Rule Violation | Whether composition may be offered | Composition Amount which may be Offered by SGX-ST, where SGX-ST has Determined the Trading Member, Approved Executive Director and/or Trading Representative to be Liable | Mandatory minimum penalty imposable by the Disciplinary Committee | |||||||||
Rule Chapter/Number | Brief Description of Rule | Trading Members (or Designated Market Maker, where applicable) | Approved Executive Directors | Trading Representatives (or Market Making Representative, where applicable) | ||||||||
1st Violation | 2nd Violation | 3rd Violation | 1st Violation | 2nd Violation | 3rd Violation | 1st Violation | 2nd Violation | 3rd Violation | ||||
Chapter 11 — Capital and Financial Requirements | ||||||||||||
11.2 | Base Capital Requirement | |||||||||||
11.2.1 | Trading Member not to cause or permit its base capital or net head office funds to fall below the base capital requirement. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.2.3 | Trading Member to notify SGX-ST in the case of failure to comply or awareness of impending failure to comply with the base capital requirement. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.2.4 | Trading Member to comply with SGX-ST's requirements when base capital or net head office funds fall below the base capital requirement. | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | $10,000 | |||||
11.2A | Net Liquid Capital | |||||||||||
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11.3 | Financial Resources Requirement | |||||||||||
11.3.1 | Trading Member not to cause or permit its financial resources or adjusted net head office funds to fall below its total risk requirement. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.3.5 | Trading Member to notify SGX-ST in the case of failure to comply or awareness of impending failure to comply with the financial resources requirement. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.3.6 | Trading Member to comply with SGX-ST's requirements when the financial resources of adjusted net head office funds fall below the total risk requirement. | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | $10,000 | |||||
11.3.7 | Trading Member to notify SGX-ST when financial resources or adjusted net head office funds fall below 120% of its total risk requirement. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.3.8 | Trading Member to comply with SGX-ST's requirements when financial resources or adjusted net head office funds fall below 120% of total risk requirement. | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | $10,000 | |||||
11.3.9 | Trading Member to notify SGX-ST when financial resources or adjust head office funds falls below 150% of its total risk requirement. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.3.10 | Trading Member to comply with SGX-ST's requirements, when financial resources or adjusted net head office funds fall below 150% of its total risk requirement | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | $10,000 | |||||
11.4 | Aggregate Indebtedness Requirement | |||||||||||
11.4.1 | Trading Member not to cause or permit the aggregate indebtedness to exceed 1200% of aggregate resources. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.4.2 | Trading Member to notify SGX-ST of failure to comply or awareness of impending failure to comply with the aggregate indebtedness requirement. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.4.3 | Trading Member to comply with SGX-ST's requirements when aggregate indebtedness exceeds 1200% of the aggregate resources. | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | $10,000 | |||||
11.4.4 | Trading Member to notify SGX-ST if aggregate indebtedness exceeds 600% of aggregate resources. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.4.5 | Trading Member to comply with SGX-ST's requirements when aggregate indebtedness exceeds 600% of aggregate resources. | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | $10,000 | |||||
11.5 | Powers to Impose Other Requirement | |||||||||||
11.5.1 | Trading Member to comply with additional requirements prescribed by SGX-ST. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.7 | Exposure to Single Customer | |||||||||||
11.7.1 | Trading Member to notify SGX-ST if TM's exposure to a single customer exceeds 20% of its average aggregate resources. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
Trading Member to comply with SGX-ST's direction to reduce risk exposure to single customer. | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | $10,000 | ||||||
11.7A10 | Other Requirements for Exposure to Single Customer | |||||||||||
11.7A.1 | Trading Member to have in place adequate tools and procedures to monitor exposure to a single customer. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
Trading Member to comply with SGX-ST's direction to demonstrate adequacy of tools and procedures. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. | |
11.7A.2 | Trading Member to notify SGX-ST if TM's exposure to a single customer exceeds its internal threshold. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.8 | Exposure to Single Security | |||||||||||
11.8.1 | Trading Member to notify SGX-ST if the TM's exposure exceeds the stipulated limits. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.8.2 | Trading Member to comply with risk management requirements imposed by SGX-ST to reduce risk exposure to a single security. | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | $10,000 | |||||
11.8.8 | Trading Member not to permit exposure to a suspended security quoted on SGX-ST or recognised group A securities exchange above the stipulated limit. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.8A | Other Requirements for Exposure to Single Security | |||||||||||
11.8A.1 | Trading Member to have in place adequate tools and procedures to monitor exposure to a single security. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
Trading Member to comply with SGX-ST's direction to demonstrate adequacy of tools and procedures. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. | |
11.8A.2 | Trading Member to notify SGX-ST if TM's exposure to a single security exceeds its internal threshold. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.9 | Margin Rules | |||||||||||
11.9.1A(2) | Trading Member to comply with such requirements prescribed by the Relevant Regulatory Authority. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
Trading Member to notify SGX-ST of changes to requirement prescribed by the Relevant Regulatory Authority. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. | |
11.9.2 | Trading Member to obtain written agreement for margin account arrangements. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.9.3 | Trading Member to obtain the specified authorisation and discretion from its customer | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.9.4 | Trading Member not to cause or permit a new transaction in the customer's margin account when equity limit stipulated is not met | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.9.5 | Margins deposited by the customer to a Trading Member to be in the acceptable form | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.9.6 | Trading Member not to cause or permit the equity in a customer's margin account to fall to or below the stipulated limit, and had not required the customer to provide additional margin | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.9.8 | Trading Member to conduct daily review of all margin accounts in the prescribed manner | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.9.10 | Trading Member not to allow customers to withdraw cash or Specified Products from their accounts when the equity is below 140%. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.9.11(1) | Trading Member not to cause or permit the the aggregate of the margin exposures of all customers to exceed the stipulated limit | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.9.11(2) | Trading Member not to cause or permit the aggregate of the margin exposures of all customers in respect of Specified Products, other than Specified Products quoted on SGX-ST, to exceed the stipulated limit | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.9.11(3) | Trading Member not to cause or permit the debit balance in each customer's margin account to exceed the stipulated limit. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.9.13 | Transactions in a margin account to be on an immediate or ready basis. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.9.14 | Trading Member to apply discounts prescribed by SGX-ST in computing the market value of Specified Products | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.9.15 | Trading Member to comply with SGX-ST's requirements for margin financing transactions. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.11 | Annual Financial Audit | |||||||||||
11.11.1 | Trading Member to obtain SGX-ST's prior approval for any change of its existing external auditors, or to notify SGX-ST by the prescribed time, as applicable. | Compoundable | $500 | $1,000 | $2,000 | $250 | $500 | $1,000 | N.A. | N.A. | N.A. | N.A. |
11.11.1A | Trading Member to comply with SGX-ST's direction for the removal and appointment of another external auditor. | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | $10,000 | |||||
11.12 | Provision in annual accounts | |||||||||||
11.12.1 | Trading Member to make provisions in its annual accounts as required by SGX-ST. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.13 | Other financial requirements | |||||||||||
11.13.1 | Trading Member not to reduce its paid-up ordinary share capital without prior written approval of SGX-ST. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.13.2(1) | Trading Member to notify SGX-ST prior to the issue of any preference share. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.13.2(2) | Trading Member not to redeem any redeemable preference shares when the necessary conditions are not met. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.13.3(1) | Trading Member to obtain prior approval of SGX-ST if it enters a subordinated loan agreement in a format other than prescribed format | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.13.3(2) | Trading Member to notify SGX-ST of the drawing down of a qualifying subordinated loan by the prescribed time. | Compoundable | $500 | $1,000 | $2,000 | $250 | $500 | $1,000 | N.A. | N.A. | N.A. | N.A. |
11.13.3(3) | Trading Member not to repay any subordinated loan principal before the maturity date without prior approval of SGX-ST. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.13.3(4) | Trading Member not to repay any subordinated loan principal that has matured when the stipulated conditions are not met. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.13.4 | Trading Member not to make any unsecured loan or advance, payment of dividend or increase in director's remuneration when conditions are not met. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.13.5 | Trading Member to notify SGX-ST immediately of any actions taken relating to the prescribed activities. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | N.A. | N.A. | N.A. |
11.14 | Register of Connected Persons | |||||||||||
11.14.1 | Trading Member to keep register of connected persons. | Compoundable | $500 | $1,000 | $2,000 | $250 | $500 | $1,000 | N.A. | N.A. | N.A. | N.A. |
Added on 16 May 201116 May 2011 and amended on 19 May 201419 May 2014, 29 December 201429 December 2014, 8 October 20188 October 2018 and 22 April 201922 April 2019.