds cumulative ask volume (20). One tick has therefore been added on the bid side, and the Equilibrium Price is $3.810.
        (3) If the highest tradable volume and lowest imbalance occur at more than one price (“the price overlap”) the Equilibrium Price is determined by market pressure:
        (a) with only buy pressure within the price overlap, the Equilibrium Price is the highest price within the price overlap, or
        (b) with only sell pressure within the price overlap, the Equilibrium Price is the lowest price within the price overlap. See Example 3.
        Buy (sell) pressure occurs when the cumulative bid (offer) volume is greater than the cumulative offer (bid) volume at a particular price.

        Example 3

        Bid Volume Price Ask Volume Cumulative Bid Volume (a) Cumulative Ask Volume (b) Tradable Volume Imbalance (a)-(b) Pressure
        0 3.750 10 260 10 10 250 Buy
        0 3.760 20 260 30 30 230 Buy
        50 3.770 50 260 80 80 180 Buy
        0 3.780 110 210 190 190 20 Buy
        90 3.790 0 210 190 190 20 Buy
        30 3.800 40 120 230 120 110 Sell
        90 3.810 20 90 250 90 160 Sell
        In this example there is only buy pressure in price overlap, the Equilibrium Price is $3.790 which is the highest price in the price overlap.
        (4) If the highest tradable volume and lowest imbalance occur at more than one price and there is both buy and sell pressure or nil pressure within the price overlap, the Equilibrium Price is:
        (a) the price within the price overlap that is the closest to the last traded price, or
        (b) where there is no last traded price, the lowest price within the price overlap.
        See Example 4.

        Example 4

        Bid Volume Price Ask Volume Cumulative Bid Volume (a) Cumulative Ask Volume (b) Tradable Volume Imbalance (a)-(b) Pressure
        0 3.750 10 260 10 10 250 Buy
        0 3.760 20 260 30 30 230 Buy
        50 3.770 50 260 80 80 180 Buy
        0 3.780 130 210 210 210 0 Nil
        90 3.790 0 210 210 210 0 Nil
        30 3.800 40 120 250 120 130 Sell
        90 3.810 20 90 270 90 180 Sell
        In this example, assuming that the last traded price was $3.800, the Equilibrium Price is $3.790.

        Amended on 15 August 2011, 17 February 2012.


        1 The examples shown are not exhaustive.

      • Practice Note 8.2A.2 — Closing Price of Prescribed Security

        Issue Date Cross Reference Enquiries
        Issued on 24 February 2014 Rule 8.2A.2 Please contact Securities Market Control:—

        E-Mail Address :
        securities.mc@sgx.com

        1. Introduction

        1.1 Rule 8.2A.2 of the Rules states that the closing price of a Prescribed Security shall be determined in accordance with the relevant formula and procedures applicable to each Prescribed Security, as determined by SGX-ST from time to time. In arriving at such formula and procedure, SGX-ST may take into account factors, including but not limited to:
        (1) the last traded price;
        (2) prevailing bids and offers during the trading phase, and/or closing routine; and/or
        (3) price data derived from pricing models, as selected or established by SGX-ST from time to time.
        This Practice Note sets out the formulas and procedures used by SGX-ST to determine the closing price of Prescribed Securities as contemplated in the above Rule.
        1.2 Unless the context requires otherwise, the following terms shall have the meanings ascribed to them in Practice Note 8.2.1:
        (1) "Closing Routine"; and
        (2) "Trading Phase".
        1.3 The following securities, Futures Contracts or products or classes of securities, Futures Contracts or products shall be a Prescribed Security for the purpose of Rule 8.2A.1:
        (1) Exchange traded funds.

        2 Closing Price of Prescribed Securities

        2.1 Unless otherwise specified, SGX-ST may use any of the following as the closing price of a Prescribed Security for a Market Day:
        (1) the single price at which orders are matched at the end of the Closing Routine as set out in Practice Note 8.2.1;
        (2) the last traded price that occurred in the Closing Range;
        (3) a price determined by SGX-ST taking into account the bid and offer prices present in the Trading System during the Closing Range;
        (4) the last traded price that occurred prior to the Closing Range; or
        (5) the closing price of the previous Market Day.
        2.2 The Closing Range, for the purposes of this Practice Note, shall be the last 15 minutes of the Trading Phase, or such other time as may be determined by SGX-ST and notified to the market from time to time.
        2.3 Where SGX-ST deems it necessary or desirable for ensuring a fair, orderly and transparent market or the integrity of the market, or for proper management of systemic risk in the market, SGX-ST may use an alternative formula and/or procedure to determine the closing price of a Prescribed Security.
        2.4 SGX-ST shall, as soon as practicable, notify the Authority of any action taken by SGX-ST pursuant to paragraph 2.3 of this Practice Note.

        Added on 24 February 2014.

      • Practice Note 8.2.2 — Procedures for Contingency Order Withdrawal

        Issue Date Cross Reference Enquiries
        Added on 2 November 2005, amended on 3 April 2008, 26 March 2012, 26 August 2013, 19 May 2014 and 15 September 2017. Rule 8.2.2 (1)
        Rule 8.2.2 (3)
        Rule 8.2.2 (4)
        Please contact Securities Market Control:—

        Hotline: 6236 8820

        1. Introduction

        1.1 This Practice Note explains the circumstances, conditions and operational procedures pursuant to which SGX-ST would assist Trading Members effect order withdrawals.
        1.2 Rules 8.2.2 (1), (3) and (4) state that withdrawal of orders are allowed during certain market phases, in particular the Pre-Open/Pre-Close, Trading and Adjust phases. Generally, Trading Members may withdraw their orders at anytime provided that they do so in accordance with their respective internal operational and risk management procedures and applicable laws. However, SGX-ST recognizes that in certain circumstances Trading Members are unable to effect order withdrawals without the assistance of SGX-ST.

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

        2.1 In the event of Technical Faults, SGX-ST would assist in effecting order withdrawals at the request of the Trading Members and subject to the terms and procedures set forth below. "Technical Faults" as used herein refers to any loss of connection to the Trading System or any technical defects in any equipment, system, device or market facility which prevents a Trading Member from effecting order withdrawals without SGX-ST's assistance.
        2.2 Order withdrawal by SGX-ST in the event of a Technical Fault would be effected on a reasonable endeavours basis. The Trading Member agrees that SGX-ST has no liability for order withdrawals and related activities conducted on behalf of a Trading Member.
        2.3 The Trading Member indemnifies and will keep indemnified SGX-ST against all actions, proceedings, claims, demands, damages, costs, expenses and any other amounts against or incurred by SGX-ST arising out of or in connection with any action taken or any inaction by any of SGX-ST, or its officers, employers, agents, delegates or contractors with respect of such order withdrawals.
        2.4 For the avoidance of doubt, nothing in this Practice Note should be construed as limiting a Trading 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 Trading Members may request SGX-ST to withdraw orders at the following levels:

        a) Individual Order level : based on Order ID no.
        b) Firm level : based on Trading Member Company Code / SGX Access User ID no.
        (where the firm has more than one SGX Access connection, it is possible to withdraw orders based on specific SGX Access User ID no)
        c) Client level : based on Client Account no of a specific SGX Access User ID no.

        3. Operational Safeguards and Discrepancies

        3.1 A Trading Member must comply with the instructions and directions issued by Securities Market Control when effecting order withdrawals as contemplated herein. SGX-ST also reserves the right to refuse any such request without providing any reason.
        3.2 All verbal requests for order withdrawals ("Request") would be recorded by SGX-ST. Trading Members are also required to comply with various operational safeguards and procedures as issued by Trading Market Control from time to time including matters relating to the:
        (a) Appointment of Authorized Officers by Trading Members to effect order withdrawals and the provision of authentication details in connection therewith
        (aa) Prompt notification to Securities Market Control of any changes to Authorized Officers, and any changes to an Authorized Officer's information
        (b) Effecting Request via telephone numbers as designated by SGX-ST with verification by Securities Market Control on the identity of the caller by requiring the caller to respond correctly to two authentication questions
        (c) Submission of an Order Withdrawal Form with the material information as requested by SGX-ST
        (d) Processing of Request at firm level, client level and individual levels
        3.3 If a Trading Member finds any discrepancies between the Order Withdrawal Form and the Request, the Trading Member should notify SGX Securities Market Control immediately with details of such discrepancies. Depending on the nature of the discrepancy, SGX Securities Market Control would generally rely on the voice recording for its post-withdrawal investigations.

      • Practice Note 8.6 — Application of the Forced Order Range

        Issue Date Cross Reference Enquiries
        Added on 4 July 2011, amended on 25 October 2012, 26 August 2013, 19 May 2014, 7 July 2015, 23 December 2015, 19 May 2016 and 13 November 2017. Rule 8.6 Please contact Enforcement:

        E-Mail Address: enforcement@sgx.com

        1 Introduction

        1.1 This Practice Note explains the application of the Forced Order Range as an error trade prevention measure.
        1.2 Unless otherwise determined by SGX-ST, the Forced Order Range of the following products shall be as follows:

        S/N Product Price Range ($) Minimum Bid Size ($) Forced Order Range
        1 Stocks (excluding preference shares), Real Estate Investment Trusts (REITS), business trusts, company warrants and any other class of securities or Futures Contracts not specified in Rule 8.3.3 Below 0.20 0.001 +/- 30 bids
        0.20 – 0.995 0.005
        1.00 and above 0.01
        1A Structured warrants Below 0.20 0.001 +/- 30 bids
        0.20 – 1.995 0.005
        2.00 and above 0.01
        2 Exchange traded funds and exchange traded notes All 0.01 or 0.001 as determined by SGX-ST +/- 30 bids
        3 Debentures, bonds, loan stocks and preference shares quoted in the $1 price convention All 0.001
        4 Debentures, bonds, loan stocks and preference shares quoted in the $100 price convention All 0.001 +/- 1,000 bids
        1.3 Subject to paragraph 1.4 of this Practice Note 8.6, SGX-ST provides a pre-execution mechanism, known as the Forced Key function, to mitigate the occurrence of error trades resulting from errors in the entry of order prices. Orders entered at prices outside the Forced Order Range must be confirmed by using the Forced Key function, before the orders may be submitted.
        1.3A The Forced Key function will not be applicable prior to the first trade on the first day of trading of any newly-listed instrument.
        1.3B SGX-ST may, at its discretion apply the Forced Key function in particular cases notwithstanding paragraph 1.3A. If SGX-ST uses its discretion to apply the Forced Key function to any such case SGX-ST will give prior notice to Members.
        1.4 The Forced Key function is intended to complement, and not replace, Members' responsibility to adopt adequate and appropriate measures and practices to safeguard against the execution of error trades.

        2. Risk Management Controls

        2.1 In order to mitigate the occurrence of error trades resulting from errors in the entry of order prices, Trading Members should:
        (a) ensure that the Forced Key alert is available;
        (b) encourage Trading Representatives to exercise judgment when accepting an instruction from a customer to execute an order priced outside the Forced Order Range; and
        (c) ensure that procedures are in place to determine if there are legitimate commercial reasons for orders priced outside the Forced Order Range.

        Added on 4 July 2011 and amended on 25 October 2012, 26 August 2013, 19 May 2014, 7 July 2015, 23 December 2015, 19 May 2016 and 13 November 2017.

      • Practice Note 8.6.12(4) — Computation of Monetary Loss

        Issue Date Cross Reference Enquiries
        Issued on 24 February 2014 8.6.12(4) Please contact Enforcement:—

        E-Mail Address :
        enforcement@sgx.com

        1. Introduction

        1.1. As set out in Rule 8.6.12(4), SGX-ST may consider the monetary loss involved when deciding whether to cancel an error trade under Rules 8.6.13, 8.6.13A and 8.6.13B.
        1.2. This Practice Note sets out how monetary loss would be computed under Rule 8.6.12(4).
        2. Computation of Monetary Loss
        2.1. Subject to paragraph 2.2, the monetary loss referred to in Rule 8.6.12(4) will be the difference between the value of the error trade and the value of the intended trade. The value of the intended trade will be determined as:
        (1) in the case of an error in the entry of the volume of the order, the value of a trade for the actual intended volume, at the price at which the order was entered;
        (2) in the case of an error in the entry of the price of a structured warrant, the value of a trade for the volume of the order which was entered, at the Reference Price as determined in accordance with Rule 8.6.13(2);
        (3) in the case of an error in the entry of the price of all other securities or Futures Contracts, excluding bonds, the value of a trade for the volume of the order which was entered, at the Reference Price in accordance with Rule 8.6.13A(2) or Rule 8.6.13A(3); and
        (4) in the case of an error in the entry of the price of a bond, the value of a trade for the volume of the order which was entered, at:
        (a) the last traded price immediately preceding the error trade, where such preceding trade was executed on the same trading day as the error trade; or
        (b) the best bid or best offer price at the time of the execution of the first share of the error trade.
        2.2. Where an erroneous order results in more than one (1) error trades, monetary loss will be the aggregate monetary loss of all such error trades executed at prices outside the upper and lower limits of the no-cancellation range applied pursuant to Rule 8.6.4A, which are referred to SGX-ST for review under Rule 8.6.3.

        Added on 24 February 2014.

      • Practice Note 8.6.13A(3) — Alternative Reference Price For No-Cancellation Range

        Issue Date Cross Reference Enquiries
        Issued on 24 February 2014, amended on 23 December 2015 and 15 September 2017. 8.6.13(3) Please contact Enforcement:—

        E-Mail Address :
        enforcement@sgx.com

        1. Introduction

        1.1 Rule 8.6.13A(3) provides that SGX-ST may, in its discretion, use an alternative price as the Reference Price for the no-cancellation range if (a) the price of the last good trade is not available; or (b) SGX-ST deems the price of the last good trade to be unreliable or inappropriate as a Reference Price.
        1.2 In normal market conditions, the price of the last good trade is adopted as the Reference Price. However, SGX-ST has considered that there may be situations where the price of the last good trade is not available or not appropriate. In such situations, SGX-ST would seek to establish a Reference Price from alternative sources.
        1.3. This Practice Note sets out the alternative prices that SGX-ST may consider in establishing the Reference Price when the price of the last good trade is inappropriate.
        2. Alternative Prices
        2.1. The table below sets out the alternative prices that SGX-ST may consider in establishing the Reference Price to determine the no-cancellation range.

        Instrument Alternative prices that may be adopted as the Reference Price
        Extended Settlement Contracts
        •  The previous closing price.
        •  The price of the last good trade in the underlying stock.
        American Depository Receipts
        •  The previous closing price of the underlying stock in home market.
        •  The previous closing price of the ADR in the US market.
        Exchange Traded Funds
        •  The previous closing price as determined in accordance with Rule 8.2A.
        •  The average of the last quoted bid price and the last quoted offer price for the Exchange Traded Fund immediately preceding the error trade. The selection will not include the quotes provided by the Designated Market-Maker who is involved in the error trade which is under review.
        •  The Indicative Net Asset Value.
        Exchange Traded Notes
        •  The average of the last quoted bid and the last quoted offer price for the Exchange Traded Note immediately preceding the error trade. The selection will not include the quotes provided by the Designated Market-Maker who is involved in the error trade which is under review.
        •  The price of other debt papers with a similar credit rating.
        All other securities (excluding bonds and structured warrants)
        •  The previous closing price.
        •  The average of the last quoted bid price and the last quoted offer price for the security immediately preceding the error trade. The selection will not include the quotes provided by the parties who are involved in the error trade which is under review.
        •    A price derived from a pricing model established by SGX-ST. For example, in the case of a share consolidation, SGX-ST may use the last traded price prior to the effective date of the consolidation, adjusted for the consolidation ratio.

        3. Alternative Prices Unsuitable

        3.1. Where SGX-ST determines that an appropriate Reference Price cannot be established, it will not establish a no-cancellation range.

        Added on 24 February 2014 and amended on 24 February 2014, 23 December 2015 and 15 September 2017.

      • Practice Note 8.8.1 — Designated Securities and Futures Contracts

        Issue Date Cross Reference Enquiries
        Added on 1 July 2014 and amended on 15 September 2017. Rule 8.8.1
        Rule 8.8.2
        Please contact Surveillance:

        E-Mail Address:
        msursec@sgx.com

        1. Introduction

        1.1 This Practice Note explains the circumstances under which the Board may declare a listed or quoted security or Futures Contract to be a “Designated Security” or “Designated Futures Contract”.
        2. Designation as a Regulatory Tool
        2.1. SGX-ST has three key regulatory tools to support a fair, orderly and transparent market. They are as follows:—
        (a) Query to listed companies — SGX-ST may issue a query to listed companies in situations where there is unusual trading that is not explained by announced developments or industry trends. The query serves to raise investors' awareness that trading activity is unusual;
        (b) Designation of a security or Futures Contract — SGX-ST may declare a listed or quoted security or Futures Contract to be a "Designated Security" or "Designated Futures Contract" where, in SGX-ST's judgment, there is possible manipulation or excessive speculation in the security or Futures Contract (or its underlying), or it is otherwise in the interest of the market to do so; and
        (c) Suspension — SGX-ST may suspend a security or Futures Contract where, in SGX-ST's opinion, the market is not orderly, informed or fair.
        2.2 Designation is a tool that is used sparingly and only in exceptional circumstances which warrant such intervention. Such circumstances may include prolonged trading anomalies observed in the security or Futures Contract, such as order book imbalances and/or prolonged, excessive speculation in a security. The objective of designation is to restore market equilibrium by removing the impact of such anomalies on price formation, and allow the price of the security or Futures Contract to be formed through demand and supply forces in an informed market. Designation would be lifted once, in SGX-ST's opinion trading has returned to normalcy.

        3. Conditions that may be Imposed on a Designated Security or a Designated Futures Contract

        3.1 The conditions imposed on a Designated Security or a Designated Futures Contracts would depend on the circumstances leading to the designation of the security or Futures Contract. Examples of such conditions are listed below. One or more of these conditions may be imposed in a particular designation situation, and this list is not exhaustive.
        (a) Requirement for collateral to be furnished — Trading Members may be required to obtain margins from each customer in respect of the customer's dealing in the Designated Security or trading in a Designated Futures Contract. This may also be imposed as a requirement for the Trading Member to obtain partial or full payment for any buy order from a customer, prior to executing the order. Such requirements would be specified in the conditions for the designation;
        (b) Trading restrictions on specific Trading Members — Trading restrictions may also be imposed on specific Trading Members in relation to a Designated Security or Designated Futures Contract if the Trading Member has outstanding unsettled positions in the security (or the underlying security of the Futures Contract) that is more than 5% (or any percentage that the SGX-ST Board may prescribe) of the paid-up capital of the company whose securities are designated;
        (c) Restrictions on sale — A prospective seller of a Designated Security or Designated Futures Contract may be prohibited from placing a sell order unless he is already holding the security (or underlying security of the Futures Contract) at the time of sale. The seller may be required to provide evidence that he/she holds the security (or the underlying security of the Futures Contract).the Designated Security. This evidence could be in the form of statements by CDP or a custodian showing that the seller is holding a sufficient quantity of the security. Furthermore, the Trading Member may be required to sight such evidence prior to the execution of the sale order; and
        (d) Other conditions such as prohibitions on short-selling, contra trading or Internet Trading.

        Added on 1 July 2014 and amended on 15 September 2017.

      • Practice Note 8.10.1 — Characteristics of Suspension and Trading Halt

        Issue Date Cross Reference Enquiries
        Added on 3 April 2008, amended on 21 September 2011, 26 March 2012 and 16 September 2016. Rules 8.10.18.11.1A Please contact:

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

        Securities Market Control
        E-Mail Address:
        securities.mc@sgx.com

        This Practice Note explains the characteristics of a suspension and a trading halt.

        ITEM CHARACTERISTIC SUSPENSION TRADING HALT
        1 Initiating party A suspension can be imposed by SGX-ST under the circumstances stated in Rule 8.10.1. An Issuer may also request a suspension if its request for extension of a trading halt is not approved by SGX-ST. A trading halt can be imposed by SGX-ST under the circumstances stated in Rules 8.11.1 and 8.11.1A.
        2 Status of unmatched orders During a market suspension, unmatched orders in the Trading System may lapse, as determined by SGX-ST. SGX-ST will notify Trading Members of the status of their unmatched orders before the lifting of a market suspension.

        During a suspension of a single security or Futures Contract, all unmatched orders will lapse.
        During a trading halt, all existing orders in the ready and unit share markets remain valid. Orders can still be entered, modified or withdrawn in the ready and unit share markets but are not matched.
        3 Duration of suspension or trading halt A suspension may persist for a prolonged period. A trading halt is usually intra-day, with a minimum duration of 30 minutes. SGX-ST may extend the duration of a trading halt beyond 3 Market Days upon the Issuers' request.
        4 Upon lifting of suspension or trading halt Upon lifting of a suspension, the suspended security or Futures Contract will enter into an Adjust Phase for at least 15 minutes. Upon lifting of a trading halt, orders that can be matched will be matched at a single price computed based on the algorithm set by SGX-ST. Unmatched orders are carried forward into the respectiv e phase t he market is in when the trading halt is lifted.

      • Practice Note 8.10A — Circuit Breaker

        Issue Date Cross Reference Enquiries
        Issued on 24 February 2014, amended on 23 December 2015 and 13 November 2017 Rule 8.10A Please contact Securities Market Control:—

        Email: securities.mc@sgx.com

        1. Introduction

        1.1. Rule 8.10A.1 states that SGX-ST may prescribe, for certain securities and Futures Contracts, Circuit Breakers which are designed to temporarily restrict trading in these securities and Futures Contracts.
        1.2. Rule 8.10A.2 adds that SGX-ST shall impose a Cooling-Off Period on such security or Futures Contract referred to in Rule 8.10A.1 if an incoming order seeks to be matched, either partially or fully, with an existing order in the Trading System at a price outside the Circuit Breaker.
        1.3. The Cooling-Off Period can guard against disorderly situations in the face of rapid and unchecked market movements, by allowing the market and regulators a pause to take stock of the situation.
        1.4. It is not intended to halt price movement. A fundamental role of a capital market is timely and accurate price discovery; as such, the market should be allowed to determine its own prices so long as it remains fair and orderly. Where large price movements are justified, what the circuit breaker facilitates is a more measured market movement enabled by the imposition of pauses which allow the market to analyse market conditions and all available information before resuming. By moderating the pace of big price movements, the circuit breaker prevents alarm to the market and averts contagion risk to other markets.

        2. Coverage of Circuit Breaker

        2.1. Circuit Breakers will apply to the following instruments:
        (1) Stocks and unit trusts that are components of the Straits Times Index or the MSCI Singapore Free Index;
        (2) Stocks, stapled securities, Real Estate Investment Trusts, business trusts, funds, exchange-traded funds and exchange-traded notes that have a reference price at the start of the Market Day of 0.50 or more in the underlying currency that Market Day. In the case of Yen-denominated instruments, Circuit Breakers are applied if the reference price at the start of the Market Day is ¥500 (denoted as “0.50” in the Trading System) or more that Market Day; and
        (3) Marginable Futures Contracts with underlying instruments falling within (1) or (2) above.
        2.2. The instruments are assessed against the criteria set out in paragraph 2.1 above on a daily basis to determine if Circuit Breakers will apply that Market Day.
        2.3. As stated in Rule 8.11.1A, SGX-ST may impose a trading halt on a security or Futures Contract when its underlying, or such instrument on the same underlying as SGX-ST may prescribe, is subject to a Cooling-Off Period pursuant to Rule 8.10A.2. This includes structured and company warrants. The duration of such halt will be aligned with the Cooling-Off Period.

        3. Characteristics of Circuit Breakers and Cooling-Off Periods

        3.1. A Circuit Breaker will have the following features:
        (1) The Circuit Breaker is in operation during the Trading Phase.
        (2) The Circuit Breaker, takes the form of a price band. Trading in a security or Futures Contract must be within or at the upper and lower thresholds of the price band. The price band is based on a prescribed percentage threshold from a reference price. The calculation of the price band is described in paragraph 4 below.
        (3) When an incoming order seeks to match against a resting order at a price outside the upper or lower threshold, a Cooling-Off Period is activated. The incoming order is rejected and will not be matched at a price outside the upper and lower thresholds. An incoming order may have been partially matched against other orders up to the price band, beyond which the outstanding order would be rejected. The trades that were executed at or within the price band will not be affected by activation of the Cooling-Off Period, and only the outstanding volume of the incoming order will be rejected.
        (4) During the Cooling-Off Period, trading in a security or Futures Contract continues at or within the price band that was established when the Cooling-Off Period was activated. If an incoming order seeks to match against a resting order at a price outside the upper or lower threshold, the incoming order will be rejected and will not be matched at a price outside the upper and lower thresholds. This will not extend the cooling-off period.
        (5) After the Cooling-Off Period ceases, the upper and lower thresholds of the Circuit Breaker will be adjusted. The adjustment of the price band is described in paragraph 4. Trading in a security or Futures Contract will continue within and at the new price band.
        3.2. When a Cooling-Off period is activated, the affected instrument(s) will have “CIRB” indicated in the Rmk column on the SGX website for the duration of the cooling-off period. The change in session state will also be broadcast to Trading Members.
        3.3. The duration of the Cooling-Off Period is five minutes. The Cooling-Off Period will cease upon the commencement of any of the following, even if five minutes have not elapsed:
        (1) Pre-Close Phase;
        (1A) Mid-Day Break;
        (2) Suspension; and
        (3) Trading Halt.
        3.4. The Equilibrium Price at the end of the Opening Routine, Mid-Day Break, Closing Routine or Adjust Phase will not activate a Cooling-Off Period (refer to SGX-ST Practice Note 8.2.1 for details on the Opening Routine, Mid-Day Break, Closing Routine and Adjust Phase).

        4. Calculation of the Circuit Breaker

        4.1. The upper threshold is 10% above the reference price and the lower threshold is 10% below the reference price:
        4.2. The reference price for the start of the Trading Phase in each trading session is as follows:
        (1) the opening price of the security for that trading session, failing which
        (2) either
        (a) (i) in the case of a Prescribed Security, the last traded price in the morning trading session, failing which, the closing price of the Prescribed Security on the previous Market Day, and (ii) in the case of any other security, the previous trading session's last traded price, or
        (b) where a share consolidation or share split has occurred since the price stated in (a), a price derived from a pricing model established by SGX-ST (for example, the last traded price prior to the effective date of the consolidation, adjusted for the consolidation ratio), failing which
        (3) the last available traded price.
        4.3. The reference price at the start of the Trading Phase in each trading session is applicable to the first five minutes of the Trading Phase of that Trading Phase. The reference price for the rest of the Trading Phase is as follows:
        (1) the last traded price as of five minutes prior to each potential trade, failing which
        (2) the reference price at the start of the Trading Phase.
        4.4. If there are trades done during the Cooling-Off Period, the reference price following the Cooling-Off Period will be as described in paragraph 4.3 above. If there are no trades done during the Cooling-Off Period, the first trade after the Cooling-Off Period will not be subject to the Circuit Breaker. The price of the first trade will then serve as the reference price for the five minutes following the trade. Thereafter, the reference price will be as described in paragraph 4.3 above.
        4.5. In the event that an instrument is suspended or halted, the reference price immediately upon the lifting of a halt/suspension for a security will be as follows:
        (1) the Equilibrium Price, failing which
        (2) the last traded price in the Trading phase preceding the halt/suspension, failing which
        (3) the reference price at the start of the Market Day.
        4.6. The reference price of a Marginable Futures Contract is the reference price of its underlying instrument at all times.

        5. Illustration of Circuit Breaker operation

        Scenario 1

        5.1. Security A has an opening price of $1.00. The Circuit Breaker will apply to Security A on that Market Day.
        5.2. No trades are executed after the market opens.
        5.3. At 11:00:00a.m, an incoming buy order for one lot of Security A at $1.20 attempts to match against a resting sell order for five lots of Security A at $1.20.
        5.4. The reference price of Security A at 11:00:00a.m is $1.00 because there have been no trades in the Trading phase, and the opening price is $1.00. Therefore, the upper limit of Security A's Circuit Breaker at 11:00:00a.m is:

        $1.00 + (10% x $1.00) = $1.10:

        The lower limit is:
        $1.00 − (10% x $1.00) = $0.90.
        5.5. As the incoming buy order, if matched, would result in a trade outside the upper limit of the Circuit Breaker, it is rejected, and the Cooling-Off Period begins. The Cooling-Off Period is in place from 11:00:00a.m to 11:05:00a.m, during which trading can occur within the price band i.e. at or between $0.90 and $1.10: If a buy order for one lot of Security A at $1.20 is re-entered at this time, it is rejected.
        5.6. No trades occur during the Cooling-Off Period. The first trade after the Cooling-Off Period will not be subject to the Circuit Breaker. If the incoming buy order for one lot of Security A at $1.20 is re-entered at this time (and the resting sell order for five lots at $1.20 is still in the order book), it will result in a traded price of $1.20. $1.20 will then be the new reference price for at least the next five minutes of trading.

        Scenario 2

        5.7. Security B has an opening price of $1.00. The Circuit Breaker will apply to Security B on that Market Day. At 10:00:00a.m, the last traded price as of five minutes ago (i.e. at 9:55:00a.m) is $0.90. This is therefore the reference price at 10:00:00a.m.
        5.8. At 10:00:00a.m, two incoming sell orders are simultaneously placed for Security B at $0.82 (five lots) and $0.80 (five lots). The resting buy orders in terms of price priority are a resting buy order for five lots of Security B at $0.82, and another resting buy order for three lots of Security B at $0.80.

        As the reference price of Security B at 10:00:00a.m is $0.90, the lower limit of Security B's price band is:

        $0.90 − (10% of $0.90) = $0.81.

        The upper limit is:

        $0.90 + (10% of $0.90) = $0.99.
        5.9. The incoming sell order will be matched at $0.82 (five lots) against the resting buy order for five lots at $0.82. The remaining sell order of $0.80 (five lots) will then attempt to match against the resting buy order for three lots of Security B at $0.80.
        5.10. As the incoming sell order for $0.80, if matched, will result in a trade outside the lower limit of the price band, the order is rejected, and the Cooling-Off Period begins. The Cooling-Off Period is in place from 10:00:00a.m to 10:05:00a.m, during which trading can occur within the price band i.e. at or between $0.81 and $0.99.
        5.11. A buy market order comes in at 10:01.00a.m for five lots at $0.83, and a sell order for five lots at $0.83 is entered at 10:02:00a.m. This results in a matched trade for five lots of Security B at 10:02:00a.m.
        5.12. The reference price immediately after the Cooling-Off Period ends at 10:05:00a.m is $0.82, reflecting the traded price five minutes ago just prior to the start of the Cooling-Off Period. At 10:07:00a.m, the reference price becomes $0.83, reflecting the traded price five minutes ago at 10:02:00a.m.

        6. Exemption of New Listings from circuit breaker

        6.1. SGX-ST will exempt New Listings from the circuit breaker on the first day of trading. This is because the offer price of a New Listing may potentially differ significantly from market valuation. Applying the circuit breaker on the first day of trading may unnecessarily impede the price discovery process.
        6.2. New Listings refer to the following instruments that are newly listed, regardless of whether they are subject to an initial public offering or is placed out:
        (1) Stocks;
        (2) Stapled securities;
        (3) Real Estate Investment Trusts:
        (4) Business trusts;
        (5) Funds;
        (6) Exchange-traded funds; and
        (7) Exchange-traded notes.
        6.3. New Listings will include stocks of companies that have been previously delisted but have gone through the listing process again.
        6.4. New Listings will also include stocks/units that are created by distribution of dividends in-specie.
        6.5. New Listings will not include any instruments that are created as a result of stock consolidation, stock splits and other similar actions which result in the replacement of existing counters. This is because the last traded price of the existing counters prior to delisting act as indicators which will allow market participants to adequately approximate the price of these new instruments. New Listings will therefore also not include temporary odd-lot instruments that are created as a result of corporate actions or rights issues, and will also exclude schemes of arrangement.

        Added on 24 February 2014, and amended on 24 February 2014, 23 December 2015 and 13 November 2017.

      • Practice Note 8.10.3 — Approval of Off-Market Trades in a Security or Futures Contract Subject to Suspension or Trading Halt

        Issue Date Cross Reference Enquiries
        Amended on 3 April 2008. Rules 8.10.38.11.6 Please contact Member Supervision:

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

        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.
        1.2 Rule 8.10.3 says securities or Futures Contract which have been suspended from trading cease to 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.
        1.3 Rule 8.11.7 says securities or Futures Contracts which are subject to a trading halt cease to 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.

        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 8.10.3 and 8.11.6 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.

        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:—
        (1) 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.
        (2) 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.
        (3) 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.
        (4) 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.

      • Practice Note 8A.3.3, 8A.4.1, 8A.4.2, 8A.6.2 — Obligations of Trading Members Under the Requirement to Mark Sell Orders

        Issue Date Cross Reference Enquiries
        Added on 11 March 2013 and amended on 15 September 2017. Rule 8A.18A.6 Please contact Member Supervision:

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

        1. INTRODUCTION

        1.1 Rule 8A.3.3 requires a Trading Member to implement the necessary operational and technical systems and procedures to facilitate compliance with the obligations to:
        (a) mark all sell orders either as a Short Sell Order, or a normal sell order; and
        (b) reject a sell order from transmission in the Trading System if a customer has not indicated whether the sell order is a Short Sell Order or a normal sell order.
        1.2 This Practice Note clarifies a Trading Member's obligations pursuant to Rule 8A.3.3.
        1.3 SGX-ST will publish the short sale information collected in this manner before the start of each Market Day. Greater transparency to the market of short selling activities can be beneficial, by providing more timely information to better look after investors' interests, and to reduce the risk of manipulative or other unfair trading practices.

        2. MARKING OF SELL ORDERS

        2.1 The marking of sell orders should be viewed as part of information required for order entry. This facilitates the Trading Member's compliance with Rule 8A.3.3.
        2.2 Trading Members who are concerned about confidentiality of clients' order information should include in their client agreement that trading activities are subject to any short selling requirements that may be prescribed by SGX-ST or the Authority.
        2.3 Trading Members should have in place the following measures to be in compliance with Rule 8A.3.3:
        (a) Sell orders received through voice broking. Clear procedures are in place to require Trading Representatives to ask a customer whether a sell order is a Short Sell Order or a normal sell order. Procedures should also be in place to ensure that the Trading Representative or the order entry clerk correctly enters the sell order into the Trading System. The Trading Member is not required to put in place voice recording facilities beyond its existing practices.
        (b) Sell orders entered through order management systems (including internet trading platforms). The trading interface requires the customer to indicate whether a sell order is a Short Sell Order or a normal sell order at the point of order entry. The sell order cannot be transmitted to the Trading System if it is not marked either as a Short Sell Order or a normal sell order.
        (c) Sell orders entered by customers with Sponsored Access. A Trading Member must ensure that all customers with Sponsored Access to the Trading System ("Sponsored Customers") can fulfil the requirements of Rule 8A.3.3. A Trading Member must ensure that all Sponsored Customers have the necessary operational and technical systems and procedures in place:
        (i) to enable sell orders to be marked as a Short Sell Order or a normal sell order at the point of order entry in the customer's order management system; and
        (ii) to ensure that a sell order cannot be transmitted to the Trading System if it is not marked either as a Short Sell Order or a normal sell order.
        When determining whether the obligation on Trading Members set out in this paragraph 2.3(c) has been fulfilled by Trading Members, a relevant consideration for SGX-ST is whether the requirements on Sponsored Customers have been set out in legally enforceable documents.
        (d) Record keeping of orders. A Trading Member's daily record of orders received from customers, maintained in accordance with Rule 13.9, should show whether a sell order is a Short Sell Order or a normal sell order.
        2.4 The Trading Member is only required to request from its direct customer information on whether a sell order is a Short Sell Order or a normal sell order. In the case where the Trading Member operates an omnibus account on behalf of many investors, and the Trading Member has access to these investors (i.e. the investors are its direct customer) the Trading Member should request the required information from these investors.
        2.5 It is the responsibility of the end-investor to ensure that the sell order is accurately marked. The Trading Member is not required to verify that the customer has marked his sell order correctly.

        3. DEFINITION OF A SHORT SELL ORDER

        3.1 A Short Sell Order refers to any sell order where the seller does not own the security to be sold at the time of placing the order. Rule 8A.2.1 sets out the definition of ownership of a security. Some examples of ownership of a security are set out below:
        (a) An investor purchases the security on T. He subsequently sells the same quantity of the security two days later. On T + 3, the security which he purchases is credited into his depository account maintained with CDP (the account that a retail investor holds with CDP is also known as a Global Securities Account) and he pays his broker promptly. The security is released into the 'Free' balance of his Global Securities Account. On T + 5 when the security which he has sold on T + 2 falls due, the security is available to meet his sale settlement obligations.
        (b) An investor may hold a long position in Extended Settlement Contract ("ESC") on Company A. The ESC on Company A expires on 31 May 2010 and he will receive the shares of 3 June 2010. If the investor sells shares of Company A on 1 June 2010, the shares from the long ESC are available to meet his sale settlement obligations on 4 June 2010.
        (c) An investor sells shares of Company A on 21 June 2010. On the same day, he recalls the security and under the terms of the securities lending agreement, the borrower must return the security by 12 noon on 24 June 2010. Therefore, shares are available to meet his sale settlement obligations on 24 June 2010.

        Compliance with Rule 8A.3.1 under specific circumstances

        3.2 SGX-ST wishes to clarify the treatment of sell orders under the following scenarios:
        (a) A seller holds his shares in trust with an overseas custodian. In the ordinary course of business, the shares would be available to CDP for settlement. An order to sell these shares is a normal sell order.
        (b) A seller holds shares listed on an overseas exchange and held with an overseas custodian. An order to sell these shares on SGX-ST is a normal sell order if in the ordinary course of business, the shares would be available to CDP for settlement. In order for the shares to be available to CDP for settlement, the shares must be in the seller's depository account, or if he is settling through a depository agent, his depository agent's sub-account maintained with CDP. The seller would be required to instruct the overseas custodian to transfer the shares into the seller's depository account or his depository agent's sub-account maintained with CDP.
        (c) A seller lends his shares but has a right of recall under the relevant securities borrowing and lending agreement. An order to sell these shares is a normal sell order if in the ordinary course of business where the seller recalls the shares, the shares would be available to CDP for settlement. The seller is not required to recall the shares prior to placing the order.
        (d) A lender liquidates the shares which a borrower had placed with him as collateral, due to the default of a borrower. An order to sell these shares is a normal sell order.
        (e) A seller borrows the amount of shares being sold prior to placing the sell order. The seller is not deemed to have ownership of the shares pursuant to Rule 8A.2.1 (a). Therefore, the sell order is a Short Sell Order.
        (f) The seller should split partial short orders, where they do not own the full quantity of securities to be sold, into two separate orders. One order is for the portion he owns (i.e. normal sell order) and the other for the portion that he does not (i.e. Short Sell Order).
        (g) A seller who has agreed to buy shares at the day's closing price or at a volume-weighted average pricing as part of his client facilitation activities and he does not have any reason to believe that the agreement would not be fulfilled. Before the price is confirmed, he sells the shares. The sell order is a normal sell order.
        3.3 The marking of sell orders should be based on what the investor knows about its positions at the time of order entry. An example is set out below:
        (a) An investor holds 5,000 shares of Stock A. He puts in a sell order for 5,000 shares of Stock A. This is a normal sell order. He also puts in a buy order for 3,000 shares of Stock A.
        (b) Subsequently he enters a sell order for 2,000 shares of Stock A. At the point where he enters the sell order, the buy order for 3,000 shares of Stock A has not been filled. The investor should mark this sell order as a Short Sell Order.
        3.4 Aggregation of trading units/books. Where different trading units/books belong to the same legal entity, the following approaches can be adopted for the purposes of marking of sell orders:
        (a) mark sell orders at the trading unit/book level;
        (b) mark sell orders based on the aggregated positions of the trading units/books which the seller controls or has knowledge of; or
        (c) mark sell orders based on the aggregated positions of the entire legal entity.
        A fund management company trading for separate portfolios can adopt similar approaches.

        4. REPORTING OF ERRONEOUSLY MARKED SELL ORDERS

        4.1 A Trading Member can submit a report electronically to correct short sell information that was marked at order entry, in accordance with the requirements for submission established by SGX-ST.
        4.2 The requirement to report erroneously marked Short Sell Orders only extends to erroneously marked Short Sell Orders which have been executed. If an erroneous Short Sell Order has not been executed, there is no requirement to make an error report.
        4.3 For purposes of error reporting, the customer has to determine whether his Short Sell Order is accurate in light of the actual short sales volume executed and his actual shareholding. For example, a customer thought he does not own any shares of a counter, and entered an order to short sell 8000 shares. The customer later discovers that he actually owned 2000 shares of the counter.
        (a) In the case where the order was totally executed. In this case, the customer has actually short sold only 6000 shares (8000 executed minus 2000 owned). He will have to report the erroneous Short Sell Order, stating the short sales volume executed (8000 shares) and the actual short sales volume (6000 shares).
        (b) In the case where the order was partially filled. In this case, the order was only half filled (4000 shares executed). The customer has actually short sold only 2000 shares (4000 executed minus 2000 owned). He will have to report the erroneous Short Sell Order, stating the short sales volume executed (4000 shares) and the actual short sales volume (2000 shares).
        4.4 SGX-ST relies on the submissions of the Trading Members to publish an updated weekly aggregate report. Therefore, Trading Members must ensure that the report:
        (a) adheres to the requirements for submission established by SGX-ST; and
        (b) is complete and accurate.
        4.5 A Trading Member is to ensure that the requisite fields in the report are completed in the correct format and the information communicated by their customers is accurately conveyed in the report. Reports which are not in the correct format, named incorrectly or which the securities name and code are not correctly entered will not be processed.
        4.6 SGX-ST may request for records of corrections to short sell information at the individual order level from Trading Members. Trading Members should retain this information in accordance with Rule 12.1.1.
        4.7 The report can be submitted from the start of the trading day following the date of the sale to 5:45 p.m. on that day.
        4.8 A Trading Member may wish to take note of the following matters on the submission of the report:
        (a) A Trading Member should submit a single report for all securities that have been misreported. If the Trading Member wishes to update its report for the same Market Day, it should submit a revised report with the same file name before the deadline set out in paragraph 4.5.
        (b) The transmission of the report will be via a designated Secured File Transfer Protocol ("SFTP") folder. Trading Members who do not have access to the designated SFTP folder should contact SGX-ST to apply for the requisite access.
        (c) In the event that the SFTP is unavailable, SGX-ST would extend the submission period. Trading Members will be informed of the extended submission period by way of circular.

        5. EXEMPTION FROM MARKING OF SELL ORDERS

        5.1 SGX-ST has the discretion to exempt from the requirement to mark sell orders in respect of:
        (a) specific securities; and
        (b) class of market participants.
        5.2 Presently, market makers are not required to mark sell orders of securities which they are obligated to make a market in, as they may submit sell orders, where they do not own the security to be sold, as part of their market making function. The inclusion of these orders by market makers would distort the short sales information published by SGX-ST, and make it more difficult for them to fulfil their market making functions.
        5.3 Market makers include Designated Market Makers and such other entities appointed by SGX-ST to carry out a market making function. The exemption does not extend to Trading Members with facilitation desks that provide liquidity to their clients.
        5.4 SGX-ST will notify market participants who qualify for the exemption under paragraph 5.1(b). There is no application process for market makers.
        5.5 The exemption from the requirement to mark sell orders of securities which they are making a market in will be withdrawn if the market maker has been suspended or has resigned from its obligations to make markets in those securities. SGX-ST will notify market participants when they no longer qualify for the exemption under paragraph 5.1(b).

      • Practice Note 11.7A.1, 11.8A.1 — Exposure to Single Customer and Single Security

        Issue Date Cross Reference Enquiries
        Added on 19 May 2014 Rule 11.7A.1,
        Rule 11.8A.1
        Please contact Securities Market Control:—

        Facsimile No : 6538 8273

        1. Introduction

        1.1. Rules 11.7A.1 and 11.8A.1 require Trading Members that hold a licence specified in Rule 4.1.1(1)(b) to have in place adequate tools and procedures to monitor their exposure to a single customer or single security.
        1.2. Such Trading Member may be required to demonstrate the adequacy of such tools and procedures. This Practice Note explains the tools and procedures which a Trading Member may have in place to satisfy the requirement for adequate tools and procedures.

        2. Adequate Tools and Procedures

        2.1. Tools and procedures to monitor a Trading Member's exposure to a single customer or single security which SGX-ST deems adequate include, but are not limited to the following:—
        (a) The Trading Member may, based on its available financial resources, establish the level of concentration risks arising from exposure to a single customer or security acceptable to it. Thereafter, the Trading Member should monitor its exposures to a single customer or single security against such acceptable level of risk.
        (b) The Trading Member may have in place adequate systems to monitor the Trading Member's exposure to customers on an individual customer and aggregated basis, and generate reports describing the results of such monitoring.
        2.2. SGX-ST shall have the right to require such Trading Member to demonstrate the adequacy of such tools and procedures as it deems necessary.

      • Practice Note 12.3.1 — Verification Procedure in Respect of Customer's Identity

        Issue Date Cross Reference Enquiries
        Added on 1 December 2003

        Amended on 19 May 2014
        Rule 12.3.1 Please contact Member Supervision:

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

        1 Introduction

        1.1 Rule 12.3.1 requires a Trading Member to take suitable steps to verify an individual customer's identity if the customer does not open an account in person.
        1.2 This Practice Note sets out the procedures that a Trading Member should take to verify an individual customer's identity if the customer does not open an account in person.

        2 Verification Procedure

        2.1 A Trading Member may employ 1 or more of the following means to establish a customer's identity:—
        (1) Accept account opening forms that are certified by:—
        (a) a Justice of Peace, a commissioner for oaths, a notary public, or an advocate and solicitor;
        (b) members of other securities exchanges which have established information sharing agreements with SGX-ST; or
        (c) branches of banks which the customer holds a banking account.
        A Trading Member may verify the certification through direct telephone contact with persons performing the certification;
        (2) Establish telephone contact with the applicant on an independently verified home or business number;
        (3) With the customer's consent, contact the personnel department of the customer's employer on a listed business number to confirm his employment; or
        (4) Obtain from the customer statements from a bank, Central Provident Fund Board, income tax authority or such equivalent authority.

        3 Digital Signature

        3.1 A Trading Member is encouraged to explore the use of digital signatures for online identification and verification. The identification and verification procedures for acceptance of digital signatures must be at least as rigorous as those which a Trading Member would normally have employed.

      • Practice Note 12.3A.1 — Customer Education

        Issue Date Cross Reference Enquiries

        Added on 18 September 2012.

        Rule 12.3A.1 Please contact Member Supervision:

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

        1. Introduction

        1.1 This Practice Note provides guidance on the information that a Trading Member should provide to its Internet Trading customers.

        2. Information, Guidance and Training

        2.1 A Trading Member should provide its Internet Trading customers with adequate information, guidance and training with respect to the areas below.
        2.2 Prohibited trading practices, which refer to trading practices prohibited under these Rules, the Act or other Singapore laws.
        2.3 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 account and recommended preventive security measures in relation to matters such as the protection of passwords and leaving an on-line screen unattended.
        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;
        (d) types of credit controls e.g. types of trading limits; and
        (e) types of orders e.g. Good till Cancelled and All or None.
        2.5 Market conventions, which include:—
        (a) board lot size;
        (b) minimum bid size;
        (c) convention for price quotation of different securities; and
        (d) corporate actions and their effect on prices.

        Added on 18 September 2012.

      • Practice Note 12.3.1, 12.3.2 —Customer Account

        Issue Date Cross Reference Enquiries
        Added on 21 June 2006 and amended on 3 April 2008, 19 May 2014, 29 December 2014 and 1 July 2016. Rule 12.3.1,
        Rule 12.3.2
        Please contact Member Supervision:

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

        1. Introduction

        1.1 This Practice Note explains the circumstances, conditions and operational procedures pursuant to the requirements to obtain particulars of customers and to understand their investment objectives.

        2. Customer Account

        2.1 Rules 12.3.1(1) and 12.3.2(1) require a Trading Member to obtain particulars of a customer and understand the investment objectives. The purpose is to ensure that the Trading Member abides by the know-your-customer principle.
        2.2 Investment objectives of a customer would include:—
        (a) the risk appetite of the customer;
        (b) the types of securities or Futures Contract that the customer may want to trade in, such as —
        (i) securities or Futures Contracts listed or quoted on SGX-ST, and
        (ii) securities offered in reliance on the exemptions under Sections 274 or 275 of the Securities and Futures Act, Chapter 289 of Singapore ("SFA"), where the requirement to lodge a prospectus or profile statement with the Authority before making an offer of the securities does not apply.
        (c) such other objectives prescribed by the Relevant Regulatory Authority.
        2.3 Securities offered in reliance on the exemptions under Sections 274 or 275 of the SFA may include:—
        (a) Relevant Debt Securities;
        (b) Global Depository Receipts ("GDRs"); and
        (c) such other securities that are offered pursuant to the exemptions.
        2.4 Trading Members that hold a Capital Markets Services Licence should bear in mind the effect of Sections 274, 275 and 276 of the SFA. If a customer wants to trade in a security that is offered in reliance on the exemptions under Sections 274 or 275 of the SFA, Trading Members should —
        (a) explain to the customer the effect of Sections 274, 275 and 276 of the SFA, and the definition of "Relevant Person" under Section 275 of the SFA;
        (b) obtain documents to satisfy themselves that the customer is an institutional investor or a Relevant Person; and
        (c) prominently disclose to the customer in writing that —
        (i) the aforesaid security is a security offered in reliance on the exemptions under Sections 274 or 275 of the SFA,
        (ii) for such a security, the requirement to lodge a prospectus or profile statement with the Authority and SGX-ST does not apply.
        2.5 For the avoidance of doubt, the above requirements are applicable to the trading of GDRs which are offered in reliance on the exemptions under Sections 274 or 275 of the SFA. Trading Members should also observe relevant provisions of the Listing Manual in relation to GDRs.
        2.6 All the documents obtained under paragraph 2.4(b) should form part of the permanent records of the Trading Members. If the customer's account carried on the books of the Trading Member is closed, the documents should be kept for at least the minimum period required by law.

      • Practice Note 12.3.1, 12.3.4 — Additional Safeguards for Trading by Young Investors

        Issue Date Cross Reference Enquiries
        Added on 14 May 2009
        Amended on 19 May 2014 and 1 July 2016.
        Rule 12.3.1,
        Rule 12.3.4
        Please contact Member Supervision:

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

        1. Introduction

        1.1 With effect from 1 March 2009, the age of contractual capacity under the Civil Law Act has been lowered from 21 to 18. Accordingly, the minimum age requirement for securities account holders is lowered to 18.
        1.2 In relation to a Trading Member that holds a licence specified in Rule 4.1.1(1)(b), the minimum age requirement for securities account holders in the jurisdiction of such Trading Member ("Foreign Acceptable Age") shall be such minimum age as prescribed by the Relevant Regulatory Authority. Where no Foreign Acceptable Age is prescribed by the Relevant Regulatory Authority, the Foreign Acceptable Age shall be 18.
        1.3 SGX-ST recognises that individuals above the age of 18 or the Foreign Acceptable Age and below the age of 21 years ("Young Investors") may be new to the securities market and have limited trading experience. These Young Investors may not fully appreciate the risks of securities and other investment products offered to them.
        1.4 This Practice Note sets out the measures and operational procedures that Trading Members should take as part of good business practice when Young Investors open securities trading accounts with them.

        2. Account Opening Procedures

        2.1 SGX-ST Rules 12.3.1 and 12.3.4 require a Trading Member to obtain the particulars of a customer and to understand the customer's investment objectives.
        2.2 When a Young Investor opens an account carried on the books of the Trading Member, the Trading Member should undertake the following procedures, in addition to their own account opening procedures, and give appropriate emphasis to the following:—
        (a) Suitability assessment — Trading Member should assess the suitability, taking into account the financial knowledge and risk capacity of the Young Investors to trade. A specific suitability assessment should also be made before allowing a Young Investor to trade in more complex instruments or products (such as a derivative contract or product with embedded derivatives). The decision to allow the Young Investor to trade in such instruments or products should be approved by a senior executive of the Trading Member. A Trading Member that holds a licence specified in Rule 4.1.1(1)(b) should carry out suitability assessments of Young Investors in accordance with the applicable standards prescribed by the Relevant Regulatory Authority.
        (b) Risk disclosure — The risks and uncertainties associated with investing or trading in securities and other products to be sold by the Trading Member should be properly explained to the Young Investor. This is to ensure that he or she has an appropriate understanding of the key risks and commitments involved. A Trading Member that holds a licence specified in Rule 4.1.1(1)(b) should provide risk disclosure to Young Investors in accordance with the applicable standards prescribed by the Relevant Regulatory Authority.

        3. Supervision

        3.1 Trading Members should ensure that the relevant staff members are adequately trained and familiar with the safeguards put in place for Young Investors. Similarly, any additional procedures should be communicated to all Trading Representatives to ensure proper adherence and consistent application.
        3.2 In addition, a senior executive should be appointed to oversee and take responsibility for managing all issues relating to Young Investors. This includes monitoring the Trading Member's dealings with the Young Investors and making appropriate adjustments to the procedures and processes, where necessary.

        4. Investor Education

        4.1 Trading Members should offer basic investment courses to Young Investors, as well as product-specific courses to those who wish to trade in more sophisticated instruments and products. These courses will enable Young Investors to be more aware of the implications of their trading decisions and to be able to make better investment choices.
        4.2 Such courses may be organised or conducted by third party course providers or in-house trainers.

      • Practice Note 12.6.1 — Contract Notes

        Issue Date Cross Reference Enquiries
        Added on 1 July 2016 Rule 12.6.1 Please contact Member Supervision:

        Facsimile No : 6538 8273

        1. Introduction

        1.1. Rule 12.6.1 requires a Trading Member to send its customer a contract note for the purchase or sale of securities or Futures Contracts.
        1.2. This Practice Note provides guidance on:

        1.2.1. other Rules which are of relevance to the requirement to send contract notes to customers; and
        1.2.2. the internal controls that Trading Members should have with respect to operational processes for sending contract notes to customers.

        2. Other Relevant Rules

        2.1. Rule 12.6.1 should be read together with the following Rules:

        2.1.1. Rule 12.9.1 requires a Trading Member to communicate directly with its customers in respect of statements, contract notes, or all other information, whether in writing or electronically, unless the customer has authorised otherwise in writing;
        2.1.2. Rule 12.9.2 requires that a Trading Member must not allow any person other than the customer to collect any cash, share certificates, contract notes, credit or debit notes, cheques or statements, unless the customer has authorised that person in writing; and
        2.1.3. Rule 12.14.1 requires a Trading Member to have processes in place to minimise and manage any conflicts of interest, including but not limited to separating its front office and back office functions to prevent any conflict of interests.

        3. Internal Controls with Respect to Contract Notes

        3.1. Trading Members should have appropriate internal controls in place to ensure that no contract note is omitted or suppressed. Basic controls that Trading Members should have in place include the following:

        3.1.1. proper controls to maintain the accuracy of customers' contact information;
        3.1.2. robust controls over the generation and dissemination of contract notes;
        3.1.3. proper segregation between the personnel responsible for trade execution and the personnel responsible for generating and disseminating contract notes; and
        3.1.4. ensuring that appropriate channels are available for customers to enquire about or verify transactions reflected in their contract notes.

      • Practice Note 12.6.3(2) — Evidence of Informed Consent for Contract Notes in Electronic Form

        Issue Date Cross Reference Enquiries

        Added on 12 August 2016.

        Rule 12.6.3(2) Please contact Member Supervision:

        Facsimile No : 6538 8273

        1. Introduction

        1.1. Rule 12.6.3(2) requires that a Trading Member, before issuing contract notes in electronic form, must obtain the customer's prior revocable and informed consent. The Trading Member must retain evidence of the customer's consent. To constitute an informed consent, a customer must be told of the manner of delivery and retrieval of the electronic record and any costs that may be incurred.
        1.2. This Practice Note provides guidance on how a Trading Member may show evidence of informed consent in accordance with SGX-ST Rule 12.6.3(2).

        2. Evidence of Informed Consent

        2.1. To show evidence of informed consent to receive electronic contract notes in accordance with SGX-ST Rule 12.6.3(2), a Trading Member should maintain records to show that each customer that is provided with electronic statements instead of paper statements had been given adequate prior notice of the cessation or non-provision of paper statements and provided with instructions on how to opt out of electronic-only statements.

        Added on 12 August 2016.

      • Practice Note 12.14.1 — Conflicts of Interest

        Issue Date Cross Reference Enquiries

        Added on 18 September 2012.

        Rule 12.14.1 Please contact Member Supervision:

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

        1. Introduction

        1.1 This Practice Note provides guidance on how front office and back office functions of Trading Members should be separated, in accordance with Rule 12.14.1.

        2. Separation of Key Functions

        2.1 The purpose of separating a Trading Member's various key functions is to minimise and manage conflicts of interests among these functions.
        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 or trading limits on customers by senior management staff who are independent of sales and dealing functions, and are not related to the customer in question;
        (c) setting and authorising credit or trading limits on Trading Representatives by senior management staff who are independent of sales and dealing functions; and
        (d) having adequate separation of management responsibilities e.g the heads of sales, dealing, or marketing functions should not have responsibilities over all middle and back office functions of Trading Members.
        2.3 The basis for determining and amending trading limits should be properly documented. Adequate audit trail reports should be maintained to show all changes to trading limits, the date and time of the modifications and the authorised person who approved the changes. In addition, sufficient checks and procedures should be in place to ensure that all limits and parameters set and modified by the credit control administrator are accurate and have been approved.

        Added on 18 September 2012.

      • Practice Note 12.17.1 — Review of Remisier's Personal Trades

        Issue Date Cross Reference Enquiries
        Added on
        1 December 2003.
        Rules 12.17.1 and 12.17.6 Please contact Member Supervision:

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

        1 Introduction

        1.1 This Practice Note sets out the need for more frequent reviews of the trading activities of Remisiers.

        2 Need for More Frequent Reviews

        2.1 Rule 12.17.1 requires a Trading Member to approve the personal trades of its Directors, Officers, Dealers and employees before these trades can be effected. This Rule does not require a Trading Member to approve Remisiers' personal trades. However, as a good control measure, Trading Members should conduct more frequent reviews of the trading activities of its Remisiers. This is also in line with Rule 12.17.6 which requires a Trading Member to have in place procedures to monitor the trading activities of its Remisiers, amongst other persons. The frequency of these reviews should be conducted at a level where the Trading Member is confident that its Remisiers' trading activities are above board.

      • Practice Note 12.20.1 — Soft Dollar Receipts or Payments

        Issue Date Cross Reference Enquiries
        Added on
        1 December 2003.
        Rules 12.20.1 and 12.20.2 Please contact Member Supervision:

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

        1 Introduction

        1.1 Rule 12.20.1 says that a Trading Member and its Trading Representatives may receive goods and services from a broker for directing business to the broker under certain conditions.
        1.2 Rule 12.20.2 says that a Trading Member may pay for goods and services to a customer for directing business to the Trading Member under certain conditions.
        1.3 This Practice Note provides guidance on the types of goods and services that do not qualify for soft dollar receipts or payments.

        2 Good and Services that Do Not Qualify as Soft Dollar Receipts or Payments

        2.1 The following goods and services do not qualify as acceptable soft dollar receipts or payments for the purpose of Rule 12.20}:—
        (1) Travel, accommodation and entertainment expenses.
        (2) General administrative goods and services including office equipment and premises expenses.
        (3) Membership fees.
        (4) Employees' salaries.
        (5) Direct money payment. This does not include payment of referral fees under a referral agreement.
        2.2 A Trading Member or its Trading Representative should not receive goods and services from a broker, if the act of it compromises the interest of the customer or may result in the breach of the Rules or other regulatory requirements by the Trading Member or its Trading Representatives.

      • Practice Note 12A.4.1, 12A.5.2 — Position Account Allocation

        Issue Date Cross Reference Enquiries
        Added on 1 July 2016 Rules 12A.4.1, 12A.5.2. Please contact Member Supervision

        Facsimile No : 6538 8273

        1. Rule 12A.4.1 requires each TPC Trading Member to instruct its qualifying Clearing Member to allocate the position of each trade executed by the Trading Member to the Trading Member's Position Account or, where the position is of a trade executed for a customer, in accordance with that customer's instructions, as soon as practicable, and in any event no later than such time as may be required for timely and orderly settlement of the relevant trade into the intended Securities Account. This Practice Note provides guidance on the timelines within which such allocation is to be completed by in various circumstances.

        2. With the exception of warehoused trades, each Trading Member shall instruct its qualifying Clearing Member to allocate the position of each trade cleared by the Clearing Member for the Trading Member to a specified Position Account immediately upon the trade being cleared, or at the latest by the end of the next Market Day immediately following the trade date. If there is a delay, the Trading Member shall ensure that there are valid reasons to explain the delay. An example of a valid reason for delay is when an overseas customer has failed to provide the necessary allocation instructions in time for the Trading Member to instruct its qualifying Clearing Member to allocate the position by the end of the next Market Day immediately following the trade date, due to time zone differences.

        3. For warehoused trades under Rule 12A.5.2, each Trading Member must ensure that no customer's trade is warehoused for more than 2 Market Days, unless under exceptional circumstances. The Trading Member shall instruct its qualifying Clearing Member to allocate the position of each trade to a specified Position Account immediately after the order is completed, or at the latest by the end of the Market Day on which the order is completed. If there is a delay, the Trading Member shall ensure that there are valid reasons to explain the delay. An example of a valid reason for delay is when an overseas customer has failed to provide the necessary allocation instructions in time for the Trading Member to instruct its qualifying Clearing Member to allocate the position by the end of the Market Day on which the order is completed, due to time zone differences.

      • Practice Note 13.4.1 — Customer Orders — Precedence

        Issue Date Cross Reference Enquiries
        Amended on
        1 July 2005,
        3 April 2008
        23 January 2009
        and 1 July 2016.
        Rule 13.4.1 Please contact Member Supervision:

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

        1 Introduction

        1.1 This Practice Note explains the application of Rule 13.4.1.
        1.2 Rule 13.4 states that a Trading Member or a Trading Representative must not deal in securities or trade in Futures Contracts for his or her own account or for a Prescribed Person's account if the Trading Representative has an unexecuted order on the same terms from a customer. However, this Rule does not apply if the Trading Representative does not have access to customer's order flow information while executing for his own account or for the Prescribed Person's account.

        2 Application of Rule 13.4.1

        2.1 An order includes an order for a single stock futures contract or Futures Contracts.
        2.2 An unexecuted order from a customer includes an order that has been received but not entered into the Trading System.
        2.3 "On the same terms" includes:—
        (1) orders for the same counter, same buy/sell instruction and limit price;
        (2) a price limit order and a careful discretion order in the same counter and same buy/sell instruction; and
        (3) an order for the underlying security on the one hand and an order for single stock futures or Marginable Futures Contracts over that underlying security on the other.
        2.4 Rule 13.4.2(4) includes a person, group of persons, a Corporation or a group of Corporations or family trusts, whom the Trading Member, Director, employee or Trading Representative of the Trading Member is associated with or connected to under the definition of "Prescribed Person", However, this does not apply where the Trading Member, Director, employee or Trading Representative of the Trading Member has no control or influence over the associated or connected person, group of persons, Corporation or group of Corporations, or family trusts.
        2.5 The Trading Member or Trading Representative must ensure that customers' orders are not compromised when squaring off a house error position on the same terms. Where the customer's order is a careful discretion order, trades allocated to the customer's account must not be worse off to that allocated to the house error account (such accounts being accounts carried on the books of the Trading Member).
        2.6 In considering whether Rule 13.4.1 has been complied with, the following factors are relevant:—
        (a) the Trading Member or the Trading Representative acts in accordance with the Trading Member or the Trading Representative's customers' instructions;
        (b) orders that do not involve the exercise of discretion by the Trading Representative are entered in the sequence in which they are received, and otherwise as expeditiously as practicable;
        (c) in the situation where the time the orders were received cannot be clearly established and one of the orders is for the Trading Member or the Trading Representative's own account, the Trading Member or the Trading Representative gives preference to the order of a customer over any order for the Trading Member or the Trading Representative's own account;
        (d) the Trading Member or the Trading Representative who is aware of a customer's unexecuted instructions ensures that he or she does not use that information to:—
        (i) the disadvantage of the customer; or
        (ii) the Trading Member or the Trading Representative's own benefit.

      • Practice Note 13.8.1 — Market Manipulation and False Market

        Issue Date Cross Reference Enquiries
        Amended on
        3 April 2008 and 7 July 2015.
        Rules 13.8.113.8.3 Please contact Enforcement:—

        E-Mail Address: enforcement@sgx.com

        1 Introduction

        1.1 Public confidence in a fair and orderly market, one that reflects the forces of genuine supply and demand, enhances its liquidity and efficiency. Improper conduct which gives a false or misleading impression of trading activity, price movements or market information leads to a reduction in market efficiency and confidence. SGX-ST seeks to ensure that its markets are fair and orderly and free of manipulative trading.
        1.2 There are rules regulating trading activity in SGX-ST Rules and the Securities and Futures Act. Trading Members and Trading Representatives must ensure that their trading is conducted in accordance with SGX-ST Rules and the Securities and Futures Act.

        2 Market Manipulation and False Market

        2.1 Rule 13.8.1 says, A Trading Member or a Trading Representative must not engage in, or knowingly act with any other person in, any act or practice that will or is likely to:—
        (1) create a false or misleading appearance of active trading in any securities or Futures Contracts; or
        (2) lead to a false market in respect of any securities or Futures Contracts. For avoidance of doubt, a false market includes a market in which:—
        (a) information is false, exaggerated or tendentious;
        (b) contrived factors are in evidence, such as buyers and sellers acting in collaboration to bring about artificial market prices; or
        (c) manipulative or fictitious orders, transactions or other devices have been employed.
        2.2 In broad terms, market manipulation involves intentional interference with the free forces of supply and demand to deceive or defraud investors, or for some other ulterior purpose.
        2.3 Rule 13.8.1 is concerned with the effect or likely effect of an order or a transaction, and involves an objective assessment of whether a false or misleading appearance, or false market, has been created. Whether an activity is "false or misleading" will depend on circumstances in each case. The Rule does not prevent Trading Members and Trading Representatives from carrying out legitimate trading strategies which reflect the forces of genuine supply and demand. However, Trading Members and Trading Representatives must do so bearing in mind their obligations to the market, and with an appropriate degree of care.
        2.4 Although Trading Members and Trading Representatives must carry out their customers' instructions, a Trading Member or Trading Representative should not accept a customer's instructions blindly, but should exercise judgment in each case.
        2.5 Naturally, some orders or transactions will have an impact on the market. They are not prohibited if there is a legitimate commercial rationale and the order or transaction is executed in a proper manner.
        2.6 Rule 13.8.2 identifies the factors that Trading Members and Trading Representatives should take into account when considering the circumstances of an order or a transaction.

        3 Guidance on Rule 13.8.2

        3.1
        3.1.1 Rule 13.8.2(1): Whether the Proposed Transaction Will be Inconsistent with the History of, or Recent Trading, in the Security or Futures Contract.

        Trading Members and Trading Representatives would generally be familiar with the patterns of trading in each security or Futures Contract. They are therefore expected to exercise judgment, based on their experience and knowledge of trading in the security or Futures Contract, in assessing the likely impact of a proposed transaction on the market for a security or Futures Contract.

        The Rule does not prevent a Trading Member or Trading Representative from executing an order simply because it will have an impact on the market for, or price of, a security or Futures Contract.
        3.1.2 Rule 13.8.2(2): Whether the Proposed Transaction will or May Cause or Contribute to a Material Change in the Market for or the Price of the Security or Futures Contract, and Whether the Person Involved or Another Person with Whom the First Person is Collaborating May Directly or Indirectly Benefit From Alterations in the Market Place or Price

        In the absence of a good reason to buy or sell quickly, customers generally want to obtain the best price. A Trading Member or Trading Representative who receives an order that would materially alter the market for, or price of, the security or Futures Contract, should consider whether it is genuine or manipulative.

        Trading Members and Trading Representatives must also know their customers. Orders placed by a customer or a related party of that customer, who may have an interest in creating a material change in the market for, or price of, a particular security or Futures Contract, should be closely examined.

        Examples
        (1) Orders placed by a large holder of a particular security or Futures Contract who may have an interest in inflating the value of that holding (e.g. window dressing for investment performance purposes), or decreasing the price of the security or Futures Contract (e.g. as a precursor to a takeover bid or for purposes which include lowering a conversion price).
        (2) Buying during the period of a rights issue by an underwriter, sub-underwriter or any other party which increases or maintains the price of the underlying security may include, as a purpose, inducing others to take up their rights entitlement under the issue.
        3.1.3 Rule 13.8.2(3): Whether the Proposed Transaction Involves the Placing of Multiple Buy and Sell Orders at Various Prices Higher or Lower than the Market Price, or the Placing of Buy and Sell Orders Which Give the Appearance of Increased Volume.

        A Trading Member or Trading Representative should not make large entries above or below the prevailing spread to facilitate filling an order on the other side of the market. The placing of buy (sell) orders at various price steps below (above) the market may create a false or misleading appearance that the entries are on behalf of genuine buyers (sellers). The layering of orders also translates into a change in the depth screen and may mislead market participants with respect to interest in the counter.
        3.1.4 Rule 13.8.2(4): Whether the Proposed Transaction will Coincide with or is Likely to Influence the Calculation of Reference Prices, Settlement Prices and Valuations.

        A Trading Member or Trading Representative should consider carefully any orders placed with instructions to execute them at or near the close of trading, particularly if a price target is set. A Trading Member or Trading Representative should also be alert to orders placed near the close on the last trading day of the month, quarter or year, or on the expiry dates of options, warrants or Futures Contracts, which will move the price when executed.

        A customer who, to the knowledge of the Trading Member or Trading Representative, declines the opportunity to obtain a better price during the day and prefers to pay a higher (lower) price near the close should be queried as to the strategy. This is important if the order is to buy or sell a small volume of the security or Futures Contract, which is likely to move the price and possibly fix the closing price. Further, if the Trading Member or Trading

        Representative received a series of similar orders over a number of days, each of which generates a price movement near the close of trading, the Trading Member or Trading Representative should be satisfied that the customer is not attempting to create a false or misleading appearance with respect to the price of the security or Futures Contract.

        Examples
        (1) A fund manager's quarterly performance will improve if the valuation of his portfolio at the end of the quarter in question is higher. By placing a large order to buy relatively illiquid securities and/or Futures Contracts, which are also components of his portfolio, to be executed at or just before the close, his purpose might be to distort the price in his favour.
        (2) The expiry of futures contracts may require a timed unwinding of the countervailing security position. In these circumstances, price impact in some securities may be inevitable, particularly in less liquid securities. However, a Trading Member or Trading Representative should be alert to a customer seeking to cause unnecessary price impact to improperly generate a profit or move the index.
        3.1.5 Rule 13.8.2(5): Whether Parties Involved in the Proposed Transaction are Connected.

        A concern here might arise if the security or Futures Contract is held in the name of a colluding party but the market risk actually remains with the seller. There may effectively be no change in beneficial interest.
        3.1.6 Rule 13.8.2(6): Whether the Buy and Sell Orders are to be Entered at About the Same Time, for About the Same Price and Quantity (Excluding Direct Business).

        The time proximity of orders and the fact that they are for about the same price (particularly if the price is out-of-range) and quantity may suggest that the transaction is pre-arranged. Pre-arranged transactions have the effect of creating a misleading appearance of active trading, or improperly excluding other market participants from the transaction since the first bid or offer was not adequately exposed to the market. The execution of crossings or transactions between the same parties for the same volumes, which are subsequently reversed at the same prices, also raises questions whether the transactions involve a change in beneficial ownership, or are for rollover of trades to extend settlement, or for a purpose of engaging in a circular trading scheme to create the impression of turnover.
        3.1.7 Rule 13.8.2(7): Whether the Proposed Transaction Will or May Cause the Price of the Security or Futures Contract to Increase or Decrease, but Following Which the Price is Likely to Immediately Return to About its Previous Level.

        The key question in this area is whether there appears to be any logical trading pattern to the price and volume of the security or Futures Contract, or whether it seems erratic. Trading is manipulative if it is intended to move the price of the security or Futures Contract.
        3.1.8 Rule 13.8.2(8): Whether a Proposed Bid (Offer) is Higher (Lower) than the Previous Bid (Offer) but is to be Removed from the Market Before it is Executed.

        This could indicate that the order is not genuine, especially where a distinctive pattern of such orders is observed. At the time the bid (offer) was made, the Trading Member or Trading Representative did not intend to buy (sell), but intended that the bid (offer) would not trade and would be cancelled. Sometimes, such orders are entered to induce buyers (sellers) into the market to facilitate the filling of an order on the other side of the market.
        3.1.9 Rule 13.8.2(9): Whether the Volume or Size of the Proposed Transaction is Excessive Relative to Reasonable Expectations of the Depth and Liquidity of the Market at the Time.

        This Rule does not restrict Trading Members and Trading Representatives trading significant volumes where there is a legitimate purpose for the transaction and where the transaction is executed in a proper manner. However, trading significant volumes with the purpose of controlling the price of a security or Futures Contract will amount to manipulative trading.

        Example

        A Trading Representative purchased substantial volume in a thinly traded counter, which accounted for a large proportion of the market volume, to establish a predetermined price. Sometimes, this may be followed by up-ticking the bid despite the absence of bona fide investor demand for the security or Futures Contract.
        3.1.10 Rule 13.8.2(10): Whether the Proposed Buy (Sell) Order is Likely to Trade with the Entire Best Offer (Bid) Volume and Part of the Offer (Bid) at the Next Price Level.

        If a customer regularly buys (sells) on the up-tick (down-tick) in the face of consistent selling (buying) pressure, the Trading Member or Trading Representative should query whether the customer is a bona fide purchaser (seller). Repetitive orders to clear the best offer (bid) volume, particularly within a short time, suggest that the Trading Member or Trading Representative might be attempting to break the market. The trading spikes or troughs were meant to excite the market and attract spectators to join in.
        3.1.11 Rule 13.8.2(11): Whether the Proposed Buy (Sell) Order Forms Part of a Series of Orders that Successively and Consistently Increase (Decrease) the Price of the Security or Futures Contract.

        If a customer places a sell order well above the best ask and one or more buy orders which would increase the price towards the customer's ask price, a Trading Member or Trading Representative should query the customer as to the strategy. It may be that the buy orders are intended to get the price running and facilitate the sale at the higher price. Illiquid securities or Futures Contract, in particular, are susceptible to this type of improper trading.
        3.1.12 Rule 13.8.2(12): Whether There Appears to be a Legitimate Commercial Reason for the Proposed Transaction.

        Many orders for legitimate commercial reasons can change the market for, or price of, a security or Futures Contract when executed. Such orders are acceptable despite the price impact, but the Trading Member or Trading Representative must execute the order in an appropriate manner, bearing in mind its or his obligations.

        Examples
        (1) A Trading Member conducting index arbitrage as principal and entering orders in an illiquid security or Futures Contract may have a material impact on the price of some securities or Futures Contracts, even with small orders. Index arbitrage orders are a legitimate commercial reason for trading, but the Trading Member must exercise sufficient care to ensure that the order did not result in a false or misleading appearance with respect to the price of a security or Futures Contract.
        (2) A Trading Representative accepting orders from a customer seeking to replicate an index at a time when one or more of the security or Futures Contract are being included or excluded from the relevant index, or when the size of the portfolio is being increased or decreased, should consider the impact the orders may have. If the Trading Representative attempts to execute a large proportion of the order during the Pre-Close phase, having ignored opportunities earlier in the day, and the order has a material impact on the closing price, it may result in allegations that the Trading Representative created a false or misleading appearance with respect to the price of that security or Futures Contract.
        (3) A Trading Member or Trading Representative trading as principal to hedge an exposure should be alert to the impact its trading may have on the market for, or price of, a security or Futures Contract.

        4 Guidance on SGX-ST Rule 13.8.3

        4.1 Rule 13.8.3 says,

        A Trading Member or a Trading Representative must not enter a buy order or a sell order on the Trading System if there is an existing opposite order from that same Trading Member or Trading Representative in the same security or Futures Contract for the same price. This Rule does not apply if:
        (1) the Trading Member or Trading Representative knows or ought reasonably knows that the orders are for different beneficial owners;
        (2) the order is a type expressly permitted in a practice note published from time to time by SGX-ST as having a legitimate commercial reason and which is unlikely to create a false market; or
        (3) the Trading Member or Trading Representative can otherwise establish that the purpose for which the order was made was not to create a false market.
        4.2 Pursuant to Rule 13.8.3(2), orders entered under the following circumstances will be permitted:—
        (1) orders from a fund manager whose instructions are intended to switch the security or Futures Contract from one sub-account to another for legitimate commercial reasons.
        (2) orders from an affiliate overseas, acting on behalf of different beneficial owners, and the trades will be booked out eventually to these beneficial owners.

        5 Conclusion

        5.1 Manipulative trading may be inferred from circumstantial evidence, such as an unusual pattern of trading, coupled with a person's interest in affecting trading in the security or Futures Contract. Trading Members and Trading Representatives may not always know if a customer has a particular interest in a security or Futures Contract or what it may be. However, a Trading Member or Trading Representative needs to be able to show that, taking into account the circumstances of the order, it should not have reasonably suspected that the purpose of the trading was to create a false or misleading appearance, or false market. It is important that a Trading Member or Trading Representative who receives an unusual order is able to establish that it or he has made due enquiries and is satisfied as to the reason for the trading.

        Amended on 25 October 2012.

      • Practice Note 13.8.9 — Processes for Review of Orders and Trades

        Issue Date Cross Reference Enquiries

        Added on 18 September 2012 and amended on 1 July 2016.

        Rule 13.8.9 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 Trading Members should do as part of their processes for post-execution review of orders and trades.

        2. Guidance on processes

        2.1 Trading 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 and Regulations. The review process may involve further enquiry with Trading Representative and/or customers or reviewing other Trading Representative or customer-related information such as past trading activity.
        2.2 Trading Members are expected to follow up on suspicious orders and trades and keep on file the result of their review process. Where it has been established that has been non-compliance with the Rules and Regulations, or if there is any doubt as to its compliance, apart from reporting such activity to SGX-ST pursuant to Rule 13.8.8, Trading Members are expected to take appropriate action, such as advising the Trading Representative or customer to refrain from such activity, performing a closer monitoring of the Trading Representative or customer and ultimately to close the account carried on the books of the Trading Member if the suspicious activity persists. Trading 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 and size of the parameters set. A list of suggested parameters is below:
        (1) To detect orders/trades which are inconsistent with recent trading (not justified by assets, earnings, income yield or prospects) in the security or that which would materially alter the market, such as:
        (a) orders/trades more than x% or a number of price steps from previous bid/ offer/last traded or closing price.
        (b) several orders usually for small quantities placed close together at increasing or decreasing prices to create 'layering' of buy/sell orders in the market. Such orders may have a material impact on price but could potentially avoid detection by filters designed to pick up large one-time moves in price as the layering of orders results in many small price moves.
        (c) the excessive use of forced keys in entering orders. This may be indicative of a Trading Representative and/or customer or a group of Trading Representatives and/or customers working to move the price far beyond the current price.
        (d) orders entered during pre-opening and pre-close at such a quantity and price which have the effect of creating a false or misleading appearance of the market for, or the price of, such securities.
        (2) Orders/trades which result in no change in beneficial ownership of a security that which create a false or misleading appearance of active trading, for example:
        (a) orders/trades arising from orders placed on both the buy and sell side of the market at a similar price and time by the same Trading Representative or customer or by a group of Trading Representatives and/or customers acting in concert.
        3.2 Trading Members' processes should be able to identify the above irregular orders/trades regardless of whether they originate from one Trading Representative or customer or a group of Trading Representatives and/or customers acting in concert. In addition, they should also be able to identify consistent patterns of irregular trades done over a period of time.
        3.3 In setting the above parameters, Trading Members should take note of securities which are illiquid or those with small free floats which make them susceptible to cornering and price manipulation.
        3.4 Trading Members should also pay attention to orders entered after a corporate action to ensure that the orders reflect the change in price and/or quantity after the corporate action. This is to prevent securities being traded at dramatically wrong prices/quantities due to a lack of knowledge or a misunderstanding of the corporate action by uninformed customers.

        Added on 18 September 2012 and amended on 1 July 2016.

      • Practice Note 19.7.1 [Rule has been deleted.]

        Deleted on 1 July 2016.

    • Schedules

      • Schedule A

        • Chapter 2 — Administration

          Rule Violation Whether composition may be offered Composition Amount which may be Offered by SGX-ST, where SGX-ST has Determined the Trading Member, Approved Executive Director and/or Trading Representative to be Liable Mandatory minimum penalty imposable by the Disciplinary Committee
          Rule Chapter/Number Brief Description of Rule Trading Members (or Designated Market Maker, where applicable) Approved Executive Directors Trading Representatives (or Market Making Representative, where applicable)
          1st Violation 2nd Violation 3rd Violation 1st Violation 2nd Violation 3rd Violation 1st Violation 2nd Violation 3rd Violation
          Chapter 2 — Administration
          2.5 Indemnity to SGX-ST
          2.5.2 Trading Member to reimburse SGX-ST for such expenses and payments as specified 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.
          2.6 Supply of Information to SGX-ST
          2.6.1 Information or records provided not to contain untrue statements or be misleaing or omit material statements 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
          2.6.2 Failure to provide information or records specified by SGX-ST. Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000

          Added on 16 May 2011.

        • Chapter 3 — Listing and Quotation

          Rule Violation Whether composition may be offered Composition Amount which may be Offered by SGX-ST, where SGX-ST has Determined the Trading Member, Approved Executive Director and/or Trading Representative to be Liable Mandatory minimum penalty imposable by the Disciplinary Committee
          Rule Chapter/Number Brief Description of Rule Trading Members (or Designated Market Maker, where applicable) Approved Executive Directors Trading Representatives (or Market Making Representative, where applicable)
          1st Violation 2nd Violation 3rd Violation 1st Violation 2nd Violation 3rd Violation 1st Violation 2nd Violation 3rd Violation
          Chapter 3 — Listing and Quotation
          3.2 Non-Listed Securities
          3.2.6 Failure to state in the contract note that Non-Listed Security is not listed on SGX-ST and is not subject to SGX-ST's listing requirements. Compoundable $500 $1,000 $2,000 $250 $500 $1,000 N.A. N.A. N.A. N.A.

          Added on 16 May 2011.

        • Chapter 4 — Trading Members

          Rule Violation Whether composition may be offered Composition Amount which may be Offered by SGX-ST, where SGX-ST has Determined the Trading Member, Approved Executive Director and/or Trading Representative to be Liable Mandatory minimum penalty imposable by the Disciplinary Committee
          Rule Chapter/Number Brief Description of Rule Trading Members (or Designated Market Maker, where applicable) Approved Executive Directors Trading Representatives (or Market Making Representative, where applicable)
          1st Violation 2nd Violation 3rd Violation 1st Violation 2nd Violation 3rd Violation 1st Violation 2nd Violation 3rd Violation
          Chapter 4 — Trading Members
          4.5 Trading Rights
          4.5.4 Trading Member that holds a licence specified in Rule 4.1.1(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 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
          4.5A Direct Market Access
          4.5A.2(1)(a) Trading Member to have measures covering minimum standards for Direct Market Access 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.
          4.5A.2(1)(b) Trading 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 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
          4.5A.2(1)(c) Trading 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 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
          4.5A.2(1)(d) Trading 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 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
          4.5A.2(1)(e) Trading Member to have measures for security arrangements on Direct Market Access Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
          4.5A.2(1)(f) Trading Member to assist SGX-ST in any investigation on Direct Market Access in respect of potential violations Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
          4.5A.2(2) Trading 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 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
          4.5A.2(3) Trading 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.
          4.5A.3(1)(a) Trading Member to keep a Sponsored Access record 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.
          4.5A.3(1)(b) Trading Member to show Sponsored Access record when requested Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
          4.5A.3(1)(c) Trading Member to have measures on specific requirements for Sponsored Access 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.
          4.5A.3(2)(a) Trading Member to have measures to assure status of Sponsored Access customer 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.
          4.5A.3(2)(b) Trading 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 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
          4.5A.4(1) SGX-ST to direct Trading 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
          4.5A.4(2) Trading 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
          4.5B Controlling Access
          4.5B.1 Trading Member to have security arrangements in place to deny access to unauthorised persons. Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
          4.6 Obligations of a Trading Member
          4.6.1(1) Trading Member to comply with the Rules, and any Directives SGX-ST prescribes [Unless otherwise specified in this Schedule]
          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.
          4.6.1(2) Failure to continue to satisfy the admission criteria. 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.
          4.6.3(2) Trading Member to honour all contracts. Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
          4.6.4 Trading Member to adhere to good business practice. 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.
          4.6.6 Trading Member to supervise Trading Representatives, employees and agents. 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.
          4.6.7(1) Trading Member to establish procedures and systems to prevent any breach of the Rules and Directives by its Directors, Officers, Trading Representatives, employees or agents. 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.
          4.6.7(2) Trading Member to establish and maintain adequate internal control system. 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.
          4.6.7(3) Trading Member to ensure that persons carrying out or enforcing procedures and systems reasonably discharge their duties and obligations. 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.
          4.6.7A(1)(a) Trading 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 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
          4.6.7A(1)(b) Trading 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 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
          4.6.7A(1)(c) Trading Member to have error prevention alerts on orders 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.
          4.6.7A(1)(d) Trading Member to define and manage sources of liquidity 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.
          4.6.7A(2) [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted] [deleted]
          4.6.7A(2) Trading 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 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
          4.6.8(1) Trading Member to inform SGX-ST of transaction that will result in a change in control. 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.
          4.6.8(2) Trading Member to comply with such restrictions as SGX-ST may impose in the event of a change in control Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
          4.6.9 Trading Member to report breaches by its Directors, Officers, TRs, employees or agents. 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.
          4.6.10 Trading Member to pay all fees, levies and charges. Compoundable $500 $1,000 $2,000 $250 $500 $1,000 N.A. N.A. N.A. N.A.
          4.6.11 Trading Member to notify SGX-ST if AED ceases to act Compoundable $500 $1,000 $2,000 $250 $500 $1,000 N.A. N.A. N.A. N.A.
          4.6.12 Trading Member to notify SGX-ST of change in composition of Board of Directors. 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.
          4.6.13(1) Trading Member to register Trading Representatives with SGX-ST. 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.
          4.6.13(2) Trading Member to enter into written agency agreement with a Remisier. Compoundable $500 $1,000 $2,000 $250 $500 $1,000 N.A. N.A. N.A. N.A.
          4.6.13(3) Trading Member to inform SGX-ST before a dealer converts to a Remisier and vice versa. Compoundable $500 $1,000 $2,000 $250 $500 $1,000 N.A. N.A. N.A. N.A.
          4.6.13(6) Trading Member to inform SGX-ST before a Trading Representative ceases to act. Compoundable $500 $1,000 $2,000 $250 $500 $1,000 N.A. N.A. N.A. N.A.
          4.6.14 Trading Member to inform SGX-ST before any change to its Memorandum and Articles of Association takes effect. 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.
          4.6.15(1) Trading Member to inform SGX-ST before engaging in or holding any substantial shareholding in any other businesses. 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.
          4.6.15(2) Engagement or shareholding not to breach the law, Rules, Directives or any regulations 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.
          4.6.15(3) Trading Member to supply SGX-ST with any information SGX-ST requires regarding engagement or acquisition of shareholding. 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.
          4.6.15(4) Trading Member not to proceed with engagement or acquisition of shareholding when SGX-ST objects, or before expiry of time period stipulated by SGX-ST Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
          4.6.15(5) Trading Member to end any engagement or shareholding if required to do so by SGX-ST Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
          4.6.16(1) Trading Member to maintain a register of securities in accordance with the SFA Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
          4.6.16(2) Trading Member to produce Register when requested by SGX-ST Not Compoundable Not Compoundable N.A. N.A. N.A. N.A.
          4.6.16(3) Trading Member to permit SGX-ST to take extracts of the Register. Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
          4.6.17 Trading Member to inform SGX-ST before effecting any change in business name or contact details. 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.
          4.6.18 Trading Member not to issue or allot partly paid shares. 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.
          4.6.19 Trading Member not to commence voluntary liquidation without prior written approval of SGX-ST. Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
          4.6.20(1) Trading Member to recommence business upon expiry of permitted period of cessation specified by SGX-ST 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.
          4.6.20(2) Trading Member not to hold itself out as an active TM during period of cessation of business. Not Compoundable Not Compoundable N.A. N.A. N.A. $10,000
          4.6.21(1) Trading 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 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
          4.6.21(2) Trading 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 $1,000 – $3,000 $3,000 – $6,000 $6,000 – $8,000 N.A. N.A. N.A. N.A.
          4.6.21(3) Trading 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 $250 $500 $1,000 N.A. N.A. N.A. N.A.
          Trading Member to comply with such requirements prescribed by the Relevant Regulatory Authority and principles of good business practice. Compoundable $500 $1,000 $2,000 $250 $500 $1,000 N.A. N.A. N.A.