2.1.2 Conditions Governing Direct Market Access

Past version: Effective from 15 Mar 2013 to 13 Nov 2016

(1) With respect to each Customer for which the Member has authorised Direct Market Access, the 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 QUEST 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 the Exchange in any investigation into potential violations of this Rules and applicable laws. Such assistance shall be timely and shall include, but is not limited to, the provision of information to the Exchange relating to the identity and address of any person who may be responsible for the execution of an order or trade.
(2) Where a Member permits the delegation of Direct Market Access by its authorised Customer and any other persons, the Member must include in the legally binding agreement referred to in Rule 2.1.2(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 2.1.2(1)(a) to (f).
(3) The Exchange may require a Member to provide to the Exchange a report by an independent reviewer on the Member's compliance with Rules 2.1.2, 2.1.2A and 2.1.2B.

Amended on 15 March 201315 March 2013.