SGX-ST expects that Trading Members and Trading Representatives act as "gatekeepers" against market manipulation of any kind. Trading Members and Trading Representatives should provide frontline protection against manipulative activity and not contribute or act as an accessory to such trading misconduct.
In determining whether a course of conduct is likely to create a false or misleading appearance, SGX-ST will make the necessary inference from circumstantial evidence, such as an unusual pattern of trading, as well as a person's interest (whether genuine or ulterior motive) in the security or futures contract in question.
SGX-ST acknowledges that Trading Members and Trading Representatives may not always know if a customer's particular interest in a security or futures contract is genuine or not. However, a Trading Member or Trading Representative who receives an unusual order must be able to establish that it or he has made due enquiries and is satisfied as to the reason for the trading, i.e. taking into account the circumstances of the order, the purpose is unlikely to create a false or misleading appearance.
In the event that a Trading Member or Trading Representative reasonably suspects that an order may be for some other ulterior purpose but continue to facilitate the transaction, the Trading Member or Trading Representative must be aware that its or his contributing act towards the transaction may be unlawful.