1.1
Rule 8.11.1 states that SGX-ST may declare publicly a security or futures contract to be a "Designated Instrument" if, in its opinion, there has been manipulation of the security or futures contract (or its underlying), excessive speculation in the security or futures contract (or its underlying), or it is otherwise desirable in the interests of organised markets established or operated by SGX-ST.
Added on 3 June 20193 June 2019.
1.2
This Practice Note explains the circumstances under which SGX-ST may declare a listed or quoted security or futures contract to be a "Designated Instrument".
Added on 3 June 20193 June 2019.
2.1.
SGX-ST has three key regulatory tools to support a fair, orderly and transparent market. They are as follows:
Added on 3 June 20193 June 2019.
2.2
Designation is a tool that is used sparingly and only in exceptional circumstances that warrant such intervention. Such circumstances may include prolonged trading anomalies observed in the security or futures contract, such as order book imbalances and/or prolonged, excessive speculation in a security. The objective of designation is to restore market equilibrium by removing the impact of such anomalies on price formation, and allow the price of the security or futures contract to be formed through demand and supply forces in an informed market. Designation would be lifted once, in SGX's opinion trading has returned to normalcy.
Added on 3 June 20193 June 2019.
3.1
The conditions imposed on a Designated Instrument would depend on the circumstances leading to the designation of the security or futures contract. Examples of such conditions are listed below. One or more of these conditions may be imposed in a particular designation situation, and this list is not exhaustive.
Added on 3 June 20193 June 2019.