These Rules shall be applicable to the trading on SGX-ST of Options listed or quoted on SGX-ST, the terms and conditions of such Options, the exercise and settlement thereof, the handling of orders and the conduct of accounts and other matters relating to Options trading. Except as otherwise specified in this Chapter, the Rules and Directives shall, where applicable, apply to the trading of Options on SGX-ST.

In this Chapter, (except where the context otherwise requires):—

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Amended on 3 April 20083 April 2008.

SGX-ST may from time to time approve for listing or quotation and trading on SGX-ST, Put Options and Call Options in respect of approved underlying securities. Subject to giving prior notification, SGX-ST may remove the listing or quotation of any Series of Options when there are no outstanding positions in such Series.

SGX-ST may from time to time approve underlying securities as being suitable for Options trading on SGX-ST.

SGX-ST may from time to time establish criteria to be considered in evaluating potential underlying securities for Option transactions. The fact that particular securities may meet the criteria does not necessarily mean that they will be approved as underlying securities. In special situations an underlying security may be approved even though it does not meet all of the criteria established.

Whenever SGX-ST determines that underlying securities previously approved for Option transactions do not meet the then current requirements for continuance of such approval or for any other reason should no longer be approved, SGX-ST shall not open for trading any additional Series of Options covering those underlying securities and any opening purchase transactions in Options of that Series previously opened may be prohibited to the extent that SGX-ST shall deem necessary for the maintenance of a fair and orderly market or for the protection of Purchasers or Writers of Options.

Option transactions shall be registered with the OCC in accordance with its Regulations. An Option shall be deemed to be registered by the issuance of the contract statement by the OCC on behalf of the Trading Member to the Purchaser or Writer thereof.

The trading of Options that have been the subject of suspension under Rule 18.3.6(1) may be resumed upon the determination of SGX-ST that the conditions which led to the suspension are no longer present or that the interests of a fair and orderly market are best served by a resumption of trading.

Subject to the Regulations and in accordance with the Rules and Directives:—

No person shall exceed the position limits prescribed by SGX-ST for outstanding positions in Options. Outstanding positions in Options in excess of the applicable position limits shall be liable to be closed off in accordance with Rule 18.5.6.

Except with the prior written approval of SGX-ST in each instance, no Trading Member shall, for any account in which it has an interest or for the account of any customer, effect an opening transaction in an Option of any Class dealt on SGX-ST if that Trading Member has reason to believe that as a result of such transaction the Trading Member or its customer would, acting alone or in concert with others directly or indirectly, hold or control or be obligated in respect of an aggregate position (whether short or long) in excess of the individual position limits set out as follows:—

Notwithstanding Rule 18.5.1 the total number of outstanding Options on both sides of the market of any underlying security shall not exceed 15% of the issued capital of the issuer of the underlying security. This limit shall be known as the market position limit.

SGX-ST may from time to time vary the individual position and market position limits in Rules 18.5.1 and 18.5.2 respectively by a circular issued to all Trading Members, such new position limits to take effect on such date specified therein. Such new position limits shall not, unless otherwise stated, affect existing Options positions.

Whenever SGX-ST shall determine that a person or group of persons acting in concert holds or controls, or is obligated in respect of, an aggregate position (whether long or short) in all Options of 1 or more Classes or Series dealt in on SGX-ST in excess of the applicable position limits, it may order all Trading Members carrying a position in Options of such Classes or Series for such person or persons to enter into closing transactions in respect of such outstanding positions as expeditiously as possible consistent with the maintenance of a fair and orderly market. Whenever such an order is given, no Trading Member shall accept any order to write, purchase or exercise any Option for the account of the person or persons named in the order, unless in each instance express approval therefor is given by SGX-ST, or until such order is rescinded.

It shall be the responsibility of each Trading Member and Trading Representative accepting orders for opening transactions (purchase or written) in Options to inform customers of the applicable position limits and not to accept orders from any customer if the Trading Member or Trading Representative has reason to believe that the customer, acting alone or in concert with others, has exceeded or is attempting to exceed such position limits.

Whenever SGX-ST or the OCC shall determine in light of current conditions in the Options Market or in the Equity Market that there are outstanding an excessive number of percent of uncovered short positions in Options of a given Class dealt in on SGX-ST, SGX-ST or the OCC may prohibit any further opening written transactions in Options of that Class unless the short position is created by a Scrip-Covered Call Option and it may prohibit the uncovering of existing Scrip-Covered Call Options in 1 or more Series of that Class as it deems appropriate in the interests of maintaining a fair and orderly market in such Options or in the underlying securities, or otherwise deems advisable in the public interest or for the protection of investors.

SGX-ST or the OCC shall be empowered to impose, from time to time in its discretion, such restrictions on Option transactions or the exercise of Options in 1 or more Series of Options of any Class dealt in on SGX-ST as SGX-ST or the OCC deems advisable in the interests of maintaining a fair and orderly market in Options, or in the underlying securities or otherwise deems advisable in the public interest or for the protection of investors. During the effectiveness of such restrictions, no Trading Member shall, for any account in which it has an interest or for the account of any customer effect any Option transaction or accept Exercise Notices to exercise any Option in contravention of such restrictions.

Unless otherwise determined by SGX-ST, the trading hours for Options shall be the same as the Equity Market. SGX-ST may by notice extend or vary the trading hours for the Options Market.

Amended on 3 April 20083 April 2008.

Unless otherwise determined by SGX-ST, minimum bids for Options trading shall be the same rate prevailing for minimum bids in the Equity Market.

Amended on 3 April 20083 April 2008.

If a customer fails to make payment of the Premiums payable to a Trading Member despite being requested to do so by the Trading Member, then the Trading Member shall be entitled to enter into a closing purchase or written transaction as the case may be, in respect of the same Option for which the Premiums were due, charging any loss arising therefrom (including commissions and other costs) to the defaulting customer.

Failure by a customer to pay the Premiums due shall not affect the Trading Member's obligations as the registered holder of the Options to the OCC under the Regulations. The Trading Member affected shall have recourse in accordance with the foregoing Rule 18.6.6.

All closing transactions shall be made through the same Trading Member with whom the opening purchase or opening written transaction is executed or where the outstanding Options position has been transferred to another Trading Member in accordance with Rule 18.7.7 the closing transaction shall be made through that Trading Member.

Before opening an Options trading account, a Trading Member shall exercise due diligence to learn the essential facts concerning the customer. A record of this information shall be maintained by the Trading Member. Based upon such information, an Executive Director of the Trading Member shall approve in writing the opening of the customer's Options trading account.

The contract statements for the Option transactions of a Trading Member's customer shall be sent to the customer by the OCC on behalf of the said Trading Member on the next Market Day after an Option transaction date indicating, in respect of each Option transaction:—

A customer who intends to transfer his outstanding Options position from one Trading Member to another shall obtain the consent to the transfer from the Trading Member with whom he has his outstanding Options positions and shall obtain the transferee Trading Member's consent to accept his outstanding Options positions before the transfer.

No Trading Member shall accept an order for the account of any company which is the issuer of underlying securities or for the account of any subsidiary of such company for the writing or purchase of an Option with respect to underlying securities of that issuer.

No Option transactions shall be effected on behalf of customers without proper authorisation being given by the customers.

When taking an order, the Trading Member shall establish proper procedures to ensure that the customers' orders shall contain the following details:—

Customers of Trading Members shall be required by Trading Members to deposit proper and adequate margins in respect of any opening written transaction effected on their behalf by the Trading Member as security for the due performance of their obligations as Writers of the Option in accordance with Rule 18.8.3.

Trading Members shall accept the deposit of margin securities from their customers in respect of their opening written transactions on the following terms:—

The amount of margin prescribed by the OCC is the minimum which must be required initially and subsequently maintained. However, nothing in this Chapter shall be construed as preventing a Trading Member from requiring higher margins from its customers.

For every Series of Options traded on SGX-ST, the exercise cut-off time; being the latest time prior to the expiration of such Series at which a Trading Member will accept exercise instructions from customers, shall be not later than 12.30 p.m. on the Expiration Date.

The holder of an unexpired outstanding Option may exercise the Option only through the Trading Member with whom he has the outstanding long position in the Option by submitting an Exercise Notice duly completed and signed by the exercising Option holder.

Subject to Rule 18.9.7, upon the allocation of an Exercise Notice of an Option, the exercise shall take effect as if it were a purchase and sale of the underlying security on SGX-ST and the Rules and Directives of SGX-ST shall thereafter apply to the exercise as if it were a contract for the purchase and sale of the underlying security.

Trading Members shall not accept the lodgement of any Exercise Notice by a customer unless and until the aggregate Premium payable in respect of the Option has been paid in full.

Unless otherwise provided by SGX-ST, the due date for the contract for the purchase and sale of the underlying security upon the exercise of an Option shall be the fourth Market Day after the Exercise Date.

In the event of a distribution in respect of any underlying securities, the number of outstanding Options and/or the Standard Quantity and/or the Exercise Price with respect to all Options outstanding in those underlying securities shall be adjusted, effective on the relevant "ex-date" of dealings in the underlying securities in the Equity Market in accordance with this clause.

The adjusted Exercise Price shall be rounded to the nearest 1 cent and the adjusted Standard Quantity shall be rounded to the nearest whole share.

In the case when underlying securities become entitled to rights, the Exercise Price for the underlying securities ex rights shall be calculated by deducting from the Exercise Price for the underlying securities the value of the rights accruing to such underlying securities calculated on the last done price, or in the case where the underlying securities is a Prescribed Security, the closing price, of the underlying securities on the last day on which such underlying securities are traded cum rights, unless otherwise determined by SGX-ST.

Amended on 24 February 201424 February 2014.

In the case of any distribution for which adjustment is not provided in any of the foregoing clauses, or in the case of any event for which adjustment is provided in one of the foregoing clauses but is not considered by SGX-ST to be appropriate under the circumstances, SGX-ST shall make such adjustments in the Exercise Price, Standard Quantity or number of Options with respect to the Options affected by such event as SGX-ST in its sole discretion determines to be fair to the Purchasers and Writers of such Options.

In the event of a dividend declared in respect of any underlying securities, no adjustments shall be made to the number of outstanding Options or the Standard Quantity or the Exercise Price with respect to all Options outstanding in those underlying securities.

In the event of a distribution, delivery and settlement procedures following the lodgement of an Exercise Notice with the OCC shall be as follows:—

Where the distribution is in the form of a bonus issue and the Exercise Notice is lodged with the OCC on or after the date the Option Series has commenced trading "cum bonus" but before the "ex date", delivery shall be effected of the Standard Quantity of the underlying securities, including the bonus securities. Where the accruing bonus securities have yet to be received from the issuer, delivery of the bonus securities shall be effected as soon as the issued accruing bonus securities are received from the issuer.

Where the distribution is in the form of a bonus issue and the Exercise Notice is lodged with the OCC before the period the Option Series has commenced trading "cum bonus" (notwithstanding the seller be advised of the allocation on or after the Option Series commenced trading "cum") delivery shall be effected of the Standard Quantity of the underlying securities only.

Where the distribution is in the form of a rights issue and the Exercise Notice is lodged with the OCC before the period the Option Series has commenced trading "cum rights" (notwithstanding the seller be advised of the allocation on or after the Option Series commenced trading "cum") delivery shall be effected of the Standard Quantity of the underlying securities only.

In the event of any distribution not covered by the foregoing Rules or in the case of any event in respect of which the foregoing Rules apply but is not considered by SGX-ST to be appropriate under the circumstances, SGX-ST or the OCC shall prescribe such delivery and settlement procedures as SGX-ST or the OCC in its sole discretion determines to be fair to the Purchasers or Writers of such Options.

In the event of a dividend declared in respect of any underlying securities:—

In lieu of delivery of the underlying securities where the seller is in a short position, the OCC may from time to time:—

Unless otherwise determined by SGX-ST, the rates of charge for commission on both opening and closing Option transactions shall be the same as the rates of charge for commission in the Equity Market.

A clearing fee of 0.05% of the aggregate Premium, subject to a maximum fee of $200, shall be payable to the OCC, such clearing fee to be collected and paid by the Trading Member to the OCC. The OCC may, at its discretion, waive or reduce the clearing fees payable by any person trading in Options under a scheme approved by SGX-ST.

The prevailing commission rates pertaining to sale and purchase transactions in the Equity Market shall be applicable to the acquisition or disposition of the underlying securities on the exercise of an Option and shall be calculated on the aggregate Exercise Price of the underlying securities.

The OCC shall be empowered to issue notices, guidelines, circulars and announcements in respect of any matter in this Chapter on behalf of SGX-ST.

Any breach of the Regulations shall be deemed to be a breach of this Chapter and SGX-ST may take disciplinary action in accordance with the Rules against any Trading Member (notwithstanding that it was acting in its capacity as a Clearing Member of the OCC) for violation of the Regulations or for errors, delays and conduct detrimental to the operations of the OCC.