SGX Rulebooks
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1. Introduction

1.1

Rule 4.18 states that save for Accredited Investors, Institutional Investors and Expert Investors, a Trading Member must provide its Internet Trading customers with adequate information, guidance and training on (a) prohibited trading practices; (b) potential limitations and risks of Internet Trading; (c) system functionalities and order management procedures; and (d) market conventions such as minimum bid sizes and board lot sizes. With respect to Accredited Investors, Institutional Investors and Expert Investors, a Trading Member's obligation relates solely to the provision of adequate information in relation to prohibited trading practices.

Added on 3 June 20193 June 2019.

1.2

This Practice Note provides guidance on the information that a Trading Member should provide to its Internet Trading customers.

Added on 3 June 20193 June 2019.

2. Information, Guidance and Training

2.1

A Trading Member should provide its Internet Trading customers with adequate information, guidance and training with respect to the areas below.

Added on 3 June 20193 June 2019.

2.2

Prohibited trading practices, which refer to trading practices prohibited under these Rules, the SFA or other Singapore laws.

Added on 3 June 20193 June 2019.

2.3

Potential limitations and risks of Internet Trading, which include:

(a) possibility of delays in order transmission and confirmation of order execution, and what to do in case of such delays;
(b) not being able to withdraw erroneous orders in time due to the speed of electronic trading; and
(c) danger of unauthorised access to a customer's internet account and recommended preventive security measures in relation to matters such as the protection of passwords and leaving an on-line screen unattended.

Added on 3 June 20193 June 2019.

2.4

System functionalities and order management procedures, which include:

(a) system access requirements;
(b) how to place, modify and withdraw orders;
(c) types of trading controls e.g. types of error-prevention alerts and how to interpret system alerts;
(d) types of credit controls e.g. types of trading limits; and
(e) types of orders e.g. Good till Cancelled and All or None.

Added on 3 June 20193 June 2019.

2.5

Market conventions, which include:

(a) board lot size;
(b) minimum bid size;
(c) convention for price quotation of different securities; and
(d) corporate actions and their effect on prices.

Added on 3 June 20193 June 2019.