Past version: Effective up to 18 May 2014
| Rule Violation | Whether composition may be offered | Composition Amount which may be Offered by SGX-ST, where SGX-ST has Determined the Trading Member, Approved Executive Director and/or Trading Representative to be Liable | Mandatory minimum penalty imposable by the Disciplinary Committee | |||||||||
| Rule Chapter/Number | Brief Description of Rule | Trading Members (or Designated Market Maker, where applicable) | Approved Executive Directors | Trading Representatives (or Market Making Representative, where applicable) | ||||||||
| 1st Violation | 2nd Violation | 3rd Violation | 1st Violation | 2nd Violation | 3rd Violation | 1st Violation | 2nd Violation | 3rd Violation | ||||
| Chapter 15 — Research | ||||||||||||
| 15.1 | Permissible Activities | |||||||||||
| 15.1.1 | Research department of Trading Member to engage only in the permitted activities | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | $10,000 | |||||
| 15.1.2 | Trading Member and research staff to obtain the appropriate licence prior to engaging in research activities | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | $10,000 | |||||
| 15.2 | Notification Procedures | |||||||||||
| 15.2.1 | Trading Member to inform SGX-ST before establishment of a research department | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 15.2.2 | Trading Member to supply SGX-ST with information it requires on the research establishment | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | N.A. | |||||
| 15.3 | Supervision | |||||||||||
| 15.3.1(1) | Trading Member to supervise research analysts | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 15.3.1(2) | Trading Member to implement written supervisory procedures to ensure that research analysts comply with this Chapter | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 15.3.1(3) | Trading Member to implement any procedure, Directive or recommendation by SGX-ST | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 15.4 | Separation of Research Activities | |||||||||||
| 15.4.1 | Trading Member to separate research activities from dealing, corporate finance and back office operations. | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | N.A. | |||||
| 15.4.2 | Trading Member to implement any procedure, Directive or recommendation by SGX-ST. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | $10,000 |
| 15.5 | Investment Recommendations | |||||||||||
| 15.5.1(1) | Trading Member to have adequate basis, supported by research for making an investment recommendation | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 15.5.1(2) | Trading Member to maintain independence and objectivity in producing a research report or making an investment recommendation | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 15.5.1(3) | Trading Member not to issue a research report or make an investment recommendation that is not consistent with its research analyst's views | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 15.6 | Records | |||||||||||
| 15.6.1 | Trading Member to maintain records of research report or investment recommendation for stipulated period. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 15.7 | Disclosure | |||||||||||
| 15.7.1(1) | Trading Member to disclose interest at date of disseminating research report or investment recommendation. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 15.7.1(2) | Trading Member to disclose monetary compensation or benefits receivable in respect of research report or investment recommendation. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 15.8 | Trading Restrictions | |||||||||||
| 15.8.1(1) | Trading Member and research analyst not to knowingly trade in a security or Futures Contract while in possession of nonpublic material information. | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | $10,000 | |||||
| 15.8.1(2) | Trading Member and research analyst not to knowingly trade in a security or Futures Contract when transaction may create a conflict of interest. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 15.8.1(3) | Trading Member and research analyst not to procure a third party to trade when prohibited to do so. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
| 15.8.1(4) | Trading Member and research analyst not to buy or sell a security or Futures Contract contrary to the most recent research report published by the TM within 3 days of issuance of the report. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
Added on 16 May 201116 May 2011.