1. Introduction
1.1 SGX-ST requires a Remote Trading Member to meet the following operational requirements set out in the SGX-ST Rules:
(a) maintain proper, complete and accurate records pursuant to Rule 4.13;
(b) send its customer a risk disclosure document setting out the risks associated with holding and trading of securities and futures contracts, and inform the customer whether the Trading Member is acting as a principal or an agent to the customer pursuant to Rule 4.16;
(c) send its customer a contract note for the purchase or sale of securities or futures contracts pursuant to Rule 4.24;
(d) send its customer statements of account on a regular basis pursuant to Rule 4.25;
(e) segregate customer's monies and assets pursuant to Rule 4.29.
1.2 A Remote Trading Member may meet the above operational requirements by complying with the applicable comparable requirements prescribed by its Relevant Regulatory Authority as well as any additional requirements that SGX-ST may prescribe.
1.3 SGX-ST has the discretion to prescribe additional requirements where it is of the opinion that there is insufficient comparability between the requirements prescribed in the Securities and Futures Act and/or the Rules and the requirements prescribed by the Relevant Regulatory Authority. Paragraph 2 below sets out the factors that SGX-ST considers relevant when it decides whether to prescribe such additional requirements.
2. Factors that SGX-ST considers relevant
2.1 Complete and accurate records
Pursuant to Rule 4.13.1, the Remote Trading Member should:
Pursuant to Rule 4.13.1, the Remote Trading Member should:
(a) keep, or cause to be kept, such books as will sufficiently explain the transactions and financial position of its business and enable true and fair financial statements to be prepared from time to time;
(b) keep, or cause to be kept, such books in such a manner as will enable them to be conveniently and properly audited; and
(c) retain such books required by the Relevant Regulatory Authority.
2.2 Contract note
Pursuant to Rule 4.24.1 the Remote Trading Member should issue to its customer a contract note that should contain the following information:
Pursuant to Rule 4.24.1 the Remote Trading Member should issue to its customer a contract note that should contain the following information:
(a) name of the customer;
(b) date on which the purchase or sale of securities or futures contracts is entered into;
(c) the price, amount and description of the securities or futures contracts;
(d) settlement amounts;
(e) fees charged by the Trading Member; and
(f) fees charged by any other party(ies) and borne by the customer in addition to the fees charged by the Trading Member.
In addition, the contract note should be sent to the customer within a reasonable period from the execution of the trade.
2.3 Statements of account
Pursuant to Rule 4.25.1, the Remote Trading Member should send to its customer statements of account that should contain the following information:
Pursuant to Rule 4.25.1, the Remote Trading Member should send to its customer statements of account that should contain the following information:
(a) the price, amount and description of the securities or futures contracts;
(b) the status and movements of every asset in the Trading Member's custody held for the customer, including any asset deposited with a third party; and the date, reasons of the movement and amount of the asset involved;
(c) the movement and balance of money received on account of the customer; and
(d) any charges and credits to the customer's account carried on the books of the Trading Member.
2.4 Risk disclosure statement
Pursuant to Rule 4.16.1, the Remote Trading Member should provide its customer a risk disclosure statement that should clearly state the features of securities and futures contracts and the risks associated with holding and trading these instruments.
Pursuant to Rule 4.16.1, the Remote Trading Member should provide its customer a risk disclosure statement that should clearly state the features of securities and futures contracts and the risks associated with holding and trading these instruments.
2.5 Customer's monies and assets
Pursuant to Rule 4.29.1, the Remote Trading Member should:
Pursuant to Rule 4.29.1, the Remote Trading Member should:
(a) segregate customers' monies and assets from the Trading Member's monies and assets; and
(b) separately account for the monies and assets of each customer.
Added on 3 June 20193 June 2019.