A Trading Member that authorises Direct Market Access (including Sponsored Access) for a customer must enter into a legally binding agreement with the customer setting out the terms and conditions for such Direct Market Access. The agreement must include requirements, and the Trading Member must have measures in place, for:
(a) the customer to 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) the customer to have appropriate procedures in place to assure that all relevant persons: (i) are familiar with and comply with the Rules;
(ii) have knowledge and proficiency in the use of the order management system;
(c) the customer to be provided information concerning its access to the Trading System and applicable laws;
(d) the customer to have security arrangements in place to ensure that unauthorised persons are denied such Direct Market Access;
(e) the customer to assist SGX-ST promptly in any investigation into potential violations of the Rules and applicable laws, including 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;
(f) the customer to comply with Rules 4.1 and 4.13 (in a case where the customer is given Sponsored Access); (g) the customer to be permitted to delegate, and any other person to be permitted to delegate, Sponsored Access only if the delegating person is: (I) regulated by a recognised regulatory authority in respect of any regulated activity; or
(II) a Trading Member of SGX-ST in which event it may only delegate Sponsored Access to its related corporations;
for the purpose of this Rule 4.2.3(g), "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;
(h) the customer to ensure, and any other person delegating Sponsored Access to ensure, that all persons given Sponsored Access are included in the register referred to in Rule 4.2.2; and (i) the customer to ensure, and any other person delegating Direct Market Access to ensure, that all persons given Direct Market Access are subject to the requirements in this Rule 4.2.3.
Added on 3 June 20193 June 2019.
