| 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 13 — Trading Practices and Conduct | ||||||||||||
| 13.1 | Acting as Principal | |||||||||||
| 13.1.1 | Customer to first be informed if a Trading Member or Trading Representative trades against the customer as principal | Not Compoundable | Not Compoundable | $10,000 | ||||||||
| 13.1.2 | Trading Member to indicate in the contract note that the Trading Member or Trading Representative acted as principal. | Not Compoundable | Not Compoundable | N.A. | N.A. | N.A. | $10,000 | |||||
| 13.2 | Acting as Agent | |||||||||||
| 13.2.1(1) | Trading Member and Trading Representative to carry out customer's instructions. | 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. |
| 13.2.1(2) | Trading Member and Trading Representative to exercise skill, care and diligence. | 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. |
| 13.2.1(3) | Trading Member and Trading Representative to act in good faith. | 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. |
| 13.2.1(4) | Trading Member and Trading Representative to act in the best interests of customers. | 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. |
| 13.2.1(5) | Trading Member and Trading Representative to disclose all circumstances and risks to a 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 13.2.1(6) | Trading Member and Trading Representative to inform the customer of the best bid and offer prices on the Trading System. | 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. |
| 13.2.1(7) | Trading Member and Trading Representative to disclose the commission and any benefit receivable on a transaction. | 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. |
| 13.2.1(8) | Trading Member and Trading Representative not to enter into a transaction which may conflict with a duty owed to the 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 13.2.1(9) | Trading Member and Trading Representative not to disclose a customer's order unless permitted under the Rules | Not Compoundable | Not Compoundable | $10,000 | ||||||||
| 13.2.2 | Trading Member to ensure that a person to whom it discloses a customer's order maintains confidentiality | 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. |
| 13.3 | Separation of Customer and Proprietary Trading Activities | |||||||||||
| 13.3.1(1) | Trading Member to put in place procedures to prevent conflict of interest. | 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. |
| 13.4 | Customer Orders — Precedence | |||||||||||
| 13.4.1 | Trading Member or Trading Representative not to deal in securities or trade in futures contracts for own account when there is an unexecuted order on the same terms from a customer. | Not Compoundable | Not Compoundable | $10,000 | ||||||||
| 13.5 | Arrangement with Customers | |||||||||||
| 13.5.1(1) | Trading Member or Trading Representative not to accept or have an arrangement to share in the profits of a customer's 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. |
| 13.5.1(2) | Trading Member or Trading Representative not to have an arrangement with a third party to allocate profits or losses to a customer's account. | Not Compoundable | Not Compoundable | $10,000 | ||||||||
| 13.5.1(3) | Trading Member or Trading Representative not to lead customer to believe that he will not suffer loss as a result of opening an account or dealings. | 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. |
| 13.5A | Margin Management for Trading Members in Respect of Any Margins from Customers | |||||||||||
| 13.5A.1(3) | Trading Member to comply with SGX-ST's directions to take such action to offset all or part of the positions to rectify a margin deficiency | 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. |
| 13.6 | Unauthorised Trading | |||||||||||
| 13.6.1(1) | Trading Representative not to execute personal trades in the account of a customer. | Not Compoundable | Not Compoundable | $10,000 | ||||||||
| 13.6.1(2) | Trading Representative not to use a customer's account for third party trading without prior written authorisation. | Not Compoundable | Not Compoundable | $10,000 | ||||||||
| 13.7 | Excessive Trading | |||||||||||
| 13.7.1 | Trading Member or Trading Representative not to encourage transactions to generate commission. | 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. |
| 13.8 | Market Manipulation and False Market | |||||||||||
| 13.8.1 | Trading Member or Trading Representative not to engage in an act likely to create a false or misleading appearance of active trading or lead to a false market. | Not Compoundable | Not Compoundable | $30,000 | ||||||||
| 13.8.3 | Trading Member or Trading Representative not to enter a buy or sell order on the Trading System when there is an existing opposite order from the same Trading Member or Trading Representative in the same security or futures contract for the same price. | 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. |
| 13.8.4 | Trading Member or Trading Representative not to deal in securities or execute an order for the sale and purchase of futures contracts which involve no change in beneficial ownership. | Not Compoundable | Not Compoundable | $30,000 | ||||||||
| 13.8.5 | Trading Member or Trading Representative not to deal in securities or trade in futures contracts in a manner which will affect price of the securities with intent to induce others to trade | Not Compoundable | Not Compoundable | $30,000 | ||||||||
| 13.8.6 | Trading Member or Trading Representative not to disseminate information that is false or misleading. | 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. |
| 13.8.7 | Trading Member or Trading Representative not to participate in any prohibited market conduct in securities or futures contracts or in any insider trading. | Not Compoundable | Not Compoundable | $30,000 | ||||||||
| 13.8.8 | Trading Member or Trading Representative to immediately inform SGX-ST of suspected market manipulation, creation of false market or insider trading. | Not Compoundable | Not Compoundable | $10,000 | ||||||||
| 13.8.9 | Trading Member to have in place processes to review orders and trades post-execution for suspicious trading activity | 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. |
| 13.9 | Record of Orders | |||||||||||
| 13.9.1 | Trading Member or Trading Representative to maintain a daily record of orders received from customers | Not Compoundable | Not Compoundable | $10,000 | ||||||||
| 13.9.2 | Trading Member to have a robust system to prevent tampering of the audit trail of orders entered into trading system. | 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. |
| 13.10 | Order Entry Person | |||||||||||
| 13.10.1 | Trading Member to ensure that each Trading Representative has no more than 1 order entry person. | 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. |
| 13.10.2(1) | Trading Member to ensure that order entry person does not deal in securities or futures contracts. | 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. |
| 13.10.2(2) | Trading Member to ensure that order entry person does not exercise any discretion over the entry of orders. | 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. |
| 13.10.2(3) | Trading Member to ensure that the order entry person does not give investment advice or make recommendations to customers. | 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. |
| 13.10.2(4) | Trading Member to ensure that the order entry person does not accept instructions from customers. | 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. |
| 13.10.2(5) | Trading Member to ensure that the order entry person does not communicate with customers regarding settlement. | 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. |
| 13.10.2(6) | Trading Member to ensure that the order entry person does not collect cash, cheques or share certificates. | 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. |
| 13.10.3 | Trading Member to provide SGX-ST the necessary particulars of order entry persons appointed. | Compoundable | $500 | $1,000 | $2,000 | $250 | $500 | $1,000 | N.A. | N.A. | N.A. | N.A. |
| 13.10.4 | Trading Member to inform SGX-ST if an order entry person ceases to act. | Compoundable | $500 | $1,000 | $2,000 | $250 | $500 | $1,000 | N.A. | N.A. | N.A. | N.A. |
| 13.11 | Responsibility for Orders | |||||||||||
| 13.11.1 | Trading Member to ensure the accuracy of orders entered into the Trading System by its Trading Representatives and any order entry person | 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. |
| 13.11.2 | Trading Representative to ensure the accuracy of orders entered into the Trading System by or on behalf of the Trading Representative | 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. |
| 13.11.3 | Orders to be entered in accordance with the procedures 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 | $1,000 – $3,000 | $3,000 – $6,000 | $6,000 – $8,000 | N.A. |
| 13.11.4 | Trading Member to have in place processes to prevent unauthorised changes to order info | 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. |
| 13.12 | Identification and Password | |||||||||||
| 13.12.1 | Trading Representative to have a unique identification number and password for entering orders into the Trading System and maintain confidentiality | 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. |
| 13.12.2 | Trading Member to submit and maintain a list of Trading Representative IDs | 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. |
| 13.13 | Off Premises Broking | |||||||||||
| 13.13.1 | Trading Member to inform SGX-ST before allowing Trading Representative to carry out dealing activities outside office premises | 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. |
| 13.13.2 | Trading Member to inform all customers that Trading Representatives are operating away from office premises and obtain written acknowledgement. | 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. |
| 13.13.3 | Trading Member to ensure that Trading Representatives do not misuse customers' accounts for third party trading. | 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. |
| 13.13.4 | Trading Member that holds a licence specified in Rule 4.1.1(1)(b) to comply with such requirements prescribed by the Relevant Regulatory Authority and principles of good business practice in respect of off premises broking. | 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. |
| 13.14 | Miscellaneous | |||||||||||
| 13.14.1 | Trading Member and Trading Representative not to take advantage of a situation arising from a breakdown or malfunction in SGXST's procedures or systems or error entries made by SGXST or CDP on the Trading System. | 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 16 May 201116 May 2011 and amended on 18 September 201218 September 2012, 21 January 201321 January 2013, 19 May 201419 May 2014 and 8 October 20188 October 2018.