Chapter 17 — Securities Borrowing and Lending

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 17 — Securities Borrowing and Lending
17.1 Application of Chapter
17.1.1(2) 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 the stipulated requirements. 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.
17.2 Agreement
17.2.1 Trading Member to enter into written agreement with the borrower or lender before engaging in activity. Not Compoundable Not Compoundable N.A. N.A. N.A. N.A.
17.3 Collateral
17.3.1 Trading Member to obtain collateral from borrower before delivering loaned 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.
17.3.2 Trading Member not to accept collateral which is not in the form specified in the SFR. Not Compoundable Not Compoundable N.A. N.A. N.A. N.A.
17.3.3 Collateral that is otbained from the borrower not to be less than the prescribed level 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.
17.3.4 Trading Member to notfy the borrower to provide additional collateral to meet the prescribed level 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 not to allow new borrowings until the value of the collateral is restored to the prescribed level 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.
17.3.6 Trading Member not to allow a borrower to withdraw collateral unless the specified conditions are 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.

Added on 16 May 201116 May 2011 and amended on 19 May 201419 May 2014 and 8 October 20188 October 2018.