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