Chapter 4 — Trading Members

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Chapter 4 — Trading Members

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 4 — Trading Members

4.5

Trading Rights

4.5.4

Trading Member that holds a licence specified in Rule 4.1.1(1)(b) not to execute Agency Trades for Customers domiciled in Singapore.

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.

4.5A

Direct Market Access

4.5A.2(1)(a)

Trading Member to have measures covering minimum standards for Direct Market Access

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.

4.5A.2(1)(b)

Trading Member to have measures covering procedures on Direct Market Access for relevant persons

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.

4.5A.2(1)(c)

Trading Member to have measures providing information on access and applicable laws for Direct Market Access

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.

4.5A.2(1)(d)

Trading Member to have measures for legally binding agreement on Direct Market Access

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.

4.5A.2(1)(e)

Trading Member to have measures for security arrangements on Direct Market Access

Not Compoundable

N.A.

$10,000

4.5A.2(1)(f)

Trading Member to assist SGX-ST in any investigation on Direct Market Access in respect of potential violations

Not Compoundable

N.A.

$10,000

4.5A.2(2)

Trading Member to have conditions restricting who can delegate Direct Market Access and to have conditions passed to other persons via legally binding agreement

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.

4.5A.2(3)

Trading Member to provide report by independent reviewer

Compoundable

$2,000 – $4,000

$4,000 – $7,000

$7,000 – $10,000

N.A.

4.5A.3(1)(a)

Trading Member to keep a Sponsored Access record

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.

4.5A.3(1)(b)

Trading Member to show Sponsored Access record when requested

Not Compoundable

N.A.

$10,000

4.5A.3(1)(c)

Trading Member to have measures on specific requirements for Sponsored Access

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.

4.5A.3(2)(a)

Trading Member to have measures to assure status of Sponsored Access 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

N.A.

4.5A.3(2)(b)

Trading Member to have measures on specific requirements relating to delegation of Sponsored Access

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.

4.5A.4(1)

SGX-ST to direct Trading Member to suspend or terminate Direct Market Access

Not Compoundable

N.A.

$10,000

4.5A.4(2)

Trading Member to have ability to suspend or terminate Direct Market Access

Not Compoundable

N.A.

$10,000

4.5B

Controlling Access

4.5B.1

Trading Member to have security arrangements in place to deny access to unauthorised persons.

Not Compoundable

N.A.

$10,000

4.6

Obligations of a Trading Member

4.6.1(1)

Trading Member to comply with the Rules, and any Directives SGX-ST prescribes

[Unless otherwise specified in this Schedule]

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.

4.6.1(2)

Failure to continue to satisfy the admission criteria.

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.

4.6.3(2)

Trading Member to honour all contracts.

Not Compoundable

N.A.

$10,000

4.6.4

Trading Member to adhere to good business practice.

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.

4.6.6

Trading Member to supervise Trading Representatives, employees and agents.

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.

4.6.7(1)

Trading Member to establish procedures and systems to prevent any breach of the Rules and Directives by its Directors, Officers, Trading Representatives, employees or agents.

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.

4.6.7(2)

Trading Member to establish and maintain adequate internal control 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.

4.6.7(3)

Trading Member to ensure that persons carrying out or enforcing procedures and systems reasonably discharge their duties and 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.

4.6.7A(1)(a)

Trading Member to monitor credit risks from acceptance of orders at least daily

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.

4.6.7A(1)(b)

Trading Member to have automated pre-execution checks on orders and appropriate internal controls

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.

4.6.7A(1)(c)

Trading Member to have error prevention alerts on 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.

4.6.7A(1)(d)

Trading Member to define and manage sources of liquidity

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.

4.6.7A(2)

[deleted]

4.6.7A(2)

Trading Member to have automated processes to monitor capital requirements and prudential 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.

4.6.8(1)

Trading Member to inform SGX-ST of transaction that will result in a change in control.

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.

4.6.8(2)

Trading Member to comply with such restrictions as SGX-ST may impose in the event of a change in control

Not Compoundable

N.A.

$10,000

4.6.9

Trading Member to report breaches by its Directors, Officers, TRs, employees or agents.

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.

4.6.10

Trading Member to pay all fees, levies and charges.

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

4.6.11

Trading Member to notify SGX-ST if AED ceases to act

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

4.6.12

Trading Member to notify SGX-ST of change in composition of Board of Directors.

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.

4.6.13(1)

Trading Member to register Trading Representatives with 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.

4.6.13(2)

Trading Member to enter into written agency agreement with a Remisier.

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

4.6.13(3)

Trading Member to inform SGX-ST before a dealer converts to a Remisier and vice versa.

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

4.6.13(6)

Trading Member to inform SGX-ST before a Trading Representative ceases to act.

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

4.6.14

Trading Member to inform SGX-ST before any change to its Memorandum and Articles of Association takes effect.

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.

4.6.15(1)

Trading Member to inform SGX-ST before engaging in or holding any substantial shareholding in any other businesses.

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.

4.6.15(2)

Engagement or shareholding not to breach the law, Rules, Directives or any regulations

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.

4.6.15(3)

Trading Member to supply SGX-ST with any information SGX-ST requires regarding engagement or acquisition of shareholding.

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.

4.6.15(4)

Trading Member not to proceed with engagement or acquisition of shareholding when SGX-ST objects, or before expiry of time period stipulated by SGX-ST

Not Compoundable

N.A.

$10,000

4.6.15(5)

Trading Member to end any engagement or shareholding if required to do so by SGX-ST

Not Compoundable

N.A.

$10,000

4.6.16(1)

Trading Member to maintain a register of securities in accordance with the SFA

Not Compoundable

N.A.

$10,000

4.6.16(2)

Trading Member to produce Register when requested by SGX-ST

Not Compoundable

N.A.

4.6.16(3)

Trading Member to permit SGX-ST to take extracts of the Register.

Not Compoundable

N.A.

$10,000

4.6.17

Trading Member to inform SGX-ST before effecting any change in business name or contact details.

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.

4.6.18

Trading Member not to issue or allot partly paid shares.

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.

4.6.19

Trading Member not to commence voluntary liquidation without prior written approval of SGX-ST.

Not Compoundable

N.A.

$10,000

4.6.20(1)

Trading Member to recommence business upon expiry of permitted period of cessation specified 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.

4.6.20(2)

Trading Member not to hold itself out as an active TM during period of cessation of business.

Not Compoundable

N.A.

$10,000

4.6.21(1)

Trading Member to assess its business and operational risks and maintain adequate business continuity arrangements

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.

4.6.21(2)

Trading Member to document its business continuity arrangements in a business continuity plan

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.

4.6.21(3)

Trading Member to demonstrate awareness of risks, mitigating measures and state of readiness by way of attestation to the Board of Directors

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

Trading Member to comply with such requirements prescribed by the Relevant Regulatory Authority and principles of good business practice.

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

4.6.21(4)

Trading Member to review and test its business continuity plan regularly

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.

4.6.21(5)

Trading Member to appoint emergency contact persons and furnish the contact information to the Exchange

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

Trading Member's emergency person must be contactable at all times

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

Trading Member to notify the Exchange in the event of emergencies

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.

4.6.22

Trading Member to ensure that systems and connections to SGX-ST operate properly

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.

4.7

Qualification by a Clearing Member

4.7.1(1)

Trading Member not to execute a contract on SGX-ST while not qualified by a Clearing Member.

Not Compoundable

N.A.

$10,000

4.7.1(2)

Trading Member not to be qualified by more than 1 Clearing Member.

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.

4.7.1(3)(a)

Trading Member to inform SGX-ST when it is not qualified by a Clearing Member.

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.

4.7.1(3)(b)

Trading Member to inform SGX-ST when its qualifying Clearing Member is replaced by another Clearing Member.

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.

4.7.2

Trading Member to ensure that all contracts concluded on SGX-ST are submitted to its qualifying Clearing Member for clearing

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.

4.8

Resignation

4.8.1(1)

Trading Member to give necessary written notice of resignation.

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.

4.8.1(2)

Trading Member not to enter into a contract 7 Market Days from date of notice of resignation without written approval of 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.

Added on 16 May 2011 16 May 2011 and amended on 18 September 2012 18 September 2012, 15 March 2013 15 March 2013 and 19 May 2014 19 May 2014.