8.12 Corner | Rulebooks

8.12.1

SGX-ST may declare a corner in a listed or quoted security if, in its opinion, a single interest or a group has acquired or is likely to acquire sufficient control over the supply of the security such that the security may only be obtained for delivery at prices, or on terms, dictated by the single interest or group, or it is otherwise desirable in the interests of organised markets established or operated by SGX-ST.

Added on 3 June 2019 3 June 2019.

8.12.2

SGX-ST may impose any conditions it thinks fit on dealing in a cornered security or in a futures contract on a cornered security. For avoidance of doubt, the conditions may include, but not limited to the following:

(a) from time to time extending (or further extending) the due date for delivery; or

(b) declaring that contracts will be cash settled (not delivered). SGX-ST may direct the terms of the cash settlement or apply the following terms (in whole or in part) as it thinks fit:

(i) in the case of a seller who contracted to sell for less than the fair settlement price, the seller must pay the buyer the difference between the fair settlement price and the contract price;

(ii) in the case of a seller who contracted to sell for more than the fair settlement price, the buyer must pay the seller the difference between the contract price and the fair settlement price;

(iii) in the case of a buyer who contracted to buy for less than the fair settlement price, the seller must pay the buyer the difference between the fair settlement price and the contract price; and

(iv) in the case of a buyer who contracted to buy for more than the fair settlement price, the buyer must pay the seller the difference between the contract price and the fair settlement price.

Added on 3 June 2019 3 June 2019.

8.12.3

If SGX-ST imposes a condition that contracts are to be cash settled, it must establish a Settlement Committee to advise on the fair settlement price.

Added on 3 June 2019 3 June 2019.

8.12.4

A Settlement Committee must comprise no less than five persons, including at least:

(a) two members of the Board;

(b) one public accountant; and

(c) one advocate and solicitor.

The quorum of the Settlement Committee is all members when the meeting proceeds to business, but the Settlement Committee may complete the business with any three members present.

Added on 3 June 2019 3 June 2019.

8.12.5

A Settlement Committee may include such other persons as SGX-ST thinks fit.

Added on 3 June 2019 3 June 2019.

8.12.6

A Settlement Committee may hear evidence as it thinks proper and relevant to the discharge of its functions.

Added on 3 June 2019 3 June 2019.

8.12.7

A Settlement Committee must report its findings to SGX-ST. The findings are advisory only and it is for the SGX-ST to decide on the fair settlement price at its discretion having considered the Settlement Committee's recommendation on the fair settlement price. SGX-ST may refer a matter to the Settlement Committee for further consideration, before deciding on the fair settlement price.

Added on 3 June 2019 3 June 2019.

8.12.8

The fair settlement price determined by SGX-ST is final and binding on all parties to any outstanding trades in the cornered security or in a futures contract on the cornered security.

Added on 3 June 2019 3 June 2019.