10.1.1
The Rules shall, save as otherwise specified, apply to the listing and trading of Marginable Futures Contracts on SGX-ST.
Added on 3 June 20193 June 2019.
10.2.1
SGX-ST may list any Marginable Futures Contracts for trading.
Added on 3 June 20193 June 2019.
10.3.1
The Contract Specifications shall set out the commercial and technical terms of Marginable Futures Contracts. In the event of a conflict between the Rules and the Contract Specifications, the Rules shall prevail.
Added on 3 June 20193 June 2019.
10.3.2
SGX-ST may modify the Contract Specifications in response to market developments. In the event of such modification, SGX-ST shall provide all Trading Members with no less than two weeks' prior notice before any modification to Contract Specifications takes effect.
Added on 3 June 20193 June 2019.
10.4.1
In the event where the underlying security of a Marginable Futures Contract undergoes a corporate action or such other event that SGX-ST considers relevant, SGX-ST may prescribe the quantity of underlying security to be delivered, contract price, Last Trading Day, underlying securities to be delivered and such other terms covered under the relevant Marginable Futures Contract Specifications, where necessary.
Added on 3 June 20193 June 2019.
10.4.2
As far as practicable, SGX-ST will give prior notice of such adjustments and the effective date.
Added on 3 June 20193 June 2019.
10.4.3
Any adjustment determined in accordance with this Rule 10.4 is final and binding on all parties.
Added on 3 June 20193 June 2019.
10.5.1 Nomination of Securities
SGX-ST may, from time to time, nominate an underlying security for Marginable Futures Contracts. If SGX-ST decides, for any reason, that a security should no longer be an underlying security for Marginable Futures Contracts, SGX-ST shall:
Added on 3 June 20193 June 2019.
10.5.2 Removal from Quotation and Restriction of Trading before Last Trading Day
Subject to giving prior notification, SGX-ST may remove any Marginable Futures Contract from quotation before the Last Trading Day if all positions in such Marginable Futures Contract have been offset. If there are positions in such Marginable Futures Contract that are not offset, SGX-ST may require that such positions be cash settled immediately according to the terms as determined by SGX-ST, or restrict trading only to enable those positions to be offset or to the extent that SGX-ST deems such trading to be appropriate in the interests of maintaining a fair and orderly market in such Marginable Futures Contract or in the underlying securities, or otherwise deems advisable in the public interest or for the protection of investors.
Added on 3 June 20193 June 2019.
10.6.1
SGX-ST may halt or suspend trading of any Marginable Futures Contracts if:
Added on 3 June 20193 June 2019.
10.6.2 Rights to Exercise not Affected by Trading Halt or Suspension
Unless otherwise decided by SGX-ST, the trading halt or suspension in trading of Marginable Futures Contracts shall not affect the obligations of buyers and sellers of Marginable Futures Contracts during the period of trading halt or suspension.
Added on 3 June 20193 June 2019.
10.6.3 Resumption of Trading
SGX-ST may resume the trading of Marginable Futures Contracts that have been the subject of a trading halt or suspension if SGX-ST determines that:
Added on 3 June 20193 June 2019.
10.7.1
SGX-ST may impose monitoring thresholds on any account or any single customer. Such monitoring thresholds may include any one or a combination of the following:
For the purpose of this Rule 10.7, "single customer" shall have the meaning ascribed to it in Rule 3.7.6.
Added on 3 June 20193 June 2019.
10.7.2
A Trading Member must immediately notify SGX-ST of the details of any account carried on its books that exceeds the monitoring thresholds on positions that have not been offset.
Added on 3 June 20193 June 2019.
10.7.3
SGX-ST shall, in the interest of maintaining a fair, orderly and transparent market, monitor the total number of positions that have not been offset, of all accounts opened with all Trading Members in any Marginable Futures Contract on either side (long or short), or both sides of the market, and where appropriate, take action under Rule 10.7.4.
Added on 3 June 20193 June 2019.
10.7.4
To reduce a Trading Member's risk exposure in trading and dealing in any Marginable Futures Contracts, or for the purpose of maintaining a fair, orderly and transparent market, SGX-ST shall have the right to impose on the Trading Member such measures as it deems necessary or desirable. The Trading Member must comply with all measures that are imposed by SGX-ST. These may include:
Added on 3 June 20193 June 2019.
10.7.5
In determining the monitoring thresholds prescribed under Rules 10.7.1 and 10.7.2, and the risk management measures prescribed under Rule 10.7.4, SGX-ST may consider the following factors:
Added on 3 June 20193 June 2019.
10.7.6
In computing positions that have not been offset for the purpose of Rule 10.7, the positions of all accounts directly or indirectly owned or controlled by a person or persons, and the positions of all accounts of any person or persons acting in concert and the positions of all accounts in which a person or persons have a proprietary or beneficial interest, shall be accumulated and deemed to be the positions of each of such persons as if each owned or controlled all the aggregate positions individually.
Added on 3 June 20193 June 2019.
10.8.1
A Trading Member must establish and maintain adequate internal control systems to:
Added on 3 June 20193 June 2019.
10.9.1
For the purpose of this Rule 10.9:
Term | Meaning |
"Customer Asset Value" | refers to monies and the market value of assets in a customer's account subject to such haircut as specified by SGX-ST. |
"Initial Margins" | refers to the minimum amount required to be deposited by customers, as prescribed by CDP, with a Trading Member for positions in Marginable Futures Contracts. This minimum amount is distinct from and in addition to Variation Margins. |
"Maintenance Margins" | refers to that component of Required Margins, as determined by CDP, that must be maintained in a customer's account subsequent to the deposit of Initial Margins for that customer's positions in Marginable Futures Contracts. |
"Required Margins" | refers to the sum of Maintenance Margins and Variation Margins. |
"Valuation Price" | means the official price of Marginable Futures Contracts prescribed by SGX-ST for the purpose of determining Variation Margins. |
"Variation Margins" | refers to that component of Required Margins comprising the mark-to-market gains and losses, in relation to the price at which the Marginable Futures Contract was bought or sold, arising from the daily valuation of positions, except that Variation Margins are not required if the Trading Member permits a customer to realise a gain or loss pursuant to executing a trade to offset an existing position. |
A net loss increases the Variation Margins and Required Margins amount, and a net profit decreases the Variation Margins and Required Margins amount.
In calculating the mark-to-market losses or gains, a Trading Member must use the Valuation Price as determined by SGX-ST.
Added on 3 June 20193 June 2019.
10.9.2
Added on 3 June 20193 June 2019.
10.9.3
If the Customer Asset Value falls below the Required Margins, the Trading Member must call for additional margins from the customer to bring the Customer Asset Value balance to no less than the sum of Initial Margins and Variation Margins within two Market Days from the date the Customer Asset Value falls below the Required Margins.
Added on 3 June 20193 June 2019.
10.9.4
Except for trades that reduce a customer's Required Margins, a Trading Member must not allow a customer to incur any new trade unless:
Added on 3 June 20193 June 2019.
10.9.5
Trading Members must not set margin requirements that are less stringent than those prescribed by SGX-ST.
Added on 3 June 20193 June 2019.
10.9.6
Rule 5.9.1 shall apply in respect of margins for Marginable Futures Contracts that the Trading Member may call from the customer.
Added on 3 June 20193 June 2019.
10.9.7
Mark to market gains of a customer may be utilised by the Trading Member to meet Initial Margins for the same customer.
Added on 3 June 20193 June 2019.
10.9.8
A Trading Member may allow a customer to withdraw Excess Margins provided such withdrawal will not cause the Customer Asset Value to be less than zero. "Excess Margins" refers to the amount of Customer Asset Value that is in excess of the sum of the Initial Margins and Variation Margins.
Added on 3 June 20193 June 2019.
10.9.9
A Trading Member must comply with such requirements on the computation and monitoring of a customer's margins as SGX-ST may prescribe.
Added on 3 June 20193 June 2019.
10.9.10 Under-Margined Accounts
Added on 3 June 20193 June 2019.
10.9.11 Customer to Comply with Margin Requirements
A Trading Member must require a customer to comply with the margin requirements prescribed under Rule 10.9, even if the customer has entered into an arrangement to meet his delivery obligations in connection with Marginable Futures Contracts.
Added on 3 June 20193 June 2019.
10.9.12 Prohibition on Margin Financing
A Trading Member must not under any circumstances enter into a financing arrangement with a customer in respect of that customer's margins requirements that would allow the customer to trade without meeting the margin requirements prescribed under Rule 10.9.
Added on 3 June 20193 June 2019.
10.10.1
For the purpose of calculating counterparty risk requirements under the RBC Notice:
Added on 3 June 20193 June 2019.
10.10.2
A Trading Member shall compute Total Risk Requirement for Marginable Futures Contracts in the same manner as prescribed in the RBC Notice.
Added on 3 June 20193 June 2019.
10.11.1 Overtrading
The following provisions apply in relation to overtrading:
Added on 3 June 20193 June 2019.
10.12.1
Chapter 9 shall apply to the delivery and settlement of Marginable Futures Contracts.
Added on 3 June 20193 June 2019.
10.12.2
A Trading Member may allow the use of cash collateral deposited by a buying customer for the settlement of the contract value.
Added on 3 June 20193 June 2019.