8.6 Errors | Rulebooks

8.6.1

An error trade refers to a transaction effected on the Trading System as follows:

(1) as a result of an error in the entry the volume of an order; or

(2) as a result of an error in the entry of the price of an order; or

(3) where SGX-ST deems the transaction to be an error trade.

Amended on 3 April 2008 3 April 2008 and 15 September 2017 15 September 2017.

8.6.2

If an error trade occurs:—

(1) the Trading Member who made the error must immediately contact the counterparty Trading Member and seek its agreement to cancel the trade;

(2) both Trading Members must immediately take all necessary actions to minimise any potential market impact caused by the error trade; and

(3) both Trading Members must inform SGX-ST of the error as follows:

(a) by telephone within thirty (30) minutes from the time the error trade occurred; and

(b) in writing on the same day that the error trade occurred. Written notification must include details of the security or futures contract name, price, volume, trade number and time of the error trade. The Trading Member who made the error must also provide reasons for the error.

Amended on 3 April 2008 3 April 2008 and 8 October 2018 8 October 2018.

8.6.3

Where the Trading Members cannot agree to the cancellation of an error trade, a Trading Member may request SGX-ST to review the error trade. The following procedures apply:

(1) the matter must be referred to SGX-ST within sixty (60) minutes from the time the error trade occurred or before 18:00 hours on that trading day, whichever is earlier; and

(2) the requesting Trading Member must inform the counterparty Trading Member that it has referred the matter to SGX-ST.

Amended on 3 April 2008 3 April 2008.

8.6.3A

Notwithstanding Rules 8.6.2(3) and 8.6.3(1), SGX-ST may in its discretion allow such extension of time for the submitting of information or requests relating to error trades as it deems appropriate, taking into account:

(1) the number of error trades referred to SGX-ST pursuant to Rule 8.6.3;

(2) the complexity of the circumstances surrounding the error trade(s); and

(3) any other factors which SGX-ST considers relevant.

Added on 24 February 2014 24 February 2014.

8.6.4

SGX-ST will not review an error trade referred to it by a Trading Member, where the error trade falls at or within the upper and lower limits of a no-cancellation range applied pursuant to Rule 8.6.4A

Amended on 24 February 2014 24 February 2014.

8.6.4A

Subject to Rule 8.6.4B, a no-cancellation range will be applied to the following instruments:

(1) structured warrants; and

(2) all other securities and futures contracts, excluding bonds.

Added on 24 February 2014 24 February 2014 and amended on 8 October 2018 8 October 2018.

8.6.4B

SGX-ST retains the discretion to apply or remove no-cancellation ranges from instruments listed for trading on SGX-ST.

Added on 24 February 2014 24 February 2014.

8.6.5 [Rule has been deleted.]

Deleted on 24 February 2014 24 February 2014.

8.6.6 [Rule has been deleted.]

Deleted on 24 February 2014 24 February 2014.

8.6.7

The requesting Trading Member must pay a trade review fee of $1,000 for each referral accepted for review by SGX-ST, regardless of the outcome of the review.

Amended on 24 February 2014 24 February 2014.

8.6.8

Notwithstanding Rule 8.6.7, SGX-ST may grant a waiver of the trade review fee where it deems appropriate.

8.6.9

Notwithstanding Rules 8.6.4, 8.6.13, 8.6.13A and 8.6.13B, SGX-ST may review the validity of any transaction effected on the Trading System where SGX-ST deems that the cancellation of the error trade is necessary for the proper maintenance of a fair and orderly market.

Amended on 24 February 2014 24 February 2014.

8.6.10 [Rule has been deleted.]

Deleted on 24 February 2014 24 February 2014.

8.6.11 [Rule has been deleted.]

Deleted on 24 February 2014 24 February 2014.

8.6.12

SGX-ST may consider the following factors when deciding whether to cancel an error trade under Rules 8.6.13, 8.6.13A and 8.6.13B:

(1) the difference between the price at which the error trade was done and the preceding traded price of the security or futures contract;

(2) the market liquidity in the security or futures contract at the time the error trade occurred;

(3) where the trade involves a futures contract, the trading behaviour of the underlying security;

(4) the monetary loss involved if the trade is or is not cancelled;

Refer to Practice Note 8.6.12(4).

(5) the difference between the time the erroneous order was entered and the time it was matched;

(6) the number of counterparty customers involved;

(7) whether the force key was used when entering the erroneous order into the Trading System;

(7A) the impact on the settlement process;

(7B) in the case of bonds, the rating, interest rate, coupon rate, maturity date and yield curve;

(8) the reason(s) given for the error; and

(9) any other factors which SGX-ST considers relevant.

Amended on 24 February 2014 24 February 2014 and 8 October 2018 8 October 2018.

8.6.13

Error trades in structured warrants that are referred to SGX-ST will be reviewed in accordance with the following Rules:

(1) For the purposes of Rule 8.6.4A, the no-cancellation range for structured warrants is determined as the wider of the following:

(a) a lower limit of twenty (20) minimum bid sizes less than the Reference Price, and an upper limit of twenty (20) minimum bid sizes higher than the Reference Price; or

(b) a lower limit of 75% of the Reference Price, and an upper limit of 125% of the Reference Price.

(2) The Reference Price of the no-cancellation range for structured warrants will be determined as follows:

(a) the average of the last quoted bid price and the last quoted offer price for the structured warrant immediately preceding the error trade; or

(b) the average of the market prices as quoted by at least three (3) Designated Market-Makers of structured warrants. The Designated Market-Makers will be selected randomly by SGX-ST, but will not include any Designated Market-Maker who is involved in the error trade which is under review.

(3) Where SGX-ST is of the view that no appropriate or reliable Reference Price is available, SGX-ST will not establish a no-cancellation range for that error trade.

(4) Upon receiving a request to review an error trade involving structured warrants, SGX-ST will consider the validity of the error trade. SGX-ST may, in its discretion, make a determination that the error trade is to be cancelled, having regard to the factors set out in Rule 8.6.12.

(5) For the purposes of this Rule 8.6, "structured warrants" includes any structured warrants, certificates and any other structured products listed under Chapter 5 of the SGX-ST Listing Manual, whether or not they are classified as futures contracts under the SFA.

Amended on 24 February 2014 24 February 2014.

8.6.13A

Error trades in all other securities or futures contracts, excluding bonds, will be reviewed in accordance with the following Rules:

(1) For the purposes of Rule 8.6.4A, the no-cancellation range for the security or futures contract is determined as the wider of the following:

(a) a lower limit of twenty (20) minimum bid sizes less than the Reference Price, and an upper limit of twenty (20) minimum bid sizes higher than the Reference Price; or

(b) a lower limit of 95% of the Reference Price, and an upper limit of 105% of the Reference Price.

(2) Subject to Rule 8.6.13A(3), the Reference Price of the nocancellation range for the security or futures contract will be the price of the last good trade.

(3) SGX-ST may, in its discretion, use an alternative price as the Reference Price for the no-cancellation range if:

(a) the price of the last good trade is not available; or

(b) SGX-ST deems the price of the last good trade to be unreliable or inappropriate as a Reference Price.

Refer to Practice Note 8.6.13A.

(4) Where SGX-ST is of the view that no appropriate or reliable Reference Price is available, SGX-ST will not establish a no-cancellation range for that error trade.

(5) Upon receiving a request to review an error trade involving the security or futures contract, SGX-ST will consider the validity of the error trade. SGX-ST may, in its discretion, make a determination that the error trade is to be cancelled, having regard to the factors set out in Rule 8.6.12.

Added on 24 February 2014 24 February 2014 and amended 8 October 2018 8 October 2018.

8.6.13B

Upon receipt of a request to review an error trade in bonds, SGX-ST will consider the validity of the error trade. SGX-ST may, in its discretion, make a determination that the error trade is to be cancelled, having regard to the factors in Rule 8.6.12.

Added on 24 February 2014 24 February 2014.

8.6.14 [Rule has been deleted.]

Deleted on 24 February 2014 24 February 2014.

8.6.15 [Rule has been deleted.]

Deleted on 24 February 2014 24 February 2014.

8.6.16 [Rule has been deleted.]

Deleted on 24 February 2014 24 February 2014.

8.6.17

SGX-ST will:

(1) notify the market of error trades reported to SGX-ST and whether an error trade remains valid or has been cancelled; and

(2) notify the Trading Members who are counterparties to an error trade of its determination pursuant to Rules 8.6.13, 8.6.13A and 8.6.13B by telephone and in writing.

Added on 24 February 2014 24 February 2014.

8.6.18

SGX-ST will not consider any request to review its decision following the notifications under Rule 8.6.17.

Added on 24 February 2014 24 February 2014.