19.1.1 Applicability
This Chapter shall be applicable to the listing and trading of Marginable Futures Contracts on SGX-ST, the terms and conditions of such Marginable Futures Contracts, the handling of orders, the conduct of accounts, the settlement thereof, and other matters relating to the listing and trading of Marginable Futures Contracts on SGX-ST. Except as otherwise specified in this Chapter, the Rules, Directives and Practice Notes shall, where applicable, apply to the trading of Marginable Futures Contracts on SGX-ST.
19.2 Listing of Marginable Futures Contracts
19.3 Contract Specifications
19.4 Adjustments Due to Corporate Actions
19.5.1 Nomination of securities
SGX-ST may, from time to time, nominate an underlying for Marginable Futures Contracts. If SGX-ST decides, for any reason, that an underlying is no longer suitable for Marginable Futures Contracts, SGX-ST shall:—
19.5.2 Removal from Quotation and Restriction of Trading before Last Trading Day
Subject to giving prior notification, SGX-ST may remove any Marginable Futures Contract from quotation before the Last Trading Day if all positions in such Marginable Futures Contract have been offset. If there are positions in such Marginable Futures Contract that are not offset, SGX-ST may require that such positions be cash settled immediately according to the terms as determined by SGX-ST, or restrict trading only to enable those positions to be offset or to the extent that SGX-ST deems such trading to be necessary or desirable for the maintenance of a fair, orderly and transparent market.
19.6.1 Trading Halt or Suspension of Trading
19.6.2 Resumption of Trading
The trading of Marginable Futures Contracts which have been halted or suspended under Rule 19.6.1 may be resumed if SGX-ST determines that:
19.8.1
A Trading Member must immediately notify SGX-ST of the details of any account carried on its books that exceeds the monitoring thresholds on positions that have not been offset, as prescribed by SGX-ST from time to time. Such monitoring thresholds may be imposed on any account or any single customer, and may include any one or a combination of the following:—
"single customer" in this Rule 19.8 shall have the meaning ascribed to it in Rule 11.7.5.
19.8.2
SGX-ST shall, in the interest of maintaining a fair, orderly and transparent market, monitor the total number of positions that have not been offset, of all accounts opened with all Trading Members in any Marginable Futures Contract on either side (long or short), or both sides of the market, and where appropriate, take action under Rule 19.8.3.
19.8.3
To reduce a Trading Member's risk exposure in trading and dealing in any Marginable Futures Contracts, or for the purpose of maintaining a fair, orderly and transparent market, SGX-ST shall have the right to impose on the Trading Member such measures as it deems necessary or desirable. The Trading Member must comply with all measures which are imposed by SGX-ST. These may include:—
19.8.4
In determining the monitoring thresholds prescribed under Rules 19.8.1 and 19.8.2, and the risk management measures prescribed under Rule 19.8.3, SGX-ST may consider the following factors:—
19.8.5
In computing positions that have not been offset for the purpose of Rule 19.8, the positions of all accounts directly or indirectly owned or controlled by a person or persons, and the positions of all accounts of any person or persons acting in concert and the positions of all accounts in which a person or persons have a proprietary or beneficial interest, shall be accumulated and deemed to be the positions of each of such persons as if each owned or controlled all the aggregate positions individually.
19.9.1
A Trading Member must establish and maintain adequate internal control systems to:—
19.10.1
For the purpose of this Rule 19.10:—
Term | Meaning |
"Customer Asset Value" | refers to moneys and the market value of assets in a customer's account subject to such hair-cut as specified by SGX-ST. |
"Initial Margins" | refers to the minimum amount required to be deposited by customers, as prescribed by CDP, with a Trading Member for positions in Marginable Futures Contracts. This minimum amount is distinct from and in addition to Variation Margins. |
"Maintenance Margins" | refers to that component of Required Margins, as determined by CDP, which must be maintained in a customer's account subsequent to the deposit of Initial Margins for that customer's positions in Marginable Futures Contracts. |
"Required Margins" | refers to the sum of Maintenance Margins and Variation Margins. |
"Valuation Price" | means the official price of Marginable Futures Contracts prescribed by SGX-ST for the purpose of determining Variation Margins. |
"Variation Margins" | refers to that component of Required Margins comprising the mark-to-market gains and losses, in relation to the price at which the Marginable Futures Contract was bought or sold, arising from the daily valuation of positions, except that Variation Margins are not required if the Trading Member permits a customer to realise a gain or loss pursuant to executing a trade to offset an existing position. |
A net loss increases the Variation Margins and Required Margins amount, and a net profit decreases the Variation Margins and Required Margins amount.
In calculating the mark-to-market losses or gains, a Trading Member must use the Valuation Price as determined by SGX-ST.
19.10.2
Amended on 19 May 201419 May 2014.
19.10.3
If the Customer Asset Value falls below the Required Margins, the Trading Member must call for additional margins from the customer to bring the Customer Asset Value balance to no less than the sum of Initial Margins and Variation Margins within two Market Days from the date the Customer Asset Value falls below the Required Margins.
19.10.4
Except for trades which reduce a customer's Required Margins, a Trading Member must not allow a customer to incur any new trade unless:—
19.10.5
Trading Members must not set margin requirements that are less stringent than those prescribed by SGX-ST.
Amended on 21 January 201321 January 2013.
19.10.6
Rules 13.5A.1(2) and 13.5A.1(3) shall apply in respect of margins for Marginable Futures Contracts that the Trading Member may call from the customer.
Amended on 21 January 201321 January 2013.
19.10.7
Mark to market gains of a customer may be utilised by the Trading Member to meet Initial Margins for the same customer.
19.10.8
A Trading Member may allow a customer to withdraw Excess Margins provided such withdrawal will not cause the Customer Asset Value to be less than zero.
"Excess Margins" refers to the amount of Customer Asset Value that is in excess of the sum of the Initial Margins and Variation Margins.
19.10.10
A Trading Member must comply with such requirements on the computation and monitoring of a customer's margins as SGX-ST may prescribe.
19.10.11 Under-Margined Accounts
Amended on 19 May 201419 May 2014.
19.10.12 Customer to Comply with Margin Requirements
For the avoidance of doubt, a Trading Member must require a customer to comply with the margin requirements prescribed under Rule 19.10, even if the customer has entered into an arrangement to meet his delivery obligations in connection with Marginable Futures Contracts.
19.10.13 Prohibition on Margin Financing
For the avoidance of doubt, a Trading Member must not under any circumstances enter into a financing arrangement with a customer in respect of that customer's margins requirements which would allow the customer to trade without meeting the margin requirements prescribed under Rule 19.10.
19.11 Capital Requirement for Marginable Futures Contracts
Amended on 29 December 201429 December 2014.
19.12.1 Overtrading
The following provisions apply in relation to overtrading:—