6.6 Obligations of a Designated Market-Maker
6.6.1 Compliance with Rules(a) A Designated Market-Maker shall comply with the Rules at all times where relevant and continue to satisfy the registration criteria and any approval conditions or restrictions prescribed by SGX-ST.(b) SGX-ST may, in its absolute discretion at the request of a Designated Market-Maker, waive or vary any obligation of the Designated Market-Maker.
6.6.2 Bid and Offer Quotations(a) A Designated Market-Maker must provide on the Trading System competitive bid and offer quotations:(i) on a continuous basis or in such other manner as SGX-ST prescribes to provide for an adequately liquid market with suitable disclosure to investors;(ii) within the maximum spread; and(iii) for not less than the minimum quantity that SGX-ST prescribes.(b) In the event a Designated Market-Maker ceases to provide bid and offer quotations (whether due to foreseen or unforeseen circumstances), it must, as soon as practicable,:(i) notify SGX-ST of the cessation as well as the reasons for it; and(ii) make a public announcement of the cessation.(c) Upon resumption, the Designated Market-Maker must similarly notify SGX-ST and make a public announcement as soon as practicable. At the appropriate juncture, the Designated Market-Maker must make a public announcement of the reasons for cessation of market-making.
6.6.3 Adequate Internal Control Systems(a) A Designated Market-Maker must establish and maintain adequate internal control systems to ensure smooth operation of its market-making activities.(b) A Designated Market-Maker shall pre-notify SGX-ST of any change to its internal control systems that may affect the carrying out of its obligations stipulated under this Chapter 6.(c) SGX-ST reserves the right to review current or impose additional requirements if it is not satisfied with the internal control systems of the Designated Market-Maker.(d) Where a Designated Market-Maker is also performing regulated activities, the Designated Market-Maker must establish adequate segregation between their market-making activities and regulated activities.
6.6.4 Execution of Trades
If a Designated Market-Maker is not a Trading Member, its trades in any Specified Instruments must be made through a Trading Member.
6.6.5 Market-Making Representative(a) A Designated Market-Maker must appoint at least one person as its market-making representative to receive and execute orders on its behalf. The person must be registered with SGX-ST as a market-making representative.(b) A market-making representative shall comply with the Rules where relevant.
6.6.6 Auditors' Report
A Designated Market-Maker must provide an independent auditors' report to SGX-ST at SGX-ST's request. This is for SGX-ST to review the Designated Market-Maker's performance or suitability as a Designated Market-Maker. The report may relate to the Designated Market-Maker's financial standing, personnel or internal control procedures.
A Designated Market-Maker must pay all fees, levies and charges SGX-ST prescribes. SGX-ST may reduce or waive any fee, levy or charge.
6.6.8 Notification of Adverse Events
A Designated Market-Maker shall, save as otherwise provided in this Rule 6.6.8, immediately notify SGX-ST if:(a) it is unable, or is likely to be unable to satisfy any of the approval conditions or restrictions prescribed by SGX-ST;(b) it is unable, or is likely to be unable to satisfy any of its obligations as a Designated Market-Maker under the Rules;(c) it or its substantial shareholder, Chief Executive Officer, Director or market-making representative:(i) breaches the Securities and Futures Act, or any other relevant applicable laws and regulatory requirements relating to the regulation of organised markets and licensed entities;(ii) breaches the Rules;(iii) breaches any relevant law or regulation that governs that person's other business activities;(iv) breaches the rules of any other exchange;(v) has been alleged or found to have breached director's duties under common law or applicable statute;(vi) is the subject of a written complaint or investigation involving an allegation of fraud or dishonesty, is convicted of an offence involving fraud or dishonesty, or is found by a court of law to have acted fraudulently or dishonestly, whether in or out of Singapore;(vii) is the subject of any disciplinary action involving suspension, termination, withholding of commissions, fines or any other significant limitation of activities;(viii) is experiencing an emergency or potentially debilitating situation that threatens its operations (e.g. a cyber threat or terror attack);(ix) engages in conduct that has the effect of circumventing the Securities and Futures Act, any other relevant applicable laws and regulatory requirements relating to the regulation of organised markets and licensed entities, or the Rules;(x) has had its licence or relevant approval to conduct the relevant regulated activities suspended, revoked, or expired, or in the case where it is exempted from holding a licence or obtaining approval, the exemption is withdrawn or conditions or restrictions are imposed in respect of the relevant regulated activities;(xi) engages in conduct that is inconsistent with the principles of good business practice;(xii) engages in conduct detrimental to the financial integrity, reputation or interests of SGX-ST, or organised markets established or operated by SGX-ST;(xiii) is insolvent or wound-up, or has had an insolvency or winding-up application presented, or an order made by a court of competent jurisdiction, or any step is taken or a resolution passed, for its winding-up, dissolution, judicial management or administration; or(xiv) has had any attachment, distress, execution or legal process instituted against its assets, or has had any liquidator, receiver or any similar person appointed (or an application has been made for the appointment of such person) in respect of any of its assets.
Notwithstanding this Rule 6.6.8, in the case of an emergency or potentially debilitating situation under Rule 6.6.8(c)(viii), the Designated Market-Maker may inform SGX-ST as soon as practicable, but in any case no later than one hour, after its discovery of the situation. SGX-ST may require a Designated Market-Maker to inform SGX-ST in respect of any other matters and in such form as SGX-ST determines.