2. Overview of Access and Membership
Unless otherwise indicated, the Exchange operates wholly electronic Markets. Electronic trading access to the Markets is solely via the Trading System. Subject to this Rules, Direct Market Access is available to all customers and is not conditioned on Membership. "Direct Market Access" refers to direct access to the Trading System via an Exchange-provided or Exchange-approved OMS. Direct Market Access does not include Internet Trading.
Amended on 15 March 201315 March 2013 and 14 November 201614 November 2016
2.1.1 Access to the Trading System
A Member or Customer may access the Trading System via:
"OMS" refers to an order management system through which orders are routed to the Trading System. "Exchange-approved OMS" refers to an OMS that has passed conformance testing and meets appropriate technical specifications as required by the Exchange.
Amended on 15 March 201315 March 2013 and 14 November 201614 November 2016.
2.1.2 Conditions Governing Direct Market Access
Amended on 15 March 201315 March 2013 and 14 November 201614 November 2016.
2.1.2A Conditions Governing Sponsored Access
For the purpose of this Rule 2.1.2A, "recognised regulatory authority" refers to a signatory to the International Organization of Securities Commissions' Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information, and "regulated activity" shall have the same meaning as in the Act.
Added on 15 March 201315 March 2013 and Amended on 18 January 2022.
2.1.2B Suspension and Termination of Direct Market Access
Added on 15 March 201315 March 2013.
2.1.3 Access to Partner Market
The Exchange or its related corporations may provide access facilities to enable Persons to execute trades on contracts listed on a Partner Market. Such Persons accessing the Partner Market are required to comply with this Rules as well as applicable rules, laws and regulations governing trading in the Partner Market.
Amended on 14 November 201614 November 2016 and 29 July 2022.
2.1.3A Conditions Governing Access to Connect Market
Refer to Regulatory Notice 2.1.3A(4); 4.1.11.
Added on 29 July 2022.
2.1.4 Trading Capacity — House and Agency
Amended on 1 April 20141 April 2014.
2.2.1 Overview
Membership shall:
2.2.2 Trading Member
There are 2 classes of Trading Members:
A Trading Member shall observe this Rules and any requirements as prescribed by the Exchange from time to time.
Amended on 25 August 200925 August 2009.
2.2.3 Clearing Member
To the extent that a Clearing Member has trading privileges, it is required to observe this Rules, the Clearing Rules and any requirements as prescribed by the Exchange or the Clearing House from time to time.
2.2.4 Dual Member
A Dual Membership entitles a Member to certain Membership privileges and subjects it to certain additional Membership obligations as set out in the applicable rules, including this Rules, the Clearing Rules, the CDP Clearing Rules and the Securities Rules. A "Dual Member" refers to a Member of more than one (1) Approved Exchange or more than one (1) Designated Clearing House owned by the Singapore Exchange Limited, as the case may be.
2.2.5 Honorary Member
The Exchange reserves the right to confer the distinction of Honorary Member to any person who has made a significant contribution to the promotion and development of a Market or Markets.
2.3.1 Licensing, Financial, Integrity, Clearing and Other Requirements
To be eligible for admission as a Member, an applicant shall satisfy the Exchange of its ability to satisfy the following requirements, where relevant, both at the time of admission as well as on a continuous basis until the termination of the Membership:
Amended on 25 August 200925 August 2009.
2.3.2 Membership in Other Exchanges
The following requirements apply in relation to membership in other exchanges:
Amended on 24 January 201124 January 2011.
2.4.1 Licensing and Registration Requirements for General Trading Members
A General Trading Member and its employees and agents are required to procure and maintain the requisite licence(s) and registration(s) with the Relevant Regulatory Authority to conduct regulated activities. The General Trading Member and its employees and agents shall independently satisfy such licensing and registration requirements as follows:
Amended on 25 August 200925 August 2009, 29 November 201029 November 2010, 1 April 20141 April 2014 and 18 January 2022.
2.4.2 Credit Rating Requirements for Bank Trading Members
A Bank Trading Member is required to satisfy the Exchange that it, or its parent bank, has obtained a credit rating that indicates, at least, adequate intrinsic safety and soundness, excluding external credit support, and a limited ability to withstand adverse business or economic conditions from any rating agency registered with an appropriate authority.
Added on 25 August 200925 August 2009 and amended on 26 April 201326 April 2013.
2.4.3 Downgrades in Credit Rating of Bank Trading Members
Upon admission as a Bank Trading Member, if there is any downgrade in the rating of the Bank Trading Member or its parent bank such that it falls below the minimum prescribed rating, the Exchange may, at its discretion, impose additional conditions as it deems fit, for permitting the Bank Trading Member to continue its trading activities as a Bank Trading Member.
Added on 25 August 200925 August 2009.
2.5.1 Overview of Base Capital, Total Risk Requirement and Statutory Requirements
A Member is required to comply with the financial requirements set forth in Rule 2.5, including, where applicable, requirements for Base Capital, Net Head Office Funds, Adjusted Net Head Office Funds, Financial Resources and Aggregate Resources. "Financial Resources", "Base Capital", "Net Head Office Funds", "Adjusted Net Head Office Funds", "Total Risk Requirement", "Aggregate Indebtedness", and "Aggregate Resources" shall have the meanings ascribed to them under Chapter 8 of this Rules.
Amended on 25 August 200925 August 2009, 1 April 20141 April 2014 and 22 April 201922 April 2019.
2.5.2 Trading Members
The following requirements apply in relation to Trading Members:
Amended on 25 August 200925 August 2009, 1 April 20141 April 2014 and 22 April 201922 April 2019.
2.5.4 Additional Financial, Capital and Other Requirements Imposed by the Exchange or the Clearing House
The Exchange or the Clearing House may from time to time prescribe additional financial and capital requirements for any Member or category or group of Members. Without limiting the foregoing, the Exchange may prescribe with respect to particular Members, capital, financial and other requirements in excess of the requirements prescribed under the Act, relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities, or this Rules with respect to volume, risk exposure of positions carried, risk concentration, margin policies, nature of business conducted or to be conducted, their memberships in any exchange or market, and such other matters as deemed fit by the Exchange.
Amended on 1 April 20141 April 2014.
2.5.5 Calculation of Financial Resources
In the calculation of Financial Resources, a corporate Member may include Qualifying Subordinated Loan(s), subject to such conditions and restrictions as prescribed under the Financial and Margin Regulations and in such form as prescribed by the Exchange or the Clearing House.*
* Refer to Annex A — Deed of Subordination (Term Loan)Annex A — Deed of Subordination (Term Loan) and Annex B — Deed of Subordination (Revolving Credit Facility)Annex B — Deed of Subordination (Revolving Credit Facility).
Amended on 25 August 200925 August 2009, 7 February 20147 February 2014 and 29 December 201429 December 2014.
2.5.6 Notification Requirements of General Trading Members
The following requirements apply in relation to material changes to Financial Resources or Adjusted Net Head Office Funds:
Amended on 25 August 200925 August 2009 and 22 April 201922 April 2019.
2.5.6A Notification requirements of General Trading Members that hold a licence specified in Rule 2.4.1(b)
The following requirements apply in relation to material changes to the Base Capital requirements specified in Rule 2.5.2(b1):
Added on 1 April 20141 April 2014 and amended on 22 April 201922 April 2019.
2.5.6B Notification Requirements of Bank Trading Members
The following requirements apply in relation to material changes to the capital and financial requirements specified in Rule 2.5.2(c):
Added on 22 April 201922 April 2019.
2.5.7 Requirements Relating to Preference Shares, Unsecured Loans and Others for General Trading Members
The following additional financial requirements apply to General Trading Members:
Amended on 25 August 200925 August 2009, 1 April 20141 April 2014 and 29 December 201429 December 2014.
2.6.1 Overview
A Member shall comply with such technical, operational, information technology, security, risk management and other requirements or restrictions as specified in this Rule 2.6 or as prescribed by the Exchange from time to time.
2.6.2 Controlling Access
A Member shall have security arrangements in place to ensure that unauthorised persons are denied access to the Markets.
Amended on 15 March 201315 March 2013.
2.6.2A Adequacy of Systems
A Member must ensure that its systems and connections to the Markets operate properly, and have adequate and scalable capacity to accommodate trading volume levels.
Refer to Regulatory Notice 2.6.2A.
Added on 15 March 201315 March 2013.
2.6.3 Risk Management and Financial Controls
^ Refer to Practice Note 2.6.3(1)(d).
#Refer to Practice Note 2.6.3(1)(g).
Refer to Practice Note 2.6.3(2).
Amended on 15 March 201315 March 2013, 14 November 201614 November 2016 and 29 July 2022.
2.6.4 Audit Trails and Records
A Member is required to:—
Refer to Regulatory Notice 2.6.4.
Amended on 15 March 201315 March 2013 and 1 April 20141 April 2014.
2.6.5 Accounting and Book-keeping
A corporate Member shall comply with such accounting, reporting and book-keeping requirements as prescribed by the Exchange from time to time.
2.6.6 Business Continuity Requirements
The following requirements apply:
Added on 22 January 200922 January 2009 and amended on 1 April 20141 April 2014.
2.7.1 Directors, Chief Executive Officer and Other Personnel
A corporate Member shall demonstrate to the reasonable satisfaction of the Exchange that it employs and appoints fit and proper persons* as:
* The Exchange shall evaluate "Fit and proper" criteria in this Rule 2.7.1 in a manner similar to the MAS Guidelines on Fit and Proper Criteria.
2.7.2 Exchange Approval for Chief Executive Officer and Deputy Chief Executive Officer of General Trading Member
A corporate General Trading Member shall procure the prior approval of the Exchange with respect to the appointment of its chief executive officer and deputy chief executive officer.
Amended on 25 August 200925 August 2009.
2.7.3 Notification of Appointment of Chief Executive Officer or Deputy Chief Executive Officer for Bank Trading Member
A Bank Trading Member shall notify the Exchange at least seven (7) days prior to the appointment of its chief executive officer or deputy chief executive officer.
Added on 25 August 200925 August 2009.
2.9.1 Member Register
The Exchange shall maintain a register of all Members (the "Register"). The names of Members on the Register which are undertaking Agency Trades or clearing activities shall be available for public inspection. Members on the Register may refer to themselves as "Members of SGX-DT Limited".
2.9.2 Trading Member
Amended on 25 August 200925 August 2009.
2.10.1 Clearing House and Clearing Member Guarantee
All trades executed on the Markets shall be cleared exclusively by the Clearing House through a Clearing Member pursuant to the Clearing Rules. A Trading Member shall be required to have the requisite clearing arrangement with a Clearing Member.
2.10.2 Revocation of Access Rights
If a Clearing Member notifies the Exchange that it has suspended or revoked its clearing arrangement with a Trading Member, such Trading Member shall be denied trading access to the Trading System until its clearing arrangement is reinstated with a Clearing Member.
Amended on 14 November 201614 November 2016.
2.11.1 Application
An application for Membership shall be made to the Exchange in writing and the applicant shall pay the requisite fees prior to admission as a Member. The Exchange may require from the applicant such information, and may institute such investigation to verify information submitted by the applicant, as it deems fit. The Exchange may require the applicant, or one (1) or more representatives of the applicant, to attend an interview by the Exchange.
2.11.2 Publication of Successful Applicants
Save for individual Trading Members, the Exchange shall publish from time to time the names of successful applicants for Membership by means of a Circular or such other means as the Exchange may determine.
2.11.3 Rejection of Application
If the Exchange is of the view that the requirements for admission are not met or that the applicant is otherwise not fit for Membership, the Exchange is entitled to reject the application for Membership.
2.11.4 Deemed Domicile
A Member shall be deemed to have elected domicile at the address stated by it in its application or at the last address subsequently specifically notified by it in writing to the Exchange, as the case may be.
2.12.1 Imposition of Fees and Notification of Changes to Fees
The Exchange may, from time to time, impose fees, levies and charges to be paid by Members on such terms as the Exchange may prescribe. The Exchange shall give notice of any changes to fees, levies and charges by means of a Circular or by posting a schedule of fees, levies and charges on the Exchange's website.
2.12.2 Late Interest
A Member which fails to pay any fees, levies or charges within thirty (30) days of such fees, levies or charges becoming payable shall be notified in writing by the Exchange of such arrears ("Arrears Notice"). Late interest charges at the prevailing interest rate may be imposed by the Exchange on late payments by Members.
2.12.3 Suspension of Rights
If the arrears are not paid by the Member within ten (10) days of the date of dispatch of an Arrears Notice, the Exchange may suspend Membership rights until all monies for the time being owed by it to the Exchange, together with any other sums that shall accrue due and payable by it and remain unpaid during the period of suspension, have been paid.
2.13.1 Registration Criteria for Approved Traders and Registered Representatives
A Member shall register with the Exchange any person acting on its behalf as an Approved Trader or a Registered Representative. To qualify for registration with the Exchange as an Approved Trader or Registered Representative, each applicant:
* The Exchange shall evaluate "fit and proper" criteria in this Rule 2.13.1 in a manner similar to the MAS Guidelines on Fit and Proper Criteria.
Amended on 8 August 20088 August 2008, 25 August 200925 August 2009, 29 November 201029 November 2010 and 1 April 20141 April 2014.
2.13.1A
In approving an application to be an Approved Trader or a Registered Representative, the Exchange may consult the Relevant Regulatory Authority.
Added on 1 April 20141 April 2014.
2.13.2 Registration of Approved Traders
Every Approved Trader shall be required to register with the Exchange before he acts or holds himself out as having the authority to execute trades on the Markets for:
For the avoidance of doubt, an Approved Trader shall not hold himself out as a sales representative of the respective Member or undertake any activities of a Registered Representative unless he is so registered with the Exchange as contemplated under this Rules.
2.13.3 Registration of Registered Representatives
Every Registered Representative shall be required to register with the Exchange before he acts or holds himself out as a sales representative of the respective Member. A Registered Representative shall not act or hold himself out as having the authority to execute trades on the Markets, unless he is registered as an Approved Trader with the Exchange as contemplated under this Rules. Upon being registered as a Registered Representative with the Exchange, a Registered Representative may, in the name of such Member:
Amended on 29 November 201029 November 2010 and 1 April 20141 April 2014.
2.13.4 Register of Approved Traders and Registered Representatives
The Exchange shall maintain a register of Approved Traders and Registered Representatives.
2.13.5 Approved Traders and Registered Representatives Obligations
Approved Traders and Registered Representatives are required to comply with the relevant provisions and other safeguards as prescribed under the Act, this Rules and applicable laws.
2.13.6 Revocation of Registration of Approved Traders and Registered Representatives
A Member shall immediately notify the Exchange if:
The Exchange may terminate the registration of an Approved Trader or a Registered Representation upon notification under Rule 2.13.6(ab) The registration of an Approved Trader or a Registered Representative shall automatically lapse upon such other notification under Rule 2.13.6, or the cessation of his sponsoring Member's Membership.
Amended on 25 August 200925 August 2009, 29 November 201029 November 2010 and 1 April 20141 April 2014.
2.13.7 Summary Powers of Suspension of Registration of Approved Traders and Registered Representatives
Notwithstanding and without prejudice to the powers of the Appeals Committee or the Disciplinary Committee, the Exchange may suspend in whole or in part the privileges of any Approved Trader or a Registered Representative for a period of up to one (1) year upon the occurrence of any of the following events:
Amended on 25 August 200925 August 2009, 29 November 201029 November 2010 and 1 April 20141 April 2014.
2.13.7A Duty to Notify the Exchange of Matters Concerning Approved Traders and Registered Representatives
A Member shall immediately notify the Exchange upon the occurrence of any of the events in Rule 2.13.7(c), (d), (e), (f) and (fa).
Added on 25 August 200925 August 2009 and amended on 29 November 201029 November 2010.
2.13.8 Liability of Members
A Member is responsible for all trades done through it. A corporate Member is responsible for the conduct and execution of trades by its Approved Traders and Registered Representatives and shall monitor and ensure that its Approved Traders and Registered Representatives comply with this Rules. For the avoidance of doubt, the Exchange retains disciplinary and supervisory authority over Approved Traders and Registered Representatives as contemplated in this Rules and applicable laws.
2.13.9 Registration Form
A Member shall submit an application to register a person as an Approved Trader or a Registered Representative in such form as the Exchange may prescribe from time to time. The Exchange may require from the Member or the prospective Approved Trader or Registered Representative such information, and may institute such investigation to verify information submitted by the Member or the prospective Approved Trader or Registered Representative, as it deems necessary. Registration as an Approved Trader or a Registered Representative of the Member takes effect upon the grant of approval by the Exchange.
2.14.1 Notification to Exchange
Unless otherwise provided in this Rules, a corporate Member shall notify, or, where practicable, pre-notify, the Exchange in writing of any Change of Control. "Change of Control" refers to:
Amended on 25 August 200925 August 2009 and 18 January 2022.
2.14.2 Reviewing Suitability
Upon receipt by the Exchange of any notice of Change of Control from a corporate Member the Exchange shall review the suitability of that Member for Membership in the Exchange. The Exchange may require that Member to furnish such additional information as the Exchange may from time to time consider material in the course of such review.
2.14.3 Suspension of Rights
If, upon completion of the review referred to in Rule 2.14.2, the Exchange is not satisfied that the corporate Member continues to satisfy the applicable criteria for Membership set forth in Rule 2.3, it may suspend the rights of the corporate Member for up to a period of one (1) year.
Refer to Exchange's obligation to refer a suspended Member, Approved Trader or Registered Representative to the Disciplinary Committee within 14 days under Rule 7.2.5.
2.15.1 Member's Suspension or Resignation
The following requirements apply in relation to a Member's suspension or resignation:
2.15.2 Summary Powers of Suspension of Trading Privileges of Members
Notwithstanding and without prejudice to the powers of the Appeals Committee and the Disciplinary Committee, the Exchange may suspend in whole or in part a Member's trading privileges for up to a period of one (1) year upon the occurrence of any of the following events:
2.15.3 Termination of Membership
The Exchange shall have the power to terminate any Membership upon the occurrence of any of the following events:
Amended on 25 August 200925 August 2009, 16 July 201216 July 2012, 1 April 20141 April 2014 and 18 January 2022.
2.15.4 Effect of Suspension or Termination
In the event of suspension or termination of trading privileges, the Exchange may direct the affected Member to Close Out any Open Positions or take such other steps that the Exchange deems fit for the protection of Customers or the maintenance of a fair, orderly and transparent market. The affected Member shall cooperate fully with the Exchange with respect to such directions. A suspension or termination of trading privileges does not in any way affect the liabilities of the Member to the Exchange and other Members and all such liabilities shall subsist until satisfied or discharged.
2.15.5 Accrued Obligations Survive
A Member which ceases to be a Member shall remain subject to this Rules and to the jurisdiction of the Exchange in respect of acts and omissions while it was a Member and in respect of any investigation or disciplinary proceedings relating thereto (including the application of any Sanction imposed) as if it was a Member.