Past version: Effective from 19 May 2014 to 07 Oct 2018
| 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 17 — Securities Borrowing and Lending | ||||||||||||
| 17.1 | Application of Chapter | |||||||||||
| 17.1.1(2) | Trading Member that holds a licence specified in Rule 4.1.1(1)(b) to comply with such requirements prescribed by the Relevant Regulatory Authority and principles of good business practice in respect of the stipulated requirements. | 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. |
| 17.2 | Agreement | |||||||||||
| 17.2.1 | Trading Member to enter into written agreement with the borrower or lender before engaging in activity. | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | N.A. | |||||
| 17.3 | Collateral | |||||||||||
| 17.3.1 | Trading Member to obtain collateral from borrower before delivering loaned securities. | 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. |
| 17.3.2 | Trading Member not to accept collateral which is not in the form specified in the SFR. | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | N.A. | |||||
| 17.3.3 | Collateral that is otbained from the borrower not to be less than the prescribed level | 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. |
| 17.3.4 | Trading Member to notfy the borrower to provide additional collateral to meet the prescribed level | 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. |
| Trading Member not to allow new borrowings until the value of the collateral is restored to the prescribed level | 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. | |
| 17.3.6 | Trading Member not to allow a borrower to withdraw collateral unless the specified conditions are met | 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 and amended on 19 May 201419 May 2014.