| 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 12A — Operational Requirements | ||||||||||||
| 12A.2 | Position Account Rules apply to Authorized Trading Member | |||||||||||
| 12A.2.1 | Authorized Trading Member to comply with requirements in Rule 5A.1.2 of the Clearing Rules in respect of each Authorized Account. | Compoundable | $500 | $1,000 | $2,000 | $250 | $500 | $1,000 | $250 | $500 | $1,000 | N.A. |
| Authorized Trading Member to maintain separate Position Accounts for each Customer or each group of joint Customers whose account is carried on the books of the Authorized Trading Member, pursuant to Rule 5A.1.1 and 5A.2 of the CDP Clearing Rules. | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | |
| 12A.2.2 | Authorized Trading Member to comply with requirements in Rule 5A.1.2 of the Clearing Rules in respect of each Authorized Account. | Compoundable | $500 | $1,000 | $2,000 | $250 | $500 | $1,000 | $250 | $500 | $1,000 | N.A. |
| Authorized Trading Member to comply with requirements in Rules 5A.1.1, 5A.2, 5A.3 and 5A.6 of the Clearing Rules in respect of each Authorized Account. | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. | |
| 12A.3 | Position Accounts carrying positions for more than one beneficial owner | |||||||||||
| 12A.3.1 | Trading Member is to identify or make available to SGX-ST the identity of any underlying beneficial owner and/or any controlling party of an Authorized Account, upon request by SGX-ST within such time as SGX-ST may require. | Not Compoundable | N.A | N.A | N.A | $10,000 | ||||||
| 12A.4 | Allocation of Trades to Position Accounts | |||||||||||
| 12A.4.1 | TPC Trading Member to instruct its Clearing Member to allocate positions of each trade cleared by the Clearing Member to the Trading Member's Position Account or in accordance with the relevant customer's instructions, as soon as practicable. | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 12A.4.2 | TPC Trading Member to ensure conditions set out in Rules 12A.4.2(a) or 12A.4.2(b) are satisfied in the case of any sub-allocation of positions from a Position Account to another Position Account. | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 12A.5 | Holding trades for different customers in a Position Account and warehousing of trades | |||||||||||
| 12A.5.1 | A Position Account to be used to hold positions for different customers only where the Trading Member has procedures to ensure fair allocation. | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 12A.5.2 | Trading Member to ensure that no trades are warehoused for more than 1 Market Day, unless under exceptional circumstances, where the Trading Member must document the reasons for the extension of time. | 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
Added on 1 July 20161 July 2016 and amended on 10 December 201810 December 2018.