4.5A.1
A Trading Member may authorise Direct Market Access for its customers in respect of markets established by or operated by SGX-ST or such markets as SGX-ST specifies.
Added on 18 September 201218 September 2012.
4.5A.2 Conditions Governing Direct Market Access
(1) For every customer that a Trading Member authorises Direct Market Access for, the Trading Member must have measures in place for each customer to:—
(a) meet minimum standards including standards on financial standing, credit history and criminal records, adverse records or pending court proceedings relating to prohibited market conduct;
(b) have appropriate procedures in place to assure that all relevant persons:—
(i) are familiar with and comply with these Rules;
(ii) have knowledge and proficiency in the use of the order management system;
(c) be provided information concerning its access to the Trading System and applicable laws:
(d) be subject to a legally binding agreement governing the terms and conditions for such Direct Market Access;
(e) have security arrangements in place to ensure that unauthorised persons are denied such Direct Market Access; and
(f) assist SGX-ST in any investigation into potential violations of these Rules and applicable laws. Such assistance shall be timely and shall include, but is not limited to, the provision of information to SGX-ST relating to the identity and address of any person who may be responsible for the execution of an order or trade.
(2) Where a Trading Member permits the delegation of Direct Market Access by its authorised customer and any other persons, the Trading Member must include in the legally binding agreement referred to in Rule 4.5A.2(1)(d) the requirement for such customer and any other persons delegating Direct Market Access to ensure that all persons with Direct Market Access are subject to the requirements set out in Rules 4.5A.2(1)(a) to (f).
(3) SGX-ST may require a Trading Member to provide to SGX-ST a report by an independent reviewer on the Member's compliance with Rules 4.5A.2, 4.5A.3 and 4.5A.4(2).
Added on 18 September 201218 September 2012 and amended on 15 March 201315 March 2013.
4.5A.3 Conditions Governing Sponsored Access
(1) Where a Trading Member authorises Sponsored Access for its customers, in addition to the requirements set out in Rule 4.5A.2, the Trading Member must:—
(a) maintain a register recording the identity and address of all customers with Sponsored Access;
(b) produce to SGX-ST the register referred to in Rule 4.5A.3(1)(a) at such time as SGX-ST requires; and
(c) have measures in place for each customer to comply with the requirements set out in Rule 4.6.22, Rule 12.1.1, Directive No. 4, Directive No.5 and any other requirement set out by SGX-ST relating to the order management system.
(2) Where a Trading Member permits the delegation of Sponsored Access by its authorised customer and any other persons:—
(a) the Trading Member must have measures to ensure that the authorised customer and any other persons delegating Sponsored Access:
(i) are persons regulated by a recognised regulatory authority in respect of any regulated activity; or
(ii) where such persons are not regulated in accordance with Rule 4.5A.3(2)(a)(i), that such persons are Trading Members of SGX-ST, and that such persons shall only be permitted to delegate Sponsored Access to their related corporations; and
(b) the Trading Member must include in the legally binding agreement referred to in Rule 4.5A.2(1)(d) the requirement for such customer and any other persons delegating Sponsored Access to ensure that all persons with Sponsored Access are included in the register referred to in Rule 4.5A.3(1)(a) and subject to the requirements set out in Rule 4.5A.3(1)(c).
For the purpose of this Rule 4.5A.3, "recognised regulatory authority" refers to a signatory to the International Organization of Securities Commissions' Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information, and “regulated activity” shall have the same meaning as in the Securities and Futures Act.
Added on 18 September 201218 September 2012 and amended on 15 March 201315 March 2013.
4.5A.4 Suspension and Termination of Direct Market Access
(1) SGX-ST may suspend or terminate, or direct a Trading Member to suspend or terminate a person's Direct Market Access:—
(a) where the person has failed to assist SGX-ST with an investigation in accordance with Rule 4.5A.2(1)(f);
(b) in the interest of a fair, orderly and transparent market; or
(c) where the person has caused the Trading Member to breach requirements in the Rules.
(2) A Trading Member must have the ability to immediately suspend or terminate a person's Direct Market Access when necessary for the fulfillment of its duties under Rule 4.6.4 or any other reason.
Added on 18 September 201218 September 2012 and amended on 15 March 201315 March 2013.