Rulebooks: Contents

Rulebooks
Mainboard Rules
Catalist Rules
SGX-ST Rules
Chapter 1 General
Chapter 2 Admission and Registration of Trading Members, Chief Executive Officers and Trading Representatives
Chapter 3 Capital and Financial Requirements
Chapter 4 Operational Requirements
Chapter 5 Trading Practices and Conduct
Chapter 6 Designated Market-Makers
Chapter 7 Listing and Quotation
Chapter 8 Trading
Chapter 9 Settlement
Chapter 10 Requirements on Specific Securities and Futures Contracts
Chapter 11 Cancellation of Contracts and Trades
Chapter 12 Supervision and Enforcement
Chapter 13 Definitions and Interpretation
Directives
Regulatory Notices
Practice Notes
Practice Note 4.12 Business Continuity Requirements
Schedule A
CDP Clearing Rules
CDP Settlement Rules
DVP Rules [Entire Rulebook has been deleted]
CDP Depository Rules
Futures Trading Rules
SGX-DC Clearing Rules
SIAC DT Arbitration Rules
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  • Practice Note 4.12 Business Continuity Requirements

    • 1. Introduction

      • 1.1

        Rule 4.12 requires Members to:

        (a) maintain adequate business continuity arrangements;
        (b) document business continuity arrangements in a business continuity plan;
        (c) test and review business continuity plans regularly; and
        (d) appoint emergency contact persons.

        Added on 3 June 2019.

      • 1.2

        The objective is to ensure that Members have the ability to:

        (a) react swiftly to emergency situations; and
        (b) maintain critical functions and fulfil obligations to customers and counterparties in the event of major operational disruptions.

        Added on 3 June 2019.

    • 2. Business continuity plan

      • 2.1 Critical elements of a business continuity plan

        • 2.1.1

          Rule 4.12.1 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:

          (a) 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.
          (b) Business impact analysis. This is an evaluation of the impact of the risks and threat scenarios identified in (a) 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.
          (c) 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.
          (d) 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.
          (e) 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.
          (f) Backup for critical functions, information technology systems and data. Critical functions refer to business functions whose failure or disruption may incapacitate the firm.
          (g) 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.
          (h) 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. 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.
          (i) 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.

          Added on 3 June 2019.

      • 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):

          (a) Emergency response procedures;
          (b) Roles and responsibilities of the crisis management team;
          (c) Command and control structures; and
          (d) Salvage and restoration procedures.

          Added on 3 June 2019.

        • 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.

          Added on 3 June 2019.

      • 2.3 Regular review, testing and training

        • 2.3.1

          Rule 4.12.1 also 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.

          Added on 3 June 2019.

        • 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:

          (a) changes have been made to the Member firm's BCP; and
          (b) new staff are recruited.

          Member firms should also conduct refresher courses for existing staff where appropriate.

          Added on 3 June 2019.

      • 2.4 Application to a Remote Trading Member

        • 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 Remote Trading Member. A Remote Trading Member should meet any applicable business continuity plan requirements that are prescribed by its Relevant Regulatory Authority. The Trading Member may further adopt the recommended features of a business continuity plan set out in this Practice Note 4.12.

          Added on 3 June 2019.

    • 3. Emergency contact persons

      • 3.1

        Rule 4.12.3 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 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 4.12.

        Added on 3 June 2019.

      • 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.

        Added on 3 June 2019.

      • 3.3

        A Member's authorised emergency contact person should immediately notify SGX-ST in the event where:

        (a) A Member's business operations are or will be significantly disrupted; and/or
        (b) A Member's business continuity plan is activated.

        Added on 3 June 2019.

      • Appendix A to Practice Note 4.12 Business Continuity Management Emergency Contact Person(s)

        Business Continuity Management Emergency Contact Person(s)

        Company Name: ____________________________

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

        Prepared by:

        _____________________________

        Name:____________________________

        Designation:_______________________

        Added on 3 June 2019.