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4.34.1

In this Rule:

"Authorised Trading Member" means a Trading Member who has been duly authorised by its qualifying Clearing Member to open and maintain Position Accounts or to open, maintain and allocate positions to Position Accounts, as the case may be.

"Authorised Account" means the Position Account (of the Authorised Trading Member or of the Authorised Trading Member's customer) that an Authorised Trading Member is authorised by its qualifying Clearing Member to open and maintain, or to open, maintain and allocate positions to.

Added on 3 June 20193 June 2019.

4.34.2

The Clearing Rules relating to Position Accounts shall, where relevant and with the necessary modifications, apply to an Authorised Trading Member in respect of each Authorised Account as they apply to a Clearing Member.

Added on 3 June 20193 June 2019.

4.34.3

Authorised Accounts carrying positions for more than one beneficial owner

(a) Subject to Rule 4.34.3(b), an Authorised Trading Member shall identify any underlying beneficial owner and/or any controlling party of any Authorised Account or ensure that such information is available to SGX-ST. This shall be provided upon request by SGX-ST within such time as SGX-ST may require.
(b) If the Authorised Account holder does not want the identity of any underlying beneficial owner and/or any controlling party of such account to be disclosed to its Trading Member, the Authorised Account holder may apply to SGX-ST, through its Trading Member, to provide such information as SGX-ST may require directly to SGX-ST.

Added on 3 June 20193 June 2019.

4.34.4

Where a Trading Member is not authorised to allocate positions to an Authorised Account:

(a) The Trading Member shall instruct its qualifying Clearing Member to allocate the position of each trade executed by the Trading Member to the Trading Member's Position Account(s) or, where the position is of a trade executed for a customer, in accordance with that customer's instructions, as soon as practicable, and in any event no later than such time as may be required for timely and orderly settlement of such trade into the intended Securities Account.
(b) A customer's Position Account must only be used for that customer's positions. However, a Trading Member may instruct its qualifying Clearing Member to sub-allocate a position carried in a Position Account to another Position Account, provided that:
(i) (I) such sub-allocation is in accordance with the instructions of the account holders (or person(s) authorised to instruct on their behalf) of both Position Accounts; and (II) the Trading Member receives the booking instruction only after the position has been allocated to the originating Position Account; or
(ii) such sub-allocation is made to remedy an error.

Refer to Regulatory Notice 4.34.4 and 4.34.5.

Added on 3 June 20193 June 2019.

4.34.5

Holding trades for different customers in a Position Account and warehousing of trades

(a) A Position Account in the name of a Trading Member may be used to hold positions of trades for different customers, provided that the Trading Member has procedures to ensure fair allocation to the customers.
(b) If a customer's order is unlikely to be completed during a Market Day, the Trading Member may warehouse the customer's trades until the order is completed. The Trading Member must ensure that no customer's trade is warehoused for more than one Market Day, unless under exceptional circumstances. In such cases, the Trading Member must document the reasons for the extension of time.

Refer to Regulatory Notice 4.34.4 and 4.34.5.

Added on 3 June 20193 June 2019.