| Issue Date | Cross Reference | Enquiries | |
| Added on 22 September 2006. | Rule 3.4.8 | Please contact: Market Surveillance Mr Christopher Chong 6236-8316 Ms Sally Lim 6236-5172 Enforcement E-Mail Address : enforcement@sgx.com |
1. Introduction
1.1 This Practice Note sets out a situation where the Exchange may not consider a bid or offer to be in good faith.
2. Good Faith Bids and Offers
2.1 If the Exchange suspects that a bid or offer entered by a Member or Approved Trader is not in good faith for the purpose of executing bona fide transactions, the Member or the Approved Trader would have to satisfy the Exchange otherwise.
2.2 The following is one (1) of the situations where a price may not be considered as in good faith for the purpose of executing bona fide transactions:
Market is at 2505 bid and 2507 offer. The Approved Trader enters a 2506 bid and withdraws it within a short span of time with the intention to trigger stop orders or to give a false impression of the market.
Market is at 2505 bid and 2507 offer. The Approved Trader enters a 2506 bid and withdraws it within a short span of time with the intention to trigger stop orders or to give a false impression of the market.
Amended on 25 October 201225 October 2012 and 7 July 20157 July 2015.