| Rule Violation | Whether composition may be offered | Composition amount that may be offered by SGX-ST, where SGX-ST has determined the Trading Member, Chief Executive Officer 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) | Chief Executive Officer | 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 5 — Trading Practices and Conduct | ||||||||||||
| 5.2 | Contracts | |||||||||||
| 5.2.1 | Trading Member to honour the terms of each contract | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | $10,000 | |||||
| 5.3 | Qualification by a Clearing Member | |||||||||||
| 5.3.1 | Trading Member not to execute a contract on SGX-ST while not qualified by a Clearing Member, or admitted itself as a Clearing Member | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | $10,000 | |||||
| 5.3.2 | Trading Member not to be qualified by more than one Clearing Member | 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. |
| 5.3.3(a) | Trading Member to inform SGX-ST when it is not qualified by a Clearing Member | 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. |
| 5.3.3(b) | Trading Member to inform SGX-ST when its qualifying Clearing Member is replaced by another Clearing Member | 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. |
| 5.3.4 | Trading Member to ensure that all contracts concluded on SGX-ST are submitted to its qualifying Clearing Member for clearing | 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. |
| 5.4 | Acting as Principal to Customer | |||||||||||
| 5.4.2 | Customer to first be informed if a Trading Member or Trading Representative trades against the customer as principal | Not Compoundable | Not Compoundable | $10,000 | ||||||||
| 5.4.3 | Trading Member to indicate in the contract note that the Trading Member or Trading Representative acted as principal | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | $10,000 | |||||
| 5.5 | Acting as Agent to Customer | |||||||||||
| 5.5.1(a) | Trading Member and Trading Representative to carry out customer's instructions | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 5.5.1(b) | Trading Member and Trading Representative to exercise skill, care and diligence | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 5.5.1(c) | Trading Member and Trading Representative to act in good faith | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 5.5.1(d) | Trading Member and Trading Representative to act in the best interests of customers | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 5.5.1(e) | Trading Member and Trading Representative to disclose all circumstances and risks to a customer | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 5.5.1(f) | Trading Member and Trading Representative to inform the customer of the best bid and offer prices on the Trading System | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 5.5.1(g) | Trading Member and Trading Representative to disclose the commission and any benefit receivable on a transaction | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 5.5.1(h) | Trading Member and Trading Representative not to enter into a transaction which may conflict with a duty owed to the customer | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 5.5.1(i) | Trading Member and Trading Representative not to disclose a customer's order unless permitted under the Rules | Not Compoundable | Not Compoundable | $10,000 | ||||||||
| 5.5.1(j) | Trading Member to ensure that a person to whom it discloses a customer's order maintains confidentiality | 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. |
| 5.6 | Separation of Customer and Proprietary Trading Activities | |||||||||||
| 5.6.1 | Trading Member to put in place procedures to prevent 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. |
| 5.7 | Precedence of Customer Orders | |||||||||||
| 5.7.1 | Trading Member or Trading Representative not to deal in securities or trade in futures contracts for own account when there is an unexecuted order on the same terms from a customer | Not Compoundable | Not Compoundable | $10,000 | ||||||||
| 5.8 | Arrangement with Customers | |||||||||||
| 5.8.1(a) | Trading Member or Trading Representative not to accept or have an arrangement to share in the profits of a customer's account | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 5.8.1(b) | Trading Member or Trading Representative not to have an arrangement with a third party to allocate profits or losses to a customer's account | Not Compoundable | Not Compoundable | $10,000 | ||||||||
| 5.8.1(c) | Trading Member or Trading Representative not to lead customer to believe that he will not suffer loss as a result of opening an account or dealings | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 5.9 | Customer Margin Management for Trading Members | |||||||||||
| 5.9.1(b) | Trading Member to comply with SGX-ST's directions to take such action to offset all or part of the positions to rectify a margin deficiency | 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. |
| 5.10 | Unauthorised Trading | |||||||||||
| 5.10.1(a) | Trading Representative not to execute personal trades in the account of a customer | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 5.10.1(b) | Trading Representative not to execute a customer's trades in his personal account | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 5.10.1(c) | Trading Representative not to use a customer's account for third party trading without prior written authorisation | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 5.11 | Excessive Trading | |||||||||||
| 5.11.1 | Trading Member or Trading Representative not to encourage transactions to generate commission | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 5.12 | Prohibited Trading Conduct | |||||||||||
| 5.12.1 | Trading Member or Trading Representative not to engage in an act likely to create a false or misleading appearance of active trading or lead to a false market | Not Compoundable | Not Compoundable | $30,000 | ||||||||
| 5.12.3 | Trading Member or Trading Representative not to deal in securities or execute an order for the sale and purchase of futures contracts that involve no change in beneficial ownership | Not Compoundable | Not Compoundable | $30,000 | ||||||||
| 5.12.4 | Trading Member or Trading Representative not to execute knowingly, or hold himself out as having executed, an order for the purchase or sale of futures contracts without having effected in good faith a purchase or sale of that futures contract in accordance with the order or with the business rules and practices of an organised market on which the derivatives contract is to be purchased or sold | Not Compoundable | Not Compoundable | $30,000 | ||||||||
| 5.12.5 | Trading Member or Trading Representative not to deal in securities or trade in futures contracts in a manner that will affect price of the securities with intent to induce others to trade | Not Compoundable | Not Compoundable | $30,000 | ||||||||
| 5.12.6 | Trading Member or Trading Representative not to disseminate information that is false or misleading | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 5.12.7 | Trading Member or Trading Representative not to participate in any prohibited market conduct in securities or futures contracts or in any insider trading | Not Compoundable | Not Compoundable | $30,000 | ||||||||
| 5.12.8 | Trading Member or Trading Representative to immediately inform SGX-ST of suspected market manipulation, insider trading or other prohibited trading conduct | Not Compoundable | Not Compoundable | $10,000 | ||||||||
| 5.12.9 | Trading Member to have in place processes to review orders and trades for suspicious trading activity | 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. |
| 5.13 | Record of Orders | |||||||||||
| 5.13.1 | Trading Member or Trading Representative to maintain a daily record of orders received from customers | Not Compoundable | Not Compoundable | $10,000 | ||||||||
| 5.13.2 | Trading Member to have adequate security measures to prevent unauthorised access to and/or tampering of the audit trail of orders entered into Trading System | 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. |
| 5.14 | Dealing Assistant | |||||||||||
| 5.14.1 | Trading Member to ensure that each Trading Representative has no more than one dealing assistant | 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. |
| 5.14.2(a) | Trading Member to ensure that the dealing assistant does not deal in securities or futures contracts | 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. |
| 5.14.2(b) | Trading Member to ensure that the dealing assistant does not exercise any discretion over the entry of orders | 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. |
| 5.14.2(c) | Trading Member to ensure that the dealing assistant does not give investment advice or make recommendations to customers | 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. |
| 5.14.2(d) | Trading Member to ensure that the dealing assistant does not accept instructions from customers | 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. |
| 5.14.2(e) | Trading Member to ensure that the dealing assistant does not communicate with customers regarding settlement | 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. |
| 5.14.2(f) | Trading Member to ensure that the dealing assistant does not collect cash, cheques or share certificates | 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. |
| 5.14.3 | Trading Member to provide SGX-ST the necessary particulars of dealing assistants appointed | Compoundable | $500 | $1,000 | $2,000 | $250 | $500 | $1,000 | N.A. | N.A. | N.A. | N.A. |
| 5.14.4 | Trading Member to inform SGX-ST if a dealing assistant ceases to act | Compoundable | $500 | $1,000 | $2,000 | $250 | $500 | $1,000 | N.A. | N.A. | N.A. | N.A. |
| 5.15 | Responsibility for Orders | |||||||||||
| 5.15.1 | Trading Member to ensure the accuracy of orders entered into the Trading System by its Trading Representatives and any dealing assistant | 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. |
| 5.15.2 | Trading Representative to ensure the accuracy of orders entered into the Trading System by or on behalf of the Trading Representative | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 5.15.3 | Orders to be entered in accordance with the procedures prescribed 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 5.15.4 | Trading Member to have in place processes to prevent unauthorised changes to order information | 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. |
| 5.16 | Identification and Password | |||||||||||
| 5.16.1 | Trading Representative to have a unique identification number of not more than three characters and password for entering orders into the Trading System and maintain confidentiality | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 5.16.2 | Trading Member to submit and maintain a list of Trading Representative identification numbers and names to SGX-ST, and notify SGX-ST of any amendments to the list on an ongoing basis | 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. |
| 5.17 | Miscellaneous | |||||||||||
| 5.17.1 | Trading Member and Trading Representative not to take advantage of a situation arising from a breakdown or malfunction in SGX-ST's procedures or systems or errors made by SGX-ST or CDP | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
Added on 3 June 20193 June 2019 and 15 June 202015 June 2020.