Whole Section

  • Practice Note 3.7 and 3.9 Remote Trading Member Exposure to Single Customer and Single Security

    • 1. Introduction

      • 1.1

        Rules 3.7.1 and 3.9.1 require Remote Trading Members to have in place adequate tools and procedures to monitor their exposure to a single customer or single security.

        Added on 3 June 20193 June 2019.

      • 1.2

        A Remote Trading Member may be required to demonstrate the adequacy of such tools and procedures. This Practice Note explains the tools and procedures that a Remote Trading Member may have in place to satisfy the requirement for adequate tools and procedures.

        Added on 3 June 20193 June 2019.

    • 2. Adequate Tools and Procedures

      • 2.1

        Tools and procedures to monitor a Remote Trading Member's exposure to a single customer or single security that SGX-ST deems adequate include, but are not limited to the following:

        (a) The Remote Trading Member may, based on its available financial resources, establish the level of concentration risks arising from exposure to a single customer or single security that is acceptable to it. Thereafter, the Remote Trading Member should monitor its exposures to a single customer or single security against such acceptable level of risk.
        (b) The Remote Trading Member may have in place adequate systems to monitor its exposure to customers on an individual customer and aggregated basis, and generate reports describing the results of such monitoring.

        Added on 3 June 20193 June 2019.

      • 2.2

        SGX-ST shall have the right to require a Remote Trading Member to demonstrate the adequacy of such tools and procedures as it deems necessary.

        Added on 3 June 20193 June 2019.