14.12 Interim Powers of SGX-ST

14.12.1

Action Against Registered Persons

(1) SGX-ST may suspend, or otherwise restrict the activities of, a Trading Member, an Approved Executive Director or a Trading Representative if the person is charged with:—

(a) an offence under the Securities and Futures Act or Securities and Futures Regulations or an offence under any other relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities;

(b) an offence involving fraud or dishonesty, whether in or out of Singapore;

(c) an offence relating to director's duties; or

(d) an offence under any relevant law or regulation which governs that person's other business activities.

(2) The suspension or restriction ends if the Trading Member, Approved Executive Director or Trading Representative is acquitted or the charge is not proceeded with.

Amended on 19 May 2014 19 May 2014.

14.12.2

If SGX-ST is of the opinion that:—

(1) a Trading Member has, or may have, insufficient capital for the conduct of its business; or

(2) a review should be carried out in respect of a Trading Member's management policies or business conduct in the interests of the Trading Member, SGX-ST, or markets established or operated by SGX-ST,
SGX-ST may do any or all of the following:—

(a) require the Trading Member to operate its business subject to such restrictions or conditions as SGX-ST decides;

(b) suspend the Trading Member for a period SGX-ST decides. The suspension will be announced to all Trading Members. During the suspension, the Trading Member:—

(i) must not enter into a new transaction without the approval of SGX-ST; and

(ii) remains liable to complete all contracts outstanding at the time of suspension. However, it must not deliver any securities or settle any transaction without the approval of SGX-ST.

(c) require any Director to step down from day-to-day conduct of the business affairs of the Trading Member; and

(d) appoint a Manager to manage the business of the Trading Member. SGX-ST will fix the remuneration of the Manager, which must be paid by the Trading Member. The Trading Member is solely responsible for the Manager's acts and defaults. The Manager must carry out directions given by SGX-ST in relation to the business of the Trading Member, including carrying on the business of the Trading Member in accordance with instructions.

14.12.3 Action Against Defaulters

(1) SGX-ST may declare a Trading Member to be a defaulter if, in its opinion, the Trading Member:—

(a) has failed, is unable, or unwilling, to fulfill its obligations to SGX-ST or its customers; or

(b) is apparently insolvent.

(2) A Trading Member that commits an act that may result in it being declared a defaulter under Rule 14.12.3(1) must inform SGX-ST immediately. A Trading Member against whom any such act is committed must also inform SGX-ST immediately.

(3) A Trading Member's access to organised markets established or operated by SGX-ST ceases if it is declared a defaulter. The access may be reinstated by SGX-ST. The Trading Member remains liable to SGX-ST, other Trading Members and its customers for all obligations incurred before its access ceased.

(4) SGX-ST will notify all Trading Members of the declaration of default and the reinstatement (if applicable).

(5) SGX-ST may allow an open transaction with a defaulter to be closed as SGX-ST directs.

(6) Action under this Rule is in addition to other actions which SGX-ST is entitled to take against the Trading Member.

Amended on 8 October 2018 8 October 2018.

14.12.4

Subject to Rule 14.12.5, SGX-ST will notify the Trading Member, Approved Executive Director or Trading Representative in writing before it exercises any of its powers under this Rule.

14.12.5

If, in SGX-ST's opinion, it is necessary to protect the financial integrity, reputation or interests of SGX-ST, or organised markets established or operated by SGX-ST, it may exercise its powers under this Rule without prior notice to the Trading Member, Approved Executive Director or Trading Representative. SGX-ST will notify the Trading Member, Approved Executive Director or Trading Representative in writing after it has exercised the powers.

Amended on 8 October 2018 8 October 2018.

14.12.6

SGX-ST will refer the matter (together with an account of its exercise of the interim powers) to the Disciplinary Committee for a decision within 14 days of SGX-ST's notification of its actions under this Rule. The Disciplinary Committee proceedings in Rule 14.6 apply. The Disciplinary Committee may expedite the proceedings if it thinks fit. SGX-ST's notification will serve as the written notice under Rule 14.6.1.