8.5 Inviolability of Contracts

8.5.1

A contract made on SGX-ST can be cancelled only in accordance with this Rule. For avoidance of doubt, a contract is not cancelled if:—

1) delivery fails;

(2) payment is not made on delivery; or

(3) the share registrar refuses to register a transfer.

8.5.2

SGX-ST may cancel a contract in any of the following circumstances:—

(1) the Trading Members to an error trade (Rule 8.6) have agreed to the cancellation;

(2) if a material mistake led to the error trade (Rule 8.6) and SGX-ST is satisfied that the trade should be cancelled;

(3) there is prima facie evidence of fraud or wilful misrepresentation in relation to the contract; or

(4) in SGX-ST's opinion, it is desirable to cancel the contract to protect the financial integrity, reputation or interests of the markets established or operated by SGX-ST.

8.5.3

SGX-ST may impose any conditions it thinks appropriate for the cancellation of a contract.

SGX-ST may reprimand or impose a fine not exceeding $2,000 on a Trading Representative or Trading Member who causes a contract to be cancelled. Action under this Rule is in addition to other actions which SGX-ST is entitled to take against the Trading Representative or Trading Member.