18.1.1 Applicability
These Rules shall be applicable to the trading on SGX-ST of Options listed or quoted on SGX-ST, the terms and conditions of such Options, the exercise and settlement thereof, the handling of orders and the conduct of accounts and other matters relating to Options trading. Except as otherwise specified in this Chapter, the Rules and Directives shall, where applicable, apply to the trading of Options on SGX-ST.
18.1.2 Definitions
In this Chapter, (except where the context otherwise requires):—
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
| Term | Meaning |
| B | |
| "Buyer"; | the term "buyer" in relation to underlying securities refers to the buyer of the underlying securities covered by an exercised Option. |
| C | |
| "Call Option" | means an Option which gives the Purchaser thereof the right in accordance with the terms of the Option, to buy a Standard Quantity of the underlying security at the Exercise Price. |
| "CDP System" | refers to the computerised Central Depository System maintained by CDP whereby transfers of securities are effected on a book-entry basis. |
| "Class of Options" or "Class" | means in relation to any Option, either:— (1) all Call Options covering the same underlying security; or (2) all Put Options covering the same underlying security. |
| "Customer"; | the term "customer" in respect of any Trading Member shall include any Trading Representative, Director, employee or officer of the Trading Member. |
| "Closing Purchase Transaction"; | the term "closing purchase transaction" means an Option transaction which eliminates the short position created by an opening written transaction. |
| "Closing Written Transaction"; | the term "closing written transaction" means an Option transaction which eliminates the long position created by an opening purchase transaction. |
| D | |
| "Depository Agent" | means an entity registered as a Depository Agent with CDP for the purpose of maintaining sub-accounts for its own account and for the account of others. |
| "Distribution"; | the term "distribution", unless otherwise determined by SGX-ST, shall mean capital issue, stock split, consolidation, reconstruction, or other similar action (other than cash distribution made out of profits) in respect of any underlying security. |
| E | |
| "Equity Market" | means the market in stocks and shares conducted by SGX-ST. |
| "Exercise Notice" | means a notice (for the time being current) for the exercise of the Options as prescribed from time to time by the OCC, copies of which may be obtained from Trading Members. |
| "Exercise Price" | means the specified price per unit of the Standard Quantity at which the underlying security may be purchased or sold upon exercise of the Option subject to such adjustments by SGX-ST in accordance with Rule 18.10. |
| "Expiration Date" | means in relation to an Option, the last Friday of the Expiration Month in relation to such Option or if such day is not a Market Day on which the Equity Market for the underlying security is open for trading, the Market Day preceding that day. |
| "Expiration Month" | means in relation to an Option, the month in which the Option expires. |
| "Explanatory Booklet" | means a booklet approved from time to time by SGX-ST to be furnished to each customer of a Trading Member who opens an Options trading account which provides information to investors on the trading of Options. |
| L | |
| "Lodgement"; | the term "lodgement" and "lodged" in relation to an Exercise Notice shall refer to the notification of the exercise of an Option to the OCC by the Trading Member in accordance with the Regulations. |
| "Long Position"; | the term "long position" means the number of outstanding Options of a given Series of Options held by a Purchaser. |
| O | |
| "OCC" | means the Options Clearing Company (Pte) Limited or its successor company. |
| "Opening Purchase Transaction"; | the term "opening purchase transaction" means an Option transaction which creates a long position in the Option. |
| "Opening Written Transaction"; | the term "opening written transaction" means an Option transaction which creates a short position in the Option. |
| "Option" | means an option contract which is either a Put Option or a Call Option traded or reported through the Trading System. |
| "Options Market" | means the market in stock and share options conducted by SGX-ST. |
| "Option transaction" | means a transaction traded on or reported through the Trading System in relation to the purchase or writing of an Option. |
| "Options trading account"; | the term "options trading account" means a trading account opened by a customer with a Trading Member for the purpose of trading in Options. |
| "Outstanding"; | the term "outstanding" in relation to an Option means an Option which has not been the subject of a closing transaction nor been exercised nor reached its Expiration Date. |
| P | |
| "Premium" or "premium" | means in relation to an Option transaction, the price per unit of such Option agreed upon between the Purchaser and Writer in such transaction. |
| "Purchaser" | means in relation to an Option, the purchaser of the Option. |
| "Put Option" | means an Option which gives the Purchaser thereof the right in accordance with the terms of the Option, to sell a Standard Quantity of the underlying security at the Exercise Price. |
| R | |
| "Regulations" | means the Regulations for Options business of the OCC for the time being in force. |
| S | |
| "Same side of the market" | means in respect of Options positions either:— (1) long positions in Put Options and short positions in Call Options; or (2) short positions in Put Options and long positions in Call Options. |
| "Seller"; | the term "seller" in relation to underlying securities refers to the seller of the underlying securities covered by an exercised Option. |
| "Series of Options" or "Series" | means all Options of the same Class of Options having the same Exercise Price and Expiration Date. |
| "Scrip-Covered Call Option" | means a Call Option in which the obligations of the Writer have been fully secured by the deposit of the underlying security to be delivered to the buyer upon an exercise of the said Option. |
| "Securities Account" | means the securities account maintained by a direct account holder or a Depository Agent with CDP. |
| "Short Position"; | the term "short position" means the number of outstanding Options of a given Series of Options with respect to which a person is obligated as a Writer. |
| "Standard Quantity" | means in relation to an Option, the quantity of underlying securities prescribed from time to time by SGX-ST as the number of the underlying securities covered by the Option subject to such adjustments by SGX-ST in accordance with Rule 18.10. |
| U | |
| "Underlying Securities"; | the term "underlying securities" in relation to an Option means (in the case of a Call Option) the security which the Purchaser shall be entitled to buy upon the exercise of the Option and which the Writer shall be obligated to deliver or (in the case of a Put Option) the security which the Purchaser shall be entitled to sell upon the exercise of the Option and which the Writer shall be obligated to buy. |
| "Uncovered"; | the term "uncovered" in relation to any Call Option means that the Call Option is not a Scrip-Covered Call Option. |
| W | |
| "Writer" | means in relation to an Option, the seller of the Option. |
Amended on 3 April 20083 April 2008.