13.1.1
If a Trading Member or its Trading Representative wants to trade as principal with a customer who is not a holder of a Capital Markets Services Licence, the customer must first be informed.
Amended on 29 December 201429 December 2014.
13.1.2
This Rule shall apply only to a Trading Member that holds a Capital Markets Services Licence. Any contract note relating to the above transaction must show that the Trading Member or Trading Representative acted as principal.
Amended on 19 May 201419 May 2014 and 29 December 201429 December 2014.
13.1.3
This Rule does not apply to trades that are matched on the Trading System without the Trading Member's or Trading Representative's knowledge.
Amended on 3 April 20083 April 2008.
13.2.1
When acting as agent, a Trading Member and its Trading Representative must:
Amended on 3 April 20083 April 2008 and 8 October 20188 October 2018.
13.2.2
A Trading Member must ensure that a person to whom it discloses a customer's order under Rules 13.2.1(9)(b) and (c) maintains confidentiality of such information.
13.3.1
A Trading Member must have procedures to prevent any conflict of interest between its customer trading activities and proprietary trading activities.
13.4.1
A Trading Member or a Trading Representative must not deal in securities or trade in futures contracts for his or her own account or for a Prescribed Person's account if the Trading Representative has an unexecuted order on the same terms from a customer. However, this Rule does not apply if:—
Refer to Practice Note 13.4.1.
Amended on 1 July 20051 July 2005, 3 April 20083 April 2008 and 8 October 20188 October 2018.
13.4.2
In this Rule, "Prescribed Person" means:—
Amended on 1 July 20051 July 2005.
13.4.3
In this Rule, "own account" means an account in which the Trading Member or the Trading Representative has a beneficial interest in.
Amended on 1 July 20051 July 2005.
13.5.1
A Trading Member or its Trading Representative must not:—
Amended on 1 July 20161 July 2016.
13.5A.1
Where the Trading Member collects margins from the customer in connection with trades executed on SGX-ST, regardless of whether it is required to under the Rules, the following shall apply:
Added on 21 January 201321 January 2013.
13.6.1
A Trading Representative must not:—
13.7.1
A Trading Member or a Trading Representative, when acting as agent, must not encourage transactions if the sole object is generating commission.
13.8.1
A Trading Member or a Trading Representative must not engage in, or knowingly act with any other person in, any act or practice that will or is likely to:—
Refer to Practice Note 13.8.1.
Amended on 3 April 20083 April 2008 and 8 October 20188 October 2018.
13.8.2
The following factors are relevant when considering whether an act or practice may breach Rule 13.8.1:—
Refer to Practice Note 13.8.1.
Amended on 3 April 20083 April 2008 and 8 October 20188 October 2018.
13.8.3
A Trading Member or a Trading Representative must not enter a buy order or a sell order on the Trading System if there is an existing opposite order from that same Trading Member or Trading Representative in the same security or futures contract for the same price. This Rule does not apply if:—
Refer to Practice Note 13.8.1.
Amended on 3 April 20083 April 2008 and 8 October 20188 October 2018.
13.8.4
A Trading Member or a Trading Representative must not directly or indirectly deal in securities which involve no change of beneficial ownership as defined in Section 197(5) of the Securities and Futures Act, or knowingly execute, or hold himself out as having executed, an order for the bona fide purchase or sale of futures contracts without having effected a bona fide purchase or sale of futures contracts as defined in Section 207(1) of the Securities and Futures Act. It is a defence if the Trading Member or Trading Representative can show that it, or he or she had no reason to suspect, or no reasonable Trading Member or Trading Representative ought to have suspected or known, that the transaction was a wash sale.
Amended on 3 April 20083 April 2008, 23 January 200923 January 2009 and 8 October 20188 October 2018.
13.8.5
A Trading Member or a Trading Representative must not deal in securities or trade in futures contracts in a manner that will or may affect or maintain the price of the securities, futures contract or their underlying, with intent to induce other persons to subscribe for, buy or sell the securities or futures contracts. This Rule does not apply to stabilising action carried out in accordance with Regulation 3 of the Securities and Futures (Market Conduct) (Exemptions) Regulations.
Amended on 3 April 20083 April 2008, 23 January 200923 January 2009 and 8 October 20188 October 2018.
13.8.6
A Trading Member or a Trading Representative must not disseminate information that is false or misleading if the Trading Member or Trading Representative:
13.8.7
A Trading Member or a Trading Representative must not participate in any prohibited market conduct in securities or futures contracts or in any insider trading, or knowingly assist a person in such conduct.
Amended on 3 April 20083 April 2008 and 8 October 20188 October 2018.
13.8.8
A Trading Member or a Trading Representative must immediately inform SGX-ST if it or he or she reasonably suspects, or knows of, any attempted market manipulation, creation of a false market or insider trading.
13.8.9
A Trading Member must have in place processes to review orders and trades for the purpose of detecting suspicious trading behaviour.
Refer to Practice Note 13.8.9.
Added on 18 September 201218 September 2012.
13.9.1
A Trading Member or a Trading Representative must ensure that a daily record of orders received from customers is maintained. The record must show the identity of the Trading Representative, account identification of each customer, the specific order, date and the time the order was received, transmitted, amended, and executed or cancelled. For avoidance of doubt, the record may be kept in the order management system.
13.9.2
A Trading Member must have a robust system to prevent tampering of the audit trail of orders entered into the Trading System.
13.10.1
A Trading Member may appoint a person to enter orders on the Trading System on instructions given by a Trading Representative or team of Trading Representatives. A Trading Member must ensure that a Trading Representative is supported by no more than 1 order entry person. For avoidance of doubt, an order entry person who supports a Remisier must be appointed by a Trading Member.
Amended on 3 April 20083 April 2008.
13.10.2
A Trading Member must ensure that the order entry person does not:—
Amended on 3 April 20083 April 2008 and 8 October 20188 October 2018.
13.10.3
A Trading Member must provide SGX-ST with the name and identity card/passport number of the order entry persons appointed.
13.10.4
A Trading Member must inform SGX-ST in writing if an order entry person ceases to act. If possible, at least 7 days prior notice should be given.
13.11.1
A Trading Member is responsible for the accuracy of all orders entered into the Trading System by its Trading Representatives and any order entry person.
Amended on 3 April 20083 April 2008.
13.11.2
A Trading Representative is responsible for the accuracy of orders entered into the Trading System by or on behalf of the Trading Representative.
Amended on 3 April 20083 April 2008.
13.11.4
A Trading Member must have in place controls to prevent unauthorised changes to order information entered into the Trading System, including Trading Representative identification numbers.
Added on 18 September 201218 September 2012.
13.12.1
A Trading Representative must have a unique identification number of not more than 3 characters and password to enter orders into the Trading System and must maintain confidentiality of the identification number and password.
Amended on 3 April 20083 April 2008 and 18 September 201218 September 2012.
13.12.2
A Trading Member must submit, upon admission, a list of Trading Representative identification numbers and names to SGX-ST, and notify SGX-ST of any amendments to the list on an ongoing basis.
Added on 18 September 201218 September 2012.
13.13.1
Before allowing its Trading Representatives to carry out dealing activities outside its office premises, a Trading Member must inform SGX-ST.
13.13.2
A Trading Member must inform all customers that Trading Representatives are operating away from its office premises and of any resulting limitations that might affect customer service and get written acknowledgement.
13.13.3
A Trading Member must ensure its Trading Representatives do not misuse customers' accounts for third party trading. In this regard, contract notes and statements must be sent to the customer's residential address, and not to "care-of" address, "PO Box" address or the Trading Representative's address. However, if the customer chooses otherwise, the Trading Member must explain the risk of unauthorised trading to the customer, get written acknowledgement, and monitor the trading activities for any unauthorised trading in customers' accounts.
13.13.4
Rules 13.13.1 to 13.13.3 shall apply only to a Trading Member that holds a Capital Markets Services Licence. A Trading Member that holds a licence specified in Rule 4.1.1(1)(b) shall comply with such requirements established by the Relevant Regulatory Authority, if any, and principles of good business practice in relation to carrying out dealing activities outside its office premises.
Added on 19 May 201419 May 2014 and amended on 29 December 201429 December 2014.
13.14.1
A Trading Member and a Trading Representative must not knowingly take advantage of a situation arising from:—
Amended on 3 April 20083 April 2008.