Whole Section

  • Section B — Market Participants

    • Chapter 4 — Trading Members

      • 4.1 Admission Criteria

        • 4.1.1

          To be eligible for admission as a Trading Member, an applicant must:—

          (1) unless otherwise exempted, procure and maintain the requisite licence(s) from the Relevant Regulatory Authority, to engage in regulated activities, including where appropriate trading in futures contracts, as follows:
          (a) where it is a Corporation carrying on business in Singapore, a Capital Markets Services Licence; or
          (b) where it is a Corporation not carrying on business in Singapore and not incorporated in Singapore, and it or its employees and agents does not engage in regulated activities in Singapore, a licence from a Relevant Regulatory Authority in the country where it is carrying on business. If SGX-ST is of the view that the regulatory requirements arising from the licence are not comparable to those contemplated under the Act and these Rules, it shall have the discretion to prescribe additional requirements;
          (2) be qualified by a Clearing Member (unless it is admitted as a Clearing Member);
          (3) satisfy the capital and financial requirements SGX-ST prescribes;
          (4) upon admission, appoint at least 1 Approved Executive Director; and
          (5) have facilities and staff adequate for expeditious and orderly trading, operations and activities.

          Amended on 3 April 20083 April 2008, 19 May 201419 May 2014 and 29 December 201429 December 2014.

      • 4.2 Application Procedures

        • 4.2.1

          To become a Trading Member, an applicant must apply to SGX-ST in the form SGX-ST prescribes.

        • 4.2.2

          The applicant must inform SGX-ST in writing of the Clearing Member who has agreed to qualify it (unless it is admitted as a Clearing Member). The applicant must submit to SGX-ST the documentation supporting the agreement.

        • 4.2.3

          SGX-ST may, in its absolute discretion, approve or reject an application to be a Trading Member. SGX-ST is not obliged to give any reasons.

        • 4.2.4

          Without derogating from Rule 4.2.3, SGX-ST may reject an application to be a Trading Member if:—

          (1) the applicant does not provide information relating to the application as SGX-ST requires;
          (1A) any information or document that is furnished by the applicant to SGX-ST is false or misleading;
          (2) the applicant, its substantial shareholders or head office, is in the course of being wound up, or a resolution to do so is passed by shareholders, or a court order is made, to wind it up, whether in or out of Singapore;
          (3) execution against the applicant, its substantial shareholders or head office, in respect of a judgment debt has been returned unsatisfied in whole or in part, whether in or out of Singapore;
          (4) the applicant, its substantial shareholders or head office, has entered into an arrangement or composition with its creditors that is still in operation, whether in or out of Singapore;
          (5) a receiver, a receiver and manager, judicial manager or such other person having similar powers and duties, has been appointed, whether in or out of Singapore, in relation to any property of the applicant, its substantial shareholders or head office;
          (6) SGX-ST is not satisfied with the financial standing of the applicant, its substantial shareholders or head office;
          (7) SGX-ST is not satisfied with the manner in which the applicant's business is to be conducted;
          (8) the applicant, any of its Officers, substantial shareholders or head office breaches any provision involving fraud or dishonesty, whether in or out of Singapore;
          (9) the applicant, any of its Officers, substantial shareholders or head office has been convicted of an offence under the Securities and Futures Act or any other relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities;
          (10) the applicant, any of its Officers, substantial shareholders or head office is the subject of an investigation involving an allegation of fraud or dishonesty, whether in or out of Singapore;
          (11) SGX-ST is not satisfied as to the educational or other qualification or experience of the Officers of the applicant;
          (12) SGX-ST is not satisfied with the applicant's record of past performance;
          (13) SGX-ST is not satisfied that the applicant, any of its Officers, substantial shareholders or head office is a fit and proper person;
          (14) SGX-ST has reason to believe that the applicant or any of its Officers or employees may not perform the functions efficiently, honestly and fairly;
          (15) SGX-ST has reason to believe that the applicant may not act in the best interests of its customers; or
          (16) in SGX-ST's opinion, it would be contrary to the interests of the public to admit the applicant as a Trading Member.

          Amended on 12 October 200512 October 2005 and 19 May 201419 May 2014.

      • 4.3 Appeals

        • 4.3.1

          If SGX-ST rejects an application to be a Trading Member, the applicant may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

          Amended on 15 September 201715 September 2017.

      • 4.4 Register of Trading Members

        • 4.4.1

          An applicant approved by SGX-ST as a Trading Member will have its name entered in the Register of Trading Members. SGX-ST will notify all Trading Members of the effective date of a Trading Member's admission.

      • 4.5 Trading Rights

        • 4.5.1

          A Trading Member has access to organised markets established or operated by SGX-ST or such organised markets as SGX-ST specifies.

          Amended on 8 October 20188 October 2018.

        • 4.5.2

          A Trading Member does not have the right to clear and settle contracts concluded on SGX-ST.

      • 4.5A Direct Market Access

        • 4.5A.1

          A Trading Member may authorise Direct Market Access for its customers in respect of markets established by or operated by SGX-ST or such markets as SGX-ST specifies.

          Added on 18 September 201218 September 2012.

        • 4.5A.2 Conditions Governing Direct Market Access

          (1) For every customer that a Trading Member authorises Direct Market Access for, the Trading 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 the Trading System 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 SGX-ST in any investigation into potential violations of these Rules and applicable laws. Such assistance shall be timely and shall include, but is not limited to, the provision of information to SGX-ST relating to the identity and address of any person who may be responsible for the execution of an order or trade.
          (2) Where a Trading Member permits the delegation of Direct Market Access by its authorised customer and any other persons, the Trading Member must include in the legally binding agreement referred to in Rule 4.5A.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 4.5A.2(1)(a) to (f).
          (3) SGX-ST may require a Trading Member to provide to SGX-ST a report by an independent reviewer on the Member's compliance with Rules 4.5A.2, 4.5A.3 and 4.5A.4(2).

          Added on 18 September 201218 September 2012 and amended on 15 March 201315 March 2013.

        • 4.5A.3 Conditions Governing Sponsored Access

          (1) Where a Trading Member authorises Sponsored Access for its customers, in addition to the requirements set out in Rule 4.5A.2, the Trading Member must:—
          (a) maintain a register recording the identity and address of all customers with Sponsored Access;
          (b) produce to SGX-ST the register referred to in Rule 4.5A.3(1)(a) at such time as SGX-ST requires; and
          (c) have measures in place for each customer to comply with the requirements set out in Rule 4.6.22, Rule 12.1.1, Directive No. 4, Directive No.5 and any other requirement set out by SGX-ST relating to the order management system.
          (2) Where a Trading Member permits the delegation of Sponsored Access by its authorised customer and any other persons:—
          (a) the Trading Member must have measures to ensure that the authorised customer and any other persons delegating Sponsored Access:
          (i) are persons regulated by a recognised regulatory authority in respect of any regulated activity; or
          (ii) where such persons are not regulated in accordance with Rule 4.5A.3(2)(a)(i), that such persons are Trading Members of SGX-ST, and that such persons shall only be permitted to delegate Sponsored Access to their related corporations; and
          (b) the Trading Member must include in the legally binding agreement referred to in Rule 4.5A.2(1)(d) the requirement for such customer and any other persons delegating Sponsored Access to ensure that all persons with Sponsored Access are included in the register referred to in Rule 4.5A.3(1)(a) and subject to the requirements set out in Rule 4.5A.3(1)(c).

          For the purpose of this Rule 4.5A.3, "recognised regulatory authority" refers to a signatory to the International Organization of Securities Commissions' Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information, and “regulated activity” shall have the same meaning as in the Securities and Futures Act.

          Added on 18 September 201218 September 2012 and amended on 15 March 201315 March 2013.

        • 4.5A.4 Suspension and Termination of Direct Market Access

          (1) SGX-ST may suspend or terminate, or direct a Trading Member to suspend or terminate a person's Direct Market Access:—
          (a) where the person has failed to assist SGX-ST with an investigation in accordance with Rule 4.5A.2(1)(f);
          (b) in the interest of a fair, orderly and transparent market; or
          (c) where the person has caused the Trading Member to breach requirements in the Rules.
          (2) A Trading Member must have the ability to immediately suspend or terminate a person's Direct Market Access when necessary for the fulfillment of its duties under Rule 4.6.4 or any other reason.

          Added on 18 September 201218 September 2012 and amended on 15 March 201315 March 2013.

      • 4.5B Controlling Access

        • 4.5B.1

          A Trading Member must have security arrangements in place to ensure that unauthorised persons are denied access to markets established by or operated by SGX-ST or such markets as SGX-ST specifies.

          Added on 18 September 201218 September 2012.

      • 4.6 Obligations of A Trading Member

        • 4.6.1 Compliance

          A Trading Member must:—

          (1) comply with the Rules, and any Directives SGX-ST prescribes; and
          (2) continue to satisfy the admission criteria.
        • 4.6.2 Acts as Principal

          A Trading Member contracts as principal as regards the other Trading Member when it trades on SGX-ST.

        • 4.6.3 Contracts

          (1) A Trading Member enters contracts in accordance with the Rules, Clearing Rules and any Directives SGX-ST prescribes.
          (2) A Trading Member must honour all contracts:—
          (a) entered by or through it on the Trading System; and
          (b) via Direct Business.

          Amended on 3 April 20083 April 2008.

        • 4.6.4 Good Business Practice

          A Trading Member must adhere to the principles of good business practice in the conduct of its business.

        • 4.6.5 Responsibility to SGX-ST

          A Trading Member is responsible to SGX-ST for:—

          (1) any liability to SGX-ST of its Directors, Officers, Trading Representatives, employees and agents; and
          (2) the acts and omissions of its Directors, Officers, Trading Representatives, employees and agents.
        • 4.6.6 Supervision

          A Trading Member must supervise its Trading Representatives, employees and agents.

        • 4.6.7 Establish Procedures and Systems

          A Trading Member must:—

          (1) establish and maintain procedures and systems to prevent any breach of the Rules and Directives by its Directors, Officers, Trading Representatives, employees or agents;
          (2) establish and maintain adequate internal control systems, including for reconciliation of physical scrip for securities traded on SGX-ST at least monthly; and
          (3) ensure that its Trading Representatives, employees, agents or any other person carrying out or enforcing its procedures and systems reasonably discharges his or her duties and obligations.

          Amended on 19 May 201419 May 2014.

        • 4.6.7A Risk Management and Financial Controls

          (1) A Trading Member must have written policies and procedures on risk management controls and demonstrate compliance in the following areas:—
          (a) monitoring the credit risks arising from the acceptance of all orders on at least a daily basis;
          (b) ensuring that:
          (i) automated pre-execution risk management control checks are conducted on all orders, including credit control checks on all orders;
          (ii) there are appropriate internal controls for the setting and modification of any parameters of such automated pre-execution risk management control checks;
          (c) having error-prevention alerts to bring attention to possible erroneous entries of quantity, price and other data fields; and
          (d) defining and managing the Trading Member's sources of liquidity to ensure that there are sufficient liquidity facilities to meet settlement obligations.
          (2) A Trading Member referred to in Rule 4.6.7A(1) must have automated processes in place to monitor at the firm level if the Trading Member is at risk of breaching capital and financial requirements and prudential limits on exposures to a single customer and a single security, so as to restrict trading activity or inject additional capital if necessary.

          Refer to Practice Note 4.6.7A(2).

          Added on 18 September 201218 September 2012 and amended on 15 March 201315 March 2013.

        • 4.6.8 Change in Control

          (1) A Trading Member must inform SGX-ST in writing as soon as it becomes aware of:—
          (a) any transaction that will result in a change in the legal or beneficial ownership of 20% or more of the Trading Member's issued share capital, and any subsequent increase of 5% or more of the Trading Member's issued share capital; or
          (b) any change that may have the effect of altering control of the Trading Member.
          (2) If control of a Trading Member changes, SGX-ST may restrict or revoke the Trading Member's trading rights on any grounds described in Rules 4.2.4(2) to (6), (8) to (10) and (13).
          (3) If SGX-ST revokes the Trading Member's trading rights, the Trading Member may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

          Amended on 15 September 201715 September 2017.

        • 4.6.9 Reporting

          A Trading Member must inform SGX-ST in writing immediately if it or any of its Directors, Officers, Trading Representatives, employees, or agents:—

          (1) breaches the Securities and Futures Act or Securities and Futures Regulations or any other relevant applicable laws and regulatory requirements relating to the regulation of organised markets and licenced entities;
          (2) breaches the Rules or Directives;
          (3) breaches any relevant law or regulation which governs that person's other business activities;
          (4) breaches the rules of any other exchange;
          (5) breaches any provision involving fraud or dishonesty, whether in or out of Singapore;
          (6) breaches director's duties;
          (7) is the subject of a written complaint involving an allegation of fraud or dishonesty, whether in or out of Singapore;
          (8) is the subject of an investigation involving an allegation of fraud or dishonesty, whether in or out of Singapore;
          (9) is the subject of any disciplinary action taken by the Trading Member involving suspension, termination, withholding of commissions, fines or any other significant limitation of activities;
          (10) engages in conduct that has the effect of circumventing the Securities and Futures Act, Securities and Futures Regulations, any other relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities, the Rules, or Directives;
          (10A) has had its licence to conduct the relevant regulated activities suspended, revoked, or expired, or in the case where it is exempted from holding a licence, the Relevant Regulatory Authority withdraws the exemption or imposes conditions or restrictions on it in respect of the relevant regulated activities;
          (11) engages in conduct which is inconsistent with the principles of good business practice;
          (12) engages in conduct detrimental to the financial integrity, reputation or interests of SGX-ST , or markets established or operated by SGX-ST; or
          (13) is insolvent, or has been issued a bankruptcy or winding up proceeding.

          Notwithstanding the foregoing, SGX-ST may require a Trading Member to inform SGX-ST from time to time in respect of any other matters and in such form as SGX-ST determines.

          Amended on 19 May 201419 May 2014 and 8 October 20188 October 2018.

        • 4.6.10 Payment

          A Trading Member must pay SGX-ST all fees, levies and charges SGX-ST prescribes. SGX-ST may reduce or waive any fee, levy or charge.

        • 4.6.11 Approved Executive Director

          A Trading Member must inform SGX-ST in writing at least 7 days before an Approved Executive Director ceases to act. If the cessation is with immediate effect, the Trading Member must inform SGX-ST in writing the same day.

        • 4.6.12 Directors

          A Trading Member must inform SGX-ST in writing of a change in the composition of its board of Directors within 7 days of the change.

        • 4.6.13 Trading Representatives

          A Trading Member must:—

          (1) register with SGX-ST persons who deal in securities or trade in futures contracts as Trading Representatives (unless exempted by SGX-ST);
          (2) where it engages a Remisier, enter into a written agency agreement with that Remisier. The agreement must address the following:—
          (a) the amount of commission payable to the Remisier;
          (b) the amount of security deposit to be given by the Remisier to the Trading Member;
          (c) responsibility for any losses or liabilities as a result of any acts or omissions of the Remisier; and
          (d) charges that may be levied by the Trading Member on its Remisier;
          (3) inform SGX-ST in writing at least 7 days before a dealer converts to a Remisier or vice versa. SGX-ST may vary or waive the notice period; and
          (4) [Deleted.]
          (5) [Deleted.]
          (6) inform SGX-ST in writing no later than the day on which the Trading Representative ceases to act. If the cessation is with immediate effect, the Trading Member must inform SGX-ST in writing the same day.

          Amended on 3 April 20083 April 2008, 29 November 201029 November 2010 and 8 October 20188 October 2018.

        • 4.6.14 Memorandum and Articles of Association

          A Trading Member must inform SGX-ST in writing at least 7 days before any change to its Memorandum and Articles of Association takes effect.

        • 4.6.15 Other Businesses

          (1) A Trading Member must inform SGX-ST in writing at least 14 days before it engages in, or holds any substantial shareholding in, any other business.
          (2) A Trading Member must ensure that the engagement (and any actions taken under it) or shareholding does not breach the Securities and Futures Act, Securities and Futures Regulations, the Rules, any Directives or any relevant law or regulation.
          (3) A Trading Member must supply SGX-ST with any information SGX-ST requires regarding the engagement or acquisition of shareholding.
          (4) If SGX-ST objects to the engagement or acquisition of shareholding, a Trading Member must not proceed with it. SGX-ST may extend the period specified in Rule 4.6.15(1). If extended, the Trading Member must not proceed with the engagement or acquisition of shareholding before the expiry of the extended period.
          (5) If an engagement or shareholding, in SGX-ST's opinion, is detrimental to the financial integrity, reputation or interests of SGX-ST, the Trading Member concerned, or organised markets established or operated by SGX-ST, SGX-ST may require the Trading Member to end it.
          (6) If SGX-ST objects to the engagement or acquisition of shareholding or requires a Trading Member to end it, the Trading Member may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

          Amended on 15 September 201715 September 2017 and 8 October 20188 October 2018.

        • 4.6.17 Business Name

          A Trading Member must inform SGX-ST in writing at least 7 days before it effects any change in its business name or contact details.

        • 4.6.18 Issue of Shares

          A Trading Member must not issue or allot partly paid shares.

        • 4.6.19 Voluntary Liquidation

          A Trading Member must not commence voluntary liquidation without the prior written approval of SGX-ST.

        • 4.6.20 Trading Member Ceases to Carry on Business

          (1) Upon written request, SGX-ST may allow a Trading Member to cease carrying on business while retaining its membership for such period as SGX-ST specifies. Upon expiry of such period, the Trading Member must recommence business in Singapore.
          (2) During the period of cessation of business, the Trading Member must not hold itself out or engage in any act that may give the impression that it is an active Trading Member.
          (3) SGX-ST will waive continuing compliance of Rules 4.1.1(1) and (5) during the period the Trading Member ceases to carry on business.

          Amended on 23 January 200923 January 2009 and 19 May 201419 May 2014.

        • 4.6.21 Business Continuity Requirements

          (1) A Trading Member must assess its business and operational risks and maintain adequate business continuity arrangements.
          (2) A Trading Member must document its business continuity arrangements in a business continuity plan.
          (3) A Trading Member's senior management shall be responsible for the Trading Member's business continuity plan. Sufficient awareness of the risks, mitigating measures and state of readiness must be demonstrated by way of an attestation to the Trading Member's Board of Directors. A Trading Member that holds a licence specified in Rule 4.1.1(b) shall comply with such requirements established by the Relevant Regulatory Authority, if any, and principles of good business practice in relation to this Rule 4.6.21(3).
          (4) A Trading Member must review and test its business continuity plan regularly.
          (5) A Trading Member must appoint emergency contact persons, and furnish the contact information of such persons to SGX-ST. The Trading Member's emergency contact persons must be contactable at all times, and must immediately notify SGX-ST in the event of emergencies.

          Refer to Practice Note 4.6.21.

          Added on 22 January 200922 January 2009 and amended on 19 May 201419 May 2014.

        • 4.6.22 Adequacy of Systems

          A Trading Member must ensure that its systems and connections to the Trading System operate properly, and have adequate and scalable capacity to accommodate trading volume levels.

          Refer to Directive No. 5.

          Added on 18 September 201218 September 2012.

      • 4.7 Qualification by A Clearing Member

        • 4.7.1 Qualified by a Clearing Member

          (1) A Trading Member must not execute a contract on SGX-ST unless it is qualified by a Clearing Member.
          (2) At any time, a Trading Member must be qualified by no more than 1 Clearing Member.
          (3) A Trading Member must immediately inform SGX-ST in writing if:—
          (a) it is not qualified by a Clearing Member; or
          (b) its qualifying Clearing Member is replaced by another Clearing Member. The Trading Member must submit to SGX-ST a copy of the written agreement between the new qualifying Clearing Member and itself.
        • 4.7.2 Clearing of Contracts by Qualifying Clearing Member

          A Trading Member must ensure all contracts concluded on SGX-ST are submitted to its qualifying Clearing Member for clearing.

      • 4.8 Resignation

        • 4.8.1 Procedures

          If a Trading Member intends to resign, it must:—

          (1) give SGX-ST at least 30 days' written notice, stating the proposed date of resignation. SGX-ST may vary or waive the notice period. If the resignation is accepted, SGX-ST will notify all Trading Members of the effective date of resignation;
          (2) not enter into any contract 7 Market Days from the date of notice except with the written approval of SGX-ST;
          (3) satisfy SGX-ST that it has taken, or will take, steps for the orderly winding down of its business with SGX-ST; and
          (4) satisfy SGX-ST that it has fulfilled or is able to fulfill:—
          (a) its obligations to SGX-ST; and
          (b) its obligations to its customers as SGX-ST may specify. For avoidance of doubt, a Trading Member must continue to comply with the Rules, and any Directives as may be imposed by SGX-ST until resignation.
        • 4.8.2 Acceptance of Resignation by SGX-ST

          SGX-ST need not accept the resignation of a Trading Member if it is:—

          (1) conducting an investigation under the Rules, investigating a complaint, or has initiated disciplinary proceedings against the Trading Member; or
          (2) not satisfied that the Trading Member has fulfilled or is able to fulfill:—
          (a) its obligations to SGX-ST; and
          (b) its obligations to its customers as SGX-ST may specify.
        • 4.8.3 Deletion from Register

          If SGX-ST accepts a Trading Member's resignation, the Trading Member's name will be deleted from the Register of Trading Members upon the effective date of resignation.

      • 4.9 Cessation of Trading Access

        • 4.9.1

          A Trading Member's access to organised markets established or operated by SGX-ST ceases if:—

          (1) a resolution is passed by its shareholders, or a court order is made, to wind it up;
          (2) an arrangement or composition is entered into with its creditors under any law relating to bankruptcy or insolvency;
          (3) it is not qualified by a Clearing Member or its qualification by a Clearing Member has been suspended;
          (4) it is suspended;
          (5) it ceases to carry on business pursuant to Rule 4.6.20;
          (6) it is declared a defaulter pursuant to Chapter 14; or
          (7) licence(s) to conduct the relevant regulated activities from the Relevant Regulatory Authority lapses or is revoked, or in the case where it is exempted from holding a licence, the Relevant Regulatory Authority withdraws the exemption.

          Amended on 29 November 201029 November 2010, 11 January 201111 January 2011, 19 May 201419 May 2014 and 8 October 20188 October 2018.

        • 4.9.2

          When a Trading Member's right to access organised markets established or operated by SGX-ST has ceased, SGX-ST will notify all Trading Members of the effective date of cessation and the date of reinstatement of access rights (if applicable).

          Amended on 8 October 20188 October 2018.
        • 4.9.3

          A Trading Member whose access to organised markets established or operated by SGX-ST has ceased must continue to comply with the relevant Rules, and any Directives.

          Amended on 8 October 20188 October 2018.

      • 4.10 Obligations of a Former Trading Member

        • 4.10.1

          A former Trading Member remains liable to SGX-ST and its customers for any liabilities incurred under the Rules or Directives during the period of its membership. The former Trading Member also remains subject to disciplinary actions for any offence committed during the period of its membership.

    • Chapter 5 — Designated Market-Maker

      • 5.1 Registration Criteria

        • 5.1.1

          To be eligible for registration as a Designated Market-Maker, an applicant must be a Corporation that is deemed appropriate by SGX-ST.

      • 5.2 Application Procedures

        • 5.2.1

          To become a Designated Market-Maker in respect of Specified Securities, an applicant must apply to SGX-ST in the form SGX-ST prescribes.

        • 5.2.2

          SGX-ST may, in its absolute discretion, approve or reject an application to be a Designated Market-Maker. SGX-ST is not obliged to give any reasons.

        • 5.2.3

          The approval of a Designated Market-Maker is valid for such period as SGX-ST prescribes.

        • 5.2.4

          Without derogating from Rule 5.2.2, SGX-ST may reject an application to be a Designated Market-Maker if:—

          (1) the applicant does not provide information relating to the application as SGX-ST requires;
          (1A) any information or document that is furnished by the applicant to SGX-ST is false or misleading;
          (2) the applicant, its substantial shareholder or head office, is in the course of being wound up, or a resolution to do so is passed by shareholders, or a court order is made, to wind it up, whether in or out of Singapore;
          (3) execution against the applicant, its substantial shareholder or head office, in respect of a judgment debt has been returned unsatisfied in whole or in part, whether in or out of Singapore;
          (4) the applicant, its substantial shareholder or head office, has entered into an arrangement or composition with its creditors that is still in operation, whether in or out of Singapore;
          (5) a receiver, a receiver and manager, judicial manager or such other person having similar powers and duties, has been appointed, whether in or out of Singapore, in relation to any property of the applicant, its substantial shareholders or head office;
          (6) SGX-ST is not satisfied with the financial standing of the applicant, its substantial shareholders or head office;
          (7) SGX-ST is not satisfied with the manner in which the applicant's business is to be conducted;
          (8) the applicant, any of its substantial shareholders or head office breaches any provision involving fraud or dishonesty, whether in or out of Singapore;
          (9) the applicant, any of its substantial shareholders or head office has been convicted of an offence under the Securities and Futures Act or any other relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities;
          (10) the applicant, any of its substantial shareholders or head office is the subject of an investigation involving an allegation of fraud or dishonesty, whether in or out of Singapore;
          (11) SGX-ST is not satisfied with the applicant's record of past performance;
          (12) SGX-ST is not satisfied that the applicant, any of its substantial shareholders or head office is a fit and proper person;
          (13) SGX-ST has reason to believe that the applicant may not perform the functions efficiently, honestly and fairly;
          (14) SGX-ST has reason to believe that the applicant may not act in the best interests of its customers;
          (15) the applicant, unless exempted, does not procure and maintain the requisite licence(s) with the Authority;
          (16) the applicant is not regulated in a jurisdiction with regulatory standards comparable to those contemplated under the Securities and Futures Act and these Rules;
          (17) the applicant is not regulated in a jurisdiction where the regulator or supervisory authority has information sharing and co-operation arrangements with the Authority; or
          (18) in SGX-ST's opinion, it would be contrary to the interests of the public to register the applicant as a Designated Market-Maker.

          Amended on 12 October 200512 October 2005 and 19 May 201419 May 2014.

      • 5.3 Appeals

        • 5.3.1

          If SGX-ST rejects an application to be a Designated Market-Maker, the applicant may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

          Amended on 15 September 201715 September 2017.

      • 5.4 Register of Designated Market-Makers

        • 5.4.1

          An applicant approved by SGX-ST as a Designated Market-Maker will have its name entered in the Register of Designated Market-Makers. SGX-ST will notify all Designated Market-Makers and Trading Members of the effective date of the Designated Market-Maker's registration.

      • 5.5 Obligations of A Designated Market-Maker

        • 5.5.1 Compliance

          A Designated Market-Maker must:—

          (1) comply with this Chapter, and any Directives SGX-ST prescribes; and
          (2) continue to satisfy the registration criteria.
        • 5.5.2 Proprietary Accounts

          A Designated Market-Maker may make a market in Specified Securities for 1 or more of the following:—

          (1) its proprietary accounts;
          (2) proprietary accounts of its related corporations or Associated Corporations; and
          (3) customers if it holds a Capital Markets Services Licence or is exempt under the Securities and Futures Act or Securities and Futures Regulations.

          In this Rule, an Associated Corporation means any body corporate formed in or out of Singapore in which the Designated Market-Maker and its related corporations hold directly or indirectly a beneficial interest of not less than 20% of the issued share capital.

          Amended on 29 December 201429 December 2014.

        • 5.5.3 Bid and Offer Quotations

          A Designated Market-Maker must publish on the Trading System competitive bid and offer quotations:—

          (1) on a continuous basis or in such manner as SGX-ST prescribes to provide for an adequately liquid market (with suitable disclosure to investors);
          (2) within the maximum spread; and
          (3) for not less than the minimum quantity that SGX-ST prescribes.

          Refer to Directive No. 3.

          Amended on 3 April 20083 April 2008.

        • 5.5.4 Execution of Trades

          If a Designated Market-Maker is not a Trading Member, its trades in any Specified Securities must be routed through a Trading Member.

        • 5.5.5 Market-Making Representative

          A Designated Market-Maker must appoint at least 1 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.

        • 5.5.6 Periodic Returns

          A Designated Market-Maker must submit periodic returns as SGX-ST requires.

        • 5.5.7 Auditors' Report

          If asked, a Designated Market-Maker must provide an independent auditors' report to SGX-ST. 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.

        • 5.5.8 Payment

          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.

        • 5.5.9 Notification of Adverse Changes

          A Designated Market-Maker shall immediately notify SGX-ST if any of the following occurs, or is likely to occur:

          (1) any of the events under Rule 5.2.4; and
          (2) the inability of the Designated Market-Maker to satisfy any of its registration criteria and obligations as a Designated Market-Maker under this Rules.

          Added on 27 May 201327 May 2013.

      • 5.6 Suspension or Restriction of Trades in Specified Security

        • 5.6.1

          SGX-ST may suspend or restrict trading in any or all Specified Securities in accordance with Rule 8.10 or Rule 8.11. It may do so for 1 or more markets or 1 or more trading sessions or any part of a trading session.

        • 5.6.2

          Specified Securities which have been suspended from trading or subject to a trading halt cease to be traded on the Trading System.

          Amended on 3 April 20083 April 2008.

        • 5.6.3

          Except with SGX-ST's approval, a Designated Market-Maker must not make a market in a Specified Security which is suspended or subject to a trading halt. SGX-ST may specify conditions under which the Designated Market-Maker is permitted to do so.

        • 5.6.4

          If SGX-ST imposes restrictions on trades in any Specified Securities, a Designated Market-Maker must not make a market in Specified Securities that will breach the restrictions.

      • 5.7 Suspension and Restriction of Activities

        • 5.7.1

          SGX-ST may suspend or restrict the activities of a Designated Market-Maker for such period as SGX-ST specifies if the Designated Market-Maker:—

          (1) fails to continue to satisfy the registration criteria;
          (2) fails to comply with Rules 5.5, 5.6.3, 5.6.4 or any Directives;
          (3) fails to comply with the Rules or any Directives in its capacity as a Trading Member (if applicable);
          (4) is suspended in its capacity as a Trading Member (if applicable);
          (5) defaults on any trade in Specified Securities or any other securities or futures contracts;
          (6) in SGX-ST's opinion, is in financial or operating difficulty;
          (7) is suspected of manipulating or distorting the market for a Specified Security or attempting to do so;
          (8) is the subject of a written complaint involving an allegation of fraud or dishonesty, whether in or out of Singapore;
          (9) is the subject of an investigation involving an allegation of fraud or dishonesty, whether in or out of Singapore; or
          (10) engages in conduct detrimental to the financial integrity, reputation or interests of SGX-ST, or markets established or operated by SGX-ST.

          Amended on 3 April 20083 April 2008 and 8 October 20188 October 2018.

      • 5.8 Revocation of Registration

        • 5.8.1

          SGX-ST may revoke the registration of a Designated Market-Maker in the circumstances under Rules 5.7.1(1)–(7) or if the Designated Market-Maker:—

          (1) breaches any provision involving fraud or dishonesty, whether in or out of Singapore; or
          (2) is expelled as a Trading Member as a result of disciplinary proceedings.
      • 5.9 Notification of Action and Appeal

        • 5.9.1

          If SGX-ST takes action against a Designated Market-Maker under Rule 5.7.1 or 5.8.1, it will inform the Designated Market-Maker in writing. Such action shall be effective on the date specified in the written notification.

        • 5.9.2

          If SGX-ST revokes the registration of a Designated Market-Maker under Rule 5.8.1, the Designated Market-Maker may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

          Amended on 15 September 201715 September 2017.

      • 5.10 Disciplinary Proceedings

        • 5.10.1

          A failure to comply with Chapter 5, or any applicable Rules or Directives, is a breach and may be subject to disciplinary action.

        • 5.10.2

          A Designated Market-Maker and a registered market-making representative are bound by the Supervisory Rules in Chapter 14 of these Rules and must comply with any disciplinary decision as if it were a Trading Member and he or she were a Trading Representative respectively.

          Amended on 23 January 200923 January 2009.

      • 5.11 Resignation

        • 5.11.1 Procedures

          (1) A Designated Market-Maker who intends to resign from making a market for a Specified Security must give at least 30 days' written notice to SGX-ST, stating the proposed date of resignation. SGX-ST may vary or waive the notice period. SGX-ST will notify all Designated Market-Makers and Trading Members of the effective date of resignation.
          (2) A Designated Market-Maker must continue to comply with this Chapter, and any Directives as may be imposed by SGX-ST until resignation.
        • 5.11.2 Acceptance of Resignation by SGX-ST

          SGX-ST needs not accept the resignation of a Designated Market-Maker if it is:—

          (1) conducting an investigation under the Rules, investigating a complaint, or has initiated disciplinary proceedings against the Designated Market-Maker, or
          (2) not satisfied that the Designated Market-Maker has fulfilled or is able to fulfill all its obligations to SGX-ST.
        • 5.11.3 Deletion from Register

          If SGX-ST accepts a Designated Market-Maker's resignation, the Designated Market-Maker's name will be deleted from the Register of Designated Market-Makers upon the effective date of resignation.

      • 5.12 Obligations of a Former Designated Market-Maker

        • 5.12.1

          A former Designated Market-Maker remains liable to SGX-ST and its customers (if applicable) for any liabilities incurred under the Rules or Directives during the period of its registration in respect of a Specified Security. The former Designated Market-Maker also remains subject to disciplinary action for any offence committed during the period of its registration.

    • Chapter 6 — Approved Executive Director

      • 6.1 Appointment and Registration

        • 6.1.1

          (1) A Trading Member must appoint at least 1 person as Approved Executive Director to be registered with SGX-ST. SGX-ST may, in its absolute discretion refuse to register an appointed person as an Approved Executive Director. SGX-ST is not obliged to give any reasons..
          (2) Subject to Rule 6.1.1(2A), the Approved Executive Director must be approved by the Authority as an Executive Director in accordance with the Securities and Futures Act.
          (2A) Where the Trading Member does not hold a Capital Markets Services Licence, it shall appoint a fit and proper person that is a senior management responsible for the Trading Member's business activities on SGX-ST for which it holds a licence specified in Rule 4.1.1(b) as an Approved Executive Director.
          (3) The Approved Executive Director is to be responsible for ensuring that the Trading Member complies with the Rules, and any Directives that SGX-ST prescribes.

          Amended on 19 May 201419 May 2014 and 29 December 201429 December 2014.

        • 6.1.2

          Upon registration, an Approved Executive Director is deemed to have agreed to be bound by the Rules, or any Directives SGX-ST prescribes.

      • 6.2 Obligations of an Approved Executive Director

        • 6.2.1 Compliance

          An Approved Executive Director must comply with the Rules, and any Directives SGX-ST prescribes.

        • 6.2.2 Payment of Fees

          An Approved Executive Director must pay SGX-ST all fees, levies and charges as SGX-ST prescribes. SGX-ST may reduce or waive any fee, levy or charge.

        • 6.2.3 Other Businesses

          (1) An Approved Executive Director must inform SGX-ST in writing at least 14 days before he or she engages in, or holds any substantial shareholding in, any other business that might potentially conflict with being an Approved Executive Director. The Approved Executive Director must ensure that the proposed engagement or shareholding is agreed to by his or her Trading Member.
          (2) The engagement (and any actions taken under it) or shareholding must not breach the Securities and Futures Act, Securities and Futures Regulations, the Rules, any Directives or any relevant law or regulation.
          (3) An Approved Executive Director must supply SGX-ST with any information it requires regarding the engagement or acquisition of shareholding.
          (4) If SGX-ST objects to the engagement or acquisition of shareholding, an Approved Executive Director must not proceed with it. SGX-ST may extend the period specified in Rule 6.2.3(1). If extended, the Approved Executive Director must not proceed with the engagement or acquisition of shareholding before the expiry of the extended period.
          (5) If an engagement or shareholding, in SGX-ST's opinion, is detrimental to the financial integrity, reputation or interests of SGX-ST, the principal Trading Member or its customers, SGX-ST may require the Approved Executive Director to end it.
          (6) If SGX-ST objects to the engagement or acquisition of shareholding or requires an Approved Executive Director to end it, the Approved Executive Director may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

          Refer to Directive No. 1.

          Amended on 15 September 201715 September 2017.

      • 6.3 Automatic De-Registration

        • 6.3.1

          An Approved Executive Director will automatically cease to be registered as an Approved Executive Director if he or she:—

          (1) becomes of unsound mind;
          (2) is made bankrupt, whether in or out of Singapore;
          (3) is disqualified from holding office as a Director under the Securities and Futures Act, the Companies Act (Cap. 50) or any other relevant applicable laws;
          (4) ceases to be an Executive Director or senior management responsible for the Trading Member's business activities on SGX-ST of the Trading Member;
          (5) is subject to a compromise or scheme of arrangement with his or her creditors, whether in or out of Singapore;
          (6) has execution in respect of a judgment debt returned unsatisfied in whole or in part; or
          (7) breaches any provision involving fraud or dishonesty, whether in or out of Singapore.

          Amended on 19 May 201419 May 2014.

      • 6.4 Deletion from Register

        • 6.4.1

          An Approved Executive Director who ceases to hold office will have his or her name deleted from the Register of Approved Executive Director upon the effective date of cessation.

      • 6.5 Obligations of a Former Approved Executive Director

        • 6.5.1

          A former Approved Executive Director remains liable to SGX-ST for any liabilities incurred under the Rules or Directives during the period of his or her registration. The former Approved Executive Director also remains subject to disciplinary actions for any offence committed during the period of his or her registration.

    • Chapter 7 — Trading Representative

      • 7.1 Registration Criteria

        • 7.1.1

          To be eligible for registration as a Trading Representative, an applicant must:—

          (1) be at least 21 years old;
          (2) be a fit and proper* person;
          (3) possess a good track record of business conduct (if applicable);
          (4) hold a licence from or be registered with the Relevant Regulatory Authority for the conduct of relevant regulated activities, unless exempted, and whose licence or registration is not suspended, revoked or expired. If SGX-ST is of the view that the regulatory requirements arising from the licence and registration are not comparable to those contemplated under the Act and this Rules, it shall have the discretion to prescribe additional requirements;
          (5) not be a person whose registration or licence has previously been revoked by an exchange or a regulatory body, whether in or out of Singapore; and
          (6) not be an undischarged bankrupt, whether in or out of Singapore.

          Amended on 3 April 20083 April 2008, 29 November 201029 November 2010 and 19 May 201419 May 2014.


          * SGX-ST shall evaluate "fit and proper" criteria in this Rule 7.1.1 in a manner similar to the MAS Guidelines on Fit and Proper Criteria.

      • 7.2 Application Procedures

        • 7.2.1

          To become a Trading Representative, an applicant must apply to SGX-ST in the form SGX-ST prescribes. The application must be supported by a Trading Member as his or her principal.

        • 7.2.2

          SGX-ST may, in its absolute discretion, approve or reject an application to be a Trading Representative. SGX-ST is not obliged to give any reasons.

        • 7.2.3

          In approving an application to be a Trading Representative, SGX-ST may consult the Relevant Regulatory Authority.

          Amended on 19 May 201419 May 2014.

        • 7.2.4

          Without derogating from Rule 7.2.2, SGX-ST may reject an application to be a Trading Representative if:—

          (1) the applicant does not provide information relating to the application as SGX-ST requires;
          (1A) any information or document that is furnished by the applicant to SGX-ST is false or misleading;
          (2) execution against the applicant in respect of a judgment debt has been returned unsatisfied in whole or in part;
          (3) the applicant has entered into an arrangement with his or her creditors that is still in operation, whether in or out of Singapore;
          (4) SGX-ST is not satisfied with the financial standing of the applicant;
          (5) the applicant breaches any provision involving fraud or dishonesty, whether in or out of Singapore;
          (6) the applicant has been convicted of an offence under the Securities and Futures Act or any other relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities;
          (7) the applicant is the subject of an investigation involving an allegation of fraud or dishonesty, whether in or out of Singapore;
          (8) SGX-ST is not satisfied that he or she is a fit and proper person;
          (9) SGX-ST has reason to believe that the applicant may not perform the functions efficiently, honestly and fairly;
          (10) SGX-ST has reason to believe that the applicant may not act in the best interests of the Trading Member or the Trading Member's customers; or
          (11) in SGX-ST's opinion, it would be contrary to the interests of the public to register the applicant as a Trading Representative.

          Amended on 12 October 200512 October 2005 and 19 May 201419 May 2014.

      • 7.3 Appeals

        • 7.3.1

          If SGX-ST rejects an application to be a Trading Representative, the applicant's principal Trading Member may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

          Amended on 15 September 201715 September 2017.

      • 7.4 Register of Trading Representatives

        • 7.4.1

          An applicant approved by SGX-ST as a Trading Representative will have his or her name entered in the Register of Trading Representatives.

        • 7.4.2

          Upon registration, a Trading Representative is deemed to have agreed to be bound by the Rules, or any Directives SGX-ST prescribes.

      • 7.5 Obligations of a Trading Representative

        • 7.5.1 Compliance

          A Trading Representative must comply with the Rules, and any Directives SGX-ST prescribes.

        • 7.5.2 Acting for a Trading Member

          A Trading Representative must act for only 1 Trading Member.

        • 7.5.3 Good Business Practice

          A Trading Representative must adhere to the principles of good business practice in the conduct of his or her business affairs.

        • 7.5.4 Payment of Fees

          A Trading Representative must pay SGX-ST all fees, levies and charges as SGX-ST prescribes. SGX-ST may reduce or waive any fee, levy or charge.

        • 7.5.5 Register of Securities

          (1) A Trading Representative sponsored by a Trading Member that holds a Capital Markets Services Licence must maintain a register of securities in accordance with the Securities and Futures Act. The register must include futures contracts.
          (2) If asked by SGX-ST, a Trading Representative must produce the register for inspection.
          (3) A Trading Representative must permit SGX-ST to take extracts of the register.

          Amended on 3 April 20083 April 2008, 19 May 201419 May 2014, 29 December 201429 December 2014 and 8 October 20188 October 2018.

        • 7.5.6 Other Businesses

          (1) A Trading Representative must inform SGX-ST in writing at least 14 days before he or she engages in, or holds any substantial shareholding in, any other business that might potentially conflict with being a Trading Representative. The Trading Representative must ensure that the proposed engagement or shareholding is agreed to by his or her Trading Member.
          (2) The engagement (and any actions taken under it) or shareholding must not breach the Securities and Futures Act, Securities and Futures Regulations, the Rules, any Directives or any relevant law or regulation.
          (3) A Trading Representative must supply SGX-ST with any information it requires regarding the engagement or acquisition of shareholding.
          (4) If SGX-ST objects to the engagement or acquisition of shareholding, a Trading Representative must not proceed with it. SGX-ST may extend the period specified in Rule 7.5.6(1). If extended, the Trading Representative must not proceed with the engagement or acquisition of shareholding before the expiry of the extended period.
          (5) If an engagement or shareholding, in SGX-ST's opinion, is detrimental to the financial integrity, reputation or interests of SGX-ST, the principal Trading Member or its customers, SGX-ST may require the Trading Representative to end it.
          (6) If SGX-ST objects to the engagement or acquisition of shareholding or requires a Trading Representative to end it, the Trading Representative may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

          Refer to Directive No. 1.

          Amended on 15 September 201715 September 2017.

        • 7.5.7 Contact Details

          A Trading Representative must inform SGX-ST in writing of any change in his or her residential or mailing address or contact numbers within 7 days of the change.

      • 7.6 Remisier's Deposit

        • 7.6.1

          A Remisier must give a deposit of at least $30,000 to the Trading Member. It must be in the form of cash, Marketable Securities or a guarantee from a bank or financial institution operating in Singapore.

          Amended on 23 January 200923 January 2009.

        • 7.6.2

          A Trading Member may require a Remisier to increase the amount of deposit or restrict the Remisier's volume of business if, in the Trading Member's opinion, the deposit is not enough for the volume of business transacted by the Remisier.

      • 7.7 De-Registration

        Amended on 19 May 201419 May 2014.

        • 7.7.1

          A Trading Representative will automatically cease to be registered as a Trading Representative if he or she:—

          (1) becomes of unsound mind;
          (2) is made bankrupt, whether in or out of Singapore;
          (3) is subject to a compromise or scheme of arrangement with his or her creditors, whether in or out of Singapore;
          (4) has execution in respect of a judgment debt returned unsatisfied in whole or in part;
          (5) breaches any provision involving fraud or dishonesty, whether in or out of Singapore;
          (6) has had his or her licence from or registration with the Relevant Regulatory Authority revoked, or his or her licence from or registration with the Relevant Regulatory Authority has expired; or
          (7) in the case of a Trading Representative who is exempted from licensing or registration, has had his or her exemption from the Relevant Regulatory Authority withdrawn

          Amended on 29 November 201029 November 2010 and 19 May 201419 May 2014.

        • 7.7.2

          The Exchange may terminate the registration of a Trading Representative if the Relevant Regulatory Authority imposes conditions or restrictions on the Trading Representative in respect of the relevant regulated activities.

          Added on 19 May 201419 May 2014.

      • 7.8 Deletion from Register

        • 7.8.1

          A Trading Representative who ceases to act for his or her Trading Member will have his or her name deleted from the Register of Trading Representatives upon the effective date of cessation.

      • 7.9 Obligations of a Former Trading Representative

        • 7.9.1

          A former Trading Representative remains liable to SGX-ST for any liabilities incurred under the Rules or Directives during the period of his or her registration. The former Trading Representative also remains subject to disciplinary actions for any offence committed during the period of his or her registration.