Chapter 19 — Marginable Futures Contracts

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Chapter 19 — Marginable Futures Contracts

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 19 — Marginable Futures Contracts

19.7

Suspense Accounts and Accounts with More Than One Beneficial Owner

19.7.1(a)

[deleted]

19.7.1(b)

[deleted]

19.8

Management of Positions

19.8.1

Trading Member to immediately notify SGXST of the details of any account which exceeds the monitoring thresholds on positions that have not been set-off

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.

19.8.3

Trading Member to comply with measures imposed by SGX-ST to reduce its risk exposure

Not Compoundable

N.A.

$10,000

19.9

Internal Controls

19.9.1(1)

Trading Member to establish and maintain adequate internal control systems to set credit limits or position 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.

19.9.1(2)

Trading Member to establish and maintain adequate internal control systems to monitor positions and comply with notification requirements on monitoring thresholds

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.

19.9.1(3)

Trading Member to establish and maintain adequate internal control systems to compute and collect margins

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.

19.9.1(4)

Trading Member to establish and maintain adequate internal control systems to monitor margin calls

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.

19.9.1(5)

Trading Member to establish and maintain adequate internal control systems to manage customers' accounts that are in margin deficit

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.

19.9.1(6)

Trading Member to establish and maintain adequate internal control systems to manage customers' accounts that may fail to meet settlement obligations

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.

19.9.1(7)

Trading Member to establish and maintain adequate internal control systems to define and manage sources of liquidity to meet increased settlement obligations

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.

19.9.1(8)

Trading Member to establish and maintain adequate internal control systems to limit the impact of significant market movements

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.

19.9.1(9)

Trading Member to establish and maintain adequate internal control systems to meet such other requirements as SGX-ST may prescribe

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.

19.10

Margin Requirements

19.10.2(1)

Trading Member to procure Initial Margins from its customers and require customers to meet the Required Margins

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.

Initial Margins and Required Margins to be met in the form of collateral as SGX-ST prescribes

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.

Valuation of collateral to be in accordance with the haircut rates 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.

19.10.2(2)

Trading Member not to accept specified currency for the purpose of meeting margin 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.

19.10.3

Trading Member to call for additional margins if the Customer Asset Value falls below the Required Margins

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.

19.10.4

Trading Member not to allow customer to incur new trades unless the stipulated 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.

19.10.5

Trading Member not to set margin requirements that are less stringent than those 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.

19.10.6

[Rule has been deleted.]

19.10.8

Trading Member not to allow a customer to withdraw Excess Margins unless the stipulated 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.

19.10.9

[Rule has been deleted.]

19.10.10

Trading Member to comply with requirements prescribed by SGX-ST on the computation and monitoring of customer's margins

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.

19.10.11(1)

Trading Member to notify SGX-ST of any under-margined 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

N.A.

19.10.12

Trading Member to require a customer to comply with the margin 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.

19.10.13

Trading Member not to enter into a financing arrangement with a customer in respect of that customer's margins 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.

19.11

Capital Requirement for Marginable Futures Contracts

19.11(2)

Trading Member to compute Total Risk Requirement in the same manner as prescribed by the SFR

Not Compoundable

N.A.

$10,000

19.12

Prohibited Trading Practices

19.12.1(1)

Trading Member and Trading Representative not to execute any trade beyond any limits imposed

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.

Added on 16 May 2011 16 May 2011 and amended on 21 January 2013 21 January 2013 and 1 July 2016 1 July 2016.