1. Market Overview
The Exchange operates the Markets in accordance with applicable laws of Singapore. As an Approved Exchange we are committed to promoting a fair, orderly and transparent market in a manner consistent with the public interest as contemplated under the Act. This Rules is designed to facilitate the operation of efficient markets for the allocation of capital and transfer of risks. To the extent that the Markets function in an efficient manner, the Exchange will not intervene or impose unnecessary regulatory requirements that would inflate compliance or regulatory costs for its participants. This Rules seeks to achieve the above regulatory objectives while promoting robust and liquid Markets.
1.1 Market Title
The Markets comprise the SGX-DT Market and such other markets as provided under this Rules from time to time.
1.2 Scope of Rules and Products on the Market
1.2.1 Rules Govern Market
This Rules governs the operation of the Markets as contemplated under the Act.
1.2.2 Products Available for Trading on the Market
The Contracts listed and traded on the Markets comprise Futures Contracts and Option Contracts as more fully described in Chapter 4.
1.3 Exchange's Regulatory Responsibilities
1.3.1 Operation of Fair, Orderly and Transparent Market
The Exchange is obligated under the Act to ensure, as far as reasonably practicable, that each Market it operates is fair, orderly and transparent. In connection with this statutory obligation, the Exchange undertakes surveillance, supervision and enforcement actions to ensure compliance with this Rules. In discharging its obligations under the Act, the Exchange cannot act contrary to the interests of the investing public and is required to have particular regard to the interests of the investing public.
1.3.2 Regulatory Arrangements
The Exchange may take any action or enter into any agreement or arrangement it considers necessary or desirable in furtherance of its regulatory responsibilities under any applicable law or regulation with any Person including, without limitation, MAS, any other exchange, market, clearing house or Partner Market, or any Person which, in the opinion of the Exchange, exercises a legal or regulatory function under any law or regulation.
1.4 Confidentiality of Information of Members, Approved Traders and Registered Representatives
1.4.1 Confidentiality Undertaking
The Exchange shall not use, distribute, supply, provide, make available, sell or otherwise deal with Confidential Information to or for the benefit of any third party, including any third party who or which by himself or itself or by any director, officer, employee or representative that has, or at any time has had, any trading interests upon the Exchange. "Confidential Information" relates to information which is not in the public domain and includes information pertaining to a Member's Open Positions, Financial Resources, Members' Affairs and User Information.
1.4.2 Members' Affairs
All confidential information concerning a Member's affairs obtained or received by officials of the Exchange:(a) as a result of inspections of accounting, financial statements, declarations or reports on financial condition and daily monitoring or stress testing activities; or(b) pursuant to or in connection with any disciplinary proceedings, investigations or surveillance or enforcement actions taken by the Exchange,
(collectively, "Members' Affairs") shall be confidential to such officials of the Exchange. For the avoidance of doubt, nothing in this Rule prohibits the disclosure by the Exchange of the outcome of any disciplinary proceedings or the grounds for a decision of the Disciplinary Committee or Appeals Committee.
1.4.3 Consensual Disclosure
Where the Exchange considers it necessary or desirable to use or disseminate any Confidential Information, the Exchange shall seek the prior consent of that Member to such use or dissemination, and shall provide to such Member:(a) particulars sufficient to identify the nature of the information;(b) the name and address of each Person to whom it is proposed to disseminate that information;(c) a description of the manner in which and the purposes for which it proposes to disseminate that information; and(d) a description of the circumstances in which and the conditions upon which it is proposed that the use or dissemination will take place.
Any Member approached by the Exchange under this Rule may give or withhold its consent to any use or dissemination of its information in its absolute discretion.
1.4.4 Permitted Disclosure
Notwithstanding anything to the contrary as set forth above, the Exchange may disclose any information, including Confidential Information concerning or associated with a Member, Approved Trader or Registered Representative (including, without limitation, information concerning any aspect of transactions made on the Markets) in connection with the discharge of its regulatory obligations under the Act or when compelled under applicable laws to do so or pursuant to any cross-border regulatory sharing arrangement subject to its obligation to maintain confidentiality under the Act. To the extent practicable, the Exchange shall use its best endeavors to notify the affected party of such disclosure(s) prior to disclosing the same.
1.5 Compensation for Investors
1.5.1 Fidelity Fund Maintained by Exchange(1) The Exchange is required under the Act to establish and maintain a fidelity fund consisting of such amount as prescribed by MAS to:(a) compensate any Person (other than an Accredited Investor) who suffers pecuniary loss through the Defalcation committed by a Member that is a CMS licence holder, or any of its directors, officers, employees or representatives, in respect of any money or other property that was entrusted to or received by the Member or any of its directors, officers, employees or representatives, for or on behalf of the Person, or by reason that the Member was a trustee of the money or other property; or(b) pay to a liquidator, official assignee or trustee in bankruptcy of a Member, that is a CMS licence holder, that is being wound up or the subject of bankruptcy proceedings respectively, to make up or reduce the deficiency arising because the available assets of the Member are insufficient to satisfy any debts arising from its trading activities that have been proved in the liquidation or bankruptcy of the Member."Defalcation" refers to the misapplication, including misappropriation, of any property as contemplated under the Act.(2) Pursuant to Rule 1.5.1(1), the fidelity fund will not be applied in the event of a Bank Trading Member's defalcation, winding up or bankruptcy.
1.5.2 Compensation Claims by Persons Claiming Compensation in the Case of Defalcation
Persons claiming compensation from the fidelity fund under Rule 1.5.1(1)(a) shall do so in accordance with the procedures set forth on the Exchange's website.
1.6 Exclusion of Liability, Disclaimer of Warranties & Statutory Immunity
1.6.1 No Liability for Loss
Unless otherwise expressly provided in this Rules or in any other agreements to which the Exchange is a party, none of the Exchange, its related corporations, SGX RegCo, any person or entity referred to under Rule 1.7.4, or their respective directors, officers, employees, representatives or agents shall be liable to any Person for any loss (consequential or otherwise, including, without limitation, loss of profit), damage, injury, or delay, whether direct or indirect, arising from or in connection with the following, or any thing done or not done as a direct or indirect consequence of the following:(a) any action taken in connection with the discharge of the Exchange's regulatory responsibilities including the suspension, interruption or closure of the Markets; or(b) any failure or malfunction of Exchange Systems.
"Exchange Systems" refers to any pre-trade, trade or post-trade systems, including the Trading System, operated by the Exchange in connection with the Markets.
1.6.1A Indemnity(1) Each Trading Member indemnifies each of the Exchange, its related corporations, SGX RegCo, any person or entity referred to under Rule 1.7.4, and their respective directors, officers, employees, representatives and agents ("Indemnified Persons") against any loss or liability reasonably incurred or suffered by an Indemnified Persons where such loss or liability arose out of or in connection with:—(a) any breach by the Trading Member of its obligations under the Rules; or(b) any wilful, unlawful, reckless or negligent act or omission by the Trading Member.(2) Without prejudice to the generality of Rule 1.6.1A(1), in the event that any legal, arbitration or other proceedings are brought to impose any liability on all or any of the Indemnified Persons for an alleged failure on the part of any Indemnified Person to prevent or to require action by a Trading Member or any of its directors, officers, employees, representatives or agents, the Trading Member shall reimburse the the relevant Indemnified Person for:—(a) all expenses and legal fees incurred by or on behalf of the Indemnified Person in connection with such proceedings;(b) any payment made by or on behalf of the Indemnified Person with the approval of the Trading Member in connection with any settlement of such proceedings; and(c) any payment made by or on behalf of the Indemnified Person as a result of any order, award or judgment made in such proceedings.The Trading Member shall render such co-operation as the Indemnified Person reasonably requires in respect of such proceedings including without limitation the production of any document or records.(3) Without prejudice to Rule 1.6.1A(2), the Trading Member shall pay to an Indemnified Person, if the Indemnified Person so requires, the costs incurred by or on behalf of the Indemnified Person of producing or obtaining, pursuant to a court order or other legal process, records relating to the business or affairs of a Trading Member or any of its directors, officers, employees, representatives or agents, regardless of the party requiring such production or obtainment.
1.6.2 Statutory Immunity
As provided under the Act, the Exchange or any Person or entity acting on its behalf, including any person or entity referred to under Rule 1.7.4 and their respective directors, officers, employees, representatives, and agents, shall be immune from any criminal or civil liability for anything done (including any statement made) or omitted to be done with reasonable care and in good faith in the course of, or in connection with, the discharge or purported discharge of its obligations under the Act or this Rules.
1.6.3 Disclaimer of Warranties
All warranties and conditions, both express and implied as to condition, description, quality, performance, durability, or fitness for the purpose or otherwise of any of the Exchange Systems or any component thereof are excluded except as required by law. The Exchange does not warrant or forecast that the Exchange Systems, any component thereof or any services performed in respect thereof will meet the requirements of any user, or that operation of the Exchange Systems will be uninterrupted or error-free, or that any services performed in respect of the Exchange Systems will be uninterrupted or error-free.
1.6.4 Index Related Disclaimers
The Exchange, Index Provider and any other party involved in, or related to, making or compiling any index do not guarantee the originality, accuracy or completeness of such indices or any data included therein. Contracts on any index ("Index Contracts") are not sponsored, guaranteed or endorsed by the Index Provider or any other party involved in, or related to, making or compiling such indices. Neither the Index Provider nor any other party involved in, or related to, making or compiling any index makes any representations regarding the advisability of investing in such Index Contracts. Neither the Index Provider nor any other party involved in, or related to, making or compiling any index makes any warranty, express or implied, as to the results to be obtained by any person or any entity from the use of such index or any data included therein. Neither the Index Provider nor any other party involved in, or related to, making or compiling any MSCI Index makes any express or implied warranty, and expressly disclaims all warranties of merchantability and fitness for a particular purpose or use with respect to such index or any data included therein. Without limiting any of the foregoing, in no event shall an Index Provider or any other party involved in, or related to, making or compiling any index have any liability for any direct, special punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages. In addition, neither the Exchange, an Index Provider nor any other party involved in, or related to, making or compiling any index shall have any liability for damages, claims, losses or expenses relating to any futures or options contracts that may be caused by any errors or delays in calculating or disseminating such index. "Index Provider" as used herein refers to MSCI, FTSE, IISL, NKS or such other index provider and their respective affiliates with whom the Exchange has or shall enter into agreements with for the creation and exploitation of indices and index-linked products.
1.6.5 Notification to Customers
Members shall notify Customers of the above exclusion of liability and disclaimer of warranty by the Exchange either by way of inclusion in the contracts granting access to the Markets or such other manner as approved by the Exchange.
1.7 Rules as Binding Contract and Deemed Consent of Members
1.7.1 Binding Contract
This Rules shall operate as a binding contract as contemplated under the Act, between:(a) the Exchange and each Member; and(b) between each Member and any other Member.
1.7.2 Deemed Consent
Each Member shall be deemed to have agreed to observe and perform the provisions of this Rules in force for the time being, so far as these provisions are applicable to the Exchange or the Member, as the case may be.
1.7.3 No Third Party Rights
A Person who is not a Member has no rights under the Contracts (Rights of Third Parties) Act (Cap. 53B) to enforce any provisions under this Rules.
1.7.4 Delegation and assignment
The Exchange may delegate, assign or grant authority to exercise any of its rights, powers, authorities and discretions under these Rules, including any right to enforce these Rules, to such person or entity as it may determine in its sole discretion, without consent from any Trading Member.
Where these Rules provide that any power, authority or discretion is to be exercised by the Board, the Board may delegate, assign or grant authority to exercise such power, authority or discretion to any person or entity. The Board may authorise a delegate to sub-delegate.
1.7.5 SGX RegCo's authority
SGX RegCo shall have the authority to exercise any rights, powers, authorities and discretions under these Rules, including the right to enforce these Rules. In the exercise of any such rights, powers, authorities and discretions under these Rules, SGX RegCo shall be bound to the same extent as the Exchange in respect of any obligations arising from the exercise of such rights, powers, authorities and discretions.
1.8 Waiver by Exchange
Unless otherwise indicated, the Exchange may waive compliance with this Rules or portion thereof or grant waivers subject to such terms and conditions as it deems fit. All waivers shall be notified to Members via Regulatory Notices or Circulars as the Exchange deems fit.
1.9 Amendment of Rules
1.9.1 Rule Amendment Process
The Exchange is prohibited from making any amendments to this Rules unless it complies with such requirements as contemplated under the Act. In addition to these requirements, Board approval is required to effect any Rule amendments. These safeguards are designed to promote regulatory transparency and accountability on the part of the Exchange with respect to its rulemaking process and thereby promote investor confidence in the Markets.
1.9.2 New Rule — Effective Date
Any amendment to this Rules shall not come into force unless the prescribed time periods as contemplated under the Act are met and a Circular announcing the effective date of the revised Rules is issued by the Exchange.
1.9.3 Mandatory Rule Amendments
Notwithstanding anything to the contrary as set forth above, the Exchange may effect Rule amendments in such manner as directed by MAS or pursuant to the Act or other applicable laws.
1.10 Directives, Regulatory Notices and Practice Notes
1.10.1 Issuance of Supplementary Instruments
The Exchange may, from time to time, issue Directives, Regulatory Notices or Practice Notes to supplement this Rules or to provide guidance on the interpretation or application of this Rules.
1.10.2 Authorised Use of Directives, Regulatory Notices and Practice Notes
Directives, Regulatory Notices and Practice Notes may only be used in the manner and for such purposes as expressly contemplated under this Rules. "Directives" are binding notices directing Members to take corrective or other actions in the interests of a fair, orderly and transparent market or to address investor protection concerns. "Regulatory Notices" are binding notices issued by the Exchange regarding regulatory matters pertaining to the Markets. "Practice Notes" are guidelines that seek to explain the application and interpretation of a Rule. Practice Notes do not bind the Exchange in the application of a Rule.
The order of precedence in the construction and interpretation of the various legislative and quasi-legislative instruments governing the Markets and their participants shall be, in descending order of precedence, as follows:(a) Act(b) Rules(c) Directives(d) Regulatory Notices(e) Practice Notes
In the event of a conflict between any provision in the aforesaid instruments the provisions contained in the instrument at a higher precedence level shall prevail.
1.11 Governing Law and Jurisdiction
This Rules is governed by the laws of Singapore. Save as provided in Chapter 6 of this Rules, the courts of Singapore shall have exclusive jurisdiction to determine any dispute arising from or in connection with this Rules.
1.12 Effective Date for New Rules and Transitional Arrangements
1.12.1 Effective Date
This Rules shall take effect on the Effective Date.
1.12.2 Transitional Arrangements
The Exchange may, from time to time, publish transitional arrangements in relation to this Rules.
1.12.3 Floor Rules
The floor trading rules in the Old Rules shall continue to apply to the extent that floor trading is still available for discrete Contracts on the Effective Date. With respect to generic, non-floor specific rules, in the event of a conflict between this Rules and the Old Rules, this Rules shall prevail. "Old Rules" refers to the collection of rules applicable to the Markets and commonly referred to as the "DT Rules" that were in force before this Rules came into effect.
1.12.4 Survival of Accrued Rights and Obligations
The rescission of the Old Rules shall not impair, modify or discontinue the status, operation or effect of any act or omission under the Old Rules.