SGX-ST Rules

The Rules operate as a binding contract between SGX-ST and each Registered Person, and between each Trading Member and every other Trading Member.

Added on 3 June 2019 3 June 2019.

1.1.2

A Trading Member is deemed to be bound by the Rules upon approval of the Trading Member's admission as a Trading Member by SGX-ST.

Added on 3 June 2019 3 June 2019.

1.1.3

A Registered Person, other than a Trading Member, is deemed to be bound by the Rules upon registration with SGX-ST.

Added on 3 June 2019 3 June 2019.

In interpreting the Rules, the intention and purpose behind the specific Rule and the Rules generally shall be taken into consideration. The Rules operate to ensure fair, orderly and transparent trading, to maintain an efficient and reputable market, to reduce systemic risk to participants in the market and to protect the investing public.

Added on 3 June 2019 3 June 2019.

1.1.5

A person who is not a party to the Rules has no rights under the Contracts (Rights of Third Parties) Act 2001 to enforce or enjoy the benefit of the Rules, regardless of whether such person has been identified by name, as a member of a class or as answering a particular description.

Added on 3 June 2019 3 June 2019 and amended on 18 January 2022.

1.2 Waivers or Variation

1.2.1

SGX-ST may waive or vary a Rule to suit the circumstances of a particular case, unless the Rule specifies that SGX-ST will not waive or vary it. SGX-ST may grant a waiver or variation subject to such conditions as it considers appropriate. A waiver or variation is only effective if the conditions are satisfied. If a waiver or variation is granted, SGX-ST will notify affected Registered Persons of the waiver or variation as soon as practicable, provided that any non-notification will not affect the validity of the waiver or variation.

Added on 3 June 2019 3 June 2019.

1.2.2

No failure by SGX-ST to exercise or enforce any rights conferred upon it by the Rules shall be deemed to be a waiver of any such rights or operate so as to bar the exercise or enforcement thereof at any subsequent time or times. A Registered Person shall not be entitled to rely on a delay in the exercise or non-exercise of a right arising from a breach or non-performance of the Rules or on a default under the Rules as constituting a waiver of that right.

Added on 3 June 2019 3 June 2019.

1.3 Rules, Directives and Regulatory Notices

1.3.1

SGX-ST may from, time to time, issue Directives and Regulatory Notices to supplement the Rules.

Added on 3 June 2019 3 June 2019.

1.3.2

The Rules, including any Directives or Regulatory Notices, may be unilaterally issued, amended or revoked by SGX-ST, subject to the provisions of the Securities and Futures Act and the approval of the Board, and shall be effective at such time as may be specified by SGX-ST.

Added on 3 June 2019 3 June 2019.

1.4 Practice Notes

1.4.1

SGX-ST may issue, amend or revoke Practice Notes to provide guidance on the interpretation and application of any Rule. A Practice Note does not bind SGX-ST in the application of a Rule.

Added on 3 June 2019 3 June 2019.

1.5 Transitional Arrangements

1.5.1

SGX-ST may publish transitional arrangements in relation to any amended or new Rule or Practice Note.

Added on 3 June 2019 3 June 2019.

1.6 Order of Precedence

1.6.1

Unless expressly provided otherwise, in the event of any conflict between the provisions of the following instruments, the provisions of an instrument with a higher level of precedence shall prevail over the provisions of an instrument with a lower level of precedence. The order of precedence, in descending order, of the instruments is as follows:

(a) written law;

(b) Rules, other than Directives and Regulatory Notices;

(c) Directives;

(d) Regulatory Notices; and

(e) Practice Notes.

Added on 3 June 2019 3 June 2019.

1.7 Delegation and Assignment

1.7.1

SGX-ST may delegate, assign or grant authority to exercise any of its rights, powers, authorities and discretions under the Rules, including any right to enforce the Rules, to such person or entity as it may determine in its sole discretion, without consent from any Registered Person. In the exercise of any such rights, powers, authorities and discretions under these Rules, such person or entity shall be bound to the same extent as the Exchange in respect of any obligations arising from the exercise of such rights, powers, authorities and discretions.

Added on 3 June 2019 3 June 2019.

1.7.2

Where the Rules provide that any power, authority or discretion is to be exercised by the Board, the Board may delegate, assign or grant authority to exercise such power, authority or discretion to any person or entity. The Board may authorise a delegate to sub-delegate.

Added on 3 June 2019 3 June 2019.

1.8 SGX RegCo's Authority

1.8.1

SGX RegCo shall have the authority to exercise any rights, powers, authorities and discretions under the Rules, including the right to enforce the Rules.

Added on 3 June 2019 3 June 2019.

1.9 Limitation of Liability

1.9.1

None of SGX-ST, its related companies, SGX RegCo, any person or entity referred to under Rule 1.7, or their respective Directors, Officers, employees or agents ("Relevant Persons") shall be liable to any person for any loss or damage (including consequential or indirect loss or damage even if advised of the possibility of such loss or damage), however caused or arising, including but not limited to any loss or damage arising directly or indirectly from or in connection with the following or any thing done or not done as a direct or indirect consequence of the following:

(a) any failure, error, delay or malfunction of the Trading System howsoever caused and whether or not identified or identifiable;

(b) the access to, use of or inability to use the Trading System;

(c) any thing done (including any statement made) or omitted to be done in the course of, or in connection with, the discharge or purported discharge of SGX-ST's obligations or rights under the SFA, any other applicable law, or under the Rules;

(d) the trading on organised markets provided by SGX-ST or the suspension (whether temporary or a longer suspension), interruption, cancellation, restriction or closure of trading on those organised markets howsoever caused;

(e) any failure, security breach, inoperability or malfunction of equipment, software or any other product supplied to a Trading Member howsoever caused, or in respect of its installation, maintenance or removal;

(f) the exercise of a decision-making or regulatory power or discretion under the Rules;

(g) any decision whether or not to cancel an Error Trade pursuant to Chapter 11;

(h) the acceptance of a Trading Member's resignation or any decision or ruling of the Disciplinary Committee or Appeals Committee exercising their powers;

(i) any virus or other destructive, malicious, or corrupting program, code, agent, script or macro;

(j) any errors, inaccuracy, omissions or delay in the calculation, determination or dissemination of prices for any security or futures contract;

(k) the originality, accuracy, adequacy, timeliness or completeness of the Trading System or any content, information, materials, images, sounds, graphics, video and other materials displayed therein or any functionalities or applications, programs or services provided therein (collectively "Content");

(l) any reliance on the Content or any part thereof; or

(m) any information transmitted or received by or on behalf of SGX-ST or a Trading Member, including through the Trading System, or the interception of or access to such information by unauthorised persons.

Added on 3 June 2019 3 June 2019.

1.9.2

Without prejudice to the generality of Rule 1.9.1, none of the Relevant Persons (i) makes any warranty, express or implied, or (ii) shall be liable to any person in respect of, or in connection with, any of the following:

(a) the originality, accuracy, adequacy, timeliness or completeness of an index or price;

(b) results to be obtained from the use of an index or price, in respect of any product linked or related to the index or price whether in the form of contracts or options;

(c) the merchantability and fitness for a particular purpose of, or use of, an index or price;

(d) any direct, special, punitive, indirect or consequential damages (including lost profits), even when notified of the possibility of such damages;

(e) any errors, omissions or delays in calculating or disseminating an index or price; and

(f) trading of any product linked or related to the index or price, whether in the form of contracts or options.

Added on 3 June 2019 3 June 2019.

1.9.3

For the purposes of Rule 1.9.2, a reference to an index includes administering, making, calculating, disseminating or compiling the index, or any intra-day proxies related or referable thereto, or any information or data included in or referable thereto.

Added on 3 June 2019 3 June 2019.

1.9.4

Each Trading Member shall ensure that its customers agree to and are bound by the limitation of liabilities under this Rule 1.9, either by way of inclusion in the contracts granting access to SGX-ST or such other similar manner.

Added on 3 June 2019 3 June 2019.

1.10 Indemnity

1.10.1

Each Registered Person indemnifies each of SGX-ST, its related companies, SGX RegCo, any person or entity referred to under Rule 1.7, and their respective Directors, Officers, employees and agents ("Indemnified Persons") against any loss or liability incurred or suffered by an Indemnified Person where such loss or liability arose out of or in connection with:

(a) any breach by the Registered Person of its obligations under the Rules; or

(b) any wilful, unlawful, reckless or negligent act or omission by the Registered Person.

Added on 3 June 2019 3 June 2019.

1.10.2

Without prejudice to the generality of Rule 1.10.1, in the event that any legal, arbitration or other proceedings are brought to impose any liability on all or any of the Indemnified Persons for an alleged failure on the part of any Indemnified Person to prevent or to require action by a Registered Person or any of its Directors, Officers, representatives (including without limitation Trading Representatives), employees or agents, the Registered Person shall reimburse the relevant Indemnified Person for:

(a) all expenses and legal fees incurred by or on behalf of the Indemnified Person in connection with such proceedings;

(b) any payment made by or on behalf of the Indemnified Person with the approval of the Registered Person in connection with any settlement of such proceedings; and

(c) any payment made by or on behalf of the Indemnified Person as a result of any order, award or judgment made in such proceedings,

and the Registered Person shall render such co-operation as the Indemnified Person reasonably requires in respect of such proceedings including without limitation the production of any document or records.

Added on 3 June 2019 3 June 2019.

1.10.3

Without prejudice to Rule 1.10.2, the Registered Person shall pay to an Indemnified Person, if the Indemnified Person so requires, the costs incurred by or on behalf of the Indemnified Person of producing or obtaining, pursuant to a court order or other legal process, records relating to the business or affairs of a Registered Person or any of its Directors, Officers, representatives (including without limitation Trading Representatives), employees or agents, regardless of the party requiring such production or obtainment.

Added on 3 June 2019 3 June 2019.

1.11 Provision of Information

1.11.1

Each Registered Person shall, upon SGX-ST's request, provide any information or records as SGX-ST requires to discharge any of SGX-ST's duties, including to ensure fair, orderly and transparent trading, to maintain an efficient and reputable market, to reduce systemic risk to participants in the market, to protect the investing public, to make authorised disclosures or perform any other act described in Rule 1.12, or to investigate compliance with or enforce any Rule, from time to time ("Purposes"). SGX-ST and any of its related corporations may use all such information and records for such Purposes. The information or records requested for may include the terms and circumstances of, and parties to any transactions by a Registered Person's customers or former customers, and the terms of employment or contract and duties of persons acting for a Registered Person. Registered Persons must ensure that any information or records provided do not contain untrue statements, are not misleading and include rather than omit any material statements.

Added on 3 June 2019 3 June 2019.

1.11.2

Where a Registered Person provides personal data on any individual (as defined under the Personal Data Protection Act 2012), the Registered Person undertakes that it has obtained consent from the individual concerned for it to disclose such personal data to SGX-ST, and for SGX-ST to collect, use and disclose such personal data, for the Purposes.

Added on 3 June 2019 3 June 2019.

1.11.3

The Registered Person must provide all information or records to SGX-ST as SGX-ST may require under the Rules.

Added on 3 June 2019 3 June 2019.

1.12 Disclosure of Information by SGX-ST

1.12.1

SGX-ST will take all reasonable measures to protect information provided to it by or on behalf of a Registered Person under the Rules from unauthorised use or disclosure.

Added on 3 June 2019 3 June 2019.

1.12.2

Disclosure of information by SGX-ST is authorised use or disclosure if it:

(a) is approved by the Authority and is to any governmental agency or regulatory authority (in or out of Singapore) that requests that SGX-ST provide the information for the proper exercise of powers relating to:

(i) the governance of Registered Persons; or

(ii) trading of securities and futures contracts (in or out of Singapore);

(b) is required under any law (in or out of Singapore) or any order of any court or regulatory authority (each in or out of Singapore);

(c) is publicly available at the time of disclosure to or by SGX-ST;

(d) is in connection with the discharge of its regulatory obligations under the Securities and Futures Act or when compelled under applicable laws to do so or pursuant to any cross-border regulatory sharing arrangement subject to its obligation to maintain confidentiality under the Securities and Futures Act;

(e) is in relation to the enforcement of the Rules or adjudication of a matter;

(f) is to any of SGX-ST's related corporations;

(g) is authorised by the Authority to be disclosed or furnished under the Securities and Futures Act; or

(h) constitutes authorised use or disclosure of information at common law.

Added on 3 June 2019 3 June 2019.

1.13 Registers

1.13.1

SGX-ST will maintain the following registers and such other registers as it may in its sole discretion require:

(a) Register of Trading Members;

(b) Register of Designated Market-Makers;

(c) Register of market-making representatives;

(d) Register of Chief Executive Officers; and

(e) Register of Trading Representatives.

Added on 3 June 2019 3 June 2019.

1.13.2

A corresponding entry in a Register will be deleted by SGX-ST when a relevant person ceases membership or registration.

Added on 3 June 2019 3 June 2019.

1.14 Fidelity Fund

1.14.1

SGX-ST will establish and administer a fidelity fund in accordance with Part 11 of the Securities and Futures Act.

Added on 3 June 2019 3 June 2019 and amended on 18 January 2022.

1.15 Governing Law and Jurisdiction

1.15.1

The Rules shall be governed by, and interpreted in accordance with, the laws of Singapore. Each party to the Rules hereby submits to the exclusive jurisdiction of the courts of Singapore.

Added on 3 June 2019 3 June 2019.

Chapter 2 Admission and Registration of Trading Members, Chief Executive Officers and Trading Representatives

2.1 Trading Member Admission Criteria

2.1.1

To be eligible for admission as a Trading Member, an applicant must:

(a) unless otherwise exempted, hold a Capital Markets Services Licence for the regulated activity in which it will engage as a Trading Member;

(b) be qualified by a Clearing Member (unless it is admitted as a Clearing Member);

(c) satisfy the capital and financial requirements that SGX-ST prescribes;

(d) upon admission appoint and register a Chief Executive Officer with SGX-ST in accordance with Rule 2.6;

(e) have facilities and staff adequate for expeditious and orderly trading, operations and activities.

Added on 3 June 2019 3 June 2019.

2.1.2

An applicant that is exempted from holding a Capital Markets Services Licence pursuant to Regulations 2(3) and/or 2(4) of the Securities and Futures (Exemption from Requirement to Hold Capital Markets Services Licence) Regulations may be admitted only as a Remote Trading Member. If SGX-ST is of the view that the regulatory requirements of the Relevant Regulatory Authority of a prospective Remote Trading Member are not comparable to those contemplated under the Securities and Futures Act and/or the Rules, it shall have the discretion to prescribe additional requirements.

Added on 3 June 2019 3 June 2019.

2.2 Application Procedures

2.2.1

To become a Trading Member, an applicant must apply to SGX-ST in the form and manner that SGX-ST prescribes, and provide such information to SGX-ST as it may in its discretion require in connection with the application.

Added on 3 June 2019 3 June 2019.

2.2.2

The applicant must inform SGX-ST in writing of the Clearing Member who has agreed to qualify it (unless it is admitted as a Clearing Member). The applicant must submit to SGX-ST the agreement documenting the qualification of the applicant by the Clearing Member.

Added on 3 June 2019 3 June 2019.

2.2.3

SGX-ST may, in its absolute discretion, approve or reject an application to be a Trading Member, having due regard to, among other things, the appropriateness, financial condition, and fitness and propriety of the applicant, its substantial shareholders, Chief Executive Officer and Directors.

Added on 3 June 2019 3 June 2019.

2.2.4

Without derogating from Rule 2.2.3, the factors that SGX-ST may consider when approving an application to be a Trading Member include but are not limited to the following:

(a) whether the applicant or its substantial shareholders, is in the course of being wound up, or a resolution to do so is passed by shareholders, or a court order is made, to wind it up, whether in or out of Singapore;

(b) whether execution against the applicant or its substantial shareholders, in respect of a judgment debt has been returned unsatisfied in whole or in part, whether in or out of Singapore;

(c) whether the applicant or its substantial shareholders, has entered into an arrangement or composition with its creditors that is still in operation, whether in or out of Singapore;

(d) whether a receiver, a receiver and manager, judicial manager or such other person having similar powers and duties, has been appointed, whether in or out of Singapore, in relation to any property of the applicant or its substantial shareholders;

(e) whether SGX-ST is not satisfied with the financial standing of the applicant or its substantial shareholders;

(f) whether SGX-ST is not satisfied with the manner in which the applicant's business is to be conducted;

(g) whether the applicant, or any of its substantial shareholders, Chief Executive Officer or Directors is convicted of an offence involving fraud or dishonesty or is found by a court of law to have acted fraudulently or dishonestly, whether in or out of Singapore;

(h) whether the applicant, or any of its substantial shareholders, Chief Executive Officer or Directors has been convicted of an offence under the Securities and Futures Act or any other relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities;

(i) whether the applicant, or any of its substantial shareholders, Chief Executive Officer or Directors is the subject of an investigation involving an allegation of fraud or dishonesty, whether in or out of Singapore;

(j) whether SGX-ST is not satisfied as to the educational or other qualification or experience of the Chief Executive Officer or Directors of the applicant;

(k) whether SGX-ST is not satisfied with the applicant's record of past performance;

(l) whether SGX-ST is not satisfied that the applicant, any of its Chief Executive Officer or Directors are able to satisfy such experience and competency requirements as SGX-ST may prescribe;

(m) whether SGX-ST has reason to believe that the applicant or any of its Chief Executive Officer or Directors may not perform their functions efficiently, honestly and fairly;

(n) whether SGX-ST has reason to believe that the applicant may not act in the best interests of its customers; and

(o) whether in SGX-ST's opinion, it would be contrary to the interests of the public to admit the applicant as a Trading Member.

Added on 3 June 2019 3 June 2019.

2.2.5

SGX-ST may approve an application subject to such conditions or restrictions as it may in its absolute discretion deem appropriate (the "Approval Conditions") including but not limited to restrictions on the applicant's scope of business and operations. SGX-ST shall inform the applicant of the imposition or withdrawal of any Approval Condition in writing. A breach of the Approval Conditions shall constitute a breach of this Rule.

Added on 3 June 2019 3 June 2019.

2.2.6

SGX-ST may, in its absolute discretion at any time, by notice in writing, vary or lift any Approval Condition or impose such further Approval Conditions as it may think fit.

Added on 3 June 2019 3 June 2019.

2.3 Appeals

2.3.1

If SGX-ST rejects an application to be a Trading Member, the applicant may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

Added on 3 June 2019 3 June 2019.

2.4 Register of Trading Members

2.4.1

An applicant approved by SGX-ST as a Trading Member will have its name entered in the Register of Trading Members. SGX-ST will notify all Trading Members of the effective date of admission of a Trading Member.

Added on 3 June 2019 3 June 2019.

2.5 Trading Rights

2.5.1

A Trading Member has access to organised markets established or operated by SGX-ST and/or such organised markets as SGX-ST specifies, unless such access is restricted under the Rules or by SGX-ST in writing.

Added on 3 June 2019 3 June 2019.

2.5.2

A Trading Member does not have the right to clear and settle contracts concluded on SGX-ST.

Added on 3 June 2019 3 June 2019.

2.5.3

Subject to Rule 2.5.4, a Trading Member may deal in securities or futures contracts that are listed or quoted on SGX-ST for any of the following:

(a) customers;

(b) its proprietary accounts; and

(c) proprietary accounts of its related corporations or Associated Corporations.

Added on 3 June 2019 3 June 2019.

2.5.4

A Remote Trading Member shall not deal in securities or futures contracts for customers resident in Singapore.

Added on 3 June 2019 3 June 2019.

2.6 Appointment and Registration of Chief Executive Officer

2.6.1

A Trading Member that holds a Capital Markets Services Licence must appoint one person as a Chief Executive Officer and register that person with SGX-ST as its Chief Executive Officer. The Chief Executive Officer must be approved by the Authority in accordance with the Securities and Futures Act.

Added on 3 June 2019 3 June 2019.

2.6.2

A Remote Trading Member must appoint one person as a Chief Executive Officer and register that person with SGX-ST as its Chief Executive Officer. The Chief Executive Officer must be a fit and proper person that is in the employment of, or acting for or by arrangement with, the Remote Trading Member and is principally responsible for the management and conduct of that part of the Remote Trading Member's business that is regulated by the Relevant Regulatory Authority.

Added on 3 June 2019 3 June 2019.

2.6.3

A Trading Member shall notify SGX-ST at least seven days prior to the appointment of a Chief Executive Officer.

Added on 3 June 2019 3 June 2019.

2.6.4

SGX-ST may in its discretion refuse the registration of a Chief Executive Officer.

Added on 3 June 2019 3 June 2019.

2.6.5

If SGX-ST refuses the registration of a Chief Executive Officer, the applicant may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

Added on 3 June 2019 3 June 2019.

2.7 De-Registration of Chief Executive Officer

2.7.1

A Chief Executive Officer will be deemed to be de-registered, and the Trading Member shall immediately notify SGX-ST, if the Chief Executive Officer:

(a) becomes of unsound mind;

(b) is made bankrupt, whether in or out of Singapore;

(c) is disqualified from holding office as a Chief Executive Officer or director under the Securities and Futures Act, the Companies Act or any other relevant law or regulation;

(d) ceases to be the Chief Executive Officer of the Trading Member, or gives or is given notice that he will cease to be the Chief Executive Officer of the Trading Member (whichever is the earlier);

(e) is subject to a compromise or scheme of arrangement with his creditors, whether in or out of Singapore;

(f) has execution in respect of a judgment debt returned unsatisfied in whole or in part; or

(g) is convicted of an offence involving fraud or dishonesty or is found by a court of law to have acted fraudulently or dishonestly, in each case whether in or out of Singapore.

Added on 3 June 2019 3 June 2019.

2.7.2

A Chief Executive Officer who is deemed de-registered will have his name deleted from the Register of Chief Executive Officers upon the date of deemed de-registration.

Added on 3 June 2019 3 June 2019.

2.8 Appointment and Registration of Trading Representatives

2.8.1

A Trading Member must register with SGX-ST persons who deal in securities or futures contracts on SGX-ST as Trading Representatives, unless exempted by SGX-ST.

Added on 3 June 2019 3 June 2019.

2.8.2

To be eligible for registration as a Trading Representative, an applicant must:

(a) be at least 21 years old;

(b) be a fit and proper person, in accordance with the Authority's Guidelines on Fit and Proper Criteria;

(c) possess a good track record of business conduct (if applicable);

(d) comply with the requirements of his Relevant Regulatory Authority for acting as a representative of his Trading Member in respect of the relevant regulated activities;

(e) not be a person who has previously been disallowed by an exchange or a regulatory body, whether in or out of Singapore, from acting as a representative in respect of the relevant regulated activities; and

(f) not be an undischarged bankrupt, whether in or out of Singapore.

Added on 3 June 2019 3 June 2019.

2.8.3

A Trading Representative may be entered into the Register of Trading Representatives only if his Trading Member has confirmed in writing to SGX-ST that the Trading Representative satisfies the registration criteria prescribed in Rule 2.8.2. The Trading Member shall maintain records evidencing the Trading Representative's satisfaction of the registration criteria in Rule 2.8.2 and shall provide all information that SGX-ST may require in the registration process.

Added on 3 June 2019 3 June 2019.

2.8.4

SGX-ST may in its discretion refuse the registration of a Trading Representative.

Added on 3 June 2019 3 June 2019.

2.8.5

If SGX-ST refuses the registration of a Trading Representative, the applicant may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

Added on 3 June 2019 3 June 2019.

2.8.6

Only Trading Representatives who have been registered by SGX-ST and entered into the Register of Trading Representatives may deal in securities or futures contracts on SGX-ST. A Trading Representative may begin to do so only upon his Trading Member being notified by SGX-ST that he or she has been entered into the Register of Trading Representatives.

Added on 3 June 2019 3 June 2019.

2.8.7

A Trading Representative must act for only one Trading Member, unless exempted by SGX-ST.

Added on 3 June 2019 3 June 2019.

2.9 De-Registration of Trading Representative

2.9.1

A Trading Representative will be deemed to be de-registered, and the Trading Member shall immediately notify SGX-ST, if the Trading Representative:

(a) becomes of unsound mind;

(b) is made bankrupt, whether in or out of Singapore;

(c) is subject to a compromise or scheme of arrangement with his creditors, whether in or out of Singapore;

(d) has execution in respect of a judgment debt returned unsatisfied in whole or in part;

(e) is convicted of an offence involving fraud or dishonesty or is found by a court of law to have acted fraudulently or dishonestly, whether in or out of Singapore;

(f) ceases to comply with the requirements of his Relevant Regulatory Authority for acting as a representative of his Trading Member in respect of the relevant regulated activities or is disallowed by the Relevant Regulatory Authority from so acting; or

(g) ceases to act as a Trading Representative for the Trading Member, or gives or is given notice that he will cease to be a Trading Representative of the Trading Member (whichever is the earlier).

Added on 3 June 2019 3 June 2019.

2.9.2

A Trading Representative who is deemed de-registered will have his name deleted from the Register of Trading Representatives upon the date of deemed de-registration.

Added on 3 June 2019 3 June 2019.

2.10 Compliance

2.10.1 Trading Member

(a) A Trading Member shall at all times comply with the Rules and continue to satisfy the admission criteria, any Approval Conditions, and any other conditions or restrictions imposed by SGX-ST from time to time.

(b) A Remote Trading Member shall comply with principles of good business practice in relation to the areas covered by those Rules that have been expressed to not apply to Remote Trading Members.

Added on 3 June 2019 3 June 2019.

2.10.2 Chief Executive Officer

(a) A Chief Executive Officer entered into the Register of Chief Executive Officers shall comply with the Rules where relevant and will be responsible for ensuring that the Trading Member complies with the Rules.

(b) A Chief Executive Officer may be liable for disciplinary action if he or the Trading Member breaches the Rules.

Added on 3 June 2019 3 June 2019.

2.10.3 Trading Representative

A Trading Representative shall comply with the Rules at all times and continue to satisfy the registration criteria and any conditions or restrictions imposed by SGX-ST from time to time.

Added on 3 June 2019 3 June 2019.

2.11 Payment

2.11.1

Trading Members, Chief Executive Officers and Trading Representatives must pay SGX-ST all fees, levies and charges that SGX-ST prescribes, within such time as SGX-ST prescribes. SGX-ST may reduce or waive any fee, levy or charge.

Added on 3 June 2019 3 June 2019.

2.12 Constitutional Documents

2.12.1

A Trading Member must inform SGX-ST in writing at least seven days before any change to its Constitution or equivalent constitutional documents takes effect.

Added on 3 June 2019 3 June 2019.

2.13 Business Name/Contact Details

2.13.1

A Trading Member must inform SGX-ST in writing at least seven days before it effects any change in its business name or contact details.

Added on 3 June 2019 3 June 2019.

2.13.2

A Trading Representative shall inform his Trading Member in writing of any change in his residential or mailing address or contact numbers within seven days of the change.

Added on 3 June 2019 3 June 2019.

2.13.3

A Trading Member shall inform SGX-ST in writing of any change notified to it by its Trading Representatives under Rule 2.13.2 within seven days of such notification.

Added on 3 June 2019 3 June 2019.

2.14 Board of Directors

2.14.1

A Trading Member must inform SGX-ST in writing of a change in the composition of its board of Directors within seven days of the change.

Added on 3 June 2019 3 June 2019.

2.14.2

A Trading Member may appoint a Director of an SGX-ST listed company as a non-executive Director, but not as an executive Director.

Added on 3 June 2019 3 June 2019.

2.15 Directorship of SGX-ST Listed Company

2.15.1

A Chief Executive Officer or a Trading Representative may be appointed as a non-executive director of an SGX-ST listed company (but not as an executive director) subject to the following:

(a) The Chief Executive Officer or Trading Representative must inform SGX-ST of the proposed appointment in writing at least 14 days before the effective date of appointment.

(b) The Chief Executive Officer or Trading Representative must furnish SGX-ST at least seven days before the effective date of appointment with:

(i) an explanation of how conflicts of interest that may arise from the dual appointments have been addressed; and

(ii) an undertaking to disclose to customers the directorship as and when necessary for the discharge of the Chief Executive Officer's or Trading Representative's responsibilities.

(c) The Trading Member must inform SGX-ST in writing at least seven days before the effective date of appointment that it is aware of the directorship and is satisfied that conflicts of interest have been sufficiently addressed.

Added on 3 June 2019 3 June 2019.

2.15.2

Possible conflicts of interest that the Chief Executive Officer or Trading Representative may need to consider and address include but are not limited to:

(a) how the Chief Executive Officer or Trading Representative would ensure unbiased advice and full disclosure to a customer of the Trading Member where the Chief Executive Officer or Trading Representative is in a position to influence the trading decision of the customers of the Trading Member; and

(b) how the Chief Executive Officer or Trading Representative would fulfil his obligations to the SGX-ST listed company and the Trading Member where the Chief Executive Officer or Trading Representative possesses information about the SGX-ST listed company that is not generally available to the public and is in a position to influence research recommendations or corporate finance activities of the Trading Member.

Added on 3 June 2019 3 June 2019.

2.16 Change in Control

2.16.1

A Trading Member must inform SGX-ST in writing as soon as it becomes aware of a formal decision to undertake or proceed with:

(a) any transaction that will or may result in a change in the legal or beneficial ownership of 20% or more of the Trading Member's issued share capital, and any subsequent increase of 5% or more of the Trading Member's issued share capital; or

(b) any change that will or may have the effect of altering control of the Trading Member.

Added on 3 June 2019 3 June 2019.

2.16.2

If control of a Trading Member changes, SGX-ST may impose conditions or restrictions on the Trading Member or revoke the Trading Member's trading rights in its absolute discretion, having due regard to, among other things, the financial condition and the fitness and propriety of the Trading Member as described under Rule 2.2.3.

Added on 3 June 2019 3 June 2019.

2.16.3

If SGX-ST revokes the Trading Member's trading rights, the Trading Member may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

Added on 3 June 2019 3 June 2019.

2.17 Other Businesses

2.17.1

A Trading Member must inform SGX-ST in writing at least 14 days before engaging in, or acquiring or holding any substantial shareholding in, any other business.

Added on 3 June 2019 3 June 2019.

2.17.2

A Chief Executive Officer must inform SGX-ST in writing at least 14 days before engaging in, or acquiring or holding any substantial shareholding in, any other business that might potentially conflict with being a Chief Executive Officer.

Added on 3 June 2019 3 June 2019.

2.17.3

A Chief Executive Officer must ensure that any proposed engagement or shareholding is agreed to by his Trading Member.

Added on 3 June 2019 3 June 2019.

2.17.4

A Trading Member or Chief Executive Officer must ensure that any proposed engagement (and any actions taken under it) or shareholding does not breach the Securities and Futures Act, the Rules or any applicable law or regulation.

Added on 3 June 2019 3 June 2019.

2.17.5

A Trading Member or Chief Executive Officer must supply SGX-ST with any information SGX-ST requires regarding the engagement or acquisition or holding of shareholding.

Added on 3 June 2019 3 June 2019.

2.17.6

SGX-ST may, at its discretion, object to any such engagement or acquisition of shareholding, in which event the Trading Member or Chief Executive Officer must not proceed with the engagement or acquisition of shareholding.

Added on 3 June 2019 3 June 2019.

2.17.7

SGX-ST may, at its discretion, impose conditions and restrictions on any engagement or acquisition of shareholding, including without limitation, a condition requiring that the Trading Member or Chief Executive Officer not proceed with the engagement or acquisition of shareholding before the expiry of such period as SGX-ST may specify.

Added on 3 June 2019 3 June 2019.

2.17.8

If an engagement or shareholding, in SGX-ST's opinion, is detrimental to the financial integrity, reputation or interests of SGX-ST, the Trading Member concerned or organised markets established or operated by SGX-ST, SGX-ST may impose or vary conditions connected with the engagement, or require the Trading Member or Chief Executive Officer to terminate the engagement or divest the shareholding.

Added on 3 June 2019 3 June 2019.

2.17.9

A Trading Member or Chief Executive Officer may, within 14 days after it is notified of SGX-ST's decision under this Rule 2.17, appeal in writing to the SGX RegCo Board whose decision will be final.

Added on 3 June 2019 3 June 2019.

2.17.10

A Trading Member must have in place controls and processes to ensure that its Trading Representatives do not engage in, or acquire or hold any substantial shareholding in, any other business that:

(a) involves a breach of the Securities and Futures Act, the Rules or any applicable law or regulation; or

(b) is detrimental to the financial integrity, reputation or interests of SGX-ST, the Trading Member concerned, or organised markets established or operated by SGX-ST.

Added on 3 June 2019 3 June 2019.

2.18 Reporting of Adverse Events

2.18.1

Save as provided in Rule 2.18.2, a Trading Member must inform SGX-ST immediately if it or any of its Chief Executive Officer, Directors, Officers, Trading Representatives, employees or agents:

(a) breaches the Securities and Futures Act, any law, regulation or requirement of the Relevant Regulatory Authority or any other relevant applicable laws and regulatory requirements relating to the regulation of organised markets and licensed entities;

(b) breaches the Rules;

(c) breaches any relevant law or regulation that governs that person's other business activities;

(d) breaches the rules of any other exchange;

(e) has been alleged or found to have breached director's duties under common law or applicable statute;

(f) is the subject of a written complaint or investigation involving an allegation of fraud or dishonesty, is convicted of an offence involving fraud or dishonesty or is found by a court of law to have acted fraudulently or dishonestly, whether in or out of Singapore;

(g) is the subject of any disciplinary action by the Trading Member involving suspension, termination, withholding of commissions, fines or any other significant limitation of activities;

(h) is experiencing an emergency or potentially debilitating situation that threatens its operations (e.g. a cyber threat or terrorist attack);

(i) engages in conduct that has the effect of circumventing the Securities and Futures Act, any relevant law, regulation or requirement of the Relevant Regulatory Authority, any other relevant applicable laws and regulatory requirements relating to the regulation of organised markets and licensed entities or the Rules;

(j) has had its licence or relevant approval to conduct the relevant regulated activities suspended, revoked or expired, or in the case where it is exempted from holding a licence or obtaining approval, the Relevant Regulatory Authority withdraws the exemption or imposes conditions or restrictions in respect of the relevant regulated activities;

(k) engages in conduct that is inconsistent with the principles of good business practice;

(l) engages in conduct detrimental to the financial integrity, reputation or interests of SGX-ST, or organised markets established or operated by SGX-ST;

(m) is insolvent or wound-up, or has had an insolvency or winding-up application presented, or an order made by a court of competent jurisdiction, or any step is taken or a resolution passed, for its winding-up, dissolution, judicial management or administration; or

(n) has had any attachment, distress, execution or legal process instituted against its assets, or has had any liquidator, receiver or any similar person appointed (or an application has been made for the appointment of such person) in respect of any of its assets.

Added on 3 June 2019 3 June 2019.

2.18.2

In the case of an emergency or potentially debilitating situation under Rule 2.18.1(h), the Trading Member may inform SGX-ST as soon as practicable, but in any case no later than one hour, after its discovery of the situation.

Added on 3 June 2019 3 June 2019.

2.18.3

SGX-ST may require a Trading Member to inform SGX-ST in respect of any other matters and in such form as SGX-ST determines.

Added on 3 June 2019 3 June 2019.

2.19 Voluntary Liquidation

2.19.1

A Trading Member must not commence voluntary liquidation without the prior written approval of SGX-ST.

Added on 3 June 2019 3 June 2019.

2.20 Cessation of Trading Rights

2.20.1

A Trading Member's right to access organised markets established or operated by SGX-ST will cease and it shall not enter any orders on such markets if:

(a) a resolution is passed by its shareholders, or a court order is made, to wind it up, or any judicial manager or similar official is appointed in respect of it;

(b) an arrangement or composition is entered into with its creditors under any law relating to bankruptcy or insolvency;

(c) its Capital Market Services Licence lapses, or it no longer meets the requirements to be or is no longer exempted from holding a Capital Market Services Licence, as the case may be;

(d) it is not qualified by a Clearing Member or its qualification by a Clearing Member has been suspended;

(e) it is declared a defaulter pursuant to Rule 2.21; or

(f) it is suspended under the Rules, including under Rule 2.22.

Added on 3 June 2019 3 June 2019.

2.20.2

When a Trading Member's right to access organised markets established or operated by SGX-ST has ceased, SGX-ST will notify all Trading Members of the effective date of cessation and the date of reinstatement of access rights (if applicable).

Added on 3 June 2019 3 June 2019.

2.20.3

A Trading Member whose right to access organised markets established or operated by SGX-ST has ceased must continue to comply with the relevant Rules. The Trading Member remains liable for all obligations incurred in connection with its activities on SGX-ST before its access right ceased.

Added on 3 June 2019 3 June 2019.

2.21 Action against Defaulters

2.21.1

SGX-ST may declare a Trading Member to be a defaulter if, in its opinion, the Trading Member:

(a) has failed, is unable or is unwilling, to fulfil its obligations to SGX-ST or its customers; or

(b) is apparently insolvent, is or is presumed or deemed insolvent or unable to pay its debts.

Added on 3 June 2019 3 June 2019.

2.21.2

A Trading Member that commits an act that may result in it being declared a defaulter under Rule 2.21.1 must inform SGX-ST immediately. A Trading Member against whom any such act is committed must also inform SGX-ST immediately.

Added on 3 June 2019 3 June 2019.

2.21.3

A Trading Member's access to organised markets established or operated by SGX-ST will cease pursuant to Rule 2.20.1 if it is declared a defaulter. Such access may be reinstated by SGX-ST in its absolute discretion.

Added on 3 June 2019 3 June 2019.

2.21.4

SGX-ST will notify all Trading Members of the declaration of default and the reinstatement (if applicable).

Added on 3 June 2019 3 June 2019.

2.21.5

SGX-ST may allow an open transaction with a defaulter to be closed as SGX-ST directs.

Added on 3 June 2019 3 June 2019.

2.21.6

Any action taken under this Rule 2.21 is in addition to any other action that SGX-ST is entitled to take against the Trading Member.

Added on 3 June 2019 3 June 2019.

2.22 Suspension and Restriction of Activities

2.22.1

SGX-ST may, in its discretion, suspend, or otherwise impose restrictions or conditions on the activities of a Trading Member, Chief Executive Officer or Trading Representative (as applicable) if:

(a) the Trading Member, Chief Executive Officer or Trading Representative has been charged with or is the subject of an investigation for any offence:

(i) under the Securities and Futures Act;

(ii) involving fraud or dishonesty, whether in or out of Singapore;

(iii) relating to director's duties; or

(iv) under any relevant law or regulation that governs that person's other business activities;

(b) the Trading Member at any time fails to continue to satisfy any admission criteria, Approval Condition or any other requirement that is necessary to be complied with for subsistence of its membership;

(c) the Trading Member is, in SGX-ST's opinion, in financial or operating difficulty, including but not limited to having insufficient capital for the conduct of its business or being in breach of any of the requirements set out in Rules 3.2 to 3.6;

(d) the Trading Member defaults on any transaction in securities or futures contracts on SGX-ST;

(e) the Trading Member breaches any term, condition or restriction imposed by SGX-ST pursuant to its powers under the Rules;

(f) the Trading Member is, in SGX-ST's opinion, engaging in conduct that is inconsistent with just and equitable principles of trading;

(g) the Trading Member is, in SGX-ST's opinion, conducting its activities in a manner detrimental to the financial integrity, reputation or interests of SGX-ST, or organised markets established or operated by SGX-ST;

(h) in SGX-ST's opinion, a review should be carried out in respect of the Trading Member's management policies or business conduct in the interests of the Trading Member, SGX-ST, or organised markets established or operated by SGX-ST; or

(i) it is necessary or desirable in the interests of maintaining a fair and orderly market or for ensuring a safe and efficient clearing facility, or for ensuring the integrity of the market or for proper management of systemic risk, or for investor protection, or it is directed by any authority.

Added on 3 June 2019 3 June 2019.

2.22.2

The suspension or restriction shall be for such duration as SGX-ST determines, save that in the case of a suspension or restriction by reason of the grounds under Rule 2.22.1(a), the suspension or restriction shall end when the Trading Member, Chief Executive Officer or Trading Representative is acquitted, the charge is not proceeded with, or no further action is taken in respect of the investigation.

Added on 3 June 2019 3 June 2019.

2.22.3

During the time a Trading Member is suspended, the Trading Member and its Trading Representatives:

(a) must not enter into a new transaction without the approval of SGX-ST; and

(b) remains liable to complete all contracts outstanding at the time of suspension. However, it must not deliver on any transaction or settle any transaction without the approval of SGX-ST.

Added on 3 June 2019 3 June 2019.

2.22.4

Other than suspending the Trading Member, the restrictions and conditions that SGX-ST may impose on the activities of a Trading Member include the following:

(a) requiring the Trading Member immediately to take or not take any action as SGX-ST in its discretion may determine;

(b) requiring any Director or Chief Executive Officer to step down from day-to-day conduct of the business affairs of the Trading Member, and/or require the Trading Member to not appoint any further or other Director or Chief Executive Officer without the prior approval of the SGX-ST; and

(c) appointing one or more persons as Manager, on such terms and conditions as the SGX-ST may specify, to:

(i) advise the Trading Member on the proper management of such of the business of the Trading Member as the SGX-ST may determine, and/or

(ii) take custody or control of the relevant business of the Trading Member as the SGX-ST may determine and/or

(iii) manage the business of the Trading Member.

SGX-ST will determine the remuneration of the Manager, which must be paid by the Trading Member. The Trading Member is solely responsible for the Manager's acts and defaults. The Manager must carry out directions given by SGX-ST in relation to the business of the Trading Member, including carrying on the business of the Trading Member in accordance with the instructions of SGX-ST. The appointment of such Manager may be revoked by the SGX-ST at any time if the SGX-ST is satisfied that the reasons for the appointment have ceased to exist or on any other ground. Upon such revocation, the Manager shall cease to act as such.

Added on 3 June 2019 3 June 2019.

2.22.5

The Trading Member shall comply with any of SGX-ST's directions issued under Rule 2.22.4 and any failure to do so will constitute a breach of the Rules.

Added on 3 June 2019 3 June 2019.

2.23 Termination of Membership

2.23.1

SGX-ST may terminate the membership of any Trading Member if the Trading Member's right to access organised markets established or operated by SGX-ST has ceased by reason of any of the grounds set out in Rule 2.20.1.

Added on 3 June 2019 3 June 2019.

2.23.2

Additionally, SGX-ST may terminate the membership of any Trading Member if the Trading Member:

(a) is dormant on SGX-ST for more than two consecutive years; or

(b) has failed to pay fees for more than two consecutive years.

Added on 3 June 2019 3 June 2019.

2.23.3

If a Trading Member's membership is terminated, the Trading Member's name will be deleted from the Register of Trading Members upon the effective date of termination.

Added on 3 June 2019 3 June 2019.

2.24 Notification and Appeal

2.24.1

Subject to Rule 2.24.2, SGX-ST will notify the relevant Trading Member, Chief Executive Officer or Trading Representative in writing:

(a) at least 14 days before it exercises its powers under Rule 2.21 or 2.22; and

(b) at least 30 days before it exercises its powers under Rule 2.23.

Added on 3 June 2019 3 June 2019.

2.24.2

If, in SGX-ST's opinion, it is necessary to protect the financial integrity, reputation or interests of SGX-ST, or organised markets established or operated by SGX-ST, it may exercise its powers under Rule 2.21 or 2.22 without prior notice to the Trading Member, Chief Executive Officer or Trading Representative. SGX-ST shall notify the Trading Member, Chief Executive Officer or Trading Representative in writing after it has exercised the powers.

Added on 3 June 2019 3 June 2019.

2.24.3

A Trading Member, Chief Executive Officer or Trading Representative may, within 14 days of being notified of SGX-ST's exercise of powers under Rule 2.21, 2.22 or 2.23.1, appeal in writing to the Appeals Committee.

Added on 3 June 2019 3 June 2019.

2.24.4

SGX-ST may announce such particulars as SGX-ST thinks fit, of any of its powers exercised under Rule 2.21, 2.22 or 2.23.

Added on 3 June 2019 3 June 2019.

2.25 Voluntary Suspension of Business

2.25.1

A Trading Member may request SGX-ST to suspend its membership temporarily. A Trading Member shall provide reasons for its request for voluntary suspension. SGX-ST may grant to the requesting Trading Member a temporary suspension for a period of up to 24 months, upon such terms and conditions as SGX-ST deems fit. Upon expiry of such period, the Trading Member must recommence business in Singapore.

Added on 3 June 2019 3 June 2019.

2.25.2

During the period of temporary suspension:

(a) the Trading Member's right to access organised markets established or operated by SGX-ST ceases and it shall not enter any orders on such markets;

(b) the Trading Member must not hold itself out or engage in any act that may give the impression that it is an active Trading Member.

Added on 3 June 2019 3 June 2019.

2.25.3

SGX-ST will waive continuing compliance of Rules 2.1.1(a) and (e) during the temporary suspension period.

Added on 3 June 2019 3 June 2019.

2.26 Resignation

2.26.1

If a Trading Member intends to resign, it must:

(a) give SGX-ST at least 30 days' written notice, stating the proposed date of resignation. SGX-ST may vary or waive the notice period. If the resignation is accepted, SGX-ST will notify all Trading Members of the effective date of resignation;

(b) not enter into any contract seven Market Days from the date of notice except with the written approval of SGX-ST;

(c) satisfy SGX-ST that it has taken, or will take, steps for the orderly winding down of its business with SGX-ST; and

(d) satisfy SGX-ST that it has fulfilled or is able to fulfil:

(i) its obligations to SGX-ST; and

(ii) its obligations to all its customers as SGX-ST may specify.

Added on 3 June 2019 3 June 2019.

2.26.2

SGX-ST shall have the absolute discretion to accept the resignation, postpone the effective date of the resignation and/or without prejudice to the courses of action available to SGX-ST, take such measures as it may determine appropriate before or after the resignation takes effect. Notwithstanding the foregoing, the SGX-ST may in its absolute discretion refuse to accept the resignation of a Trading Member if it is:

(a) conducting an investigation under the Rules, investigating a complaint or has initiated disciplinary proceedings against the Trading Member; or

(b) not satisfied that the Trading Member has fulfilled or is able to fulfil:

(i) its obligations to SGX-ST; and

(ii) its obligations to all its customers as SGX-ST may specify.

Added on 3 June 2019 3 June 2019.

2.26.3

If SGX-ST accepts a Trading Member's resignation, the Trading Member's name will be deleted from the register of Trading Members upon the effective date of resignation.

Added on 3 June 2019 3 June 2019.

2.26.4

A Trading Member must continue to comply with the Rules until the effective date of resignation.

Added on 3 June 2019 3 June 2019.

2.27 Obligations of a Former Trading Member, Former Chief Executive Officer and Former Trading Representative

2.27.1

A former Trading Member remains liable to SGX-ST and its customers for any liabilities incurred in connection with the Rules during the period of its membership. The former Trading Member also remains subject to disciplinary actions for any breach of the Rules committed during the period of its membership.

Added on 3 June 2019 3 June 2019.

2.27.2

A former Chief Executive Officer or former Trading Representative remains liable to SGX-ST for any liabilities incurred under or in connection with the Rules during the period of his registration. The former Chief Executive Officer or Trading Representative also remains subject to disciplinary actions for any breach of the Rules committed during the period of his registration.

Added on 3 June 2019 3 June 2019.

2.27.3

The following Rules shall continue to apply to a former Trading Member, a former Chief Executive Officer and a former Trading Representative — Rule 1.9 (Limitation of Liability), Rule 1.10 (Indemnity), Rule 1.11 (Provision of Information), Rule 1.12.2 (Disclosure of Information by SGX-ST), Chapter 12 (Supervision and Enforcement), this Rule 2.27, and any other Rules that contemplate and are capable of operation after the termination of a Trading Member's membership, or after the cessation or de-registration of a Chief Executive Officer or a Trading Representative, whether pursuant to this Rule 2.27 or otherwise.

Added on 3 June 2019 3 June 2019.

Chapter 3 Capital and Financial Requirements

3.1 Interpretation

3.1.1

Unless otherwise specified or the context requires otherwise, where the terms used in this Chapter are defined in relation to a holder of a Capital Markets Services Licence, such definitions shall, with the necessary modifications, apply to a Trading Member, as they apply to a holder of a Capital Markets Services Licence, whether or not that Trading Member holds a Capital Markets Services Licence.

Added on 3 June 2019 3 June 2019.

3.2 Base Capital Requirement

3.2.1

(a) A Trading Member that holds a Capital Markets Services Licence shall not cause or permit:

(i) where the Trading Member is incorporated in Singapore, its base capital; or

(ii) where the Trading Member is incorporated outside Singapore, its net head office funds,

to fall below the base capital requirement.

(b) A Remote Trading Member shall not cause or permit its base capital to fall below the base capital requirement specified in this Rule 3.2, or such other base capital requirement as SGX-ST may impose.

Added on 3 June 2019 3 June 2019.

3.2.2

The base capital requirement of:

(a) a Trading Member (whether concurrently a member of SGX-DT or not) shall be at least S$1 million; and

(b) a Trading Member that is also a member of CDP shall be at least S$5 million.

Added on 3 June 2019 3 June 2019.

3.2.3

If a Trading Member fails to comply or becomes aware that it will fail to comply with the base capital requirement prescribed under Rule 3.2, or such other base capital requirement as SGX-ST may have imposed, it shall immediately notify SGX-ST.

Added on 3 June 2019 3 June 2019.

3.2.4

It shall be a breach of the Rules by the Trading Member if the base capital, or as the case may be, net head office funds fall(s) below such base capital requirement, whether or not the Trading Member makes or has made the notification specified in Rule 3.2.3.

Added on 3 June 2019 3 June 2019.

3.3 Financial Resources Requirement

3.3.1

This Rule applies only to Trading Members that hold a Capital Markets Services Licence.

Added on 3 June 2019 3 June 2019.

3.3.2

A Trading Member shall not cause or permit:

(a) where it is incorporated in Singapore, its financial resources; or

(b) where it is incorporated outside Singapore, its adjusted net head office funds,

to fall below its total risk requirement.

Added on 3 June 2019 3 June 2019.

3.3.3

In the Rules, financial resources, adjusted net head office funds and total risk requirement shall be computed in the same manner as prescribed in the SFR (Financial and Margin Requirements), read together with the RBC Notice.

Added on 3 June 2019 3 June 2019.

3.3.4

It shall be a breach of the Rules by the Trading Member if its financial resources, or as the case may be, adjusted net head office funds falls below its total risk requirement, whether or not the Trading Member makes or has made the notification specified in Rule 3.3.5.

Added on 3 June 2019 3 June 2019.

3.3.5

Notification of Failure to Comply with Rule 3.3

If a Trading Member fails to comply or becomes aware that it will fail to comply with the financial resources requirement prescribed under this Rule 3.3, or such other financial resources requirement as SGX-ST may impose, it shall immediately notify SGX-ST.

Added on 3 June 2019 3 June 2019.

3.3.6

First warning of impending failure to comply with Rule 3.3

A Trading Member shall immediately notify SGX-ST if:

(a) in the case where the Trading Member is incorporated in Singapore, its financial resources; or

(b) in the case where the Trading Member is incorporated outside Singapore, its adjusted net head office funds,

fall below 150% of its total risk requirement or such other percentage as SGX-ST may impose.

Added on 3 June 2019 3 June 2019.

3.3.7

If SGX-ST is notified by a Trading Member under Rule 3.3.6 or becomes aware (whether or not there has been any notification by the Trading Member under Rule 3.3.6) that the Trading Member's financial resources or adjusted net head office funds, as the case may be, have fallen or will fall below 150% of its total risk requirement, or such other percentage as SGX-ST may impose, SGX-ST shall be entitled to require the Trading Member to:

(a) submit the statements of assets and liabilities, financial resources, total risk requirement, aggregate indebtedness, and such other statements as required by SGX-ST at such interval and for such time frame as determined by SGX-ST; and

(b) operate its business in such manner and on such conditions as SGX-ST may impose.

Added on 3 June 2019 3 June 2019.

3.3.8

Second Warning of Impending Failure to Comply with Rule 3.3

A Trading Member shall immediately notify SGX-ST if:

(a) in the case where the Trading Member is incorporated in Singapore, its financial resources; or

(b) in the case where the Trading Member is incorporated outside Singapore, its adjusted net head office funds,

fall below 120% of its total risk requirement or such other percentage as SGX-ST may impose.

Added on 3 June 2019 3 June 2019.

3.3.9

If SGX-ST is notified by a Trading Member under Rule 3.3.8 or becomes aware (whether or not there has been any notification by the Trading Member under Rule 3.3.8) that the Trading Member's financial resources or adjusted net head office funds, as the case may be, have fallen or will fall below 120% of its total risk requirement, or such other percentage as SGX-ST may impose, SGX-ST shall be entitled to require the Trading Member to comply with any or all of the directions prescribed under Regulation 7(3) of the SFR (Financial and Margin Requirements).

Added on 3 June 2019 3 June 2019.

3.4 Aggregate Indebtedness Requirement

3.4.1

This Rule applies only to Trading Members that hold a Capital Markets Services Licence.

Added on 3 June 2019 3 June 2019.

3.4.2

A Trading Member shall not cause or permit its aggregate indebtedness to exceed 1,200% of its aggregate resources, or such other aggregate indebtedness requirement as SGX-ST may impose. It shall be a breach of the Rules by the Trading Member if its aggregated indebtedness exceed(s) such prescribed percentage of its aggregate resources, whether or not the Trading Member makes or has made the notification specified in Rule 3.4.3.

Added on 3 June 2019 3 June 2019.

3.4.3

Notification of Failure to Comply with Rule 3.4

If a Trading Member fails to comply or becomes aware that it will fail to comply with the aggregate indebtedness requirement prescribed under Rule 3.4, or such other percentage of aggregate indebtedness over aggregate resources as SGX-ST may impose, it shall immediately notify SGX-ST.

Added on 3 June 2019 3 June 2019.

3.4.4

Early Warning of Impending Failure to Comply with Rule 3.4

A Trading Member shall immediately notify SGX-ST if its aggregate indebtedness exceeds 600% of its aggregate resources or such other percentage as SGX-ST may impose.

Added on 3 June 2019 3 June 2019.

3.4.5

If SGX-ST is notified by a Trading Member under Rule 3.4.4 or becomes aware (whether or not there has been any notification by the Trading Member under Rule 3.4.4) that the Trading Member's aggregate indebtedness has exceeded or will exceed 600% of its aggregate resources, or such other percentage as SGX-ST may impose, SGX-ST shall be entitled to require the Trading Member to comply with any or all of the directions prescribed under Regulation 17(2) of the SFR (Financial and Margin Requirements).

Added on 3 June 2019 3 June 2019.

3.4.6

Qualifying Letter of Credit

(a) For the purpose of Rule 3.4, a Trading Member may include one or more qualifying letter(s) of credit in its calculation of aggregate resources, except that where the total amount payable under the qualifying letter(s) of credit exceeds 50% of the Trading Member's total risk requirement, the amount in excess shall not be taken into account for determining the Trading Member's aggregate resources.

(b) For the purpose of Rule 3.4.6(a), a qualifying letter of credit is a legally enforceable and irrevocable letter of credit that is:

(i) in the case of a Trading Member that is not a Clearing Member, made in favour of SGX-ST;

(ii) in the case of a Trading Member that is also a Clearing Member, made in favour of CDP; and

(iii) issued by a bank approved by, and in a form acceptable to SGX-ST or CDP, as the case may be,

but does not include any letters of credit provided by a Clearing Member to satisfy Rule 7 of the Clearing Rules or any other requirement imposed by CDP.

(c) SGX-ST shall reserve the right to call on any of the qualifying letter(s) of credit made in favour of SGX-ST pursuant to Rule 3.4.6 and apply the proceeds thereof in respect of the Trading Member's default to SGX-ST.

Added on 3 June 2019 3 June 2019.

3.5 Powers to Impose Other Requirements

3.5.1

SGX-ST may at its absolute discretion prescribe for any specific Trading Member, or one or more Trading Members, capital, financial and other requirements in excess of the minimum prescribed in this Chapter 3 based on such criteria as SGX-ST may determine at its absolute discretion, including but without limitation, volume, risk exposure of positions carried, risk concentration, margin policies and/or nature of business conducted or to be conducted or its membership in any exchange or organised market.

Added on 3 June 2019 3 June 2019.

3.6 Exposure to Single Customer

3.6.1

This Rule applies only to Trading Members that hold a Capital Markets Services Licence.

Added on 3 June 2019 3 June 2019.

3.6.2

A Trading Member shall immediately notify SGX-ST if the Trading Member's exposure to a single customer exceeds 20% of its average aggregate resources. To reduce the Trading Member's risk exposure to a single customer, SGX-ST shall have the right to impose on the Trading Member such risk management measures as it deems necessary.

Added on 3 June 2019 3 June 2019.

3.6.3

The full amount of the qualifying letter(s) of credit or any part thereof deposited pursuant to Rule 3.4.6 may be taken into account for the calculation of aggregate resources under this Rule.

Added on 3 June 2019 3 June 2019.

3.6.4

"Exposure to a single customer" means the sum of the following:

(a) in the case of securities carried in a customer's account (other than a margin financing account operated under Rule 3.10) carried on the books of a Trading Member:

(i) for purchase contracts that remain unpaid:

(I) where the securities purchased have not been delivered to the customer, the excess of the contracted price of the securities purchased by the single customer over the aggregate market value of the securities purchased and such other collateral, as prescribed by SGX-ST, that is held by the Trading Member less any amount due and payable by the Trading Member to him; and

(II) where the securities purchased have been delivered to the customer, the excess of the contracted price of the securities purchased by the single customer over the aggregate market value of all his collateral, as prescribed by SGX-ST, that is held by the Trading Member less any amount due and payable by the Trading Member to him;

(ii) for sale contracts for which delivery has not been made, the excess of the amount of the market value of the securities sold by the single customer over the aggregate of the market value of any of his collateral, as prescribed by SGX-ST, that is held by the Trading Member and the contracted sale price less any amount due and payable by the Trading Member to him;

(iii) where the contracts referred to in Rule 3.6.4(a)(i) or (ii) have been offset by a transaction on or before the due date, the exposure shall not include those amounts specified in Rule 3.6.4(a)(i) or (ii) in respect of such contracts but shall instead include the amount of the loss, if any, arising from the offsetting transaction, on the date on which the offsetting transaction takes effect; and

(iv) where the contracts referred to in Rule 3.6.4(a)(i) or (ii) have been offset by a force-sale or buying-in transaction after the due date, the exposure shall not include those amounts specified in Rule 3.6.4(a)(i) or (ii) in respect of such contracts but shall instead include the amount of the loss, if any, arising from the force-sale or buying-in transaction, on the date on which the transaction takes effect;

(b) the amount of margin deficiency in the single customer's margin financing account carried on the books of the Trading Member as determined in accordance with the margin requirements specified by SGX-ST;

(c) the amount of margin deficiency in the single customer's options margin account carried on the books of the Trading Member as determined in accordance with the option margin requirements specified by SGX-ST;

(d) the excess of the amount owed by the single customer in his options trading account carried on the books of the Trading Member over the market value of options held;

(e) the amount of any unsecured interest owed by the single customer;

(f) the amount of any unsecured loan, advance and credit facility granted to the single customer;

(g) where the Trading Member has lent securities to the single customer or is acting as guarantor for the return of securities lent to the single customer, the excess of the amount of the market value of the securities lent to the single customer over the amount of the market value of collateral and cash deposited by the single customer;

(h) where the Trading Member has deposited collateral with the single customer in respect of securities lent by the single customer or is acting as guarantor for the return of collateral deposited with the single customer in respect of any securities lent by him, the excess of the amount of the market value of collateral and cash deposited with the single customer over the amount of the market value of the securities lent by him; and

(i) the amount of deficiency in relation to margins required in any account of the single customer carried on the books of the Trading Member as determined in accordance with the margin requirements prescribed by the relevant exchange, clearing house or other such relevant financial institution.

Added on 3 June 2019 3 June 2019.

3.6.5

For the purposes of this Rule, a security or futures contract is deemed to be carried in a customer's account (other than a margin financing account) carried on the books of the Trading Member on the contract date specified in the contract note in respect of the transaction in that security or futures contract or on the exercise date specified in the exercise notice in respect of an option in that security that has been exercised.

Added on 3 June 2019 3 June 2019.

3.6.6

"Single customer" in relation to a customer who is:

(a) a person, means that person and such group of persons who the first-mentioned person is able to control or influence;

(b) a Corporation, means that Corporation and any other Corporation or group of Corporations that is related, as specified in the Companies Act, to the first-mentioned Corporation; or

(c) a person, means that person and:

(i) any Corporation whose issued share capital is 50% or more owned by those persons mentioned in Rule 3.6.6(a) or any other Corporation or group of Corporations that is related, as specified in the Companies Act to the first-mentioned Corporation; or

(ii) any Corporation whose composition of board of directors is controlled by those persons mentioned in Rule 3.6.6(a); and for this purpose the composition of the board of directors shall be deemed to be controlled by those persons, if they, by the exercise of some power exercisable by them without the consent or concurrence or any other person, can appoint or remove all or a majority of the directors of that Corporation,

but shall not include the Trading Member itself.

Added on 3 June 2019 3 June 2019.

3.7 Remote Trading Member: Exposure to Single Customer

3.7.1

A Remote Trading Member shall set appropriate thresholds to monitor its exposure to a single customer.

Added on 3 June 2019 3 June 2019.

3.7.2

The Remote Trading Member shall immediately notify SGX-ST if its exposure to a single customer exceeds its internal threshold.

Added on 3 June 2019 3 June 2019.

3.7.3

For the purposes of this Rule, "single customer" and "exposure to a single customer" shall have the meaning ascribed to it in Rule 3.6.

Refer to Practice Note 3.7 and 3.9.

Added on 3 June 2019 3 June 2019.

3.8 Exposure to Single Security

3.8.1

This Rule applies only to Trading Members that hold a Capital Markets Services Licence.

Added on 3 June 2019 3 June 2019.

3.8.2

A Trading Member shall immediately notify SGX-ST of its exposure to a single security:

(a) in the case where the security is quoted on SGX-ST or any recognised group A securities exchange, if its exposure to that security (whether in relation to the quantity that is already quoted or to the quantity that is approved for quotation but not yet quoted), exceeds 300% of its average aggregate resources;

(b) in all other cases where the security is quoted, if its exposure to that security exceeds 100% of its average aggregate resources;

(c) in the case where the security is approved for quotation on SGX-ST or any recognised group A securities exchange but has not, as yet, been so quoted, if its exposure to that security:

(i) exceeds 100% of its average aggregate resources if its aggregate resources is less than S$75 million; or

(ii) exceeds 150% of the average aggregate resources of the Trading Member if its aggregate resources is S$75 million or more;

(d) in the case where the security is not quoted, and not approved for quotation on SGX-ST or any recognised group A securities exchange, if its exposure to that security exceeds 10% of its average aggregate resources. This notification requirement does not apply to any security issued by:

(i) any subsidiary of the Trading Member that is established solely for the purpose of providing research, nominee, custodian or trustee services; or

(ii) any other company that SGX-ST may approve.

Added on 3 June 2019 3 June 2019.

3.8.3

To reduce a Trading Member's risk exposure to a single security, SGX-ST shall have the right to impose on the Trading Member such risk management requirements as it thinks fit.

Added on 3 June 2019 3 June 2019.

3.8.4

The full amount of the qualifying letter(s) of credit or any part thereof deposited pursuant to Rule 3.4.6 may be taken into account for the calculation of aggregate resources under this Rule.

Added on 3 June 2019 3 June 2019.

3.8.5

"Exposure to a single security" means the sum of the following:

(a) the amount of the single security underwritten or sub-underwritten by or placed with a Trading Member, after deducting the amount that the Trading Member has sub-underwritten or placed with:

(i) a bank licensed under the Banking Act 1970;

(ii) a merchant bank approved as a financial institution under the Monetary Authority of Singapore Act 1970;

(iii) a finance company licensed under the Finance Companies Act 1967;

(iv) a company or co-operative society that is licensed under the Insurance Act 1966 to carry on insurance business as an insurer;

(v) the holder of a Capital Markets Services Licence under the Securities and Futures Act for dealing in capital markets products or for fund management;

(vi) a financial institution outside Singapore that is licensed or regulated by a financial services regulatory authority in the country in which it is domiciled, and has a long-term credit rating of investment grade; and

(vii) any other person, provided that:

(I) full payment has been received by the Trading Member for the sub-underwritten, placed, sold or allotted amount; or

(II) the sub-underwritten, placed, sold or allotted amount can be offset against collateral received by the Trading Member under a netting agreement;

(b) the book value of the single security carried long, or the market value of the single security carried short in a Trading Member's own account carried on the books of the Trading Member;

(c) for outstanding options in the single security carried in a Trading Member's own options trading account carried on the books of the Trading Member:

(i) the book value of options bought for the account;

(ii) the excess of the market value of the underlying securities over the exercise price of uncovered call options written for the account; and

(iii) the excess of the exercise price of put options written for a Trading Member's own account over the market value of the underlying securities;

(d) in relation to the single security carried in a customer's cash account carried on the books of the Trading Member, the contract value of the single security to the extent that such amounts have not been paid for, or the market value of the single security to the extent that such security has not been delivered, whichever is the higher;

(e) for outstanding options in the single security carried in a customer's options trading account carried on the books of the Trading Member:

(i) the contract value of the options bought by the customer to the extent that such amounts have not been paid for;

(ii) the excess of the market value of the underlying securities over the exercise price of uncovered call options written by the customer; and

(iii) the excess of the exercise price of put options written by the customer over the market value of the underlying securities;

(f) the net amount of the single security borrowed or lent, as the case may be, by a Trading Member;

(g) in relation to the single security bought or carried, or deposited as collateral in the margin financing accounts carried on the books of the Trading Member, the margin exposure of a Trading Member to the single security as determined in accordance with the margin financing requirements prescribed by SGX-ST;

(h) the amount of interest receivable secured by the single security;

(i) the amount of loans and advances secured by the single security; and

(j) the amount under subscription by a Trading Member for its own account carried on the books of the Trading Member in relation to the single security that is approved for quotation on SGX-ST or any recognised group A securities exchange but has not, as yet, been so quoted;

and shall not include exposure arising from a Trading Member's arbitrage transactions.

Added on 3 June 2019 3 June 2019 and amended on 18 January 2022.

3.8.6

For the purposes of this Rule:

(a) a security is deemed to be carried in a customer's cash account or a Trading Member's own account (such account being an account carried on the books of the Trading Member) on the contract date specified in the contract note in respect of the transaction in that security or on the exercise date specified in the exercise notice in respect of an option in that security that has been exercised;

(b) "security" does not include any security issued by the Singapore government or any public authority in Singapore;

(c) in calculating exposure to any particular security, all outstanding options exercisable into that security shall be included in such computation;

(d) in calculating exposure in any particular security under Rule 3.8.5(b) and Rule 3.8.5(d), all futures contacts with that security as an underlying shall be included in such computation.

Added on 3 June 2019 3 June 2019.

3.8.7

Where a security quoted on SGX-ST or any recognised group A securities exchange has been suspended for more than 30 consecutive days, a Trading Member shall not permit its exposure to the security to increase in monetary value above the level subsisting on the 30^th consecutive day of suspension until such time that the suspension has been lifted.

Added on 3 June 2019 3 June 2019.

3.9 Remote Trading Members: Exposure to Single Security

3.9.1

A Remote Trading Member shall set appropriate thresholds to monitor its exposure to a single security.

Added on 3 June 2019 3 June 2019.

3.9.2

The Remote Trading Member shall immediately notify SGX-ST if its exposure to a single security exceeds its internal threshold.

Added on 3 June 2019 3 June 2019.

3.9.3

For the purposes of this Rule, "single security" and "exposure to a single security" shall have the meaning ascribed to it in Rule 3.8.

Refer to Practice Note 3.7 and 3.9.

Added on 3 June 2019 3 June 2019.

3.10 Margin Financing

3.10.1

Subject to the margin financing requirements of this Rule, a Trading Member who is licensed to conduct product financing may extend credit facilities to customers for transactions in Specified Products.

Added on 3 June 2019 3 June 2019.

3.10.2

SGX-ST may exempt a Remote Trading Member from compliance with Rules 3.10.3 to 3.10.16, subject to any other requirements that SGX-ST may impose, if SGX-ST is of the view that the Remote Trading Member is subject to requirements of its Relevant Regulatory Authority that are comparable to the requirements in those Rules.

Added on 3 June 2019 3 June 2019.

3.10.3

Margin financing arrangements shall be evidenced in the form of a written agreement executed between the Trading Member and the customer.

Added on 3 June 2019 3 June 2019.

3.10.4

If a Trading Member seeks to mortgage, charge, pledge or hypothecate the assets of any customer who operates a margin financing account (such account being an account carried on the books of the Trading Member) with it, it shall:

do so only in respect of a sum not exceeding the amount owed by the customer to the Trading Member and without obligation to retain in its possession or control assets of like character;
ensure that it is given the discretion to sell or dispose of the assets in any manner in order to meet with the prescribed margin financing requirements; and
before mortgaging, charging, pledging or hypothecating a retail customer’s assets:
1. inform the retail customer that the Trading Member may mortgage, charge, pledge or hypothecate the retail customer’s assets but only for a sum not exceeding the amount owed by the customer to the Trading Member;
2. explain to the retail customer the risks of mortgaging, charging, pledging or hypothecating the retail customer’s assets; and
3. obtain the retail customer’s written consent to mortgage, charge, pledge or hypothecate the retail customer’s assets.

Added on 3 June 20193 June 2019 and amended on 1 April 2025.

3.10.4A

A Trading Member must not, in relation to any assets or monies received from a retail customer, enter into any contract, arrangement or transaction of which the purpose or effect is to transfer any right, interest, benefit or title in those assets or monies to itself or any other person, unless:

in the case of assets, the contract, arrangement or transaction is entered into in connection with borrowing or lending of the retail customer’s Specified Products;
in the case of monies, the contract, arrangement or transaction is entered into in connection with lending of the retail customer’s Specified Products; and
the Trading Member complies with the relevant laws in relation to the borrowing or lending (as the case may be) of the retail customer’s Specified Products.

Added on 1 April 2025

3.10.5

A Trading Member who provides margin financing must obtain margin from each customer in respect of any margin financing account (such account being an account carried on the books of the Trading Member) and in respect of any credit facility provided to the customer for Specified Products transactions. The margin deposited by customers with the Trading Member shall be in the form of acceptable collateral and such other instruments as SGX-ST may from time to time prescribe.

Added on 3 June 2019 3 June 2019.

3.10.6 [Rule has been deleted.]

Added on 3 June 20193 June 2019 and deleted on 1 April 2025.

3.10.7

A Trading Member shall not cause or permit the equity in a customer’s margin financing account (such account being an account carried on the books of the Trading Member) to be 110% of the debit balance in the customer’s margin financing account or less.
Where the equity in a customer’s margin financing account is 110% of the debit balance in his margin financing account or less, the Trading Member:
1. shall immediately require the customer to provide additional margin in the margin financing account within two Market Days from the date of the notice to increase the equity in the customer’s margin financing account to more than 110% of the debit balance in the customer’s margin financing account; and
2. shall not cause or permit any new transaction to be made in the customer’s margin financing account, unless such new transaction will increase the percentage of equity over debit balance in the customer’s margin financing account.

Added on 3 June 20193 June 2019 and amended on 1 April 2025.

3.10.8

Where the customer fails to provide additional margin as required by the Trading Member under Rule 3.10.7, the Trading Member shall have the discretion to take such action as it may deem appropriate, including, liquidating the Specified Products purchased via the margin financing account and/or liquidating all or any acceptable collateral deposited to bring the equity to more than 110% of the debit balance without notice to the customer.

Added on 3 June 2019 3 June 2019.

3.10.9

A Trading Member shall review all margin financing accounts carried on the books of the Trading Member daily to ensure that credit is not over-extended beyond the approved facility limits and that the margin financing requirements and limits prescribed in this Rule 3.10 are met at all times. The Trading Member shall establish and maintain a robust framework to govern the conduct of such reviews.

Refer to Practice Note 3.10.

Added on 3 June 20193 June 2019 and amended on 1 April 2025.

3.10.10

A Trading Member shall have the discretion to impose higher margin financing requirements on any of its customers and/or to prescribe more stringent provisions on its customers than the provisions of this Rule 3.10.

Added on 3 June 20193 June 2019.

3.10.11

A customer may withdraw cash or assets from his margin financing account carried on the books of the Trading Member provided that:

such withdrawal does not cause the equity in his account to fall to 110% of the debit balance or less; and
the amount of cash withdrawn does not exceed the amount of cash balance held in his margin financing account at the point of withdrawal.

Added on 3 June 20193 June 2019 and amended on 1 April 2025.

3.10.12

A Trading Member shall not cause or permit:

(a) the aggregate of the margin exposures in the margin financing accounts of all customers (such accounts being accounts carried on the books of the Trading Member) to exceed 300%, or such other percentage as SGX-ST may allow, of its free financial resources;

(b) the aggregate of the margin exposures in the margin financing accounts of all customers in respect of Specified Products, other than Specified Products quoted on SGX-ST, to exceed 100%, or such other percentage as SGX-ST may allow, of its free financial resources; and

(c) the debit balance in each customer's margin financing account to exceed 20%, or such other percentage as SGX-ST may allow, of its free financial resources.

Added on 3 June 2019 3 June 2019.

3.10.13

All transactions in a margin financing account carried on the books of the Trading Member shall be on a ready basis. The margin financing account shall not be used to meet margin requirements in respect of Marginable Futures Contracts.

Added on 3 June 2019 3 June 2019.

3.10.14

In computing the market value of Specified Products bought and carried in a customer's margin financing account (such account being an account carried on the books of the Trading Member) and the market value of acceptable collateral, the Trading Member shall apply such applicable haircuts as SGX-ST may prescribe from time to time.

Added on 3 June 2019 3 June 2019.

3.10.15

SGX-ST shall have the absolute discretion upon notice to the Trading Members to vary any or all of the margin financing requirements stipulated in this Rule 3.11 or any of the haircuts in Rule 3.10.14, and impose such other requirements for margin financing transactions from time to time as it deems fit and appropriate.

Added on 3 June 2019 3 June 2019.

3.10.16

For the purposes of this Rule 3.10, the terms:

"acceptable collateral", "debit balance", "equity", "free financial resources" and "margin exposure" each has the meaning ascribed to them in Regulation 24(6) of the SFR (Financial and Margin Requirements);
“assets” in relation to a customer has the meaning ascribed to “customer’s assets” in Regulation 15 of the SFR (Licensing and Conduct of Business);
“cash balance" includes unutilised cash deposits, and cash from sales proceeds or corporate action events; and
“retail customer” has the meaning ascribed to it in Regulation 2 of the SFR (Licensing and Conduct of Business).

Added on 3 June 20193 June 2019 and amended on 1 April 2025.

3.11 Borrowing and Lending of Specified Products

3.11.1

This Rule shall not apply to Remote Trading Members, who shall instead comply with such requirements established by the Relevant Regulatory Authority and any additional requirements that may be imposed by SGX-ST, and observe the principles of good business practice, in relation to the areas set out in this Rule.

Added on 3 June 2019 3 June 2019.

3.11.2

Before engaging in borrowing or lending transactions in Specified Products, a Trading Member must enter into a written agreement with the borrower or lender in accordance with Regulation 45(4) or, if the Trading Member borrows Specified Products from an Accredited Investor, Expert Investor or Institutional Investor, in accordance with Regulation 45(6) of the SFR (Licensing and Conduct of Business). Such agreement shall also provide for the matters set out in Rule 3.11.3.

Added on 3 June 2019 3 June 2019.

3.11.3

Collateral

(a) Where a Trading Member lends Specified Products to any person, it must obtain collateral in accordance with this Rule 3.11.3.

(b) A Trading Member must obtain collateral from a borrower of Specified Products by the close of the Market Day before delivering the loaned Specified Products to the borrower.

(c) The collateral must be in the form as specified in Regulation 45(9) of the SFR (Licensing and Conduct of Business).

(d) The value of collateral obtained by the Trading Member from the borrower must be at least 105% of the market value of the loaned Specified Products throughout the period that the Specified Products are lent. For the purpose of this Rule 3.11.3, "market value" shall have the same meaning as set out in Regulation 45(9) of the SFR (Licensing and Conduct of Business).

(e) If the value of collateral falls below 105% of the market value of the loaned Specified Products, a Trading Member must, by the next Market Day, notify the borrower to provide additional collateral to bring the value of collateral to at least 105% of the market value of the loaned Specified Products by the close of the second Market Day from the date of notice. A Trading Member must not allow any new borrowings until the value of the collateral is restored to at least 105% of the market value of the loaned Specified Products.

(f) A Trading Member may, without notice to the borrower, realise the collateral and apply the proceeds to buy back Specified Products to close off the loan position if:

(i) the borrower does not provide the additional collateral by the close of the second Market Day from the date of notice; or

(ii) the collateral value falls below 100% of the market value of the loaned Specified Products,

whichever occurs earlier.

(g) A Trading Member may allow a borrower to withdraw collateral, provided that the remaining collateral value is at least 105% of the market value of the loaned Specified Products after the withdrawal.

(h) SGX-ST may vary the percentages set out in this Rule 3.11.3 and/or specify the haircuts to be applied by Trading Members to the value of collateral.

(i) A Trading Member may require additional collateral from the borrower over and above the requirements set out in this Rule 3.11.3.

(j) A Trading Member may apply haircuts to the value of the collateral that are higher than any specified by SGX-ST.

Added on 3 June 2019 3 June 2019.

3.12 Submission of Returns

3.12.1

A Trading Member shall submit to SGX-ST such financial returns and statements, each in the format and by the time specified by SGX-ST, as SGX-ST may from time to time require, including but not limited to the following:

(a) in the case of a Trading Member that holds a Capital Markets Services Licence, submit by the 14^th calendar day of each month statements of assets and liabilities, base capital, financial resources, total risk requirement, aggregate indebtedness, profit and loss, exposures to a single security and a single customer and margin exposure; and

(b) in the case of a Remote Trading Member, submit by such time specified by SGX-ST financial returns based on such computation methodology and in the form prescribed by SGX-ST.

Refer to SGX Data Submission Website (https://esub.sgx.com) for the submission template.

Added on 3 June 2019 3 June 2019.

3.12.2

There shall be imposed upon the Trading Member a late fee of S$100 for each day that the statements are not submitted after the prescribed time or such extended time as SGX-ST may grant.

Added on 3 June 2019 3 June 2019.

3.12.3

Requests for extension of time shall be submitted to SGX-ST at least three Market Days prior to the due date for submission of the statements.

Added on 3 June 2019 3 June 2019.

3.12.4

A Trading Member shall be required to resubmit the statements and documents prescribed under Rule 3.12.1 and take such other steps as SGX-ST may require if the statements and documents are inaccurate or incomplete.

Added on 3 June 2019 3 June 2019.

3.13 Annual Financial Audit

3.13.1

A Trading Member shall:

(a) in the case of a Trading Member that holds a Capital Markets Services Licence, obtain the written approval of SGX-ST in the event of any change of its existing external auditor; and

(b) in the case of a Remote Trading Member, notify SGX-ST at least seven days prior to any change of its existing external auditor. The Remote Trading Member shall appoint external auditors that are accepted by its Relevant Regulatory Authority.

Added on 3 June 2019 3 June 2019.

3.13.2

If SGX-ST is not satisfied with the performance of duties by an external auditor appointed by a Trading Member in relation to the Trading Member's activities on SGX-ST, it may:

(a) at any time direct the Trading Member to remove the external auditor; and

(b) direct the Trading Member, as soon as practicable thereafter, to appoint another external auditor.

Added on 3 June 2019 3 June 2019.

3.13.3

A Trading Member shall, within five months after the close of the financial year, furnish to SGX-ST the following information:

(a) relevant forms in respect of its annual financial audit that the Trading Member is required to lodge with its Relevant Regulatory Authority, translated into English (if necessary), and as prescribed by SGX-ST. In the case of a Trading Member that holds a Capital Markets Services Licence, the forms shall be in the prescribed format under Regulation 27(9) of the SFR (Financial and Margin Requirements);

(b) audited accounts of the Trading Member and its subsidiaries;

(c) a certificate in respect of its annual financial audit signed by the auditor appointed by the Trading Member to carry out such audit and stating in such form prescribed the Relevant Regulatory Authority.

Added on 3 June 2019 3 June 2019.

3.13.4

Where, in the performance of his duties, the Trading Member's auditor becomes aware:

(a) of any matter that in his opinion adversely affects or may adversely affect the financial position of the Trading Member to a material extent;

(b) of any matter that in his opinion constitute or may constitute a breach of the Securities and Futures Act, or any other relevant applicable laws and regulatory requirements relating to the regulation of organised markets and licenced entities, or an offence involving fraud or dishonesty;

(c) of any irregularity that has or may have a material effect upon the accounts, including irregularities that jeopardise the monies or other assets of any customer of the Trading Member; or

(d) that the accounting system, internal accounting control and procedures for safeguarding monies or other assets are inadequate and the inadequacies have a material effect on the accounts,

the auditor shall, and the Trading Member shall procure that the auditor shall, immediately report the matter to SGX-ST.

Added on 3 June 2019 3 June 2019.

3.13.5

A fee of S$200 may be imposed for each day that the statements are not submitted after the prescribed time or such extended time as SGX-ST may grant.

Added on 3 June 2019 3 June 2019.

3.13.6

Requests for extension of time shall be submitted to SGX-ST at least three Market Days prior to the due date.

Added on 3 June 2019 3 June 2019.

3.14 Provision in Annual Accounts

3.14.1

A Trading Member that is incorporated in Singapore shall make such provisions in its annual accounts as SGX-ST may from time to time require.

Added on 3 June 2019 3 June 2019.

3.15 Other Financial Requirements

3.15.1

Rules 3.15.2 to 3.15.5 shall not apply to a Remote Trading Member.

Added on 3 June 2019 3 June 2019.

3.15.2

A Trading Member that is incorporated in Singapore shall not reduce its paid-up ordinary share capital or paid-up irredeemable and non-cumulative preference share capital without the prior written approval of SGX-ST.

Added on 3 June 2019 3 June 2019.

3.15.3

Preference Shares

(a) A Trading Member that is incorporated in Singapore shall notify SGX-ST prior to the issue of any preference share.

(b) A Trading Member that is incorporated in Singapore shall not repay the principal of any preference share (other than any paid-up irredeemable and non-cumulative preference share capital) that is computed as part of its financial resources, through repurchase or redemption:

(i) unless the Trading Member notifies SGX-ST within such time before the proposed date of repurchase or redemption as prescribed by the SFR (Financial and Margin Requirements);

(ii) if at the date of repurchase or redemption:

(I) its financial resources is less than 150% of its total risk requirement; or

(II) its aggregate indebtedness exceeds 600% of its aggregate resources;

(iii) if such repurchase or redemption will cause an event in Rule 3.15.3(b)(ii) above to occur; or

(iv) if SGX-ST has prohibited in writing such a repurchase or redemption.

Added on 3 June 2019 3 June 2019.

3.15.4

Qualifying Subordinated Loan

(a) A Trading Member shall obtain the prior approval of SGX-ST if it enters a subordinated loan agreement in a format other than the format prescribed by SGX-ST from time to time.

(b) Where a Trading Member draws down a qualifying subordinated loan, the Trading Member shall notify SGX-ST no later than the date of draw down of the qualifying subordinated loan.

(c) A Trading Member shall not repay, whether in part or in full, any subordinated loan principal before the maturity date without the prior approval of SGX-ST.

(d) A Trading Member shall not repay, whether in part or in full, any subordinated loan principal that has matured:

(i) unless the Trading Member notifies SGX-ST at least one Market Day before the date of repayment;

(ii) if its financial resources is less than 150% of its total risk requirement;

(iii) if its aggregate indebtedness exceeds 600% of its aggregate resources;

(iv) if such a repayment will cause an event in Rule 3.15.4(d)(ii) or (iii) to occur; or

(v) if SGX-ST has prohibited in writing such a repayment.

Added on 3 June 2019 3 June 2019.

3.15.5

A Trading Member shall not, without the prior written approval of SGX-ST, make any unsecured loan or advance, pay any dividend or director's fees or increase any director's remuneration if:

(a) in the case where the Trading Member is incorporated in Singapore:

(i) its base capital is less than the base capital requirement as prescribed in Rules 3.2 and 3.5;

(ii) its financial resources is less than 150% of its total risk requirement;

(iii) its aggregate indebtedness exceeds 600% of its aggregate resources; or

(iv) such a loan, advance, payment or increase will cause an event in Rule 3.15.5(a)(i), (ii) or (iii) to occur; or

(b) in the case where the Trading Member is incorporated outside Singapore:

(i) its net head office funds is less than the base capital requirement as prescribed in Rules 3.2 and 3.5;

(ii) its adjusted net head office funds is less than 150% of its total risk requirement;

(iii) its aggregate indebtedness exceeds 600% of its aggregate resources; or

(iv) such a loan, advance, payment or increase will cause an event in Rule 3.15.5(b)(i), or (iii) to occur.

Added on 3 June 2019 3 June 2019.

3.15.6

A Remote Trading Member shall notify SGX-ST immediately of any actions taken relating to:

(a) any reduction in paid-up ordinary share capital;

(b) any issue of any preference share;

(c) the entry into a subordinated loan agreement in a format other than the format prescribed by SGX-ST from time to time, drawing down on a qualifying subordinated loan or repayment whether in part or in full, any subordinated loan principal before or upon maturity;

(d) any matter that has or may have a financial or capital impact on the Remote Trading Member and is or may be required to be reported to the Relevant Regulatory Authority.

Added on 3 June 2019 3 June 2019.

3.15.7

A Trading Member that holds a Capital Markets Services Licence must not issue or allot partly paid shares.

Added on 3 June 2019 3 June 2019.

Chapter 4 Operational Requirements

4.1 Member Systems

4.1.1

A Trading Member must ensure that:

(a) its systems and connections to the Trading System operate properly at all times and have adequate redundancy and scalable capacity to accommodate current and anticipated trading volume levels; and

(b) it complies with the terms and conditions, and any other requirements imposed by SGX-ST, for accessing the Trading System or in relation to order management systems or for any other purpose.

Refer to Regulatory Notice 4.1.

Added on 3 June 2019 3 June 2019.

4.2 Direct Market Access and Sponsored Access

4.2.1

A Trading Member may authorise Direct Market Access (including Sponsored Access) for its customers in respect of organised markets established by or operated by SGX-ST or such organised markets as SGX-ST specifies, subject to such conditions and requirements as may be specified in the Rules or prescribed by SGX-ST from time to time.

Refer to Practice Note 4.2.

Added on 3 June 2019 3 June 2019.

4.2.2

A Trading Member that authorises Sponsored Access for its customers must maintain a register recording the identity and address of all customers with Sponsored Access, and produce such register to SGX-ST at its request.

Added on 3 June 2019 3 June 2019.

4.2.3

A Trading Member that authorises Direct Market Access (including Sponsored Access) for a customer must enter into a legally binding agreement with the customer setting out the terms and conditions for such Direct Market Access. The agreement must include requirements, and the Trading Member must have measures in place, for:

(a) the customer to meet minimum standards including standards on financial standing, credit history and criminal records, adverse records or pending court proceedings relating to prohibited market conduct;

(b) the customer to have appropriate procedures in place to assure that all relevant persons:

(i) are familiar with and comply with the Rules;

(ii) have knowledge and proficiency in the use of the order management system;

(c) the customer to be provided information concerning its access to the Trading System and applicable laws;

(d) the customer to have security arrangements in place to ensure that unauthorised persons are denied such Direct Market Access;

(e) the customer to assist SGX-ST promptly in any investigation into potential violations of the Rules and applicable laws, including the provision of information to SGX-ST relating to the identity and address of any person who may be responsible for the execution of an order or trade;

(f) the customer to comply with Rules 4.1 and 4.13 (in a case where the customer is given Sponsored Access);

(g) the customer to be permitted to delegate, and any other person to be permitted to delegate, Sponsored Access only if the delegating person is:

(I) regulated by a recognised regulatory authority in respect of any regulated activity; or

(II) a Trading Member of SGX-ST in which event it may only delegate Sponsored Access to its related corporations;

for the purpose of this Rule 4.2.3(g), "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 Securities and Futures Act;

(h) the customer to ensure, and any other person delegating Sponsored Access to ensure, that all persons given Sponsored Access are included in the register referred to in Rule 4.2.2; and

(i) the customer to ensure, and any other person delegating Direct Market Access to ensure, that all persons given Direct Market Access are subject to the requirements in this Rule 4.2.3.

Added on 3 June 2019 3 June 2019.

4.2.4

SGX-ST may require a Trading Member to provide to SGX-ST a report by an independent reviewer on the Trading Member's compliance with Rules 4.2 and 4.3.2.

Added on 3 June 2019 3 June 2019.

4.3 Suspension and Termination of Direct Market Access

4.3.1

SGX-ST may without prior notice suspend or terminate or direct a Trading Member to suspend or terminate immediately a person's Direct Market Access:

(a) where the person has failed to assist SGX-ST with an investigation in accordance with Rule 4.2.3(e);

(b) in the interest of a fair, orderly and transparent market; or

(c) where the person or Trading Member has breached any of the Rules or any applicable laws.

Added on 3 June 2019 3 June 2019.

4.3.2

A Trading Member must have the ability to immediately suspend or terminate a person's Direct Market Access when necessary for the fulfilment of its duties under the Rules or any other reason.

Added on 3 June 2019 3 June 2019.

4.4 Control of Access

4.4.1

A Trading Member must ensure that there are adequate security arrangements in place to ensure that unauthorised persons are denied access to the organised markets established by or operated by SGX-ST and/or such organised markets as SGX-ST specifies.

Added on 3 June 2019 3 June 2019.

4.5 Responsibility to SGX-ST

4.5.1

A Trading Member is responsible to SGX-ST for:

(a) any liability to SGX-ST of its Directors, Officers, Trading Representatives, employees and agents; and

(b) the acts and omissions of its Directors, Officers, Trading Representatives, employees and agents.

Added on 3 June 2019 3 June 2019.

4.6 Training and Supervision

4.6.1

A Trading Member must ensure that each of its Trading Representatives undergoes adequate education and training, including such continuing education and training as SGX-ST may prescribe, as may be necessary for the Trading Representative to discharge his duties and obligations.

Added on 3 June 2019 3 June 2019.

4.6.2

A Trading Member must supervise its Trading Representatives, employees and agents.

Added on 3 June 2019 3 June 2019.

4.6.3

A Trading Member must:

(a) establish and maintain procedures and systems to prevent any breach of the Rules by its Directors, Officers, Trading Representatives, employees or agents; and

(b) ensure that its Trading Representatives, employees, agents or any other person carrying out or enforcing its procedures and systems reasonably discharges his or her duties and obligations.

Added on 3 June 2019 3 June 2019.

4.7 Compliance Review

4.7.1

A Trading Member must carry out checks from time to time to ensure its and its Directors', Officers', Trading Representatives', employees' and agents' compliance with:

(a) the regulatory requirements of the Relevant Regulatory Authority;

(b) the Rules and any Approval Conditions; and

(c) its policies and procedures.

Added on 3 June 2019 3 June 2019.

4.7.2

The checks must be carried out by internal audit or the compliance department or a person whose reporting line is independent of dealing, sales and operations.

Added on 3 June 2019 3 June 2019.

4.8 Good Business Practice

4.8.1

Trading Members and Trading Representatives must adhere to the principles of good business practice in the conduct of their business affairs.

Added on 3 June 2019 3 June 2019.

4.9 Control of Operations

4.9.1

A Trading Member must establish and maintain adequate internal control systems, commensurate with the nature, scale and complexity of the business of the Trading Member.

Added on 3 June 2019 3 June 2019.

4.9.2

A Trading Member must, where appropriate, establish internal policies and procedures to restrict the flow of material non-public information between persons and departments within the Trading Member.

Added on 3 June 2019 3 June 2019.

4.9.3

A Trading Member must have processes in place to minimise and manage any conflicts of interest, including but not limited to separating its front and back office functions.

Refer to Practice Note 4.9.3.

Added on 3 June 2019 3 June 2019.

4.10 Risk Management and Financial Controls

4.10.1

A Trading Member must have written policies and procedures on risk management control and demonstrate compliance in the following areas:

(a) monitoring the credit risks arising from the acceptance of all orders, on at least a daily basis;

(b) ensuring that:

(i) adequate pre-execution risk management control checks are conducted, including automated credit control checks on every order and trading limits for each Trading Representative; and

(ii) there are appropriate internal controls and assessments conducted for the setting and modification of any parameters of such pre-execution risk management control checks;

(c) having error-prevention alerts to bring attention to possible erroneous entries of price, order size and other data fields; and

(d) defining and managing the Trading Member's sources of liquidity to ensure that there are sufficient liquidity facilities to meet settlement obligations.

Refer to Practice Note 4.10.1(b).

Refer to Practice Note 4.10.1(c).

Added on 3 June 2019 3 June 2019.

4.10.2

A Trading Member must have automated processes and procedures in place to monitor at the firm level if the Trading Member is at risk of breaching capital and financial requirements and prudential limits on exposures to a single customer and a single security, so as to restrict trading activity, inject additional capital or take such steps as are necessary to prevent such breach.

Refer to Practice Note 4.10.2.

Added on 3 June 2019 3 June 2019.

4.11 Outsourcing Conditions

4.11.1

A Trading Member that outsources any of its operations must:

(a) comply with any guidelines or requirements on outsourcing as prescribed by the Relevant Regulatory Authority. A Remote Trading Member shall immediately inform SGX-ST of any changes to such requirements and comply with such additional requirements as SGX-ST may prescribe;

(b) have in place adequate audit trails of the activities performed by the service provider;

(c) ensure that the service provider provides SGX-ST with any information, including records of the work done by the service provider and any other records maintained by the service provider, that SGX-ST requests within SGX-ST's prescribed timeline;

(d) ensure that the service provider provides SGX-ST access to all relevant records and systems and that SGX-ST is able to perform on-site inspections of the outsourced operations in the same way as if the outsourced operations were residing in the Trading Member and without any costs to SGX-ST;

(e) inform SGX promptly of any disciplinary actions taken against the service provider, or any issues raised by internal or external auditors or any authority that regulates the service provider pertaining to the activities outsourced to the service provider; and

(f) ensure that the internal audit requirements prescribed by SGX-ST are also complied with in relation to the outsourced operations.

Added on 3 June 2019 3 June 2019.

4.11.2

If activities that a Trading Member would ordinarily have carried out during SGX operative hours are outsourced, the Trading Member must ensure that the service provider is operative whenever SGX-ST is open for trading.

Added on 3 June 2019 3 June 2019.

4.12 Business Continuity Requirements

4.12.1

A Trading Member must assess its business and operational risks and maintain adequate business continuity arrangements. Such business continuity arrangements must be documented in a business continuity plan, and must be reviewed and tested regularly.

Added on 3 June 2019 3 June 2019.

4.12.2

A Trading Member's senior management shall be responsible for the Trading Member's business continuity plan. Sufficient awareness of the risks, mitigating measures and state of readiness must be demonstrated by way of an attestation to the Trading Member's board of Directors. A Remote Trading Member shall comply with such requirements established by the Relevant Regulatory Authority, if any, and principles of good business practice in relation to business continuity planning.

Added on 3 June 2019 3 June 2019.

4.12.3

A Trading Member must appoint emergency contact persons, and furnish the contact information of such persons to SGX-ST. The Trading Member's emergency contact persons must be contactable at all times, and must immediately notify SGX-ST in the event of emergencies.

Refer to Practice Note 4.12.

Added on 3 June 2019 3 June 2019.

4.13 Records for Compliance

4.13.1

A Trading Member and its Trading Representatives must:

(a) maintain proper, complete and accurate records and audit trails, including a complete audit trail of transactions, whether entered into for itself or the Trading Member's customers, from the receipt of an order to its settlement, to evidence compliance with the Rules in accordance with:

(i) in the case of a Trading Member that holds a Capital Markets Services Licence, the requirements in the Securities and Futures Act and the Rules; and

(ii) in the case of a Remote Trading Member, such requirements as may be prescribed by the Relevant Regulatory Authority and the Rules. The Remote Trading Member shall immediately notify SGX-ST of any changes to the requirements prescribed by the Relevant Regulatory Authority. Notwithstanding the foregoing, SGX-ST shall have the discretion to prescribe additional requirements;

(b) not make, or cause to be made, any false or misleading entries in any books, records, slips, documents, or statements relating to the business, affairs, transactions, conditions, assets or accounts of the Trading Member (whether such documents are in hardcopy or electronic form) (the "Documents");

(c) make or cause to be made all relevant entries in each of the Documents; and

(d) not alter, conceal or destroy or cause to be altered, concealed or destroyed any of the Documents without a valid reason.

Refer to Regulatory Notice 4.13.1 and Regulatory Notice 4.13, 4.16, 4.24, 4.25 and 4.29.

Added on 3 June 2019 3 June 2019.

4.13.2

A Trading Member and its Trading Representative must ensure the integrity, security and confidentiality in the transmission and storage of all records. A Trading Member must keep data and records such that they are easily retrievable by authorised personnel and are stored securely such that no tampering occurs. Backups of records must be kept at a location separate from the original records. A Trading Member must check data and records for quality and accuracy on an on-going basis and correct any quality or accuracy defects detected.

Added on 3 June 2019 3 June 2019.

4.13.3

A Trading Member must make records available to SGX-ST at such time as SGX-ST prescribes or otherwise requires. The Trading Member must obtain the necessary customer consent for such disclosure, prior to such disclosure being made.

Refer to Regulatory Notice 4.13, 4.16, 4.24, 4.25 and 4.29.

Added on 3 June 2019 3 June 2019.

4.14 Confidentiality of Customer's Information

4.14.1

A Trading Member and its Trading Representative must maintain confidentiality of a customer's information, except where required or permitted under applicable law or under the Rules, or in accordance with the prior consent of the customer for the disclosure of such information.

Added on 3 June 2019 3 June 2019.

4.14.2

A Trading Member must ensure that a person to whom it discloses a customer's information maintains confidentiality of such information.

Added on 3 June 2019 3 June 2019.

4.15 Opening of Customer Accounts

4.15.1

This Rule shall not apply to a Remote Trading Member.

Added on 3 June 2019 3 June 2019.

4.15.2

Prior to opening a customer account, a Trading Member shall satisfy itself that it has:

(a) obtained adequate particulars of each customer;

(b) verified the identity of each customer, and in the case of a non-individual customer verified that it is validly constituted and that the person opening the account has the requisite authority to do so, and in the case of an agency customer, verified the identity of the principal and the customer's authority to trade for its principal;

(c) agreed with the customer procedures for the communication of trading instructions to guard against unauthorised trading (if applicable); and

(d) understood each customer's risk appetite and investment objectives (if applicable),

in accordance with applicable know-your-customer laws and regulatory requirements.

Refer to Practice Note 4.15.2(a) and (b) and Practice Note 4.15.2(d).

Added on 3 June 2019 3 June 2019.

4.15.3

Before opening a customer account for a customer under the age of 21, a Trading Member shall assess the customer's suitability to trade and disclose the risks of trading to the customer.

Refer to Practice Note 4.15.3.

Added on 3 June 2019 3 June 2019.

4.15.4

Joint Customer Account

(a) A Trading Member may allow customers to open a joint account carried on its books only if:

(i) a joint securities account with CDP is opened by the joint account holders;

(ii) each joint account holder is at least 18 years old; and

(iii) no joint account holder is an undischarged bankrupt.

(b) A joint customer account may be operated by not more than two individual customers. However, if it is an estate account, it may be operated by all personal representatives acting on behalf of the estate of the deceased.

(c) In addition to the matters set out in Rule 4.15.2, a Trading Member must obtain the following information:

(i) the names of persons authorised to give trading orders and settlement instructions to, and receive scrip from, the Trading Member;

(ii) the names of persons to whom payments by the Trading Member are to be made; and

(iii) details of any customer accounts carried on the books of the Trading Member held in an individual capacity by a joint customer account holder.

(d) A Trading Member must require each joint customer account holder to specify whether the joint customer account holder is jointly, severally, or jointly and severally liable for all debts incurred in a joint customer account.

Added on 3 June 2019 3 June 2019.

4.15.5

Approval of Customer Accounts

(a) At least one member of senior management or delegate staff (whether of the Trading Member or the Trading Member's related corporation or otherwise) independent of the Trading Member's sales or dealing, must approve the opening of a customer account carried on the books of the Trading Member.

(b) The approval must:

(i) be given before the execution of the first trade for the customer;

(ii) be in writing (which includes secured electronic record); and

(iii) form part of the permanent records of the Trading Member.

Added on 3 June 2019 3 June 2019.

4.16 Risk Disclosure

4.16.1

A Trading Member must ensure that its customer is aware of and must obtain a written acknowledgement from the customer that the customer is aware of and understands the risks associated with holding and trading securities and futures contracts, and it informs its customer whether the Trading Member is acting as a principal or an agent for the customer in accordance with:

(a) in the case of a Trading Member that holds a Capital Markets Services Licence, Regulation 47DA of the SFR (Licensing and Conduct of Business); and

(b) in the case of a Remote Trading Member, such requirements as may be prescribed by the Relevant Regulatory Authority. The Remote Trading Member shall immediately notify SGX-ST of any changes to such requirements. Notwithstanding the foregoing, SGX-ST shall have the discretion to prescribe additional requirements.

Refer to Regulatory Notice 4.13, 4.16, 4.24, 4.25 and 4.29.

Added on 3 June 2019 3 June 2019.

4.17 Separate Trading Accounts and Account Designation

4.17.1

A Trading Member must maintain separate Trading Accounts for each customer or each group of joint customers (as the case may be) whose customer account is carried on the books of the Trading Member.

Added on 3 June 2019 3 June 2019.

4.17.2

Each Trading Account must be identified and designated by the full name of the customer(s) whose customer account is carried on the books of the Trading Member and by a unique Trading Account code, both of which must be reported to SGX-ST before the Trading Account is used to send in any orders.

Added on 3 June 2019 3 June 2019.

4.18 Customer Education

4.18.1

This Rule shall not apply to a Remote Trading Member.

Added on 3 June 2019 3 June 2019.

4.18.2

Save for Accredited Investors, Institutional Investors and Expert Investors, a Trading Member must provide its Internet Trading customers with adequate information, guidance and training on:

(a) prohibited trading practices;

(b) potential limitations and risks of Internet Trading;

(c) system functionalities and order management procedures; and

(d) market conventions such as minimum bid sizes and board lot sizes.

Added on 3 June 2019 3 June 2019.

4.18.3

With respect to Accredited Investors, Institutional Investors and Expert Investors, a Trading Member's obligation relates solely to the provision of adequate information in relation to prohibited trading practices.

Refer to Practice Note 4.18.

Added on 3 June 2019 3 June 2019.

4.19 Trading by Employees and Agents

4.19.1

A Trading Member must have in place procedures to ensure that its Directors, Officers, Trading Representatives, employees and agents who are privy to confidential information relating to dealing in securities or futures contracts do not use such information to trade for their own benefit.

Added on 3 June 2019 3 June 2019.

4.19.2

A Trading Member must have in place procedures to monitor the trading activities of its Directors, Officers, Trading Representatives, employees and agents whether those trading activities are conducted through the Trading Member or another Trading Member.

Added on 3 June 2019 3 June 2019.

4.20 Arrangements with Remisiers

4.20.1

A Trading Member must inform SGX-ST in writing at least seven days before a Dealer converts to a Remisier or vice versa, provided that SGX-ST may vary or waive the notice period at its discretion.

Added on 3 June 2019 3 June 2019.

4.20.2

Where it engages a Remisier, a Trading Member shall:

(a) enter into a written agency arrangement setting out all terms of its relationship with the Remisier;

(b) conduct a credit assessment of the Remisier;

(c) assign trading or other limits to such Remisier to restrict the Remisier's volume of business, such limits to take into account the credit assessment, and security deposit required, of the Remisier; and

(d) require that the Remisier place a security deposit in the form of cash, acceptable collateral or a guarantee from a bank or financial institution operating in Singapore, of an amount determined by the Trading Member, taking into account the credit assessment of, and trading limit imposed on, the Remisier.

Added on 3 June 2019 3 June 2019.

4.21 Remisiers Working in Teams

4.21.1

A Trading Member may allow the Remisiers that it appoints as Trading Representatives to work in teams where Remisiers in the same team may enter orders for one another's customers.

Added on 3 June 2019 3 June 2019.

4.21.2

A Trading Member must:

(a) maintain a list of Remisiers working in teams, according to the teams they work in;

(b) establish in writing the terms and conditions of each team arrangement with its Remisiers. The terms and conditions must include:

(i) how possible disputes amongst Remisiers working in teams are to be resolved; and

(ii) that Remisiers working in a team shall be jointly and severally liable for losses incurred by customers serviced by the team where such losses are not recovered;

(c) ensure that Remisiers working in teams will not compromise their compliance with all relevant legislation and regulations; and

(d) monitor team operations to ensure there is no overtrading, and that irregularities do not occur.

Added on 3 June 2019 3 June 2019.

4.21.3

Trading Members must keep customers informed of the team arrangements, and give customers the option not to be serviced by Remisiers working in teams. Trading Members should also keep their customers informed of any changes to team compositions.

Added on 3 June 2019 3 June 2019.

4.21.4

If a customer's order is passed along a chain of Remisiers in a team, each Remisier must record from and to whom he receives and transmits the order, and the time of such receipt and transmission.

Added on 3 June 2019 3 June 2019.

4.22 Trading Authority

4.22.1

This Rule shall not apply to a Remote Trading Member.

Added on 3 June 2019 3 June 2019.

4.22.2

Before accepting any orders for a customer's account from a third party, a Trading Member must obtain written authorisation from the customer authorising the third party to trade for the customer's account carried on the books of the Trading Member.

Added on 3 June 2019 3 June 2019.

4.23 Brokerages and Charges

4.23.1

Unless SGX-ST decides otherwise, the commission rate chargeable for the purchase or sale of securities and futures contracts may be determined by the Trading Member in its discretion.

Added on 3 June 2019 3 June 2019.

4.23.2

All charges and expenses, including any fees imposed by CDP and/or SGX-ST, stamp duty and Goods and Services Tax, to be borne by the customer (whether included as part of the brokerage or otherwise) must be accurately disclosed to the customer and agreed between the customer and the Trading Member.

Added on 3 June 2019 3 June 2019.

4.24 Contract Notes

4.24.1

A Trading Member must send its customer a contract note for any purchase or sale of securities or futures contracts.

Refer to Regulatory Notice 4.24.1.

Added on 3 June 2019 3 June 2019.

4.24.2

The contract note must state that the contract is subject to the Rules if the trade is:

(a) transacted on or through the Trading System; or

(b) reported to SGX-ST.

Added on 3 June 2019 3 June 2019.

4.24.3

In the case of a Trading Member that holds a Capital Markets Services Licence:

(a) the contract note must comply with the requirements of the Securities and Futures Act and must show separately, where applicable:

(i) brokerage charged by the Trading Member;

(ii) stamp duty;

(iii) Goods and Services Tax;

(iv) any other fees in addition to the brokerage charged by the Trading Member; and

(v) any other fees in addition to the brokerage charged that are charged by any other party (including CDP and/or SGX-ST) and borne by the customer;

(b) the contract note must clearly distinguish charges levied by the Trading Member from charges levied by SGX-ST and/or CDP; and

(c) before issuing contract notes in electronic form, the Trading Member must obtain the customer's prior revocable and informed consent for receipt of contract notes in electronic form. The Trading Member must retain evidence of the customer's consent. To constitute informed consent, a customer must be told of the manner of delivery and retrieval of the electronic record and any costs that may be incurred.

Refer to Practice Note 4.24.3(c).

Added on 3 June 2019 3 June 2019.

4.24.4

In the case of a Remote Trading Member, a contract note must comply with such requirements as may be prescribed by the Relevant Regulatory Authority, including requirements relating to a customer's contract note in electronic form. The Remote Trading Member shall immediately notify SGX-ST of any changes to such requirements. Notwithstanding the foregoing, SGX-ST shall have the discretion to prescribe additional requirements.

Refer to Regulatory Notice 4.13, 4.16, 4.24, 4.25 and 4.29.

Added on 3 June 2019 3 June 2019.

4.24.5

If asked by SGX-ST, a Trading Member must produce a copy or record of the contract notes in substantially the same form and containing the same trading information as were given to customers.

Added on 3 June 2019 3 June 2019.

4.25 Statements of Account to Customers

4.25.1

A Trading Member must send its customers statements of account on a regular basis in accordance with:

(a) in the case of a Trading Member that holds a Capital Markets Services Licence, Regulation 40 of the SFR (Licensing and Conduct of Business); and

(b) in the case of a Remote Trading Member, such requirements as may be prescribed by the Relevant Regulatory Authority. The Remote Trading Member shall immediately notify SGX-ST of any changes to such requirements. Notwithstanding the foregoing, SGX-ST shall have the discretion to prescribe additional requirements.

Refer to Regulatory Notice 4.13, 4.16, 4.24, 4.25 and 4.29.

Added on 3 June 2019 3 June 2019.

4.25.2

If asked by SGX-ST, a Trading Member must produce a copy or record of the statements of account in substantially the same form and containing the same information as given to customers.

Added on 3 June 2019 3 June 2019.

4.26 Amendment of Contract

4.26.1

This Rule shall not apply to a Remote Trading Member.

Added on 3 June 2019 3 June 2019.

4.26.2

In the event that a Trading Member seeks to amend a contract, including but not limited to changes to price, quantity or account number, approval of senior management (or delegate staff) independent of the sales or dealing function of the Trading Member must be obtained prior to any such amendment. Such senior management (or delegate staff) should consider whether there is a valid reason for the amendment.

Added on 3 June 2019 3 June 2019.

4.27 Communication with Customers

4.27.1

This Rule shall not apply to a Remote Trading Member.

Added on 3 June 2019 3 June 2019.

4.27.2

A Trading Member must communicate directly with its customers in respect of statements, contract notes or all other information, whether in writing or electronically, unless the customer has authorised otherwise in writing.

Added on 3 June 2019 3 June 2019.

4.27.3

To guard against unauthorised trading, contract notes and statements must be sent to the customer's residential address or any other address authorised by the customer. If the customer chooses for contract notes and statements to be sent to a "care of" address or the Trading Representative's address, the Trading Member must explain the risk of unauthorised trading to the customer, obtain the customer's written authorisation for such an arrangement, and monitor the customer's accounts for any unauthorised trading activities.

Added on 3 June 2019 3 June 2019.

4.27.4

A Trading Member must not allow any person other than the customer to collect any cash, share certificates, contract notes, credit or debit notes, cheques or statements, unless the customer has authorised that person in writing.

Added on 3 June 2019 3 June 2019.

4.28 Payment to Customers

4.28.1

This Rule shall not apply to a Remote Trading Member.

Added on 3 June 2019 3 June 2019.

4.28.2

All cheques to customers must be crossed, unless:

(a) the payee customer requests otherwise in writing; and

(b) a senior management staff (or his delegate) of a Trading Member who is independent of sales or dealing, or a senior management staff (or his delegate) of a related corporation of that Trading Member charged with the payment function, authorises the request in writing.

Added on 3 June 2019 3 June 2019.

4.28.3

A Trading Member must not accept a house cheque (a crossed cheque issued by the Trading Member in favour of a customer) from a customer unless:

(a) the customer is the payee of the cheque; and

(b) the cheque is used to settle an amount owing by the customer to the Trading Member or is deposited into a trust account under Rule 4.31, as directed by the customer.

Added on 3 June 2019 3 June 2019.

4.29 Segregation of Customer's and Remisier's Monies and Assets

4.29.1

A Trading Member must:

(a) segregate monies and assets of customers (including Remisiers) from the Trading Member's monies and assets;

(b) deposit monies and assets of customers (including Remisiers) in trust or custody accounts; and

(c) separately account for the monies and assets of each customer (including each Remisier).

Added on 3 June 2019 3 June 2019.

4.29.2

A Trading Member that holds a Capital Markets Services Licence must comply with such requirements prescribed in Rules 4.30 and 4.31.

Added on 3 June 2019 3 June 2019.

4.29.3

A Remote Trading Member must comply with such requirements as may be prescribed by the Relevant Regulatory Authority. The Remote Trading Member shall immediately notify SGX-ST of any changes to such requirements. Notwithstanding the foregoing, SGX-ST shall have the discretion to prescribe additional requirements.

Refer to Regulatory Notice 4.13, 4.16, 4.24, 4.25 and 4.29.

Added on 3 June 2019 3 June 2019.

4.29.4

A "customer" for the purposes of Rules 4.29, 4.30 and 4.31 does not include (a) any Officer, Director, employee or representative of the Trading Member; or (b) a related corporation of the Trading Member with respect to an account belonging to and maintained wholly for the benefit of that related corporation; but includes a Remisier of the Trading Member.

Added on 3 June 2019 3 June 2019.

4.30 Segregation of Customer's and Remisier's Monies and Assets — Monies

4.30.1

This Rule shall not apply to a Remote Trading Member.

Added on 3 June 2019 3 June 2019.

4.30.2

A Trading Member must comply with Part III, Divisions 2 and 4 of the SFR (Licensing and Conduct of Business) on customer's monies in respect of any money received by the Trading Member on account of any customer (including a Remisier) save that Regulation 16(1)(b) of the SFR (Licensing and Conduct of Business) does not apply to a Remisier and a Trading Member must deposit all money received on account of a Remisier in a trust account.

Added on 3 June 2019 3 June 2019.

4.30.3

A Trading Member must designate the accounts maintained with a financial institution specified in Regulation 17 of the SFR (Licensing and Conduct of Business) for a customer (other than a Remisier) or a Remisier as a trust account, or as a customer (other than a Remisier) or Remisier account, as the case may be.

Added on 3 June 2019 3 June 2019.

4.30.4

A Trading Member must deposit money received on account of its customers (other than Remisiers) in a separate trust account from money received on account of its Remisiers.

Added on 3 June 2019 3 June 2019.

4.30.5

A Trading Member must not commingle money received on account of its customers (including its Remisiers) with its own funds. However, a Trading Member may deposit its own funds into a trust account under the circumstances specified in Regulation 23(1) of the SFR (Licensing and Conduct of Business).

Added on 3 June 2019 3 June 2019.

4.30.6

A Trading Member must not withdraw a Remisier's money from a trust account except to:

(a) pay the Remisier;

(b) meet any amount due and payable by the Remisier to the Trading Member;

(c) reimburse the Trading Member for any money advanced to the trust account, and any interest and returns that the Trading Member is entitled to, provided the withdrawal does not result in the trust account becoming under-margined or under-funded; or

(d) make a payment or withdrawal that is authorised by law.

Added on 3 June 2019 3 June 2019.

4.30.7

A Trading Member must notify the Remisier of any withdrawal under Rule 4.30.6 by the next Market Day.

Added on 3 June 2019 3 June 2019.

4.31 Segregation of Customer's and Remisier's Monies and Assets — Assets

4.31.1

This Rule shall not apply to a Remote Trading Member.

Added on 3 June 2019 3 June 2019.

4.31.2

A Trading Member must comply with Part III, Divisions 3 and 4 of the SFR (Licensing and Conduct of Business) on customer's assets in respect of any assets received by the Trading Member to be held on account of a customer (including a Remisier), or as collateral for any amount owed by the customer (including a Remisier) to the Trading Member, save that Regulations 30, 33 and 34 of the SFR (Licensing and Conduct of Business) do not apply to a Remisier.

Added on 3 June 2019 3 June 2019.

4.31.3

A Trading Member must designate the accounts maintained with a financial institution specified in Regulation 27 of the SFR (Licensing and Conduct of Business) for a customer (other than a Remisier) or Remisier as a trust account, or customer (other than a Remsier) or Remisier account, as the case may be.

Added on 3 June 2019 3 June 2019.

4.31.4

A Trading Member must deposit assets of its customers (other than Remisiers) in a separate custody account from assets of its Remisiers.

Added on 3 June 2019 3 June 2019.

4.31.5

A Trading Member must not commingle the assets of a customer (including a Remisier) with its own assets.

Added on 3 June 2019 3 June 2019.

4.31.6

A Trading Member must not withdraw a Remisier's assets from a custody account except to:

(a) return the assets to the Remisier;

(b) use the assets to meet any amount due and payable by the Remisier to the Trading Member; or

(c) make a transfer or withdrawal that is authorised by law.

Added on 3 June 2019 3 June 2019.

4.31.7

A Trading Member must notify the Remisier of any withdrawal under Rule 4.31.6 by the next Market Day.

Added on 3 June 2019 3 June 2019.

4.32 Reporting of Delinquent Accounts

4.32.1

This Rule shall not apply to Remote Trading Members.

Added on 3 June 2019 3 June 2019.

4.32.2

A Trading Member must inform SGX-ST (or any designated third party) of the particulars of any customer account carried on the books of the Trading Member that it considers to be delinquent. SGX-ST (or the designated third party) may disseminate such information that it receives to all other Trading Members that hold a Capital Markets Services Licence.

Added on 3 June 2019 3 June 2019.

4.33 Stock Account

4.33.1

This Rule shall not apply to a Remote Trading Member.

Added on 3 June 2019 3 June 2019.

4.33.2

All purchases and sales of securities or futures contracts by a Trading Member for its proprietary account must be made under a separate Stock Account of the Trading Member.

Added on 3 June 2019 3 June 2019.

4.33.3

A Stock Account must be operated by a person who is licensed to trade, as designated, pursuant to a delegation of authority, by a member of senior management or delegate staff who is independent of the member's proprietary desk. The Trading Member shall procure that the senior management or an independent delegate appointed by senior management shall oversee the operation of the Stock Account by the designate.

Added on 3 June 2019 3 June 2019.

4.34 Position Accounts

4.34.1

In this Rule:

"Authorised Trading Member" means a Trading Member who has been duly authorised by its qualifying Clearing Member to open and maintain Position Accounts or to open, maintain and allocate positions to Position Accounts, as the case may be.

"Authorised Account" means the Position Account (of the Authorised Trading Member or of the Authorised Trading Member's customer) that an Authorised Trading Member is authorised by its qualifying Clearing Member to open and maintain, or to open, maintain and allocate positions to.

Added on 3 June 2019 3 June 2019.

4.34.2

The Clearing Rules relating to Position Accounts shall, where relevant and with the necessary modifications, apply to an Authorised Trading Member in respect of each Authorised Account as they apply to a Clearing Member.

Added on 3 June 2019 3 June 2019.

4.34.3

Authorised Accounts carrying positions for more than one beneficial owner

(a) Subject to Rule 4.34.3(b), an Authorised Trading Member shall identify any underlying beneficial owner and/or any controlling party of any Authorised Account or ensure that such information is available to SGX-ST. This shall be provided upon request by SGX-ST within such time as SGX-ST may require.

(b) If the Authorised Account holder does not want the identity of any underlying beneficial owner and/or any controlling party of such account to be disclosed to its Trading Member, the Authorised Account holder may apply to SGX-ST, through its Trading Member, to provide such information as SGX-ST may require directly to SGX-ST.

Added on 3 June 2019 3 June 2019.

4.34.4

Where a Trading Member is not authorised to allocate positions to an Authorised Account:

(a) The Trading Member shall instruct its qualifying Clearing Member to allocate the position of each trade executed by the Trading Member to the Trading Member's Position Account(s) or, where the position is of a trade executed for a customer, in accordance with that customer's instructions, as soon as practicable, and in any event no later than such time as may be required for timely and orderly settlement of such trade into the intended Securities Account.

(b) A customer's Position Account must only be used for that customer's positions. However, a Trading Member may instruct its qualifying Clearing Member to sub-allocate a position carried in a Position Account to another Position Account, provided that:

(i) (I) such sub-allocation is in accordance with the instructions of the account holders (or person(s) authorised to instruct on their behalf) of both Position Accounts; and (II) the Trading Member receives the booking instruction only after the position has been allocated to the originating Position Account; or

(ii) such sub-allocation is made to remedy an error.

Refer to Regulatory Notice 4.34.4 and 4.34.5.

Added on 3 June 2019 3 June 2019.

4.34.5

Holding trades for different customers in a Position Account and warehousing of trades

(a) A Position Account in the name of a Trading Member may be used to hold positions of trades for different customers, provided that the Trading Member has procedures to ensure fair allocation to the customers.

(b) If a customer's order is unlikely to be completed during a Market Day, the Trading Member may warehouse the customer's trades until the order is completed. The Trading Member must ensure that no customer's trade is warehoused for more than one Market Day, unless under exceptional circumstances. In such cases, the Trading Member must document the reasons for the extension of time.

Refer to Regulatory Notice 4.34.4 and 4.34.5.

Added on 3 June 2019 3 June 2019.

4.35 Broker-linked Balances

4.35.1

A Trading Member linked to a broker-linked balance must have a written agreement with the holder of the broker-linked balance setting out (a) the circumstances under which the Trading Member may cause securities to be delivered or transferred into the broker-linked balance; and (b) the conditions to which the Trading Member's rights over the securities in the broker-linked balance are subject. The Trading Member must provide the written agreement to SGX-ST for inspection if requested.

Added on 3 June 2019 3 June 2019.

4.35.2

The Trading Member shall act in accordance with the written agreement, the Rules and the Securities and Futures Act, save that nothing in the Rules shall prevent a Trading Member from releasing securities from the broker-linked balance linked to it into the customer's main balance.

Added on 3 June 2019 3 June 2019 and amended on 18 January 2022.

4.35.3

Subject to Rule 4.35.4, a Trading Member must approve the release of securities from the broker-linked balance linked to it by the end of the Market Day following the day on which it receives the customer's request for such release. SGX-ST may, at its discretion, waive or vary this timeline. In accordance with Rule 4.13.1, a Trading Member must maintain proper, complete and accurate records of each customer's requests and its response to such requests.

Added on 3 June 2019 3 June 2019.

4.35.4

A Trading Member may withhold approval for the release of any securities from a broker-linked balance linked to it only to the extent necessary to secure an obligation owed to it by the holder of the broker-linked balance.

Added on 3 June 2019 3 June 2019.

4.35.5

A Trading Member that does not approved a customer's request for release of any securities must:

(a) by the end of the Market Day following the day in which it receives the customer's request, inform the customer that the request has been rejected and securities will not be released;

(b) provide the reason(s) for not releasing the securities, including details of the obligation(s) that is owed by the customer to the Trading Member, including the value thereof, if so requested by the customer, by the Market Day following the day on which it receives the customer's request for reason(s) and/or details; and;

(c) provide the customer with such information and by such time as SGX-ST may prescribe from time to time.

SGX-ST may, at its discretion, waive or vary any of the timelines in this Rule.

In accordance with Rule 4.13.1, a Trading Member must maintain proper, complete and accurate records of each customer's requests and its response to such requests.

Added on 3 June 2019 3 June 2019.

4.35.6

SGX-ST may, in respect of any Securities Account that is maintained directly with it:

(a) transfer securities out of a broker-linked balance into the main balance, notwithstanding that the Trading Member linked to the broker-linked balance has not approved the transfer, if SGX-ST is of the view that the Trading Member has failed to comply with the Rules;

(b) refuse to transfer securities into a broker-linked balance if the Trading Member linked to the broker-linked balance has had its trading rights ceased, is suspended or has been terminated under the Rules.

Added on 3 June 2019 3 June 2019.

4.35.7

A resigning Trading Member must, in respect of each customer that has a broker-linked balance linked to it, release all securities in the broker-linked balance into the customer's main balance by the effective date of resignation.

Added on 3 June 2019 3 June 2019.

4.36 Advertising

4.36.1

A Trading Member must ensure that any advertising or publicity:

(a) is accurate;

(b) is not misleading;

(c) does not contain claims that are not externally verifiable;

(d) does not contain any predictions or projections of investment performance unless accompanied by the supporting basis; and

(e) does not tend to bring SGX or its related corporations, or other Trading Members, into disrepute.

Added on 3 June 2019 3 June 2019.

4.36.2

A Remote Trading Member shall not direct any advertising or publicity to deal in securities or futures contracts on SGX-ST to customers resident in Singapore or to the extent that it may be acted upon by customers in Singapore.

Added on 3 June 2019 3 June 2019.

4.37 Use of Office Premises

4.37.1

A Trading Member must not allow any unauthorised person to use, or operate out of, its office premises.

Added on 3 June 2019 3 June 2019.

4.38 Soft Dollar Commissions

4.38.1

A Trading Member and its Trading Representatives may receive goods and services from a broker for directing business to the broker if:

(a) the goods and services can reasonably be expected to assist in the provision of services to the customer;

(b) records of the goods and services received are maintained; and

(c) there are appropriate internal controls and procedures for such arrangements.

Refer to Practice Note 4.38.

Added on 3 June 2019 3 June 2019.

4.38.2

A Trading Member may pay for goods and services to customers for directing business to the Trading Member if:

(a) records of such payments are maintained;

(b) there are procedures to control such arrangements; and

(c) the arrangements do not violate any law, regulation or professional code of ethics on the part of the recipients.

Refer to Practice Note 4.38.

Added on 3 June 2019 3 June 2019.

4.39 Research and Corporate Finance Activities

4.39.1

This Rule shall not apply to a Remote Trading Member.

Added on 3 June 2019 3 June 2019.

4.39.2

Permissible Activities

(a) A Trading Member must inform SGX-ST at least 14 days before engaging in research or corporate finance activities.

(b) The research department of a Trading Member may engage only in the following types of activities:

(i) research and analysis on securities or futures contracts (including recommendations, if any); or

(ii) such other activities as SGX-ST approves.

(c) The corporate finance department of a Trading Member may engage only in the following types of activities:

(i) management, underwriting and placement of initial public offering or rights issues of securities;

(ii) advice on acquisition and disposal of securities and assets;

(iii) advice on corporate or debt restructuring; or

(iv) advice on take-over offers, if the Trading Member has relevant expertise and experience; or

(v) any other activity as SGX-ST may approve.

(d) A Trading Member and its staff undertaking research or corporate finance activities must procure and maintain any applicable licences and notify SGX-ST prior to engaging in the relevant activities, and shall maintain such licences while undertaking those activities, unless otherwise exempt from licensing.

(e) SGX-ST may limit the scope, or direct the cessation, of the Trading Member's research or corporate finance activities if the Trading Member fails to comply with this Rule 4.39 or if, in SGX-ST's opinion, the relevant activities are detrimental to the financial integrity, reputation or interests of, or organised markets established or operated by, SGX-ST. The Trading Member may, within 14 days of being notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board, whose decision will be final.

(f) A Trading Member must supply SGX-ST with any information that SGX-ST requires regarding its research or corporate finance activities.

Added on 3 June 2019 3 June 2019.

4.39.3

Supervision of Staff

(a) A Trading Member must:

(i) supervise its staff undertaking research or corporate finance activities;

(ii) implement written supervisory procedures to ensure that its staff undertaking research or corporate finance activities comply with this Rule 4.39; and

(iii) implement any procedure or recommendation issued by SGX-ST.

(b) A Trading Member shall be responsible for the acts or omissions of its staff undertaking the relevant activities.

(c) SGX-ST may limit the scope of activity of a staff member undertaking research or corporate finance activities or direct a Trading Member to replace the staff member if the person:

(i) causes the Trading Member to breach the Rules;

(ii) engages in conduct detrimental to the financial integrity, reputation or interests of SGX-ST, or organised markets established or operated by SGX-ST;

(iii) is convicted of an offence involving fraud or dishonesty or is found by a court of law to have acted fraudulently or dishonestly, in each case whether in or out of Singapore; or

(iv) is the subject of an investigation involving fraud or dishonesty whether in or out of Singapore.

(d) A Trading Member may, within 14 days after it is directed by SGX-ST to replace a staff member, appeal in writing to the SGX RegCo Board whose decision will be final.

Added on 3 June 2019 3 June 2019.

4.39.4

Effective Controls and Segregation of Duties

(a) A Trading Member must ensure effective controls and segregation of duties and separation between its research department and its corporate finance department and between each of them and its dealing and back office departments. Separation between departments means at least having the following:

(i) separate reporting lines in place for each of the different departments;

(ii) adequate restriction of communication and information flow, particularly non-public information, between the different departments;

(iii) adequate processes and procedures to identify, avoid, minimise, manage or mitigate any conflict of interest or potential conflict of interest between the different departments;

(iv) bonus, salary or other forms of compensation to a research staff member not being based on any corporate finance or dealing transaction; and

(v) access into the corporate finance department being restricted only to corporate finance staff members and any other authorised staff member.

(b) SGX-ST may require the Trading Member to implement controls and procedures to ensure proper segregation under Rule 4.39.4.

Added on 3 June 2019 3 June 2019.

4.39.5

Staffing

A Trading Member shall ensure that its staff undertaking the research or corporate finance activities have an adequate headcount and possess relevant expertise and experience.

Added on 3 June 2019 3 June 2019.

4.39.6

Setting of Limits

A Trading Member's underwriting commitment limits must be set by its senior management staff independent of the corporate finance and dealing departments.

Added on 3 June 2019 3 June 2019.

4.39.7

Investment Recommendations

A Trading Member and its staff undertaking research activities must:

(a) have an adequate basis, supported by research, for making an investment recommendation;

(b) maintain independence and objectivity in producing a research report or making an investment recommendation; and

(c) not issue a research report or make an investment recommendation that is not consistent with its relevant staff's actual views regarding a subject company.

Added on 3 June 2019 3 June 2019.

4.39.8

Records

A Trading Member must maintain records of its research report or investment recommendation for seven years.

Added on 3 June 2019 3 June 2019.

4.39.9

Disclosure

A Trading Member and its staff undertaking research activities must disclose:

(a) any interest at the date of the dissemination of the research report or investment recommendation in the subject of the report or recommendation. "Interest" includes direct or indirect ownership of securities or futures contracts (excluding the amount of securities or futures contracts owned), directorships, trustee positions, customer of the Trading Member or any other relationship that may be regarded as creating a potential conflict of interest with the Trading Member's responsibility under Rule 4.39.7(b); and

(b) any monetary compensation (excluding salary and bonuses) or other benefits receivable in respect of the research report or investment recommendation.

Added on 3 June 2019 3 June 2019.

4.39.10

Trade Restrictions for Trading Member Undertaking Research

A Trading Member and its staff undertaking research activities must not:

(a) knowingly buy or sell a security or futures contract if the Trading Member or its staff has material information not generally available to the public in relation to the security or futures contract;

(b) except on instructions from a customer, knowingly buy or sell a security or futures contract if the transaction may create a conflict of interest in relation to the Trading Member's duty to its customers;

(c) procure any person to buy or sell a security or futures contract if the Trading Member or its staff is prohibited under Rules 4.39.10(a) or (b) from doing so; and

(d) buy or sell a security or futures contract contrary to the most recent research report published by the Trading Member, unless sufficient time has passed since the report's publication for the market to react to the information. This trading restriction does not apply:

(i) to the Trading Member if the Trading Member is acting on a customer's express instructions;

(ii) to the Trading Member and its staff undertaking research activities if significant news is announced that would change the research report or investment recommendation; or

(iii) to a staff member undertaking research activities if the staff member is in financial difficulty and must sell the security or futures contract. The Trading Member must maintain documentation of the staff member's financial condition;

(iv) to the Trading Member if the proprietary desk of the Trading Member had no knowledge of the report and its contents before it was issued.

Added on 3 June 2019 3 June 2019.

4.39.11

Trade Restrictions for Trading Member Undertaking Corporate Finance

(a) A Trading Member undertaking corporate finance activities must maintain a restricted list of securities on which its corporate finance department is working.

(b) A security must be moved onto the restricted list no later than the date the deal is mandated.

(c) If circulated, the restricted list may be circulated to only the following persons:

(i) corporate finance staff and the person to whom the head of corporate finance reports; and

(ii) Trading Representatives who are authorised to deal for the Trading Member's accounts and the head to whom these Trading Representatives report.

(d) Staff who are privy to the restricted list must not deal in securities listed therein, or in any derivative of such securities, either for the Trading Member's account, their own accounts or accounts over which they have control and influence.

Added on 3 June 2019 3 June 2019.

4.40 Application of Chapter 4 to Remote Trading Member

4.40.1

A Remote Trading Member shall comply with such requirements established by the Relevant Regulatory Authority, if any, and principles of good business practice in relation to the areas covered by the Rules in Chapter 4 that have been expressed to not apply to Remote Trading Members.

Added on 3 June 2019 3 June 2019.

Chapter 5 Trading Practices and Conduct

5.1 Principal to other Trading Member

5.1.1

A Trading Member acts and contracts as principal with regard to the other Trading Member in each transaction it undertakes or reports to on SGX-ST.

Added on 3 June 2019 3 June 2019.

5.2 Contracts

5.2.1

A Trading Member is bound by, and shall honour the terms of, each contract:

(a) entered by or through it on the Trading System; and

(b) entered into by it via Direct Business and reported to SGX-ST.

Added on 3 June 2019 3 June 2019.

5.2.2

A Trading Member agrees that each such contract is subject to the Rules and the Clearing Rules.

Added on 3 June 2019 3 June 2019.

5.3 Qualification by a Clearing Member

5.3.1

A Trading Member cannot execute any contracts on SGX-ST unless it is qualified by a Clearing Member or is itself admitted as a Clearing Member.

Added on 3 June 2019 3 June 2019.

5.3.2

A Trading Member must be qualified by no more than one Clearing Member at any time.

Added on 3 June 2019 3 June 2019.

5.3.3

A Trading Member must inform SGX-ST in writing prior to it:

(a) ceasing to be qualified by a Clearing Member; or

(b) replacing a qualifying Clearing Member with another Clearing Member. In such an event, the Trading Member must submit to SGX-ST a copy of the written agreement between the new qualifying Clearing Member and itself.

Added on 3 June 2019 3 June 2019.

5.3.4

A Trading Member must ensure all contracts concluded on or reported to SGX-ST are submitted to its qualifying Clearing Member for clearing.

Added on 3 June 2019 3 June 2019.

5.4 Acting as Principal to Customer

5.4.1

This Rule 5.4 shall not apply to a Remote Trading Member.

Added on 3 June 2019 3 June 2019.

5.4.2

Subject to Rule 8.1.1, if a Trading Member or its Trading Representative wants to trade as principal (as defined under Regulation 47B of the SFR (Licensing and Conduct of Business) with a customer who is not a holder of a Capital Markets Services Licence, the Trading Member (where the Trading Member is the one so trading) or the Trading Representative (where the Trading Representative is the one so trading) must inform the customer that the Trading Member or the Trading Representative is acting in the transaction as principal and not as agent.

Added on 3 June 2019 3 June 2019.

5.4.3

Any contract note relating to the above transaction must show that the Trading Member or Trading Representative acted as principal.

Added on 3 June 2019 3 June 2019.

5.4.4

This Rule 5.4 does not apply to trades that are matched on the Trading System without the Trading Member's or Trading Representative's knowledge.

Added on 3 June 2019 3 June 2019.

5.5 Acting as Agent to Customer

5.5.1

When acting as agent, a Trading Member and its Trading Representative must:

(a) carry out the customer's instructions;

(b) exercise skill, care and diligence;

(c) act in good faith;

(d) act in the best interests of customers, and comply with any obligation for best execution as set out in applicable laws and regulations;

(e) if asked, disclose all circumstances and risks that could reasonably be expected to affect a customer's decision;

(f) if asked, inform the customer of the current best bid and offer prices on the Trading System;

(g) disclose the commission and any benefit directly or indirectly receivable on the transaction;

(h) not enter into a transaction that may conflict with a duty owed to the customer, unless the customer is informed of the conflict and consents to the transaction; and

(i) not disclose a customer's order unless:

(i) the prior written consent of the customer for the disclosure of the information is obtained;

(ii) the disclosure is for the effective execution of the customer's order;

(iii) the disclosure is necessary for the risk management or operations of the Trading Member if these functions have been outsourced by the Trading Member; or

(iv) the disclosure is required or permitted under applicable law or under the Rules; and

(j) ensure that the person to whom it discloses the customer's order under Rule 5.5.1(i)(ii) and 5.5.1(i)(iii) maintains confidentiality of such information.

Added on 3 June 2019 3 June 2019.

5.6 Separation of Customer and Proprietary Trading Activities

5.6.1

A Trading Member must have procedures to effectively prevent any conflict of interest between its customer trading activities and proprietary trading activities.

Added on 3 June 2019 3 June 2019.

5.7 Precedence of Customer Orders

5.7.1

Neither a Trading Member nor a Trading Representative shall deal in securities or futures contracts for its own account or for a Prescribed Person's account if the Trading Representative has an unexecuted order on the same terms from a customer. However, this Rule 5.7 does not apply if:

(a) the Trading Member or the Trading Representative does not have access to customer's order flow information while executing for its own account or for the Prescribed Person's account;

(b) the customer has prescribed that the order be executed under specified conditions and the Trading Member or Trading Representative is unable to execute the customer's order by reason of those conditions; or

(c) the transaction is entered into in circumstances prescribed by SGX-ST.

Refer to Practice Note 5.7.

Added on 3 June 2019 3 June 2019.

5.7.2

In this Rule 5.7:

(a) "Prescribed Person" means:

(i) the Trading Representative's Trading Member;

(ii) a Director of the Trading Member;

(iii) an employee, Trading Representative or agent of the Trading Member;

(iv) a person, a group of persons, a Corporation or a group of Corporations, or family trusts, whom the Trading Member, or any Director, Officer, Trading Representative, employee or agent of the Trading Member is associated with or connected to.

(b) "own account" means an account in which the Trading Member or the Trading Representative has a beneficial interest; and

(c) a reference to a person associated with another person shall have the meaning set out in section 3 of the Securities and Futures Act.

Refer to Practice Note 5.7.

Added on 3 June 2019 3 June 2019.

5.8 Arrangement with Customers

5.8.1

A Trading Member or its Trading Representative must not:

(a) accept a share in the profits of a customer's account carried on the books of the Trading Member or have any arrangement with a customer to share in the profits of that account;

(b) have any arrangement with a third party to allocate profits or losses to a customer's account carried on the books of the Trading Member; or

(c) lead a customer to believe that the customer will not suffer loss as a result of opening an account or dealings.

Added on 3 June 2019 3 June 2019.

5.9 Customer Margin Management for Trading Members

5.9.1

Where a Trading Member collects margins from a customer in connection with trades executed on SGX-ST, regardless of whether such margin is required to under the Rules, the following shall apply:

(a) subject to Rule 10.9.5, nothing in the Rules prohibits the Trading Member from imposing margin requirements, haircut rates or discounts, payment periods for customers to deposit collateral, and valuations of positions and collateral, and from making calls for additional margins, as it sees fit; and

(b) where a customer fails to meet a margin call, the Trading Member shall have the discretion to take such action as it may deem appropriate, without giving notice to the customer, to reduce its exposures to the customer. Such actions may include liquidating all or any part of the customer's collateral deposited with the Trading Member, or taking action to liquidate or offset all or any part of the customer's positions. SGX-ST may also order such Trading Member to immediately take such action to offset all or such part of the positions of the customer to rectify the deficiency.

Added on 3 June 2019 3 June 2019.

5.10 Unauthorised Trading

5.10.1

A Trading Representative must not:

(a) execute his personal trades in the account of a customer;

(b) execute a customer's trades in his personal account; and

(c) use a customer's account for the trades of any third party without the customer's prior written authorisation.

Added on 3 June 2019 3 June 2019.

5.11 Excessive Trading

5.11.1

A Trading Member or a Trading Representative, when acting as agent, must not encourage transactions with the primary object of generating commission.

Added on 3 June 2019 3 June 2019.

5.12 Prohibited Trading Conduct

5.12.1

A Trading Member or a Trading Representative must not engage in any course of conduct that is likely to create a false or misleading appearance:

(a) of active trading in any security or futures contract; or

(b) with respect to the market for, or the price of, any security or futures contract.

Refer to Practice Note 5.12.

Added on 3 June 2019 3 June 2019.

5.12.2

SGX-ST's determination of whether a course of conduct is likely to create a false or misleading appearance will be made on an objective basis. The factors that SGX-ST will take into account when making that determination include but are not limited to the following:

(a) whether the execution of the transaction is inconsistent with the recent trading activity in the security or futures contract, taking into account prevailing market conditions;

(b) whether the execution of the transaction is likely to cause or contribute to a material change in the price of, or the market for, the security or futures contract, and whether the person involved or another person with whom the first person is collaborating may directly or indirectly benefit from alterations in the market or price;

(c) whether the execution of the transaction involves the placing of multiple buy and sell orders at various prices higher or lower than the market price, or the placing of buy and sell orders that give the appearance of increased volume;

(d) whether the execution of transaction is likely to coincide with or influence the calculation of reference prices, settlement prices and valuations;

(e) whether parties involved in the transaction are connected or associated with each other;

(f) whether the order or orders for the purchase (or sale) of a security or futures contract is or are entered with the knowledge that an order or orders of substantially the same size, at substantially the same time and at substantially the same price, for the sale (or purchase) of the security or futures contract has been or will be entered by or for the same or different parties (excluding Direct Business);

(g) whether the execution of the transaction is likely to cause the price of the security or futures contract to increase or decrease, but following which the price is likely to immediately return to about its previous level;

(h) whether the bid (or offer) is higher (or lower) than the previous bid (or offer) but is withdrawn or amended to avoid execution;

(i) whether the volume or size of the order or transaction is excessive relative to reasonable expectations of the depth and liquidity of the market at the time;

(j) whether the buy (or sell) order is likely to trade with the entire best offer (or bid) volume and part of the offer (or bid) at the next price level;

(k) whether the buy (or sell) order forms part of a series of orders that successively and consistently increase (or decrease) the price of the security or futures contract; and

(l) whether there appears to be a legitimate commercial reason for the transaction.

Refer to Practice Note 5.12.

Added on 3 June 2019 3 June 2019.

5.12.3

A Trading Member or a Trading Representative must not effect, take part in, be concerned in, or carry out, directly or indirectly, any transaction to purchase or sell a security or futures contract, being a transaction that does not involve any change in the beneficial ownership of the security or futures contract as defined in Section 197(5) of the Securities and Futures Act. It is a defence if the Trading Member or Trading Representative can show that the purpose or purposes for which it or he purchased or sold the security or futures contract was not, or did not include, the purposes of creating a false or misleading appearance with respect to the market for, or the price of, the security or futures contract.

Refer to Practice Note 5.12.3.

Added on 3 June 2019 3 June 2019.

5.12.4

A Trading Member or a Trading Representative must not knowingly execute, or hold himself out as having executed, an order for the purchase or sale of futures contracts without having effected in good faith a purchase or sale of that futures contract in accordance with the order or with the business rules and practices of an organised market on which the derivatives contract is to be purchased or sold.

Added on 3 June 2019 3 June 2019.

5.12.5

A Trading Member or a Trading Representative must not deal in a security or futures contract in a manner that will or may have the effect of raising, lowering, maintaining or stabilising the price of the security or futures contract or its underlying (where applicable), with intent to induce other persons to subscribe for, purchase or sell the security or futures contract. This Rule 5.12.5 does not apply to stabilising action carried out in accordance with Regulations 3A or 3B of the Securities and Futures (Market Conduct) (Exemptions) Regulations 2006.

Added on 3 June 2019 3 June 2019.

5.12.6

A Trading Member or a Trading Representative must not disseminate information that is false or misleading if the Trading Member or Trading Representative:

(a) knows or ought reasonably to have known that the information was false or misleading in a material particular; or

(b) does not care whether the information is true or false.

Added on 3 June 2019 3 June 2019.

5.12.7

A Trading Member or a Trading Representative must not participate in any prohibited market conduct, including any insider trading, in securities or futures contracts under the Rules or any applicable law or regulations, or knowingly assist a person in such conduct.

Added on 3 June 2019 3 June 2019.

5.12.8

A Trading Member or a Trading Representative must immediately inform SGX-ST if it or he reasonably suspects, or knows of, any attempted market manipulation, insider trading, or any other prohibited trading conduct.

Added on 3 June 2019 3 June 2019.

5.12.9

A Trading Member must have in place processes to review orders and trades for the purpose of detecting suspicious trading behaviour.

Refer to Practice Note 5.12.9.

Added on 3 June 2019 3 June 2019.

5.13 Record of Orders

5.13.1

A Trading Member or a Trading Representative must ensure that a daily record of orders received from customers is maintained. The record must show the identity of the Trading Representative, account identification of each customer, the specific order, date and the time the order was received, transmitted, amended and executed or cancelled. The record may be electronically stored.

Added on 3 June 2019 3 June 2019.

5.13.2

A Trading Member must have adequate security measures in place to prevent unauthorised access to and/or tampering of the audit trail of orders entered into the Trading System.

Added on 3 June 2019 3 June 2019.

5.14 Dealing Assistant

5.14.1

A Trading Member may appoint a dealing assistant to enter orders on the Trading System on instructions given by a Trading Representative or team of Trading Representatives. A Trading Member must ensure that a Trading Representative is supported by no more than one dealing assistant. A dealing assistant who supports a Trading Representative must be appointed by a Trading Member.

Added on 3 June 2019 3 June 2019.

5.14.2

A Trading Member must ensure that a dealing assistant solely performs an order entry role, and does not perform any regulated activity. Without limiting the generality of the foregoing, a dealing assistant shall not be permitted to:

(a) deal in securities or futures contracts, including but not limited to soliciting or inducing trades or otherwise deal in securities or futures contracts;

(b) exercise any discretion over the entry of orders;

(c) give investment advice or make recommendations to customers;

(d) accept instructions from customers;

(e) communicate with customers regarding settlement; or

(f) collect cash, cheques or share certificates on behalf of the Trading Member, designated Trading Representative(s) or customers.

Added on 3 June 2019 3 June 2019.

5.14.3

A Trading Member must notify SGX-ST of the appointment of any dealing assistant and provide SGX-ST with the name and identity card or passport number of the dealing assistant appointed.

Added on 3 June 2019 3 June 2019.

5.14.4

A Trading Member must inform SGX-ST in writing, and where practicable at least seven days in advance, if a dealing assistant ceases to act.

Added on 3 June 2019 3 June 2019.

5.15 Responsibility for Orders

5.15.1

A Trading Member is responsible for the accuracy of all orders entered into the Trading System by its Trading Representatives and any dealing assistant.

Added on 3 June 2019 3 June 2019.

5.15.2

A Trading Representative is responsible for the accuracy of orders entered into the Trading System by or on behalf of the Trading Representative.

Added on 3 June 2019 3 June 2019.

5.15.3

Orders must be entered in accordance with any procedures SGX-ST prescribes.

Added on 3 June 2019 3 June 2019.

5.15.4

A Trading Member must have in place controls to prevent unauthorised changes to order information entered into the Trading System, including Trading Representative identification numbers.

Added on 3 June 2019 3 June 2019.

5.16 Identification and Password

5.16.1

Each Trading Representative must have a unique identification number of not more than three characters and a password to enter orders into the Trading System. A Trading Member and its Trading Representatives must maintain confidentiality of the Trading Representatives' identification numbers and passwords.

Added on 3 June 2019 3 June 2019.

5.16.2

A Trading Member must submit, upon admission, a list of Trading Representative identification numbers and names to SGX-ST, and notify SGX-ST of any amendments to the list on an ongoing basis.

Added on 3 June 2019 3 June 2019.

5.17 Miscellaneous

5.17.1

A Trading Member and a Trading Representative must not knowingly take advantage of a situation arising from:

(a) a breakdown or malfunction in any of SGX-ST's procedures or systems; or

(b) errors made by SGX-ST or CDP.

Added on 3 June 2019 3 June 2019.

Chapter 6 Designated Market-Makers

6.1 Registration Criteria

6.1.1

To be eligible for registration as a Designated Market-Maker, an applicant must be a Corporation that is deemed appropriate by SGX-ST.

Added on 3 June 2019 3 June 2019.

6.2 Application Procedures

6.2.1

To become a Designated Market-Maker, an applicant must apply to SGX-ST in the form and manner SGX-ST prescribes.

Added on 3 June 2019 3 June 2019.

6.2.2

SGX-ST may, in its absolute discretion, approve or reject an application to be a Designated Market-Maker, having due regard to, among other things, the appropriateness, financial condition and fitness and propriety of the applicant, its substantial shareholders, Chief Executive Officer and Directors.

Added on 3 June 2019 3 June 2019.

6.2.3

Without derogating from Rule 6.2.2, the factors that SGX-ST may consider when approving an application to be a Designated Market-Maker include but are not limited to the following:

(a) whether the applicant or its substantial shareholders, is in the course of being wound up, or a resolution to do so is passed by shareholders, or a court order is made, to wind it up, whether in or out of Singapore;

(b) whether execution against the applicant or its substantial shareholders, in respect of a judgment debt has been returned unsatisfied in whole or in part, whether in or out of Singapore;

(c) whether the applicant or its substantial shareholders, has entered into an arrangement or composition with its creditors that is still in operation, whether in or out of Singapore;

(d) whether a receiver, a receiver and manager, judicial manager or such other person having similar powers and duties, has been appointed, whether in or out of Singapore, in relation to any property of the applicant, or its substantial shareholders;

(e) whether SGX-ST is not satisfied with the financial standing of the applicant or its substantial shareholders;

(f) whether SGX-ST is not satisfied with the manner in which the applicant's business is to be conducted;

(g) whether the applicant, or any of its substantial shareholders, Chief Executive Officer or Directors is convicted of an offence involving fraud or dishonesty or is found by a court of law to have acted fraudulently or dishonestly, whether in or out of Singapore;

(h) whether the applicant, or any of its substantial shareholders, Chief Executive Officer or Directors has been convicted of an offence under the Securities and Futures Act or any other relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities;

(i) whether the applicant, or any of its substantial shareholders, Chief Executive Officer or Directors is the subject of an investigation involving an allegation of fraud or dishonesty, whether in or out of Singapore;

(j) whether SGX-ST is not satisfied with the applicant's record of past performance;

(k) whether SGX-ST is not satisfied that the applicant, any of its Chief Executive Officer or Directors are able to satisfy such experience and competency requirements as SGX-ST may prescribe;

(l) whether SGX-ST has reason to believe that the applicant or any of its Chief Executive Officer or Directors may not perform their functions efficiently, honestly and fairly;

(m) whether SGX-ST has reason to believe that the applicant may not act in the best interests of its customers;

(n) whether the applicant, unless exempted, does not have the requisite licence(s) with the Authority;

(o) whether the applicant, if it does not hold a Capital Markets Services Licence, is not regulated in a jurisdiction with regulatory standards comparable to those contemplated under the Securities and Futures Act and these Rules;

(p) whether the applicant's regulatory authority does not have an information sharing and co-operation arrangements with the Authority; and

(q) whether in SGX-ST's opinion, it would be contrary to the interests of the public to register the applicant as a Designated Market-Maker.

Added on 3 June 2019 3 June 2019.

6.2.4

SGX-ST may approve an application subject to such conditions or restrictions and for such period as SGX-ST may in its discretion deem appropriate including but not limited to restrictions on the applicant's scope of business and operations. SGX-ST shall inform the applicant of the imposition or withdrawal of any such conditions or restrictions in writing. A breach of any one of such conditions or restrictions shall constitute a breach of the Rules.

Added on 3 June 2019 3 June 2019.

6.2.5

SGX-ST may, in its absolute discretion at any time by notice in writing, vary or lift any such conditions or restrictions, or impose such further conditions or restrictions as it may think fit.

Added on 3 June 2019 3 June 2019.

6.3 Appeals

6.3.1

If SGX-ST rejects an application to be a Designated Market-Maker, the applicant may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

Added on 3 June 2019 3 June 2019.

6.4 Register of Designated Market-Makers

6.4.1

An applicant approved by SGX-ST as a Designated Market-Maker will have its name entered in the Register of Designated Market-Makers. SGX-ST will notify all Designated Market-Makers and Trading Members of the effective date of the Designated Market-Maker's registration.

Added on 3 June 2019 3 June 2019.

6.5 Proprietary Accounts

6.5.1

A Designated Market-Maker may make a market in Specified Instruments for one or more of the following:

(a) its proprietary accounts; and

(b) proprietary accounts of its related corporations or Associated Corporations.

Added on 3 June 2019 3 June 2019.

6.6 Obligations of a Designated Market-Maker

6.6.1 Compliance with Rules

(a) A Designated Market-Maker shall comply with the Rules at all times where relevant and continue to satisfy the registration criteria and any approval conditions or restrictions prescribed by SGX-ST.

(b) SGX-ST may, in its absolute discretion at the request of a Designated Market-Maker, waive or vary any obligation of the Designated Market-Maker.

Added on 3 June 2019 3 June 2019.

6.6.2 Bid and Offer Quotations

(a) A Designated Market-Maker must provide on the Trading System competitive bid and offer quotations:

(i) on a continuous basis or in such other manner as SGX-ST prescribes to provide for an adequately liquid market with suitable disclosure to investors;

(ii) within the maximum spread; and

(iii) for not less than the minimum quantity that SGX-ST prescribes.

(b) In the event a Designated Market-Maker ceases to provide bid and offer quotations (whether due to foreseen or unforeseen circumstances), it must, as soon as practicable,:

(i) notify SGX-ST of the cessation as well as the reasons for it; and

(ii) make a public announcement of the cessation.

(c) Upon resumption, the Designated Market-Maker must similarly notify SGX-ST and make a public announcement as soon as practicable. At the appropriate juncture, the Designated Market-Maker must make a public announcement of the reasons for cessation of market-making.

Added on 3 June 2019 3 June 2019.

6.6.3 Adequate Internal Control Systems

(a) A Designated Market-Maker must establish and maintain adequate internal control systems to ensure smooth operation of its market-making activities.

(b) A Designated Market-Maker shall pre-notify SGX-ST of any change to its internal control systems that may affect the carrying out of its obligations stipulated under this Chapter 6.

(c) SGX-ST reserves the right to review current or impose additional requirements if it is not satisfied with the internal control systems of the Designated Market-Maker.

(d) Where a Designated Market-Maker is also performing regulated activities, the Designated Market-Maker must establish adequate segregation between their market-making activities and regulated activities.

Added on 3 June 2019 3 June 2019.

6.6.4 Execution of Trades

If a Designated Market-Maker is not a Trading Member, its trades in any Specified Instruments must be made through a Trading Member.

Added on 3 June 2019 3 June 2019.

6.6.5 Market-Making Representative

(a) A Designated Market-Maker must appoint at least one person as its market-making representative to receive and execute orders on its behalf. The person must be registered with SGX-ST as a market-making representative.

(b) A market-making representative shall comply with the Rules where relevant.

Added on 3 June 2019 3 June 2019.

6.6.6 Auditors' Report

A Designated Market-Maker must provide an independent auditors' report to SGX-ST at SGX-ST's request. This is for SGX-ST to review the Designated Market-Maker's performance or suitability as a Designated Market-Maker. The report may relate to the Designated Market-Maker's financial standing, personnel or internal control procedures.

Added on 3 June 2019 3 June 2019.

6.6.7 Payment

A Designated Market-Maker must pay all fees, levies and charges SGX-ST prescribes. SGX-ST may reduce or waive any fee, levy or charge.

Added on 3 June 2019 3 June 2019.

6.6.8 Notification of Adverse Events

A Designated Market-Maker shall, save as otherwise provided in this Rule 6.6.8, immediately notify SGX-ST if:

(a) it is unable, or is likely to be unable to satisfy any of the approval conditions or restrictions prescribed by SGX-ST;

(b) it is unable, or is likely to be unable to satisfy any of its obligations as a Designated Market-Maker under the Rules;

(c) it or its substantial shareholder, Chief Executive Officer, Director or market-making representative:

(i) breaches the Securities and Futures Act, or any other relevant applicable laws and regulatory requirements relating to the regulation of organised markets and licensed entities;

(ii) breaches the Rules;

(iii) breaches any relevant law or regulation that governs that person's other business activities;

(iv) breaches the rules of any other exchange;

(v) has been alleged or found to have breached director's duties under common law or applicable statute;

(vi) is the subject of a written complaint or investigation involving an allegation of fraud or dishonesty, is convicted of an offence involving fraud or dishonesty, or is found by a court of law to have acted fraudulently or dishonestly, whether in or out of Singapore;

(vii) is the subject of any disciplinary action involving suspension, termination, withholding of commissions, fines or any other significant limitation of activities;

(viii) is experiencing an emergency or potentially debilitating situation that threatens its operations (e.g. a cyber threat or terror attack);

(ix) engages in conduct that has the effect of circumventing the Securities and Futures Act, any other relevant applicable laws and regulatory requirements relating to the regulation of organised markets and licensed entities, or the Rules;

(x) has had its licence or relevant approval to conduct the relevant regulated activities suspended, revoked, or expired, or in the case where it is exempted from holding a licence or obtaining approval, the exemption is withdrawn or conditions or restrictions are imposed in respect of the relevant regulated activities;

(xi) engages in conduct that is inconsistent with the principles of good business practice;

(xii) engages in conduct detrimental to the financial integrity, reputation or interests of SGX-ST, or organised markets established or operated by SGX-ST;

(xiii) is insolvent or wound-up, or has had an insolvency or winding-up application presented, or an order made by a court of competent jurisdiction, or any step is taken or a resolution passed, for its winding-up, dissolution, judicial management or administration; or

(xiv) has had any attachment, distress, execution or legal process instituted against its assets, or has had any liquidator, receiver or any similar person appointed (or an application has been made for the appointment of such person) in respect of any of its assets.

Notwithstanding this Rule 6.6.8, in the case of an emergency or potentially debilitating situation under Rule 6.6.8(c)(viii), the Designated Market-Maker may inform SGX-ST as soon as practicable, but in any case no later than one hour, after its discovery of the situation. SGX-ST may require a Designated Market-Maker to inform SGX-ST in respect of any other matters and in such form as SGX-ST determines.

Added on 3 June 2019 3 June 2019.

6.7 Suspension or Restriction of Trades in Specified Instruments

6.7.1

SGX-ST may suspend, restrict or halt trading in any or all Specified Instruments in accordance with the Rules.

Added on 3 June 2019 3 June 2019.

6.7.2

Except with SGX-ST's approval, a Designated Market-Maker must not make a market in a Specified Instrument that is suspended or subject to a trading halt. SGX-ST may specify conditions under which the Designated Market-Maker is permitted to do so.

Added on 3 June 2019 3 June 2019.

6.7.3

If SGX-ST imposes restrictions on trades in any Specified Instruments, a Designated Market-Maker must not make a market in Specified Instruments that will breach the restrictions.

Added on 3 June 2019 3 June 2019.

6.8 Suspension and Restriction of Activities

6.8.1

SGX-ST may suspend or restrict the activities of a Designated Market-Maker for such period as SGX-ST specifies if:

(a) the Designated Market-Maker fails to continue to satisfy the registration criteria or any approval condition or restriction prescribed by SGX-ST;

(b) the Designated Market-Maker fails to comply with any Rule applicable to Designated Market-Makers, the Securities and Futures Act, or any applicable law;

(c) the Designated Market-Maker fails to comply with the Rules in its capacity as a Trading Member (if applicable);

(d) the Designated Market-Maker is suspended in its capacity as a Trading Member or its trading access is ceased (if applicable);

(e) the Designated Market-Maker defaults on any trade in a Specified Instrument or any other securities or futures contracts;

(f) the Designated Market-Maker, in SGX-ST's opinion, is in financial or operating difficulty, or is unable to perform its obligations as Designated Market-Maker;

(g) the Designated Market-Maker, in SGX-ST's opinion, engages in conduct detrimental to the financial integrity, reputation or interests of SGX-ST, or organised markets established or operated by SGX-ST;

(h) the Designated Market-Maker is suspected of or found to be manipulating or distorting the market for a Specified Instrument or attempting to do so;

(i) the Designated Market-Maker is the subject of a written complaint or investigation involving an allegation of fraud or dishonesty or market misconduct, or is convicted of an offence involving fraud or dishonesty or market misconduct, or is found by a court of law to have acted fraudulently or dishonestly or engaged in market misconduct, whether in or out of Singapore; or

(j) it is necessary or desirable in the interests of maintaining a fair and orderly market or for ensuring a safe and efficient clearing facility, or for ensuring the integrity of the market or for proper management of systemic risk, or for investor protection, or it is directed by any authority.

Added on 3 June 2019 3 June 2019.

6.9 Revocation of Registration

6.9.1

SGX-ST may revoke the registration of a Designated Market-Maker with immediate effect:

(a) in the circumstances under Rule 6.8.1; or

(b) if the Designated Market-Maker is expelled as a Trading Member as a result of disciplinary proceedings.

Added on 3 June 2019 3 June 2019.

6.10 Notification of Action and Appeal

6.10.1

If SGX-ST intends to take action against a Designated Market-Maker or a market-making representative under Rule 6.8 or Rule 6.9, it will inform the Designated Market-Maker or market-making representative in writing. Such action will be effective on the date specified in the written notice.

Added on 3 June 2019 3 June 2019.

6.10.2

If SGX-ST revokes the registration of a Designated Market-Maker under Rule 6.9, the Designated Market-Maker may, within 14 days after it is notified of SGX-ST's decision, appeal in writing to the SGX RegCo Board whose decision will be final.

Added on 3 June 2019 3 June 2019.

6.11 Resignation

6.11.1 Procedures

(a) A Designated Market-Maker who intends to resign from making a market for a Specified Instrument must give at least 30 days' written notice to SGX-ST, stating the proposed date of resignation. SGX-ST may vary or waive the notice period. SGX-ST will notify all Designated Market-Makers and Trading Members of the effective date of resignation.

(b) A Designated Market-Maker must continue to comply with any Rule applicable to Designated Market-Makers as may be imposed by SGX-ST until the effective date of resignation.

Added on 3 June 2019 3 June 2019.

6.11.2 Acceptance of Resignation by SGX-ST

(a) SGX-ST shall have the absolute discretion to accept the resignation, postpone the effective date of the resignation and/or without prejudice to the courses of action available to SGX-ST, take such measures as it may determine appropriate before or after the resignation takes effect. Notwithstanding the foregoing, SGX-ST may in its absolute discretion refuse to accept the resignation of a Designated Market-Maker if it is:

(i) conducting an investigation under the Rules, investigating a complaint, or has initiated disciplinary proceedings against the Designated Market-Maker; or

(ii) not satisfied that the Designated Market-Maker has fulfilled or is able to fulfil all its obligations to SGX-ST.

(b) If SGX-ST accepts a Designated Market-Maker's resignation, the Designated Market-Maker's name will be deleted from the register of Designated Market-Makers upon the effective date of resignation.

Added on 3 June 2019 3 June 2019.

6.12 Obligations of a Former Designated Market-Maker

6.12.1

A former Designated Market-Maker remains liable to SGX-ST and its customers (if applicable) for any liabilities incurred under or in connection with the Rules during the period of its registration in respect of a Specified Instrument. The former Designated Market-Maker also remains subject to disciplinary action for any breach of the Rules committed during the period of its registration.

Added on 3 June 2019 3 June 2019.

6.12.2

The following Rules shall continue to apply to a former Designated Market-Maker — Rule 1.9 (Limitation of Liability), Rule 1.10 (Indemnity), Rule 1.11 (Provision of Information), Rule 1.12.2 (Disclosure of Information by SGX-ST), Chapter 12 (Supervision and Enforcement), this Rule 6.12, and any other Rules that contemplate and are capable of operation after the cessation or de-registration of a Designated Market-Maker, whether pursuant to this Rule 6.12 or otherwise.

Added on 3 June 2019 3 June 2019.

Chapter 7 Listing and Quotation

7.1 The Official List

7.1.1

The official list of SGX-ST consists of companies admitted to (and not removed) from the SGX Mainboard and the SGX Catalist.

Added on 3 June 2019 3 June 2019.

7.1.2

SGX-ST may impose, or require Trading Members and Trading Representatives to impose, conditions or restrictions prescribed in the Rules or the SGX-ST Listing Manual, on the trading of securities or futures contracts listed on SGX Mainboard or SGX Catalist, including:

(a) the classes of investors or persons who are allowed to trade in particular classes of securities or futures contracts;

(b) moratoria on the trading of particular classes of securities or futures contracts for such periods of time as prescribed by SGX-ST; and

(c) such other conditions or restrictions as SGX-ST prescribes for the maintenance of a fair, orderly and transparent market.

Added on 3 June 2019 3 June 2019.

7.2 Non-Listed Securities Traded on SGX-ST

7.2.1

A Non-Listed Security may be quoted for trading on SGX-ST on such conditions as SGX-ST prescribes.

Added on 3 June 2019 3 June 2019.

7.2.2

All trades in Non-Listed Securities are subject to the Rules.

Added on 3 June 2019 3 June 2019.

7.2.3

A Non-Listed Security is quoted in the currency SGX-ST prescribes.

Added on 3 June 2019 3 June 2019.

7.2.4

SGX-ST may, at its absolute discretion, approve, refuse, suspend or withdraw the quotation of a Non-Listed Security.

Added on 3 June 2019 3 June 2019.

7.2.5

Without limiting Rule 7.2.4, if a Non-Listed Security is declared a Designated Instrument (or equivalent) or is declared to be cornered (or equivalent) in the foreign exchange on which it is listed, SGX-ST will suspend it (on such terms as SGX-ST deems necessary) as soon as SGX-ST is aware of the declaration.

Added on 3 June 2019 3 June 2019.

7.2.6

A contract note for a trade in a Non-Listed Security must state that the issuing entity:

(a) is not listed on SGX-ST, and

(b) is not subject to SGX-ST's listing requirements.

Added on 3 June 2019 3 June 2019.

7.2.7

The settlement of trades in Non-Listed Securities is subject to the Rules in Chapter 9.

Added on 3 June 2019 3 June 2019.

7.3 Futures Contracts Traded on SGX-ST

7.3.1

SGX-ST may list futures contracts for trading on the Trading System.

Added on 3 June 2019 3 June 2019.

Chapter 8 Trading

8.1 Trading

8.1.1

A security or futures contract listed or quoted on SGX-ST must be traded and matched through the Trading System or as otherwise allowed under this Chapter.

Added on 3 June 2019 3 June 2019.

8.1.2

By entering an order into the Trading System, each Trading Member shall be deemed to have consented to the disclosure of its identity in any trade confirmation message generated by the Trading System to the relevant counterparty Trading Member, and to the provision of such information to any of SGX-ST's related corporations or to any other party for the purposes of facilitating the orderly clearing and settlement of any matched trade.

Added on 3 June 2019 3 June 2019.

8.2 Trading Hours, Market Phases and Rules for Trading Matching

8.2.1

The trading hours, market phases, application of the market phases, and principles and rules for trade matching, are as published by SGX-ST. SGX-ST may vary the trading hours, market phases, application of the market phases, and principles and rules for trade matching.

Refer to Regulatory Notice 8.2.1.

Added on 3 June 2019 3 June 2019.

8.3 Closing Price of Prescribed Instrument

8.3.1

A "Prescribed Instrument" refers to such security or futures contract or class of securities or futures contracts that SGX-ST may prescribe under this Rule.

Refer to Regulatory Notice 8.3.

Added on 3 June 2019 3 June 2019.

8.3.2

The closing price of a Prescribed Instrument shall be calculated in accordance with the formula and procedure determined by SGX-ST. In determining such formula and procedure, SGX-ST may take into account factors, including but not limited to:

(a) the last traded price;

(b) prevailing bids and offers during the trading phase and/or closing routine; and

(c) price data derived from pricing models selected or established by SGX-ST.

Added on 3 June 2019 3 June 2019.

8.3.3

Notwithstanding Rule 8.3.2, SGX-ST may amend the closing price of any Prescribed Instrument at any time as it deems necessary.

Added on 3 June 2019 3 June 2019.

8.4 Contingency Order Withdrawal

8.4.1

Upon a Trading Member's request, SGX-ST may assist the Trading Member with the withdrawal of an order if the Trading Member is unable to do so without SGX-ST's assistance, provided that the circumstances, conditions and operational procedures as prescribed by SGX-ST are complied with.

Refer to Regulatory Notice 8.4.

Added on 3 June 2019 3 June 2019.

8.5 Orders

8.5.1

Save for the unit share and buying-in market, the minimum order size is one board lot. The number of shares or units in a board lot is as determined by SGX-ST. Orders may be in multiples of a board lot or as otherwise determined by SGX-ST.

Added on 3 June 2019 3 June 2019.

8.5.2

SGX-ST may prescribe the minimum bid size of each product.

Refer to Regulatory Notice 8.5.2.

Added on 3 June 2019 3 June 2019.

8.5.3

Save as otherwise prescribed by SGX-ST, each order entered into the Trading System must specify the unique Position Account code, the Trading Account code and the price (where relevant) and quantity of the security or futures contract. The Trading Member shall ensure that each order entered into the Trading System is capable of being identified and traced to the relevant customer.

Added on 3 June 2019 3 June 2019.

8.6 Trading Basis of Securities

8.6.1

Unless otherwise indicated, trading of securities is on a "cum" basis. A "cum" basis means that where the Issuer has declared an entitlement issue with respect to the security, such security is sold (and bought) with a right to that entitlement.

Added on 3 June 2019 3 June 2019.

8.6.2

All securities that are designated by CDP as eligible for clearance will be traded on an "ex" basis for two Market Days before and up to the books closure date for an entitlement.

Added on 3 June 2019 3 June 2019.

8.6.3

A buyer or seller of securities on an "ex" or "cum" basis, respectively, has no right to that entitlement.

Added on 3 June 2019 3 June 2019.

8.6.4

A buyer or seller of securities on a "cum" or "ex" basis, respectively, who has not received that entitlement, may claim the entitlement from the seller or buyer respectively.

Added on 3 June 2019 3 June 2019.

8.7 Marking of Sell Orders

8.7.1

Each sell order for Specified Capital Markets Products shall be marked to indicate to SGX-ST whether it is a Short Sell Order or a normal sell order. The quantity, volume or value of the Specified Capital Markets Product in which a person intends to make or is making a Short Sell Order shall also be indicated.

Added on 3 June 2019 3 June 2019.

8.7.2

A Trading Member and its Trading Representative shall not enter a sell order in the Trading System if a customer has not indicated whether the sell order is a Short Sell Order or a normal sell order and/or has not provided the information relating to the quantity, volume or value of the Specified Capital Markets Product in which the customer intends to make or is making a Short Sell Order.

Added on 3 June 2019 3 June 2019.

8.7.3

In this Rule:

(a) A "Specified Capital Markets Product" means any securities or futures contract that is listed or to be listed on SGX-ST that is, or that belongs to a class of capital markets products (as defined in the Securities and Futures Act) that is, prescribed by regulations made under section 137ZM of the Securities and Futures Act.

(b) A "Short Sell Order" means any order to sell any Specified Capital Markets Product where the person who makes the order does not, at the time of the order, have an interest in the Specified Capital Markets Product as specified under section 137ZH of the Securities and Futures Act, and "short sell" shall be construed accordingly.

Added on 3 June 2019 3 June 2019.

8.7.4

The requirement to mark sell orders as set out in this Rule shall include Direct Business reported through the married trade reporting system of the Trading System pursuant to Rule 8.10.

Added on 3 June 2019 3 June 2019.

8.7.5

A Trading Member shall ensure that the necessary procedures and systems are implemented to facilitate compliance with the obligations set out in this Rule.

Added on 3 June 2019 3 June 2019.

8.7.6

SGX-ST may, at its discretion, exempt any specific Specified Capital Markets Product from the requirement to mark sell orders as set out in this Rule.

Added on 3 June 2019 3 June 2019.

8.7.7

SGX-ST may, at its discretion, waive the requirement to mark sell orders for specific classes of market participants.

Added on 3 June 2019 3 June 2019.

8.7.8

A Trading Member and its Trading Representatives shall not be required to comply with this Rule in respect of sell orders from the market participants for whom SGX-ST has waived the requirement to mark sell orders for or in such Specified Capital Markets Products as exempted by SGX-ST.

Refer to Regulatory Notice 8.7 and 8.9.

Added on 3 June 2019 3 June 2019.

8.8 Publication of Report of Short Sell Orders

8.8.1

SGX-ST shall report before the start of each Market Day the aggregate volume of Short Sell Orders matched and executed for the preceding Market Day and in respect of each Specified Capital Markets Product for which marking is required.

Added on 3 June 2019 3 June 2019.

8.8.2

SGX-ST may subsequently report corrections to such aggregate volume of Short Sell Orders matched and executed that have been reported pursuant to Rule 8.8.1.

Added on 3 June 2019 3 June 2019.

8.9 Reporting of Erroneously Marked Sell Orders

8.9.1

A Trading Member may submit a report of erroneously marked sell orders through such facility that is provided by SGX-ST.

Added on 3 June 2019 3 June 2019.

8.9.2

A Trading Member shall ensure that the report:

(a) adheres to the requirements for submission established by SGX-ST; and

(b) is complete and accurate.

Refer to Regulatory Notice 8.7 and 8.9.

Added on 3 June 2019 3 June 2019.

8.10 Direct Business

8.10.1

A Trading Member may only execute Direct Business that is:

(a) at least:

(i) 50,000 units of securities or futures contracts, or in the case of Marginable Futures Contracts, 50,000 units of the underlying; or

(ii) S$150,000 in terms of contract value;

(b) a book-out trade from an error account to remedy an error; or

(c) to complete a customer's order that was partially filled in the market, provided the original order met the minimum size in Rule 8.10.1(a) above.

Added on 3 June 2019 3 June 2019.

8.10.2

Direct Business may be transacted between:

(a) two Trading Members;

(b) two customers of a Trading Member; or

(c) a Trading Member and its customer.

Added on 3 June 2019 3 June 2019.

8.10.3

SGX-ST may vary the minimum size or value of trades under Rule 8.10.1.

Added on 3 June 2019 3 June 2019.

8.10.4

Direct Business must be reported through the married trade reporting system of the Trading System. The price, quantity, counterparty and other details as required under Rule 8.7.1 must be reported.

Added on 3 June 2019 3 June 2019.

8.10.5

Direct Business must be reported within 10 minutes of execution save that Direct Business executed after market close must be reported in the first 20 minutes of the Opening Routine on the following Market Day.

Added on 3 June 2019 3 June 2019.

8.10.6

SGX-ST may suspend Direct Business on any or all securities or futures contracts. SGX-ST may specify conditions under which Direct Business is permitted for securities or futures contracts.

Added on 3 June 2019 3 June 2019.

8.11 Designated Instruments

8.11.1

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.

Refer to Practice Note 8.11.1.

Added on 3 June 2019 3 June 2019.

8.11.2

SGX-ST may impose any conditions it thinks fit on dealing or trading in a Designated Instrument. A condition applies from the date of declaration to all contracts of the Designated Instrument entered into on or after the date of declaration, or as indicated by SGX-ST. The conditions may include, but are not limited to, the following:

(a) a requirement that Trading Members obtain margins from each customer in respect of the customer's dealing or trading in the Designated Instrument;

(b) a restriction on dealing or trading in a Designated Instrument by a Trading Member if its outstanding contracts exceed 5% of the total issued shares or units of the relevant Issuer whose shares or units are designated or underlies the Designated Instrument, or any other percentage or benchmark that SGX-ST prescribes; or

(c) a prohibition on any sale unless the seller holds the Designated Instrument, or in the case of a Designated Instrument that is a futures contract, the underlying. A seller holds a security, futures contract, or underlying if, at the time of sale, he has the security, futures contract or underlying in an account maintained with CDP, or delivers the share certificates and executed transfer forms to the Trading Member.

Added on 3 June 2019 3 June 2019.

8.11.3

A Trading Member must give SGX-ST particulars of all its dealings or trades in Designated Instruments and of the customers involved upon SGX-ST's request. The Trading Member must do so by the next business day after the request is made.

Added on 3 June 2019 3 June 2019.

8.11.4

SGX-ST may rescind or vary a declaration made under Rule 8.11.1 at any time. Any rescission or variation by SGX-ST will be made public.

Added on 3 June 2019 3 June 2019.

8.12 Corner

8.12.1

SGX-ST may declare a corner in a listed or quoted security if, in its opinion, a single interest or a group has acquired or is likely to acquire sufficient control over the supply of the security such that the security may only be obtained for delivery at prices, or on terms, dictated by the single interest or group, or it is otherwise desirable in the interests of organised markets established or operated by SGX-ST.

Added on 3 June 2019 3 June 2019.

8.12.2

SGX-ST may impose any conditions it thinks fit on dealing in a cornered security or in a futures contract on a cornered security. For avoidance of doubt, the conditions may include, but not limited to the following:

(a) from time to time extending (or further extending) the due date for delivery; or

(b) declaring that contracts will be cash settled (not delivered). SGX-ST may direct the terms of the cash settlement or apply the following terms (in whole or in part) as it thinks fit:

(i) in the case of a seller who contracted to sell for less than the fair settlement price, the seller must pay the buyer the difference between the fair settlement price and the contract price;

(ii) in the case of a seller who contracted to sell for more than the fair settlement price, the buyer must pay the seller the difference between the contract price and the fair settlement price;

(iii) in the case of a buyer who contracted to buy for less than the fair settlement price, the seller must pay the buyer the difference between the fair settlement price and the contract price; and

(iv) in the case of a buyer who contracted to buy for more than the fair settlement price, the buyer must pay the seller the difference between the contract price and the fair settlement price.

Added on 3 June 2019 3 June 2019.

8.12.3

If SGX-ST imposes a condition that contracts are to be cash settled, it must establish a Settlement Committee to advise on the fair settlement price.

Added on 3 June 2019 3 June 2019.

8.12.4

A Settlement Committee must comprise no less than five persons, including at least:

(a) two members of the Board;

(b) one public accountant; and

(c) one advocate and solicitor.

The quorum of the Settlement Committee is all members when the meeting proceeds to business, but the Settlement Committee may complete the business with any three members present.

Added on 3 June 2019 3 June 2019.

8.12.5

A Settlement Committee may include such other persons as SGX-ST thinks fit.

Added on 3 June 2019 3 June 2019.

8.12.6

A Settlement Committee may hear evidence as it thinks proper and relevant to the discharge of its functions.

Added on 3 June 2019 3 June 2019.

8.12.7

A Settlement Committee must report its findings to SGX-ST. The findings are advisory only and it is for the SGX-ST to decide on the fair settlement price at its discretion having considered the Settlement Committee's recommendation on the fair settlement price. SGX-ST may refer a matter to the Settlement Committee for further consideration, before deciding on the fair settlement price.

Added on 3 June 2019 3 June 2019.

8.12.8

The fair settlement price determined by SGX-ST is final and binding on all parties to any outstanding trades in the cornered security or in a futures contract on the cornered security.

Added on 3 June 2019 3 June 2019.

8.13 Suspension and Restriction of Trading

8.13.1

SGX-ST may suspend or restrict trading in any or all listed or quoted securities or futures contracts. It may do so for one or more markets, one or more trading sessions or any part of a trading session, and in any of the following circumstances:

(a) in SGX-ST's opinion, the market is not orderly, informed or fair or circumstances are about to occur that may result in there not being an orderly, informed or fair market;

(b) SGX-ST releases an announcement in relation to an Issuer which, in SGX-ST's opinion, is market sensitive;

(c) an Issuer requests, and SGX-ST agrees to, the suspension;

(d) access to the Trading System is generally restricted;

(e) where Rule 8.14 applies;

(f) any of the circumstances in Rule 1303 of the SGX-ST Listing Manual apply;

(g) functions of SGX-ST are, or are threatened to be, severely and adversely affected by an emergency such as fire, terrorist activities, power failures, communication or transportation breakdowns, or computer malfunctions; or

(h) in SGX-ST's opinion, it is in the public's interest.

Refer to Practice Note 8.13 and 8.15.

Added on 3 June 2019 3 June 2019.

8.13.2

SGX-ST may restrict trading by such means as it considers appropriate, including placing the market into an Adjust Phase.

Added on 3 June 2019 3 June 2019.

8.13.3

A suspension or a trading restriction may be lifted by SGX-ST at any time.

Added on 3 June 2019 3 June 2019.

8.13.4

Securities or futures contracts that have been suspended from trading shall not be traded on the Trading System for the period of suspension. Except with SGX-ST's approval, a Trading Member must not execute any transactions in a security or futures contract that has been suspended.

Refer to Practice Note 8.13.4 and 8.15.7.

Added on 3 June 2019 3 June 2019.

8.13.5

Unmatched orders in a security or futures contract in the Trading System may lapse in the event of a suspension of that security or futures contract, as determined by SGX-ST.

Refer to Practice Note 8.13 and 8.15.

Added on 3 June 2019 3 June 2019.

8.13.6

Where SGX-ST has suspended or restricted trading in all listed or quoted securities or futures contracts in one or more markets, SGX-ST may extend a trading session for the market when trading recommences.

Added on 3 June 2019 3 June 2019.

8.13.7

Securities or futures contracts subject to suspension will be placed in an Adjust Phase for a minimum of 15 minutes before trading recommences.

Refer to Practice Note 8.13 and 8.15.

Added on 3 June 2019 3 June 2019.

8.14 Circuit Breakers and Cooling-Off Periods

8.14.1

SGX-ST may prescribe, for certain securities or futures contracts, Circuit Breakers which are designed to temporarily restrict trading in these securities or futures contracts.

Refer to Regulatory Notice 8.14.1.

Added on 3 June 2019 3 June 2019.

8.14.2

SGX-ST shall impose a Cooling-Off Period on such securities or futures contracts referred to in Rule 8.14.1 if an incoming order seeks to be matched, either partially or fully, with an existing order in the Trading System at a price outside the Circuit Breaker.

Added on 3 June 2019 3 June 2019.

8.14.3

Where the Cooling-Off Period is activated pursuant to Rule 8.14.2, the following will apply:

(a) the incoming order will not be matched with the existing order in the Trading System at a price outside the Circuit Breaker; and

(b) such quantity of the incoming order that is not filled at the commencement of the Cooling-Off Period will be rejected by the Trading System.

Added on 3 June 2019 3 June 2019.

8.15 Trading Halts

8.15.1

A trading halt may be imposed by SGX-ST at the request of an Issuer.

Refer to Practice Note 8.13 and 8.15.

Added on 3 June 2019 3 June 2019.

8.15.2

A trading halt may be imposed by SGX-ST on a security or futures contract when its underlying, or such instrument on the same underlying as SGX-ST may prescribe, is subject to a Cooling-Off Period pursuant to Rule 8.14.2.

Refer to Practice Note 8.13 and 8.15.

Added on 3 June 2019 3 June 2019.

8.15.3

A trading halt may be lifted by SGX-ST at any time.

Added on 3 June 2019 3 June 2019.

8.15.4

A trading halt may be changed to a suspension by SGX-ST at any time.

Added on 3 June 2019 3 June 2019.

8.15.5

A trading halt is for a minimum duration of 30 minutes or such period SGX-ST prescribes and may be imposed for up to three Market Days or such other extension as SGX-ST agrees.

Added on 3 June 2019 3 June 2019.

8.15.6

A trading halt operates in the same way as an Adjust Phase.

Added on 3 June 2019 3 June 2019.

8.15.7

Securities or futures contracts that are subject to a trading halt shall not be traded on the Trading System for the period of the trading halt. Except with SGX-ST's approval, a Trading Member must not execute any transactions in a security or futures contract that is subject to a trading halt.

Refer to Practice Note 8.13.4 and 8.15.7.

Added on 3 June 2019 3 June 2019.

8.16 Emergency Powers

8.16.1

Where SGX-ST deems it necessary or desirable for ensuring a fair and orderly market or for ensuring a safe and efficient clearing facility, or for ensuring the integrity of the market or for proper management of systemic risk in the market, SGX-ST may, in relation to one or more Trading Members:

(a) require that a portion of the positions in respect of Marginable Futures Contracts carried in any account(s) on the books of such Trading Member be transferred to the books of one or more Trading Members;

(b) require such Trading Member to liquidate any of the positions carried in any account(s) on its books;

(c) modify any term in any Contract Specifications, which may include bringing forward the Last Trading Day, or modifying the settlement obligations as set out in Chapter 9;

(d) require such Trading Member to close any accounts;

(e) impose such additional capital requirements on such Trading Member as SGX-ST deems necessary or desirable;

(f) impose such limits and/or conditions to control the trading activities of such Trading Member as SGX-ST deems necessary or desirable; and

(g) take such action or require the Trading Member to take such action as SGX-ST deems necessary or desirable.

Added on 3 June 2019 3 June 2019.

8.16.2

SGX-ST shall, as soon as practicable, notify the Authority of any action taken pursuant to Rule 8.16.1.

Added on 3 June 2019 3 June 2019.

8.16.3

Nothing in this rule shall limit the authority of SGX-ST, SGX RegCo or any other committee to act in an emergency situation in accordance with the Rules.

Added on 3 June 2019 3 June 2019.

Chapter 9 Settlement

9.1 Mode of Settlement for Trades Cleared by CDP

9.1.1

Unless otherwise specified by SGX-ST, delivery of securities for settlement of trades in securities or deliverable futures contracts that are designated by CDP as eligible for clearing is by book entry at CDP.

Added on 3 June 2019 3 June 2019.

9.1.2

Delivery of physical certificates is not accepted for settlement of trades in securities or deliverable futures contract that are designated by CDP as eligible for clearing.

Added on 3 June 2019 3 June 2019.

9.1.3

A Securities Account must be maintained with CDP by or for customers who trade in securities or deliverable futures contracts that are designated by CDP as eligible for clearing and by or for each Trading Member who trades in such securities or futures contracts for their own account. The Securities Account may be maintained directly with CDP or through a depository agent.

Added on 3 June 2019 3 June 2019.

9.1.4

Unless otherwise agreed between a customer and a Trading Member, trades are settled in the currency of quotation at the exchange rate determined by the Trading Member.

Added on 3 June 2019 3 June 2019.

9.2 Settlement Basis and Eligibility for Clearing by CDP

9.2.1

Unless otherwise stated by SGX-ST and subject to Rule 9.2.2, the Intended Settlement Day and eligibility for clearing of a trade that is executed on the Trading System or reported to SGX-ST is as indicated below:

Market in or for which trade is executed	Intended delivery and settlement day	Eligibility of trade for clearing
Ready market (for securities other than wholesale corporate bonds)	T+2	Eligible for clearing by CDP
Market for Marginable Futures Contracts	LTD+2	Eligible for clearing by CDP
Market for wholesale corporate bonds	T+2	Not eligible for clearing by CDP
Unit share market (for securities other than wholesale corporate bonds)	T+2	Eligible for clearing by CDP
Buying-in market	T+1	Eligible for clearing by CDP

Where T is the date in which the trade is executed and LTD is the Last Trading Day.

Added on 3 June 2019 3 June 2019.

9.2.2

SGX-ST may change the trading period and settlement date.

Added on 3 June 2019 3 June 2019.

9.2.3

If the day indicated in Rule 9.2.1 is a holiday for the foreign currency in which a trade is to be settled, the Intended Settlement Day for that trade will be the next common banking day on which CDP is open for business.

In this Rule, "common banking day" means a day on which (a) Singapore banks and (b) the relevant bank transfer clearing system designated by CDP for the foreign currency are both open for settlement.

Added on 3 June 2019 3 June 2019.

9.3 Mode of Settlement for Trades Not Cleared by CDP

9.3.1

Trades that have not been designated by CDP as eligible for clearing will be settled as agreed between the parties.

Added on 3 June 2019 3 June 2019.

9.4 Relationship Between Trading Member and Selling Customer

9.4.1

A selling customer must look only to its Trading Member, who executes the trade, in relation to all obligations in connection with that trade, including payment of sale proceeds.

Added on 3 June 2019 3 June 2019.

9.4.2

Unless a customer has in place arrangements to settle trades with its Trading Member on a delivery-versus-payment basis through the CDP Settlement Facility, the Trading Member must make payment of the sale proceeds to the selling customer on the banking day after the day that CDP makes payment to the Trading Member, save that the Trading Member may withhold payment until the selling customer has made delivery.

In this Rule, "banking day" means a day on which the bank(s) used by the Trading Member for payment to its customer is(are) open for settlement.

Added on 3 June 2019 3 June 2019.

9.4.3

If a selling customer fails to make securities available on Intended Settlement Day and buying-in is conducted under the Clearing Rules in respect of those securities, the selling customer shall be liable to the Trading Member for any costs or losses incurred by the Trading Member in relation to the buying-in.

Added on 3 June 2019 3 June 2019.

9.5 Relationship Between Trading Member and Clearing Member

9.5.1

This Rule 9.5 applies only to trades that are cleared with CDP.

Added on 3 June 2019 3 June 2019.

9.5.2

A selling Trading Member must look only to its Clearing Member who qualifies it in relation to all obligations in connection with trades that the selling Trading Member executes, including payment of all sale proceeds.

Added on 3 June 2019 3 June 2019.

9.5.3

A buying Trading Member must look only to its Clearing Member who qualifies it in relation to all obligations in connection with trades that the buying Trading Member executes, including delivery of securities or in the case of a deliverable futures contract, the relevant underlying.

Added on 3 June 2019 3 June 2019.

9.5.4

If a selling Trading Member fails to make securities available on Intended Settlement Day and buying-in is conducted under the Clearing Rules in respect of those securities, the selling Trading Member shall be liable to the Clearing Member for any costs incurred by the Clearing Member in relation to the buying-in.

Added on 3 June 2019 3 June 2019.

9.5.5

A buying Trading Member must pay its Clearing Member for its trade as follows:

(a) In the case of a buying Trading Member who has in place arrangements to settle trades with its Clearing Member on a delivery-versus-payment basis through the CDP Settlement Facility, the buying Trading Member must:

(i) submit delivery-versus-payment settlement instructions to CDP in time to make payment for the trade on Intended Settlement Day; and

(ii) make payment for the trade when required by CDP under the CDP Settlement Rules.

(b) In the case of any other buying Trading Member, the buying Trading Member must pay the Clearing Member for its trade on Intended Settlement Day, regardless of whether securities have been delivered.

Added on 3 June 2019 3 June 2019.

9.6 Relationship Between Trading Member and Buying Customer

9.6.1

A buying customer must look only to its Trading Member, who executes the trade, in relation to all obligations in connection with that trade, including delivery of securities or in the case of deliverable futures contracts, the relevant underlying. A buying customer must pay its Trading Member who executes the trade.

Added on 3 June 2019 3 June 2019.

9.6.2

A Trading Member shall, if informed by CDP or its Clearing Member that a right to receive securities pursuant to an Exchange Trade is to be replaced with a right to receive a monetary sum ("Cash Settlement Amount") pursuant to the Clearing Rules, immediately inform the relevant buying customer.

Added on 3 June 2019 3 June 2019.

9.6.3

Unless a buying customer has in place arrangements to settle trades with its Trading Member on a delivery-versus-payment basis through the CDP Settlement Facility, the Trading Member must:

(a) deliver securities to the buying customer on the same day that the securities are delivered by CDP; and.

(b) make payment, of any Cash Settlement Amount, corporate action entitlements or compensation for corporate settlement entitlements pursuant to the Clearing Rules, to the buying customer, on the banking day after the day that CDP makes payment to the Trading Member, save that the Trading Member may withhold delivery of securities or the payment of any Cash Settlement Amount, corporate action entitlements or compensation for corporate action entitlements until payment by the buying customer has been cleared and the proceeds received by the Trading Member.

In this Rule, "banking day" means a day on which the bank(s) used by the Trading Member for payment to its customer is(are) open for settlement.

Added on 3 June 2019 3 June 2019.

9.6.4

A buying customer must pay its Trading Member for its trade as follows:

(a) In the case of a buying customer who has in place arrangements to settle trades with its Trading Member on a delivery-versus-payment basis through the CDP Settlement Facility, the buying customer must:

(i) submit delivery-versus-payment settlement instructions to CDP in time to make payment for the trade on Intended Settlement Day; and

(ii) make payment for the trade when required by CDP under the CDP Settlement Rules.

(b) In the case of any other buying customer, the buying customer must pay the Trading Member for its trade on Intended Settlement Day, regardless of whether securities have been delivered.

Refer to Practice Note 9.6.4(b).

Added on 3 June 2019 3 June 2019.

9.6.5

Subject to Rule 9.6.6, if a buying customer fails to meet any of the timelines in Rule 9.6.4, the Trading Member shall force-sell the securities of the buying customer on the following Market Day.

Added on 3 June 2019 3 June 2019.

9.6.6

If the Trading Member reasonably expects full payment from the buying customer, the Trading Member may defer force-sale for up to two Market Days.

Added on 3 June 2019 3 June 2019.

9.6.7

Rule 9.6.5 does not apply if the Trading Member has allowed the buying customer to effect a corresponding sale position after the purchase but not later than the Intended Settlement Day of the purchase contract.

Added on 3 June 2019 3 June 2019.

9.6.8

A Trading Member exercising its discretion under Rules 9.6.6 and 9.6.7 must not engage in imprudent credit practices.

Added on 3 June 2019 3 June 2019.

9.6.9

The following rules apply to all force-sales by a Trading Member:

(a) The Trading Member has discretion as to the price, and volume put up for sale, at any time;

(b) A Trading Member need not give notice of the force-sale to the buying customer;

(c) A Trading Member is not liable to the buying customer for any loss or damage arising out of the exercise of its discretion; and

(d) A Trading Member may recover the losses and expenses incurred in the force-sale from the buying customer.

Added on 3 June 2019 3 June 2019.

Chapter 10 Requirements on Specific Securities and Futures Contracts

Marginable Futures Contracts

10.1 Application

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 2019 3 June 2019.

10.2 Listing of Marginable Futures Contracts

10.2.1

SGX-ST may list any Marginable Futures Contracts for trading.

Added on 3 June 2019 3 June 2019.

10.3 Contract Specifications

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 2019 3 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 2019 3 June 2019.

10.4 Adjustments Due to Corporate Actions

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 2019 3 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 2019 3 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 2019 3 June 2019.

10.5 Selection, Removal and Restrictions on Trading of Marginable Futures Contracts

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:

(a) not list any new Marginable Futures Contract covering that underlying security;

(b) have the discretion to prohibit Trading Members from opening, or allowing their customers to open, any new position in Marginable Futures Contracts covering that underlying security; and

(c) have the discretion to direct Trading Members to take action to offset, or require their customers to offset, any existing positions in Marginable Futures Contracts covering that underlying security.

Added on 3 June 2019 3 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 2019 3 June 2019.

10.6 Trading Halt or Suspension of Trading

10.6.1

SGX-ST may halt or suspend trading of any Marginable Futures Contracts if:

(a) trading in the underlying securities has been halted or suspended; or

(b) SGX-ST deems it appropriate in the interests of maintaining a fair and orderly market in the Marginable Futures Contracts or in the underlying securities, or advisable in the public interest or for the protection of investors.

Added on 3 June 2019 3 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 2019 3 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:

(a) the conditions that led to the trading halt or suspension are no longer present; or

(b) resumption of trading will promote the maintenance of a fair and orderly market.

Added on 3 June 2019 3 June 2019.

10.7 Management of Positions

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:

(a) maximum number of lots of long positions that have not been offset, in gross or net, in any Marginable Futures Contract; and

(b) maximum number of lots of short positions that have not been offset, in gross or net, in any Marginable Futures Contract.

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 2019 3 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 2019 3 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 2019 3 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:

(a) additional margin requirements; and

(b) offsetting existing positions.

Added on 3 June 2019 3 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:

(a) matters relating to any position, including the number of issued shares, free float, liquidity or volatility of the underlying;

(b) the financial position of the Trading Member;

(c) the Trading Member's credit exposure to a single customer; and

(d) any such other factors that SGX-ST deems necessary to maintain a fair, orderly and transparent market.

Added on 3 June 2019 3 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 2019 3 June 2019.

10.8 Internal Controls

10.8.1

A Trading Member must establish and maintain adequate internal control systems to:

(a) set credit limits or position limits;

(b) monitor positions to manage market and credit risks, and comply with notification requirements on monitoring thresholds as prescribed by SGX-ST;

(c) compute and collect margins, including conducting daily valuation of customers' positions and collateral;

(d) monitor margin calls;

(e) manage customers' accounts that are in margin deficit;

(f) manage customers' accounts that may fail to meet settlement obligations;

(g) define and manage sources of liquidity to ensure that there are sufficient liquidity facilities to meet increased settlement obligations;

(h) limit the impact of significant market movements through the use of tools such as cash flow projections, stress testing or credit limits; and

(i) meet such other requirements as SGX-ST may prescribe from time to time.

Added on 3 June 2019 3 June 2019.

10.9 Margin Requirements

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 2019 3 June 2019.

10.9.2

(a) A Trading Member must procure Initial Margins from its customers and must require the customers to meet the Required Margins for the purpose of meeting margin requirements of Marginable Futures Contracts within two Market Days from the trade date (T+2). Initial Margins and Required Margins must be met in the form of collateral as prescribed by SGX-ST from time to time. Such collateral must be in the form of cash, government securities, selected common stocks, bank certificates of deposit, gold bars, gold certificates or such other instruments as SGX-ST may permit from time to time. Valuation of such collateral must be in accordance with the haircut rates prescribed by SGX-ST.

(b) Except for a Remote Trading Member, a Trading Member shall not accept as collateral, currency and financial instruments denominated in currencies that are subject to exchange controls such that they are illegal tender outside the currency's home country, or are restricted by any form of capital controls for the purpose of meeting margin requirements of Marginable Futures Contracts.

Added on 3 June 2019 3 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 2019 3 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:

(a) the minimum Initial Margins for the new trade are deposited or the Trading Member has reason to believe that the minimum Initial Margins will be deposited within two Market Days from the trade date (T+2); and

(b) the Customer Asset Value complies with the Required Margins, or the Trading Member has reason to believe that the additional margins to be deposited pursuant to Rule 10.9.3 will be deposited within two Market Days from the trade date (T+2).

Added on 3 June 2019 3 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 2019 3 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 2019 3 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 2019 3 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 2019 3 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 2019 3 June 2019.

10.9.10 Under-Margined Accounts

(a) A Trading Member must immediately notify SGX-ST when the Customer Asset Value in any account does not meet the sum of Initial Margins and Variation Margins by an amount that exceeds the Trading Member's aggregate resources or such other thresholds as may be determined by SGX-ST, except that no notification is required for the Trading Member's own Stock Account.

(b) SGX-ST may require the Trading Member to submit to SGX-ST information pertaining to any matter in such form and within such time as may be stipulated by SGX-ST.

Added on 3 June 2019 3 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 2019 3 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 2019 3 June 2019.

10.10 Capital Requirement for Marginable Futures Contracts

10.10.1

For the purpose of calculating counterparty risk requirements under the RBC Notice:

(a) "margin deficiency" referred to in the RBC Notice is the amount required for the Customer Asset Value to meet the Variation Margin and Maintenance Margin, and in the case where Customer Asset Value is not sufficient to meet Variation Margin, the margin deficiency is the amount of Maintenance Margin; and

(b) "negative equity" referred to in the RBC Notice is the amount required for the Customer Asset Value to meet the Variation Margin.

Added on 3 June 2019 3 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 2019 3 June 2019.

10.11 Prohibited Trading Practices

10.11.1 Overtrading

The following provisions apply in relation to overtrading:

(a) A Trading Member and its Trading Representatives must not execute any trade beyond any limits imposed by SGX-ST, CDP or the Authority. A Trading Member must ensure that its Trading Representatives and its customers do not trade beyond such limits. A Trading Member or its Trading Representative shall be guilty of overtrading if the respective Trading Member or its Trading Representative enters into any trade or trades beyond any limits imposed from time to time by SGX-ST, CDP or the Authority.

(b) If a Trading Member or Trading Representative is charged with violating this Rule 10.11.1, SGX-ST may at its discretion suspend that Trading Member or Trading Representative from trading until such time as the Disciplinary Committee or the Appeals Committee has completed the hearing in respect of such charge against such Trading Member or Trading Representative.

(c) Each trade entered into beyond any limits imposed by SGX-ST, CDP or the Authority shall be deemed to be a distinct and separate violation of this Rule and shall be punishable as such. If a Trading Member or Trading Representative is charged by SGX-ST for overtrading, it is not necessary for SGX-ST to show that the Trading Member or Trading Representative intended to overtrade. The act of overtrading is sufficient to constitute an offence under this Rule.

Added on 3 June 2019 3 June 2019.

10.12 Settlement of Marginable Futures Contracts

10.12.1

Chapter 9 shall apply to the delivery and settlement of Marginable Futures Contracts.

Added on 3 June 2019 3 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 2019 3 June 2019.

American Depository Receipts

10.13 Additional Obligations in respect of American Depository Receipts

10.13.1

A Trading Member must disclose the risks pertaining to trading in American Depository Receipts quoted on GlobalQuote in media that the Trading Member may produce in relation to American Depository Receipts for its customers. These media include, but are not limited to:

(a) investor education programs in relation to American Depository Receipts organised by the Trading Member;

(b) websites in relation to American Depository Receipts created or maintained by the Trading Member; and

(c) marketing materials in relation to American Depository Receipts produced by the Trading Member.

Added on 3 June 2019 3 June 2019.

10.13.2

To facilitate Trading Members' compliance with this Rule 10.13, SGX-ST will provide Trading Members with a list of risk factors pertaining to trading in American Depository Receipts.

Added on 3 June 2019 3 June 2019.

Chapter 11 Cancellation of Contracts and Trades

11.1 Cancellation of Contracts

11.1.1

A contract made on SGX-ST can only be cancelled in accordance with this Rule 11. A contract will not be cancelled merely because of the occurrence of one or more of the following circumstances:

(a) delivery fails;

(b) payment is not made on delivery; or

(c) the share registrar refuses to register a transfer.

Added on 3 June 2019 3 June 2019.

11.1.2

SGX-ST may cancel a contract in any of the following circumstances:

(a) if the contract arises from an Error Trade (as defined in Rule 11.2.1) and:

(i) the Trading Members to the contract agree to the cancellation; or

(ii) SGX-ST is satisfied that the contract should be cancelled;

(b) the contract arises from a Trade at Close and subsequent to the trade, SGX-ST:

(i) invalidates the Closing Auction Price on which the trade is based; or

(ii) determines an alternate closing price for the security;

(c) if there is prima facie evidence of fraud or wilful misrepresentation in relation to the contract; or

(d) in SGX-ST's opinion, it is desirable to cancel the contract to protect the financial integrity, reputation or interests of the markets established or operated by SGX-ST.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

11.1.3

SGX-ST may impose any conditions it thinks appropriate for or in relation to the cancellation of a contract.

Added on 3 June 2019 3 June 2019.

11.1.4

SGX-ST may reprimand or impose a fine not exceeding S$2,000 on a Trading Representative and/or the Trading Member who caused a contract to be cancelled under Rule 11.1.2.

Added on 3 June 2019 3 June 2019.

11.1.5

An action under this Rule is in addition to other actions which SGX-ST is entitled to take against the Trading Representative or Trading Member.

Added on 3 June 2019 3 June 2019.

11.2 Error Trades

11.2.1

An "Error Trade" refers to a trade that is executed on the Trading System and that results from:

(a) an erroneous entry in relation to the price and/or the volume of an order; and/or

(b) an erroneous entry in relation to the name of the securities or futures contracts.

Added on 3 June 2019 3 June 2019.

11.3 Procedures for Cancellation

11.3.1

When an Error Trade occurs:

(a) the Trading Member that caused the Error Trade must:

(i) inform SGX-ST of the Error Trade by telephone within 30 minutes from the time the Error Trade took place; and

(ii) without delay contact the counterparty Trading Member and seek its agreement to cancel the Error Trade; and

(b) both Trading Members must take all necessary steps to minimise any likely market impact caused by the Error Trade.

Added on 3 June 2019 3 June 2019.

11.3.2

In the event that the Trading Members mutually agree to cancel an Error Trade:

(a) the Trading Member that caused the Error Trade must inform SGX-ST of the agreement without delay; and

(b) both Trading Members must submit the necessary trade cancellation request forms to SGX-ST.

Added on 3 June 2019 3 June 2019.

11.3.3

In the event that the Trading Members cannot mutually agree to cancel an Error Trade, the Trading Member that caused the Error Trade may, provided that the procedures in Rule 11.3.1 have been complied with, request SGX-ST to review the Error Trade. Save as provided in Rules 11.3.6 and 11.4.1, SGX-ST will not review an Error Trade if the procedures in Rule 11.3.1 have not been complied with.

Added on 3 June 2019 3 June 2019.

11.3.4

In making the request to SGX-ST to review an Error Trade, the following procedures shall apply:

(a) the matter must be referred to SGX-ST within 60 minutes from the time the Error Trade occurred or before 18:00 hours on the day that the Error Trade occurred, whichever is earlier; and

(b) the Trading Member that caused the Error Trade must notify the counterparty Trading Member that it has referred the matter to SGX-ST.

Added on 3 June 2019 3 June 2019.

11.3.5

The requesting Trading Member must pay a trade review fee of S$1,000 for each referral accepted for review by SGX-ST, regardless of the outcome of the review.

Added on 3 June 2019 3 June 2019.

11.3.6

SGX-ST may in its discretion allow an extension of the timelines set out in Rules 11.3.1 and 11.3.4, taking into account:

(a) the total number of Error Trades referred to SGX-ST;

(b) the complexity of the circumstances surrounding the Error Trade; or

(c) any other relevant factors.

Refer to Practice Note 11.3.

Added on 3 June 2019 3 June 2019.

11.4 Error Trade Cancellations

11.4.1

Notwithstanding Rules 11.3 and 11.5, SGX-ST reserves the right to review an Error Trade if SGX-ST deems it necessary for the proper maintenance of a fair and orderly market.

Added on 3 June 2019 3 June 2019.

11.4.2

SGX-ST may consider any relevant information, including but not limited to the following when deciding whether to cancel an Error Trade:

(a) the difference between the price at which the trade was done and the preceding traded price of the security or futures contract;

(b) the market liquidity in the security or futures contract at the time the trade occurred;

(c) where the trade involves a futures contract, the trading behaviour of the underlying;

(d) the monetary loss involved if the trade is or is not cancelled;

(e) the difference between the time the erroneous order was entered and the time it was matched;

(f) the number of counterparty customers involved;

(g) whether the Force Key was used or any other error prevention alert was triggered when the erroneous order was entered into the Trading System;

(h) the impact on the settlement process;

(i) in the case of bonds, the rating, interest rate, coupon rate, maturity date and yield curve; and

(j) the reason(s) given for the error.

Refer to Regulatory Notice 11.4.2 (d).

Refer to Regulatory Notice 11.4.2 (g).

Added on 3 June 2019 3 June 2019.

11.4.3

The following procedures shall apply when SGX-ST is satisfied that an Error Trade has occurred:

(a) inform the market of the Error Trade;

(b) inform the market of the outcome of SGX-ST's review in relation to the Error Trade (i.e. whether the Error Trade remains valid or has been cancelled); and

(c) notify both Trading Members of the outcome of SGX-ST's decision under Rule 11.4.1 in writing.

Added on 3 June 2019 3 June 2019.

11.4.4

SGX-ST will not consider any request to review its decision following the notification under Rule 11.4.3(b).

Added on 3 June 2019 3 June 2019.

11.5 No-Cancellation Range

11.5.1

A no-cancellation range will be applied to all securities and futures contracts, excluding bonds, as set out in this Rule 11.5.

Added on 3 June 2019 3 June 2019.

11.5.2

Subject to Rule 11.4.1, SGX-ST will not review an Error Trade referred to it by a Trading Member if the Error Trade falls at or within the upper and lower limits of the applicable no-cancellation range.

Added on 3 June 2019 3 June 2019.

11.5.3

Notwithstanding Rule 11.5.1, SGX-ST reserves the right to apply or remove a no-cancellation range.

Added on 3 June 2019 3 June 2019.

11.5.4

For structured warrants:

(a) The no-cancellation range will be the wider of the following:

(i) a lower limit of 20 minimum bid sizes less than the Reference Price, and an upper limit of 20 minimum bid sizes higher than the Reference Price; or

(ii) a lower limit of 75% of the Reference Price, and an upper limit of 125% of the Reference Price.

(b) The Reference Price of the no-cancellation range for structured warrants will be determined as follows:

(i) the average of the last quoted bid price and the last quoted offer price for the structured warrant immediately preceding the Error Trade; or

(ii) the average of the market prices as quoted by at least three Designated Market-Makers of structured warrants. The Designated Market-Makers will be selected randomly by SGX-ST, but will not include any Designated Market-Maker who is involved in the Error Trade that is under review.

(c) Where SGX-ST is of the view that no appropriate or reliable Reference Price is available, SGX-ST will not establish a no-cancellation range for that Error Trade.

Added on 3 June 2019 3 June 2019.

11.5.5

For all other securities or futures contracts, excluding bonds:

(a) The no-cancellation range will be determined as the wider of the following:

(i) a lower limit of 20 minimum bid sizes less than the Reference Price, and an upper limit of 20 minimum bid sizes higher than the Reference Price; or

(ii) a lower limit of 95% of the Reference Price, and an upper limit of 105% of the Reference Price.

(b) Subject to Rule 11.5.5(c), the Reference Price of the no-cancellation range for the security or futures contract will be the price of the last good trade.

(c) SGX-ST may, in its discretion, use an alternative price as the Reference Price for the no-cancellation range if:

(i) the price of the last good trade is not available; or

(ii) SGX-ST deems the price of the last good trade to be unreliable or inappropriate as a Reference Price.

(d) Where SGX-ST is of the view that no appropriate or reliable Reference Price is available, SGX-ST will not establish a no-cancellation range for that Error Trade.

Refer to Practice Note 11.5.5(c).

Added on 3 June 2019 3 June 2019.

Chapter 12 Supervision and Enforcement

12.1 Investigations by SGX-ST

12.1.1

SGX-ST may conduct an investigation if:

(a) the investigation involves a possible breach of the Securities and Futures Act, any other relevant applicable laws and regulatory requirements relating to the regulation of organised markets and licensed entities, or the Rules;

(b) SGX-ST receives a written complaint involving any Registered Person and/or its Director, Officer, employee or agent;

(c) there is a dispute between Trading Members on a trading matter;

(d) in SGX-ST's opinion, the circumstances warrant; or

(e) the Authority directs.

Added on 3 June 2019 3 June 2019.

12.1.2

SGX-ST may impose any requirement on any Registered Person that it deems necessary to preserve the integrity of the investigation.

Added on 3 June 2019 3 June 2019.

12.1.3

SGX-ST may appoint any person or persons to assist in its investigation (the "Exchange Examiner(s)").

Added on 3 June 2019 3 June 2019.

12.1.4

SGX-ST may delegate all or any of its powers under Rule 12.1 to the Exchange Examiner. The Exchange Examiner must report the results of the investigation to SGX-ST.

Added on 3 June 2019 3 June 2019.

12.1.5

SGX-ST may refer any investigations to another relevant investigating authority if SGX-ST is of the opinion that the circumstances warrant the referral.

Added on 3 June 2019 3 June 2019.

12.1.6

A Registered Person shall, and shall ensure that its Directors, Officers, employees or agents (if any), promptly:

(a) render all assistance as SGX-ST and/or the Exchange Examiner requires, at SGX-ST's premises or elsewhere; and

(b) provide SGX-ST and/or the Exchange Examiner with, and give SGX-ST and/or the Exchange Examiner access to such information, books and records that SGX-ST and/or the Exchange Examiner may request that, in SGX-ST's and/or the Exchange Examiner's opinion, may be relevant to the investigation.

Added on 3 June 2019 3 June 2019.

12.1.7

A Registered Person must not and shall ensure that its Directors, Officers, employees or agents (if any) do not:

(a) wilfully furnish or permit the furnishing of any false or misleading information, statement or report to SGX-ST or the Exchange Examiner; or

(b) wilfully make or permit the making of any false or misleading statement to SGX-ST or the Exchange Examiner or wilfully omit or permit the omission of any entry or information in any report or statement to SGX-ST or the Exchange Examiner.

Added on 3 June 2019 3 June 2019.

12.2 Inspections by SGX-ST

12.2.1

SGX-ST may conduct an inspection on a Registered Person at any time. SGX-ST may appoint any person or persons to conduct the inspection (the "Exchange Inspector(s)").

Added on 3 June 2019 3 June 2019.

12.2.2

SGX-ST may delegate all or any of its powers under Rule 12.2 to the Exchange Inspector. The Exchange Inspector must report the results of the inspection to SGX-ST.

Added on 3 June 2019 3 June 2019.

12.2.3

A Registered Person shall, and shall ensure that its Directors, Officers, employees or agents (if any), promptly:

(a) render all assistance as SGX-ST and/or the Exchange Inspector requires, at SGX-ST's premises or elsewhere; and

(b) provide SGX-ST and/or the Exchange Inspector with, and give SGX-ST and/or the Exchange Inspector access to such information, books and records that SGX-ST and/or the Exchange Inspector may request that, in SGX-ST's and/or the Exchange Inspector's opinion, may be relevant to the inspection.

Added on 3 June 2019 3 June 2019.

12.2.4

A Registered Person must not, and shall ensure that its Directors, Officers, employees or agents (if any) do not:

(a) wilfully furnish or permit the furnishing of any false or misleading information, statement or report to SGX-ST or the Exchange Inspector; or

(b) wilfully make or permit the making of any false or misleading statement to SGX-ST or the Exchange Inspector or wilfully omit or permit the omission of any entry or information in any report or statement to SGX-ST or the Exchange Inspector.

Added on 3 June 2019 3 June 2019.

12.2.5

SGX-ST will give a copy of the inspection report to the Registered Person.

Added on 3 June 2019 3 June 2019.

12.2.6

SGX-ST may charge a fee for the inspection which is payable by the Registered Person.

Added on 3 June 2019 3 June 2019.

12.3 Disciplinary Action

12.3.1

Without prejudice to any other powers that SGX-ST may have under the Rules, SGX-ST may take any of the following forms of disciplinary action, namely:

(a) to charge the Registered Person before the Disciplinary Committee if SGX-ST is of the opinion that the Registered Person has committed any of the acts for which it may be charged before the Disciplinary Committee as set out in Rule 12.5.1;

(b) to make an offer of composition to the Registered Person if SGX-ST is of the opinion that there has been a violation of the Rules and if the Rule violation is indicated in the third column of Schedule A as a compoundable Rule violation; or

(c) to issue a letter of warning to the Registered Person.

Added on 3 June 2019 3 June 2019.

12.4 Composition by SGX-ST for Rule Violation

12.4.1

SGX-ST may make an offer of composition to a Registered Person if SGX-ST is of the opinion that there has been a violation of the Rules and the Rule violation is indicated in the third column of Schedule A as a compoundable Rule violation. The terms of the offer of composition include payment of a specified sum to SGX-ST and may include the fulfilment of any accompanying terms that SGX-ST may prescribe.

Added on 3 June 2019 3 June 2019.

12.4.2

Upon payment of the specified sum and fulfilment of the accompanying terms within the stipulated time, no further proceedings shall be taken against that Registered Person for that Rule violation.

Added on 3 June 2019 3 June 2019.

12.4.3

Acceptance of the offer of composition by the Registered Person amounts to an admission of liability and the Registered Person will be deemed to have committed the conduct described in the offer of composition.

Added on 3 June 2019 3 June 2019.

12.4.4

SGX-ST retains the discretion to offer composition to a Registered Person of an amount that is lower or higher than the guidelines that are indicated in Schedule A, except that the amount of composition that SGX-ST may offer shall not exceed S$10,000 for each Rule violation.

Added on 3 June 2019 3 June 2019.

12.4.5

Notwithstanding that a Rule violation is indicated as being compoundable under Schedule A, SGX-ST retains the discretion not to make an offer of composition to the Registered Person and instead, to charge the said Registered Person before the Disciplinary Committee.

Added on 3 June 2019 3 June 2019.

12.4.6

If SGX-ST has made an offer of composition, it will not commence disciplinary proceedings against a Registered Person until after the stipulated period for the offer lapses.

Added on 3 June 2019 3 June 2019.

12.4.7

If the Registered Person does not accept the offer of composition or comply with the terms of the composition within the stipulated time as prescribed by SGX-ST, SGX-ST may charge the Registered Person before the Disciplinary Committee.

Added on 3 June 2019 3 June 2019.

12.4.8

For the purposes of determining whether a Rule violation is classified as a first, second, third or subsequent offence under Schedule A, only previous violations under the same Rule will be taken into consideration.

Added on 3 June 2019 3 June 2019.

12.5 Disciplinary Committee

12.5.1

SGX-ST may initiate disciplinary proceedings and charge a Registered Person before the Disciplinary Committee if SGX-ST is of the opinion that the Registered Person has committed, or has caused its Trading Member to commit (where applicable), any of the following:

(a) subject to Rules 12.4.2 and 12.4.6, breached the Rules;

(b) in the case of a Trading Member, a Chief Executive Officer or a Trading Representative:

(i) breached the Securities and Futures Act, any relevant laws, regulations or requirements of the Relevant Regulatory Authority, or any other relevant laws and regulatory requirements relating to the regulation of organised markets and licensed entities;

(ii) breached any relevant laws or regulations that govern the Registered Person's other business activities;

(iii) breached the rules of any other exchange;

(iv) engaged in fraud or dishonesty, whether in or out of Singapore;

(v) breached any directors' duties;

(vi) engaged in conduct that has the effect of circumventing the Rules, the Securities and Futures Act, any laws, regulations or requirements of the Relevant Regulatory Authority, or any other relevant laws and regulatory requirements relating to the regulation of organised markets and licensed entities;

(vii) engaged in conduct that is inconsistent with just and equitable principles of trading; or

(viii) engaged in conduct that is detrimental to the financial integrity, reputation or interests of SGX-ST, or organised markets established or operated by SGX-ST.

Added on 3 June 2019 3 June 2019.

12.5.2

The Disciplinary Committee shall comprise persons appointed by the SGX RegCo Board and shall not have a member who is, or who within three years of the proposed appointment date was, a Director, Officer or employee of:

(a) SGX; or

(b) a related corporation of SGX.

Added on 3 June 2019 3 June 2019.

12.5.3

The SGX RegCo Board shall appoint the chairman and the deputy chairman of the Disciplinary Committee. In the absence of the chairman, the deputy chairman will have all the powers of the chairman.

Added on 3 June 2019 3 June 2019.

12.5.4

The Disciplinary Committee shall, as a tribunal of first instance, hear and determine charges brought by SGX-ST against a Registered Person pursuant to Rule 12.5.1. The Disciplinary Committee may exercise its powers against a Registered Person if it is satisfied, on a balance of probabilities, that the Registered Person has committed any of the matters set out in Rule 12.5.1.

Added on 3 June 2019 3 June 2019.

12.5.5

Procedures may be issued in relation to Disciplinary Committee proceedings. The procedures are binding on all the parties to the proceedings and may be varied by the Disciplinary Committee as provided in the procedures or the Rules. Where any matter is not dealt with by the procedures or the Rules, the Disciplinary Committee may establish its own procedures.

Refer to the [Disciplinary Committee and Appeals Committee Handbook].

Added on 3 June 2019 3 June 2019.

12.5.6

The Disciplinary Committee may hear and determine charges against a Registered Person even if the Registered Person is no longer a Registered Person at the time of the Disciplinary Committee hearing, so long as the Registered Person was a Registered Person at the time of the alleged contravention.

Added on 3 June 2019 3 June 2019.

12.5.7

The Disciplinary Committee may impose one or more of the following sanctions:

(a) expelling a Registered Person. The Disciplinary Committee may order a Registered Person to be expelled notwithstanding that he has resigned;

(b) suspending a Registered Person;

(c) imposing a fine not exceeding S$250,000 per charge on a Registered Person, or in the case of multiple charges, not exceeding S$1,000,000 per hearing;

(d) reprimanding (publicly or privately) a Registered Person;

(e) requiring that a Registered Person undertake an education or compliance programme;

(f) imposing any restrictions or conditions on activities that a Registered Person undertakes;

(g) requiring a Registered Person to pay reimbursement or compensation;

(h) ordering payment of fines by instalments, which shall not exceed 12 months from the date of imposition of the fine, unless otherwise permitted by the Disciplinary Committee;

(i) requiring that any Director or Officer step down from day-to-day conduct of the business affairs of a Trading Member;

(j) confirming, changing or discharging the appointment of a Manager under Rule 2.22.4(c).

Added on 3 June 2019 3 June 2019.

12.5.8

Where a mandatory minimum penalty has been stipulated for a particular Rule violation in the thirteenth column of Schedule A, the Disciplinary Committee:

(a) shall impose a penalty not lower than such minimum amount; and

(b) may choose to impose, in addition to the penalty in Rule 12.5.8(a), any one or more of the sanctions set out in Rule 12.5.7.

Added on 3 June 2019 3 June 2019.

12.5.9

A failure to comply with any sanction imposed by the Disciplinary Committee constitutes a breach of the Rules.

Added on 3 June 2019 3 June 2019.

12.5.10

The Disciplinary Committee may order a stay of the penalty imposed, pending an appeal to the Appeals Committee.

Added on 3 June 2019 3 June 2019.

12.5.11

The Disciplinary Committee shall provide its written grounds of decision, which shall include any sanctions imposed against the Registered Person, within a reasonable period after the conclusion of the hearing.

Added on 3 June 2019 3 June 2019.

12.5.12

The Disciplinary Committee shall cause its written grounds of decision to be published, unless the sanction imposed involves the issuance of a private reprimand. Where a private reprimand is issued by the Disciplinary Committee, the Disciplinary Committee shall determine whether the written grounds of decision are to be published and if so, whether the written grounds of decision are to be published in part or in whole.

Added on 3 June 2019 3 June 2019.

12.5.13

Each Registered Person irrevocably consents to the publication of the Disciplinary Committee's written grounds of decision pursuant to Rule 12.5.12. The consent will remain valid and effective notwithstanding that the Registered Person ceases to be a Registered Person. A Registered Person cannot initiate any action or proceeding against SGX-ST or the Disciplinary Committee for such publication.

Added on 3 June 2019 3 June 2019.

12.6 Appeals Committee

12.6.1

The Appeals Committee shall comprise persons appointed by the SGX RegCo Board and approved by the Authority provided that:

(a) the Appeals Committee shall not have a member who is, or who within three years of the proposed appointment date was, a Director, Officer or employee of:

(i) SGX; or

(ii) a related corporation of SGX.

(b) a majority of the Appeals Committee shall not be Directors, Officers or employees of any member of SGX or SGX's subsidiaries; and

(c) a majority of the Appeals Committee shall not be substantial shareholders of SGX or Directors, Officers or employees of any substantial shareholder of SGX.

Added on 3 June 2019 3 June 2019.

12.6.2

The SGX RegCo Board shall appoint the chairman and the deputy chairman of the Appeals Committee. In the absence of the chairman, the deputy chairman will have all the powers of the chairman.

Added on 3 June 2019 3 June 2019.

12.6.3

The Appeals Committee shall:

(a) hear and decide appeals arising from decisions of the Disciplinary Committee; and

(b) hear and determine appeals brought by a Trading Member, Chief Executive Officer or Trading Representative pursuant to Rule 2.24.3.

Added on 3 June 2019 3 June 2019.

12.6.4

The Appeals Committee will determine the appeal by way of rehearing. It will only rehear that part of the decision of the Disciplinary Committee or SGX-ST that is appealed against.

Added on 3 June 2019 3 June 2019.

12.6.5

Procedures may be issued in relation to Appeals Committee proceedings. The procedures are binding on all the parties to the proceedings and may be varied by the Appeals Committee as provided in the procedures or the Rules. Where any matter is not dealt with by the procedures or the Rules, the Appeals Committee may establish its own procedures.

Refer to the [Disciplinary Committee and Appeals Committee Handbook].

Added on 3 June 2019 3 June 2019.

12.6.6

The Appeals Committee may hear and determine appeals concerning a Registered Person even if the Registered Person is no longer a Registered Person at the time of the Appeals Committee hearing, so long as the Registered Person was a Registered Person at the time of the alleged contravention.

Added on 3 June 2019 3 June 2019.

12.6.7

The Appeals Committee may take any of the following actions:

(a) dismiss the appeal;

(b) uphold, reverse or vary the decision of the Disciplinary Committee;

(c) uphold, reverse or vary specific findings of the Disciplinary Committee;

(d) direct that SGX-ST take a specific course of action;

(e) vary the sanctions imposed by the Disciplinary Committee; or

(f) issue any other order that it deems appropriate.

Added on 3 June 2019 3 June 2019.

12.6.8

In imposing sanctions, the Appeals Committee shall have all the powers of the Disciplinary Committee under Rule 12.5.7.

Added on 3 June 2019 3 June 2019.

12.6.9

A Registered Person may apply to the Appeals Committee for, and the Appeals Committee may grant, an extension of the relevant timelines to comply with the sanctions imposed by the Appeals Committee.

Added on 3 June 2019 3 June 2019.

12.6.10

A failure to comply with any sanction imposed by the Appeals Committee constitutes a breach of the Rules.

Added on 3 June 2019 3 June 2019.

12.6.11

The Appeals Committee shall provide written grounds of its decision, which shall include any sanctions imposed against the Registered Person, within a reasonable period after the conclusion of the hearing.

Added on 3 June 2019 3 June 2019.

12.6.12

The Appeals Committee shall cause its written grounds of decision to be published, unless the sanction imposed involves the issuance of a private reprimand. Where a private reprimand is issued by the Appeals Committee, the Appeals Committee shall determine whether the written grounds of decision are to be published, and if so, whether the written grounds of decision is to be published in part or in whole.

Added on 3 June 2019 3 June 2019.

12.6.13

Each Registered Person irrevocably consents to the publication of the Appeals Committee's written grounds of decision pursuant to Rule 12.6.12. The consent will remain valid and effective notwithstanding that the Registered Person ceases to be a Registered Person. A Registered Person cannot initiate any action or proceeding against SGX-ST or the Appeals Committee for such publication.

Added on 3 June 2019 3 June 2019.

12.6.14

A decision of the Appeals Committee shall be final and binding on the parties to the appeal.

Added on 3 June 2019 3 June 2019.

12.7 Fine

12.7.1

A fine must be paid within 14 days from the date of notice, or such longer time as the chairman of the Disciplinary Committee or the Appeals Committee (as applicable), or his nominee, permits.

Added on 3 June 2019 3 June 2019.

12.7.2

If a fine remains unpaid seven days after the deadline, the Trading Member's access to organised markets established or operated by SGX-ST, or the registration of the Chief Executive Officer, the Trading Representative, the Designated Market-Maker or the market-making representative, is suspended (as relevant). The suspension shall end upon full payment of the fine.

Added on 3 June 2019 3 June 2019.

12.7.3

Where a fine has been imposed against a Registered Person and the Registered Person does not make payment within the specified period, the outstanding sum shall be a debt payable to SGX-ST. SGX-ST may commence legal action to recover that debt, subject to any subsequent payments made by the Registered Person. SGX-ST shall be entitled to claim reasonable interest, a month after the payment is due, based on the sum outstanding.

Added on 3 June 2019 3 June 2019.

12.8 Payment of Costs

12.8.1

The Disciplinary Committee or Appeals Committee may require the Registered Person charged to pay all or part of the costs of the investigation, inspection or hearing.

Added on 3 June 2019 3 June 2019.

12.8.2

The Disciplinary Committee or Appeals Committee may order the costs awarded to be paid within 14 days, or such longer time as the chairman of the Disciplinary Committee or the Appeals Committee (as applicable), or his nominee, permits.

Added on 3 June 2019 3 June 2019.

12.8.3

Where an order for costs of the proceedings has been imposed against a Registered Person and the Registered Person does not make payment within the specified period, the outstanding sum shall be a debt payable to SGX-ST. SGX-ST may commence legal action to recover that debt, subject to any subsequent payments made by the Registered Person. SGX-ST shall be entitled to claim reasonable interest, a month after the payment is due, based on the sum outstanding.

Added on 3 June 2019 3 June 2019.

12.9 Confidentiality

12.9.1

The parties to Disciplinary Committee proceedings or Appeals Committee proceedings, their representatives, their advisors and their legal counsel shall at all times treat all matters and documents relating to the proceedings as confidential except:

(a) where all parties to the proceedings have given written consent;

(b) where a party is directed by a competent authority such as the Authority or the police;

(c) where a party is directed by a court of competent jurisdiction in Singapore;

(d) where a party is permitted or directed by the Disciplinary Committee or Appeals Committee; or

(e) where the information is in the public domain.

Added on 3 June 2019 3 June 2019.

12.10 Irregularities

12.10.1

No irregularities shall vitiate a decision of the Disciplinary Committee or Appeals Committee unless the irregularity has occasioned a failure of justice.

Added on 3 June 2019 3 June 2019.

12.10.2

Where an irregularity has occasioned a failure of justice in respect of a disciplinary proceeding, the Disciplinary Committee or Appeals Committee may set aside any part of the proceedings and make such order dealing with the proceedings generally as it deems fit.

Added on 3 June 2019 3 June 2019.

12.11 Exclusion of Liability

12.11.1

No liability (whether in contract, tort or otherwise) shall be incurred by the Disciplinary Committee, Appeals Committee, or a Manager for anything done or omitted to be done with reasonable care and in good faith in the course of or in connection with:

(a) the exercise or purported exercise of any power under the Rules;

(b) the performance or purported performance of any function or duty under the Rules; or

(c) the compliance or purported compliance with the Rules.

Added on 3 June 2019 3 June 2019.

Chapter 13 Definitions and Interpretation

13.1 Definitions

The following terms have the following meanings unless the context requires otherwise:

Term	Meaning
A
"acceptable collateral"	The meaning ascribed to it in Regulation 24(6) of the SFR (Financial and Margin Requirements).
"Accredited Investor"	The meaning ascribed to it in the Securities and Futures Act.
"Adjust Phase"	The trading phase as described in Regulatory Notice 8.2.1.
"adjusted net head office funds"	The meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements).
"aggregate indebtedness"	The meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements).
"aggregate resources"	(1) In the case of a Trading Member incorporated in Singapore, this means the sum of its financial resources (including qualifying letters of credit referred to in Rule 3.5.6) less its total risk requirement; and (2) In the case of a Trading Member incorporated outside Singapore that holds a Capital Markets Services Licence, this means the sum of its adjusted net head office funds (including qualifying letters of credit referred to in Rule 3.5.6) less its total risk requirement.
"American Depository Receipt"	A U.S. product that represents ownership of shares in an organisation.
"Appeals Committee"	The appeals committee appointed by the SGX RegCo Board to exercise the powers in Chapter 12.
"Approval Conditions"	Any condition or restriction to which SGX-ST subjects an approval of an application to be a Trading Member, and includes any condition or restriction imposed under Rule 2.2.4.
"Associated Corporation"	Any body corporate formed in or out of Singapore in which a Trading Member and its related corporations hold directly or indirectly a beneficial interest of not less than 20% of the issued share capital.
"Authority"	The Monetary Authority of Singapore or other body responsible for the administration of the Securities and Futures Act.
"average aggregate resources"	The average of the aggregate resources on the last day of each of the three months preceding the previous month.
B
"banking day"	The meaning ascribed to it under Rules 9.4.2 and 9.6.3.
"base capital"	(1) in the case of a Trading Member that holds a Capital Markets Services Licence, the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements). (2) in the case of a Remote Trading Member, this means the sum of its paid-up ordinary share capital and unappropriated profit or loss.
"Board"	Board of Directors of SGX-ST.
"broker-linked balance"	A sub-balance, in a Securities Account maintained directly with CDP, that is linked to a Trading Member and gives the Trading Member such control and rights over the securities contained in the sub-balance as CDP shall specify.
"buying-in market"	The market operated by SGX-ST for the sale and purchase of securities to be bought-in by CDP pursuant to the Clearing Rules.
C
"Capital Markets Services Licence"	The meaning ascribed to it in the Securities and Futures Act.
"Cash Settlement Amount"	The meaning ascribed to it in Rule 9.6.2.
"CDP"	The Central Depository (Pte) Limited.
"CDP Settlement Facility"	The settlement facility operated by CDP for settlement pursuant to the CDP Settlement Rules.
"CDP Settlement Rules"	CDP Settlement Rules as the same may be amended, modified, supplemented or replaced from time to time.
"Chief Executive Officer"	The meaning ascribed to it in the Securities and Futures Act.
"Circuit Breaker"	In relation to a security or futures contract, such maximum allowable price advance or decline from a reference price for the security or futures contract during the trading phase. The maximum allowable price advance or decline from a reference price and the reference price shall be determined by SGX-ST.
"Clearing Member"	A Clearing Member in accordance with the Clearing Rules.
"Clearing Rules"	CDP Clearing Rules as the same may be amended, modified, supplemented or replaced from time to time.
"Closing Auction Price"	In relation to a security on a Market Day, refers to the single price at which orders were matched at the end of the closing routine, as described in Regulatory Notice 8.2.1, for that security on that day.
"collective investment scheme"	The meaning ascribed to it in the Securities and Futures Act.
"common banking day"	The meaning ascribed to it under Rule 9.2.3.
"Companies Act"	Companies Act 1967 or any statutory modification, amendment or re-enactment thereof for the time being in force, or any statute that may replace it, and unless the context otherwise requires, includes any subsidiary legislation or regulations made pursuant thereto.
"Connected Person"	The meaning ascribed to it in the Securities and Futures Act.
"Constitution"	The meaning ascribed to it in the Companies Act.
"Contract Specifications"	The commercial and technical terms of a Marginable Futures Contract, including the contract size, contract month, underlying security, Last Trading Day and settlement basis. Unless otherwise stated, Contract Specifications are not subject to the rule amendment procedures specified under the Securities and Futures Act.
"Cooling-Off Period"	A period prescribed by SGX-ST during which trading in a particular securities or futures contract will be restricted in a manner prescribed by SGX-ST.
"Corporation"	The meaning ascribed to it in the Companies Act.
"customer"	A person whose account is carried on the books of a Trading Member except where such person is the Trading Member itself with respect to the Trading Member's proprietary account.
D
"Dealer"	A Trading Representative who is employed by a Trading Member or its group of companies to deal in capital markets products.
"Depository Agent"	An entity registered as a Depository Agent with CDP for the purpose of maintaining sub-accounts for its own account and for the account of others.
"derivatives contracts"	The meaning ascribed to it in the Securities and Futures Act.
"Designated Instrument"	The meaning ascribed to it in Rule 8.11.1.
"Designated Market-Maker"	A market-maker registered with SGX-ST.
"Direct Business"	A trade in any security or futures contract listed or quoted on SGX-ST that is executed outside the Trading System, in accordance with the minimum size or value and other procedures prescribed by SGX-ST.
"Directive"	A binding notice directing Trading Members and/or other Registered Persons to take corrective or other actions in the interests of a fair, orderly and transparent market or to address investor protection concerns, as the same may be amended, modified, supplemented or replaced from time to time.
"Direct Market Access"	Direct access to the Trading System, via an SGX-ST provided or SGX-ST approved order management system through which orders are routed to the Trading System. Direct access does not include Internet Trading.
"Director"	The meaning ascribed to it in the Companies Act.
"Disciplinary Committee"	The disciplinary committee appointed by the SGX RegCo Board to exercise the powers in Chapter 12.
E
"Error Trade"	The meaning ascribed to it in Rule 11.2.1.
"Expert Investor"	The meaning ascribed to it in the Securities and Futures Act.
F
"financial resources"	The meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements).
"Force Key"	The meaning ascribed to it in Regulatory Notice 11.4.2(g).
"futures contract"	The meaning ascribed to it in the Securities and Futures Act.
G
"GlobalQuote"	A quotation board operated by SGX-ST.
I
"Institutional Investor"	The meaning ascribed to it in the Securities and Futures Act.
"Intended Settlement Day"	In relation to a trade that is executed on the Trading System or reported to SGX-ST, the day on which the trade is first due for settlement.
"Internet Trading"	Trading access to SGX-ST through internet broking services provided by a Trading Member.
"irredeemable and non-cumulative preference share capital"	The meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements).
"Issuer"	An entity or a trust that is quoted or listed on SGX-ST.
L
"Last Trading Day"	The last day on which a Marginable Futures Contract may be traded prior to its expiration.
M
"main balance"	The balance in a Securities Account maintained directly with CDP that is not a broker-linked balance.
"Manager"	A manager appointed by SGX-ST pursuant to Rule 2.22.4(c).
"Marginable Futures Contract"	A futures contract approved for listing on SGX-ST and that is subject to margin requirements.
"Market Day"	A day on which SGX-ST is open for trading in securities or futures contracts.
N
"net head office funds"	The meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements).
"Non-Listed Security"	Refers to any security that is not listed on SGX-ST but is approved by SGX-ST for quotation and trading and includes: (a) a security listed on an overseas exchange; or (b) Singapore government securities.
O
"Officer"	The meaning ascribed to it in the Companies Act.
"organised market"	The meaning ascribed to it in the Securities and Futures Act.
P
"Position Account"	The same meaning ascribed to it in the Clearing Rules.
"Practice Notes"	Guidelines that seek to explain the application and interpretation of a Rule, as the same may be amended, modified, supplemented or replaced from time to time.
"Prescribed Instrument"	The meaning ascribed to it in Rule 8.3.1.
"Prescribed Person"	The meaning ascribed to it in Rule 5.7.2.
"product financing"	The meaning ascribed to it in the Securities and Futures Act.
Q
"qualification"	The guarantee of a Clearing Member to accept liability for all contracts executed on SGX-ST by a Trading Member that it has qualified.
"qualifying subordinated loan"	The meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements).
R
"RBC Notice"	Notice on Risk Based Capital Adequacy Requirements for Holders of Capital Markets Services Licences [Notice No. SFA 04-N13] issued by the Authority.
"ready market"	The established principal market operated by SGX-ST wherein bona fide buy and sell orders for securities are made that allow for price discovery and where trade settlement is made within a reasonable period of time.
"recognised group A securities exchange"	An overseas securities exchange regulated by a financial services regulatory authority of a country or territory specified in Table 4 of the Fourth Schedule of the SFR (Financial and Margin Requirements).
"Registered Person"	Each of the Trading Members, Designated Market-Makers and their market-making representatives, Chief Executive Officers of Trading Members and Trading Representatives registered by SGX-ST in accordance with the Rules.
"Regulatory Notice"	A binding notice issued by SGX-ST on regulatory matters regarding the organised markets operated by SGX-ST, as the same may be amended, modified, supplemented or replaced from time to time.
"Relevant Regulatory Authority"	(a) An authority or regulatory body that regulates a Trading Member's or its Trading Representatives' activities in the country where it is carrying on such activities and from which it has applied for membership or registration with SGX-ST; and (b) where the Trading Member or its Trading Representatives are carrying on regulated activities in Singapore, the Authority.
"Remisier"	A Trading Representative who has an agency arrangement with a Trading Member that holds a Capital Markets Services Licence for any regulated activity in Singapore that it engages in.
"Remote Trading Member"	A Trading Member referred to under Rule 2.1.2.
"Rules"	SGX-ST Rules, including Directives and Regulatory Notices, and excluding Practice Notes or any notes or other annotations to the SGX-ST Rules, as the same may be amended, modified, supplemented or replaced from time to time.
S
"securities"	(a) shares, units in a business trust or any instrument conferring or representing a legal or beneficial ownership interest in a corporation, partnership or limited liability partnership; (b) debentures; (c) units in a collective investment scheme; (d) derivative contracts that are not futures contracts and of which the underlying instrument or any of the underlying instruments are any of the instruments set out in (a), (b) or (c) or an index on any of those instruments; or (e) any other product or class of products as SGX-ST or CDP may prescribe; whether or not they are classified as "securities" under the SFA, but excludes: (i) bills of exchange; (ii) certificates of deposit issued by a bank or finance company, whether situated in Singapore or elsewhere; or (iii) any product or class of products as SGX-ST or CDP may prescribe. For the avoidance of doubt, "securities" include (but are not limited to) warrants, transferrable subscription rights, options to subscribe for stocks or shares, convertibles, depository receipts and exchange traded funds.
"Securities Account"	In relation to any person, an account maintained directly with CDP or through a Depository Agent or the Central Provident Fund Board for holding securities for on behalf of that person.
"Securities and Futures Act" or "SFA"	Securities and Futures Act 2001, or any statutory modification, amendment or re-enactment thereof for the time being in force, or any statute that may replace it, and unless the context otherwise requires, includes any subsidiary legislation or regulations made pursuant thereto.
"Settlement Committee"	The committee referred to in Rule 8.12.3.
"SFR (Financial and Margin Requirements)"	Securities and Futures (Financial and Margin Requirements for Holders of Capital Markets Services Licences) Regulations or any statutory modification, amendment or re-enactment thereof for the time being in force, or any regulations that may replace it.
"SFR (Licensing and Conduct of Business)"	Securities and Futures (Licensing and Conduct of Business) Regulations or any statutory modification, amendment or re-enactment thereof for the time being in force, or any regulations that may replace it.
"SGX"	Singapore Exchange Limited.
"SGX Catalist"	The Catalist Board operated by SGX-ST.
"SGX-DT"	Singapore Exchange Derivatives Trading Limited.
"SGX Mainboard"	SGX-ST Mainboard.
"SGX RegCo"	Singapore Exchange Regulation Pte. Ltd.
"SGX RegCo Board"	Board of directors of SGX RegCo.
"SGX-ST"	Singapore Exchange Securities Trading Limited.
"SGX-ST approved order management system"	An order management system that has passed conformance testing and meets appropriate technical specifications as required by SGX-ST.
"Short Sell Order"	The meaning ascribed to it in Rule 8.7.3.
"Specified Capital Markets Products"	The meaning ascribed to it in Rule 8.7.3.
"Specified Instruments"	Securities or futures contracts that SGX-ST prescribes for trading by a Designated Market-Maker.
"Specified Product"	The meaning ascribed to it in the Securities and Futures Act.
"Sponsored Access"	A form of Direct Market Access in which a Trading Member permits its customer and any other persons to use its member ID to transmit orders for execution directly to SGX-ST without using the Trading Member's infrastructure.
"Stock Account"	The Securities Account maintained by a Trading Member to house its proprietary securities.
T
"total risk requirement"	The meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements).
"Trade at Close"	A trade executed in the trade at close trading phase as described in Regulatory Notice 8.2.1.
"Trading Account"	An account used for sending orders to the Trading System through an SGX-ST provided or SGX-ST approved order management system.
"Trading Member"	An entity that has been approved as Trading Member in accordance with the Rules.
"Trading Representative"	A person who is employed by or acts for or by arrangement with a Trading Member to deal in capital markets products on SGX-ST.
"Trading System"	Any electronic trading system for the automatic matching of orders designated and approved by SGX-ST for transactions on SGX-ST.
U
"unit share market"	The securities market operated by SGX-ST in which an order may be matched in any quantity of less than one board lot.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019 and amended on 18 January 2022.

13.2 Interpretation

13.2.1

Unless the context requires otherwise:

(a) terms not defined in the Rules have the same meaning as in the Securities and Futures Act or the Companies Act;

(b) a reference to any Singapore statute or statutory provision is to that statute or provision as so modified, amended or re-enacted or contained in any subsequent Act or regulations. A reference to a Singapore statute shall include the regulations, notices, directives, orders, guidelines, circulars and codes issued thereunder;

(c) the singular includes the plural and vice versa;

(d) a reference to currency, whether in word or symbol, is to Singapore dollar;

(e) a reference to a day is to a calendar day;

(f) a reference to a time of day is a reference to Singapore time; and

(g) any word signifying any gender shall include all genders.

Added on 3 June 2019 3 June 2019.

13.2.2

Notwithstanding anything to the contrary, any reference in the Rules to "discretion" shall be construed to refer to SGX-ST's "sole and absolute discretion"; any determination to be made by the SGX-ST or any exercise by the SGX-ST of any rights or entitlement may be made at the SGX-ST's sole and absolute discretion and, in every case, shall be conclusive and binding. The word "includes" or "including" as used in the Rules shall be construed to mean "includes without limitation" or, as the case may be, "including without limitation".

Added on 3 June 2019 3 June 2019.

Directives

There are no directives at the moment in the SGX-ST Rules.

Regulatory Notices

Regulatory Notice 4.1 — Adequacy of Systems

1. Introduction

1.1 In accordance with Rule 4.1, a Trading Member must ensure that its systems and connections to the Trading System operate properly at all times, and have adequate redundancy and scalable capacity to accommodate current and anticipated trading volume levels.

2. Planning and Assessment Programs to Ensure Adequacy

2.1 In ensuring the adequacy of systems and connections to the Trading System, Trading Members should establish comprehensive planning and assessment programs to test system operation, capacity and security. Trading Members should also have in place arrangements for the employment of appropriate technical expertise to maintain and operate systems and connections to the Trading System.

2.2 The scope of such programs should cover:

(a) the establishment of capacity estimates for systems performing automated order routing, execution and market data functions. Such estimates should be based on a suitably long look-back period and historical activity;

(b) assurance that the system and its functions, including risk controls and error-prevention alerts, have been tested in accordance with prudent business practices before use and following any material change;

(c) periodically conducting capacity stress tests to determine the behaviour of automated systems under a variety of simulated conditions;

(d) seeking on a periodic basis the assessment of independent reviewers with regard to whether Trading Members' systems are performing adequately and whether these systems have adequate security. Such independent reviewers may be any persons not involved in the operation of Trading Members' systems who have sufficient technical expertise; and

(e) implementation of policies for the hiring and training of qualified technical personnel.

2.3 The programs described in paragraph 2.2 may be established under outsourcing arrangements where appropriate. Members continue to be responsible for ensuring that the respective requirements are adequately met under the outsourcing arrangements.

Added on 3 June 2019 3 June 2019.

Regulatory Notice 4.13.1 — Audit Trails and Records

1. Introduction

1.1 In accordance with Rule 4.13.1, a Trading Member and its Trading Representative must maintain proper, complete and accurate records and audit trails, including a complete audit trail of transactions, whether entered into for itself or the Trading Member's customers, from the receipt of an order to its settlement, to evidence compliance with the Rules.

2. Storage of Audit Trail Data

2.1 In accordance with Rule 4.13.2, the Trading Member must keep data and records such that they are easily retrievable by authorised personnel and are stored securely such that no tampering occurs. Backups of records must be kept at a location separate from the original records.

2.2 The Trading Member must also check data and records for quality and accuracy on an on-going basis and correct any quality or accuracy defects detected.

2.3 The following are examples of proper procedures in maintaining records and audit trails:

(a) for electronic storage of audit trail data:

(i) the Trading Member is able to store or download the data in text delimited or ASCII format or such other format that is readable by SGX-ST;

(ii) the Trading Member is able to print out the data in hard copies;

(iii) the Trading Member has proper back-up controls for its data and records;

(iv) the order management system has dated and clocked all data files placed on storage media to reflect the computer run time of the file; and

(b) for non-electronic storage of audit trail data, the Trading Member has paper records showing all the actions of an order (from the point the order is entered) and the respective times and dates, and there are paper records to reflect the print time and date.

3. Audit Trail of Transactions

3.1 A Trading Member must produce to SGX-ST, if asked, a complete audit trail of transactions, whether entered into for itself or its customers, from the receipt of an order to its settlement. Unless otherwise required by SGX-ST, for trades and orders that occurred within the six-month period immediately before the request, the records must be provided to SGX-ST immediately, and for trades and orders that occurred more than six months prior to the request, the records must be provided to SGX-ST no later than two business days from the date of request.

3.2 For a complete audit trail of transactions, a Trading Member must ensure that the following records are captured, where applicable:

Record of all Fields Relating to Order Entry

1.	Connection ID
2.	Trader ID and name
3.	Client ID and name — from customer account carried on the books of the Trading Member
4.	Trading Account code
5.	Position Account code
6.	User ID and name — used to log into Trading Member's systems
7.	Order ID — assigned by the Trading System
8.	Order type — e.g. good-till-cancelled order, all-or-none order, etc
9.	Buy/sell
10.	Counter name and quantity to be bought/sold
11.	Order price — including original trigger price for stop orders
12.	Settlement instructions — e.g. settlement with CPF funds, contra etc
13.	Force Key usage
14.	Flow of order — if order passes through multiple systems prior to reaching the market
15.	Identity of order reviewer — if any
16. 17.	Description of amendments made — if any Date and time of order entry, and of any actions taken relating to the order—including transmission, rejection, amending, routing, filtering, execution, withdrawal, etc and should include orders that are progressively released.
18.	Error messages and subsequent actions taken by the user, reviewer or system
19.	Status of order — such as the order being partially filled, fulfilled, unfilled, withdrawn, amended, rejected, etc
20.	Executed order number — assigned by the Trading System
21.	Traded price — for executed orders
22.	Counter name and quantity bought/sold — for executed orders
23.	Counterparty Trading Member identity — for executed orders
24.	Orders and trades in Trading Member records not stored electronically — to be referenced to Order ID and executed order numbers assigned by the Trading System
25.	Any other relevant records/instructions

3.3 For record of times required under the Rules, the Trading Member must ensure that:

(a) the record of times should be to the highest level of precision achievable by the operating system and such record must be accurate at least to the second;

(b) the times captured must not use a clock that can be modified by the person entering the order; and

(c) the time in the order management system should be synchronised with the GPS time adopted by SGX-ST. If it is not feasible to synchronise the times, the Trading Member must maintain on record the time difference at the start of each Trading Day so as to facilitate the reconciliation of audit trail logs during audit and security incident investigations.

Added on 3 June 2019 3 June 2019.

Regulatory Notice 4.13, 4.16, 4.24, 4.25 and 4.29 — Operational Requirements for Remote Trading Members

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:

(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:

(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:

(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.

2.5 Customer's monies and assets

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 2019 3 June 2019.

Regulatory Notice 4.24.1 — Contract Notes

1. Introduction

1.1. Rule 4.24.1 requires a Trading Member to send its customer a contract note for any purchase or sale of securities or futures contracts.

1.2. This Regulatory Notice sets out:

(a) other Rules that are of relevance to the requirement to send contract notes to customers; and

(b) the internal controls that Trading Members should have with respect to operational processes for sending contract notes to customers.

2. Other relevant Rules

2.1. Rule 4.24.1 should be read together with the following Rules:

(a) Rule 4.27.2 requires a Trading Member to communicate directly with its customers in respect of statements, contract notes or all other information, whether in writing or electronically, unless the customer has authorised otherwise in writing;

(b) Rule 4.27.3 requires a Trading Member to send contract notes to the customer's residential address or any other address authorised by the customer. This is to guard against unauthorised trading. If the customer chooses for contract notes and statements to be sent to a "care of" address or the Trading Representative's address, the Trading Member must explain the risk of unauthorised trading to the customer, obtain the customer's written authorisation for such arrangement, and monitor the customer's accounts for any unauthorised trading activities.

(c) Rule 4.27.4 requires that a Trading Member must not allow any person other than the customer to collect any cash, share certificates, contract notes, credit or debit notes, cheques or statements, unless the customer has authorised that person in writing; and

(d) Rule 4.9.3 requires a Trading Member to have processes in place to minimise and manage any conflicts of interest, including but not limited to separating its front office and back office functions.

3. Internal controls with respect to contract notes

3.1. Trading Members should have appropriate internal controls in place to ensure that no contract note is omitted or suppressed. Basic controls that Trading Members should have in place include the following:

(a) proper controls to maintain the accuracy of customers' contact information;

(b) robust controls over the generation and dissemination of contract notes;

(c) proper segregation between the personnel responsible for trade execution and the personnel responsible for generating and disseminating contract notes; and

(d) ensuring that appropriate channels are available for customers to enquire about or verify transactions reflected in their contract notes.

Added on 3 June 2019 3 June 2019.

Regulatory Notice 4.34.4 and 4.34.5 — Allocation of Trades to Position Accounts

1. Introduction

1.1 Rule 4.34.4 requires a Trading Member that is not authorised to allocate positions to an Authorised Account to instruct its qualifying Clearing Member to allocate the position of each trade executed by the Trading Member to the Trading Member's Position Account(s) or, where the position is of a trade executed for a customer, in accordance with that customer's instructions, as soon as practicable, and in any event no later than such time as may be required for timely and orderly settlement of the relevant trade into the intended Securities Account.

1.2 This Regulatory Notice provides guidance on the timelines within which such allocation is to be completed by in various circumstances.

2. Timelines for Allocation of Positions

2.1 With the exception of warehoused trades, the Trading Member shall instruct its qualifying Clearing Member to allocate the position of each trade cleared by the Clearing Member for the Trading Member to a specified Position Account immediately upon the trade being cleared, or at the latest by the end of the next Market Day immediately following the trade date.

3. Warehoused trades

3.1 For warehoused trades under Rule 4.34.5(b), each Trading Member must ensure that no customer's trade is warehoused for more than one Market Day, unless under exceptional circumstances. The Trading Member shall instruct its qualifying Clearing Member to allocate the position of each trade to a specified Position Account immediately after the order is completed, or at the latest by the end of the Market Day on which the order is completed.

Added on 3 June 2019 3 June 2019.

Regulatory Notice 8.2.1 — Trading Hours, Market Phases, Application of Market Phases and Principles and Rules for Trade Matching

1. Introduction

1.1 Rule 8.2.1 states that the trading hours, market phases, application of the market phases and principles and rules for trade matching, are as published by SGX-ST.

1.2 This Regulatory Notice sets out the trading hours, market phases, application of the various market phases and the principles and rules used by SGX-ST for trade matching.

2. Market Phases

2.1 Pre-Open/Pre-Close

(a) This phase allows order entry, order modification and withdrawal of orders but no matching of orders.

(b) The bid (offer) can be higher (lower) than the offer (bid).

2.2 Non-Cancel

(a) No order entry and amendment are allowed in this phase.

(b) All existing orders that can be matched are matched at a single price according to the algorithm set by SGX-ST.

(c) All unmatched orders are carried over to the next phase unless they expire.

2.3 Trading

(a) This phase allows order entry, order modification and withdrawal of orders.

(b) All orders are matched in accordance with price priority, subject to Rule 8.14, followed by time priority.

2.4 Adjust

(a) An Adjust Phase operates upon the lifting of a suspension of a security or futures contract pursuant to Rule 8.13.7, and may also be applied pursuant to Rule 8.13.2.

(b) The Adjust Phase sets in for 15 minutes unless a longer time is specified.

(c) Orders can be entered, modified or withdrawn.

(d) The bid (offer) can be higher (lower) than the offer (bid).

(e) Orders that can be matched will be matched at the end of the Adjust Phase at a single price computed based on an algorithm set by SGX-ST before normal trading resumes. Unmatched orders at the end of the Adjust Phase are carried forward into the phase of the market applicable when the Adjust Phase ends, except in the following scenarios:

(i) When the end of the Adjust Phase coincides with the Opening Routine, Mid-Day Break or Closing Routine. In these circumstances, orders entered are carried forward into and matched accordingly in the respective Opening Routine, Mid-Day Break or Closing Routine.

(ii) When SGX-ST specifies that the Adjust Phase is to be followed immediately by a Non-Cancel Phase. In these circumstances, the Non-Cancel Phase will begin simultaneously with the end of the Adjust Phase, which may be at any time within a one-minute window. Orders are carried forward into the Non-Cancel Phase. Orders that can be matched will be matched at a single price computed based on an algorithm set by SGX-ST before normal trading resumes. Unmatched orders at the end of the Non-Cancel Phase are carried forward into the phase of the market applicable when the Non-Cancel Phase ends.

For illustrative purposes only:

SGX-ST specifies the Adjust Phase is to be followed immediately by a Non-Cancel Phase and further specifies that the Non-Cancel Phase will begin from 10:15 hours to 10:16 hours. In this case, the Adjust Phase will end simultaneously with the beginning of the Non-Cancel Phase at any time from 10:15 hours to 10:16 hours. Normal trading will begin at 10:17 hours.

(iii) When SGX-ST closes the market or suspends trading pursuant to Rule 8.13.1, at the end of the Adjust Phase. In this case, SGX-ST will inform participants on the status of unmatched orders.

2.5 Trade at Close

(a) For each security, this phase will occur only if an Equilibrium Price (as defined in paragraph 4) is determined at the end of the Closing Routine.

(b) This phase allows order entry, withdrawal of orders and order amendment with regard to volume and price, save that any order amendment with regard to price can only be made to the Equilibrium Price determined at the end of the Closing Routine.

(c) Orders may be entered in this phase only at the Equilibrium Price determined at the end of the Closing Routine.

(d) All orders are matched in accordance with time priority, at the Equilibrium Price determined at the end of the Closing Routine.

(e) All unmatched orders are carried over to the next phase unless they expire.

3. Trading hours and application of market phases

3.1 Summary

(a) Normal Day Trading
Opens/Starts at: 08:30 hours
Closes/Ends at: 17:16 hours

08.30	08.58-59		9.00		12.00		12.58-59		13.00		17.00		17.04-05		17.06		17.16
Pre-Open		Non-Cancel		Trading		Pre-Open		Non-Cancel		Trading		Pre-Close		Non-Cancel		Trade at Close
Opening Routine						Mid-Day Break						Closing Routine

(b) Half-Day Trading
Opens/Starts at: 08:30 hours
Closes/Ends at: 12:16 hours

08.30	08.58-59		9.00		12.00		12.04-05		12.06		12.16
Pre-Open		Non-Cancel		Trading		Pre-Close		Non-Cancel		Trade at Close
Opening Routine						Closing Routine

3.2 Opening Routine

(a) The Opening Routine is a 30-minute session before normal trading starts at 09:00 hours. It comprises a Pre-Open Phase and a Non-Cancel Phase.

(b) Pre-Open Phase (08:30 hours to 08:58–59 hours)

(i) This phase begins at 08:30 hours and ends randomly at any time from 08:58 hours to 08:59 hours.

(c) Non-Cancel Phase (08:58–59 hours to 09:00 hours)

(i) This phase begins simultaneously with the end of the Pre-Open Phase, which may be at any time from 08:58 to 08:59 hours.

(ii) The computed price will be the opening price for the day.

(iii) Unmatched orders are carried forward into the morning trading session.

3.3 Trading Session

(a) In normal day trading, there is a morning trading session and an afternoon trading session.

(i) The morning trading session consists of a Trading Phase which begins at 09:00 hours and ends at 12:00 hours.

(ii) The afternoon trading session consists of a Trading Phase which begins at 13:00 hours and ends at 17:00 hours.

(b) In half day trading, there is one trading session which consists of a Trading Phase that begins at 09:00 hours and ends at 12:00 hours.

(c) Unmatched orders after the Trading Phase in the morning trading session (for normal day trading) are carried forward to the Mid-Day Break.

(d) Unmatched orders after the Trading Phase in the afternoon trading session (for normal day trading) and after the Trading Phase (for half-day trading) are carried forward to the Closing Routine.

3.4 Mid-Day Break

(a) The Mid-Day Break is a 60-minute session that begins after the morning trading session ends at 12:00 hours, and ends before the afternoon trading session begins at 13:00 hours. It comprises a Pre-Open Phase and a Non-Cancel Phase.

(b) Pre-Open Phase (12:00 hours to 12:58–59 hours)

(i) This phase will end randomly at any time from 12:58 hours to 12:59 hours.

(c) Non-Cancel Phase (12:58–59 hours to 13:00 hours)

(i) This phase begins simultaneously with the end of the Pre-Open Phase, which may be at any time from 12:58 hours to 12:59 hours.

(ii) The computed price will be the opening price for the afternoon trading session.

(iii) Unmatched orders are carried forward into the afternoon trading session.

3.5 Closing Routine

(a) The Closing Routine is a six-minute session after trading stops at 17:00 hours for normal day trading, or 12:00 hours for half-day trading. It comprises a Pre-Close Phase and a Non-Cancel Phase.

(b) All unmatched orders are carried forward to the Closing Routine at 17:00 hours (for normal day trading) or 12:00 hours (for half-day trading).

(c) Pre-Close Phase (17:00 hours to 17:04–05 hours/12:00 hours to 12:04–05 hours)

(i) This phase will end randomly at any time from 17:04 hours to 17:05 hours (for normal day trading) or 12:04 hours to 12:05 hours (for half-day trading).

(d) Non-Cancel Phase (17:04–05 hours to 17:06 hours/12:04–05 hours to 12:06 hours)

(i) This phase will begin simultaneously with the end of the Pre-Close Phase, which may be at any time from 17:04 hours to 17:05 hours (for normal day trading) or 12:04 hours to 12:05 hours (for half-day trading).

(ii) Unmatched orders are carried forward into the Trade at Close Phase.

(e) The Closing Routine is designed to reduce the risk of manipulating closing prices with a single transaction at an unusually high or low price, just before the trading session ends.

3.6 Trade at Close Phase

(a) The Trade at Close Phase is a ten-minute session that begins after the Closing Routine ends at 17:06 hours (for normal day trading) and 12:06 hours (for half-day trading).

(b) Unless they expire, unmatched orders after the Trade at Close Phase will remain in the order book and will be carried forward to the Opening Routine of the next Market Day.

4. Algorithm used by SGX-ST to compute the single price at which orders at the end of the Opening Routine, Mid-Day Break, Closing Routine and Adjust Phase are matched

The methodology for computing the single price at which orders are matched ("Equilibrium Price") at the end of the Opening Routine, Mid-Day Break, Closing Routine and Adjust Phase is as follows¹:

4.1 The Equilibrium Price is the price that has the largest tradable volume and the lowest imbalance. "Imbalance" refers to the net difference between the cumulative bid volume and cumulative ask volume. See Example 1.

Example 1

Bid Volume	Price	Ask Volume	Cumulative Bid Volume (a)	Cumulative Ask Volume (b)	Tradable Volume	Imbalance (a)–(b)	Pressure
90	3.810	20	90	250	90	160	Sell
30	3.800	40	120	230	120	70	Sell
70	3.790	30	190	190	190	0	Nil
100	3.780	80	290	160	160	130	Buy
50	3.770	50	340	80	80	260	Buy
0	3.760	20	340	30	30	310	Buy
0	3.750	10	340	10	10	330	Buy

In this example, the Equilibrium Price is $3.790 where the tradable volume is the largest and the imbalance is the lowest. If the highest tradable volume occurs at more than one price the algorithm will then consider imbalance, see sub-paragraph (b).

4.2 If the highest tradable volume occurs at more than one price the Equilibrium Price is the price with the lowest imbalance. See Example 2.

Example 2

Bid Volume	Price	Ask Volume	Cumulative Bid Volume (a)	Cumulative Ask Volume (b)	Tradable Volume	Imbalance (a)–(b)	Pressure
90	3.810	20	90	270	90	180	Sell
30	3.800	40	120	250	120	130	Sell
70	3.790	20	190	210	190	20	Sell
100	3.780	110	290	190	190	100	Buy
50	3.770	50	340	80	80	260	Buy
0	3.760	20	340	30	30	310	Buy
0	3.750	10	340	10	10	330	Buy

In this example, the Equilibrium Price is $3.790 where the tradable volume is the largest (190) and the imbalance is the lowest (20).

If market orders are present a situation may arise in which the lowest imbalance occurs at "Market Price", see paragraph (4.3).

If the highest tradable volume and lowest imbalance occur at more than one price the algorithm will then consider market pressure, see paragraph (4.4).

4.3 If market orders are present and the market order volume on one side exceeds the cumulative order volume on the opposite side there would be a Market Order Surplus. This means that the lowest imbalance occurs at "Market Price". In this situation, one tick will be added on the side with the Market Order Surplus and that would be the Equilibrium Price. See Example 3.

Example 3

Bid Volume	Price	Ask Volume	Cumulative Bid Volume (a)	Cumulative Ask Volume (b)	Tradable Volume	Imbalance (a)–(b)	Pressure
30	MKT		30	20	20	10	Buy
	3.810		30	20	20	10	Buy
10	3.800		40	20	20	20	Buy
	3.790		40	20	20	20	Buy
10	3.780		50	20	20	30	Buy
	3.770	10	50	20	20	30	Buy
	3.760		50	10	10	40	Buy
	3.750	10	50	10	10	40	Buy
	MKT		50	0

In this example, the lowest imbalance (10) occurs where market order bid volume (30) exceeds cumulative ask volume (20). One tick has therefore been added on the bid side, and the Equilibrium Price is $3.810.

4.4 If the highest tradable volume and lowest imbalance occur at more than one price ("the price overlap") the Equilibrium Price is determined by market pressure:

(a) with only buy pressure within the price overlap, the Equilibrium Price is the highest price within the price overlap, or

(b) with only sell pressure within the price overlap, the Equilibrium Price is the lowest price within the price overlap.See Example 4.

Buy (sell) pressure occurs when the cumulative bid (offer) volume is greater than the cumulative offer (bid) volume at a particular price.

Example 4

Bid Volume	Price	Ask Volume	Cumulative Bid Volume (a)	Cumulative Ask Volume (b)	Tradable Volume	Imbalance (a)–(b)	Pressure
90	3.810	20	90	250	90	160	Sell
30	3.800	40	120	230	120	110	Sell
90	3.790	0	210	190	190	20	Buy
0	3.780	110	210	190	190	20	Buy
50	3.770	50	260	80	80	180	Buy
0	3.760	20	260	30	30	230	Buy
0	3.750	10	260	10	10	250	Buy

In this example there is only buy pressure in price overlap, the Equilibrium Price is $3.790 which is the highest price in the price overlap.

4.5 If the highest tradable volume and lowest imbalance occur at more than one price and there is both buy and sell pressure or nil pressure within the price overlap, the Equilibrium Price is:

(a) the price within the price overlap that is the closest to the last traded price, or

(b) where there is no last traded price, the lowest price within the price overlap.

See Example 5.

Example 5

Bid Volume	Price	Ask Volume	Cumulative Bid Volume (a)	Cumulative Ask Volume (b)	Tradable Volume	Imbalance (a)–(b)	Pressure
90	3.810	20	90	270	90	180	Sell
30	3.800	40	120	250	120	130	Sell
90	3.790	0	210	210	210	0	Nil
0	3.780	130	210	210	210	0	Nil
50	3.770	50	260	80	80	180	Buy
0	3.760	20	260	30	30	230	Buy
0	3.750	10	260	10	10	250	Buy

In this example, assuming that the last traded price was $3.800, the Equilibrium Price is $3.790.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

¹ The examples shown are not exhaustive.

Regulatory Notice 8.3 — Closing Price of Prescribed Instrument

1. Introduction

1.1 Rule 8.3 states that the closing price of a Prescribed Instrument shall be calculated in accordance with the relevant formula and procedure applicable to each Prescribed Instrument, as determined by SGX-ST from time to time. In arriving at such formula and procedure, SGX-ST may take into account factors, including but not limited to:

(a) the last traded price;

(b) prevailing bids and offers during the trading phase and/or closing routine; and/or

(c) price data derived from pricing models selected or established by SGX-ST from time to time.

1.2 This Regulatory Notice sets out the formula and procedure that SGX-ST may use to determine the closing price of Prescribed Instruments as contemplated in the above Rule.

1.3 Unless the context requires otherwise, the following terms shall have the meanings ascribed to them in Regulatory Notice 8.2.1:

(a) "Closing Routine"; and

(b) "Trading Phase".

1.4 The list of securities, futures contracts or products or classes of securities, futures contracts or products that have been prescribed as Prescribed Instruments under Rule 8.3 is set out in Appendix A To Regulatory Notice 8.3.

Refer to Appendix A To Regulatory Notice 8.3.

2. Closing price of Prescribed Instruments

2.1 SGX-ST may use any of the following as the closing price of a Prescribed Instrument for a Market Day:

(a) the single price at which orders are matched at the end of the Closing Routine as set out in Regulatory Notice 8.2.1;

(b) the last traded price that occurred in the Closing Range;

(c) a price determined by SGX-ST taking into account the bid and offer prices present in the Trading System during the Closing Range;

(d) the last traded price that occurred prior to the Closing Range;

(e) the closing price of the previous Market Day; or

(f) price data derived from pricing models selected or established by SGX-ST from time to time.

2.2 The Closing Range, for the purposes of this Regulatory Notice, shall be the last 15 minutes of the Trading Phase, or such other time as may be determined by SGX-ST and notified to the market from time to time.

2.3 Where SGX-ST deems it necessary or desirable for ensuring a fair, orderly and transparent market or the integrity of the market, or for proper management of systemic risk in the market, SGX-ST may use an alternative formula and/or procedure to determine the closing price of a Prescribed Instrument.

2.3 SGX-ST shall, as soon as practicable, notify the Authority of any action taken by SGX-ST pursuant to paragraph 2.3 of this Regulatory Notice.

Added on 3 June 2019 3 June 2019 and amended on 9 November 2020.

Appendix A to Regulatory Notice 8.3

Prescribed Instruments

1	Exchange traded funds
2	Daily leverage certificates
3	Structured certificates

Added on 9 November 2020 and amended on 3 July 2023.

Regulatory Notice 8.4 — Procedures for Contingency Order Withdrawal

1. Introduction

1.1 Rule 8.4.1 states that upon a Trading Member's request, SGX-ST may assist the Trading Member with the withdrawal of an order if the Trading Member is unable to do so without SGX-ST's assistance, provided that the circumstances, conditions and operational procedures as prescribed by SGX-ST are complied with.

1.2 This Regulatory Notice sets out those circumstances, conditions and operational procedures pursuant to which SGX-ST will assist Trading Members effect order withdrawals.

2. Technical fault and withdrawal by SGX on reasonable efforts basis

2.1 In the event of Technical Faults, SGX-ST will assist in effecting order withdrawals at the request of the Trading Members and subject to the terms and procedures set forth below.

"Technical Faults" as used herein refers to any loss of connection to the Trading System or any technical defects in any equipment, system, device or market facility that prevents a Trading Member from effecting order withdrawals without SGX-ST's assistance.

2.2 Order withdrawal by SGX-ST in the event of a Technical Fault will be effected on a reasonable endeavours basis. The Trading Member agrees that SGX-ST has no liability for order withdrawals and related activities conducted on behalf of a Trading Member.

2.3 The Trading Member indemnifies and will keep indemnified SGX-ST against all actions, proceedings, claims, demands, damages, costs, expenses and any other amounts against or incurred by SGX-ST arising out of or in connection with any action taken or any inaction by any of SGX-ST, or its officers, employers, agents, delegates or contractors with respect of such order withdrawals.

2.4 For the avoidance of doubt, nothing in this Regulatory Notice should be construed as limiting a Trading Member's obligation to install and maintain a robust and technically sound system, risk management processes or business continuity plans as required under the Rules or any applicable laws.

2.5 Trading Members may request SGX-ST to withdraw orders at the following levels:

(a) Individual Order level	based on Order ID number
(b) Firm level	based on Trading Member Company Code/SGX Access User ID number (where the firm has more than one SGX Access connection, it is possible to withdraw orders based on specific SGX Access User ID number)
(c) Client level	based on Client Account number of a specific SGX Access User ID number

3. Operational safeguards and discrepancies

3.1 A Trading Member must comply with the instructions and directions issued by SGX Securities Market Control when effecting order withdrawals as contemplated herein. SGX-ST also reserves the right to refuse any such request without providing any reason.

3.2 All verbal requests for order withdrawals ("Requests") will be recorded by SGX-ST. Trading Members are also required to comply with various operational safeguards and procedures as issued by Trading Market Control from time to time including matters relating to the:

(a) Appointment of authorised officers by Trading Members to effect order withdrawals and the provision of authentication details in connection therewith.

(b) Prompt notification to SGX Securities Market Control of any changes to authorised officers, and any changes to an authorised officer's information.

(c) Effecting of Requests via telephone numbers as designated by SGX-ST with verification by SGX Securities Market Control on the identity of the caller by requiring the caller to respond correctly to authentication questions.

(d) Submission of an order withdrawal forms with such material information as requested by SGX-ST.

(e) Processing of Requests at firm level, client level and individual level.

3.3 If a Trading Member finds any discrepancies between an order withdrawal form and the Request, the Trading Member should notify SGX Securities Market Control immediately with details of such discrepancies. Depending on the nature of the discrepancy, SGX Securities Market Control would generally rely on the voice recording for its post-withdrawal investigations.

Added on 3 June 2019 3 June 2019.

Regulatory Notice 8.5.2 — Minimum Bid Size

1. Introduction

1.1 Rule 8.5.2 states that SGX-ST may prescribe the minimum bid size of each product.

1.2 This Regulatory Notice sets out the minimum bid size of each product.

2. Minimum bid size

2.1 Unless otherwise determined by SGX-ST, the minimum bid size of the following products shall be as follows:

S/N	Product	Price Range ($)	Minimum Bid Size ($)
1	Stocks (excluding preference shares), real estate investment trusts (REITs), business trusts, company warrants and any other class of securities or futures contracts not specified in this paragraph 2.1	Below 0.20	0.001
		0.20 – 0.995	0.005
		1.00 and above	0.01
2	Structured warrants	Below 0.20	0.001
		0.20 – 1.995	0.005
		2.00 and above	0.01
3	Exchange traded funds, exchange traded notes	All	$0.01 or $0.001 as determined by SGX-ST
4	Debentures, bonds, loan stocks and preference shares	All	$0.001

For the avoidance of doubt, the minimum bid sizes above apply to securities and futures contracts denominated in all currencies, except the Hong Kong Dollar ("HKD"), Renminbi ("RMB") or Japanese Yen ("JPY"). For securities and futures contracts traded in HKD, RMB and JPY, the minimum bid sizes shall as far as practicable be aligned to the minimum bid sizes applicable in Hong Kong and Japan respectively.

Added on 3 June 2019 3 June 2019.

Regulatory Notice 8.7 and 8.9 — Obligations of Trading Members to Mark Sell Orders

1. Introduction

1.1 Rule 8.7.1 requires each sell order for Specified Capital Markets Products to be marked to indicate to SGX-ST whether it is a Short Sell Order or a normal sell order. The quantity, volume or value of the Specified Capital Markets Product in which a person intends to make or is making a Short Sell Order shall also be indicated.

1.2 Rule 8.7.2 states that a Trading Member and its Trading Representative shall not enter a sell order in the Trading System if a customer has not indicated whether the sell order is a Short Sell Order or a normal sell order and/or has not provided the information relating to the quantity, volume or value of the Specified Capital Markets Product in which the customer intends to make or is making a Short Sell Order.

1.3 Rule 8.7.3 defines a "Short Sell Order" as any order to sell any Specified Capital Markets Product where the person who makes the order does not, at the time of the order, have an interest in the Specified Capital Markets Product as specified under section 137ZH of the Securities and Futures Act.

1.4 Rule 8.7.5 requires a Trading Member to implement the procedures and systems to facilitate compliance with the obligations set out in Rule 8.7.

1.5 Rule 8.7.7 states that SGX-ST may, at its discretion, waive the requirement to mark sell orders for specific classes of market participants.

1.6 Rule 8.9 states that a Trading Member may submit a report of erroneously marked sell orders through such facility that is provided by SGX-ST and shall ensure that the report:

(a) adheres to the requirements for submission established by SGX-ST; and

(b) is complete and accurate.

1.7 This Regulatory Notice further sets out a Trading Member's obligations pursuant to Rule 8.7.1, 8.7.2, 8.7.5 and 8.9.

1.8 SGX-ST will publish the short sale information collected in this manner before the start of each Market Day. Greater transparency to the market of short selling activities can be beneficial, by providing more timely information to better look after investors' interests, and to reduce the risk of manipulative or other unfair trading practices.

2. Marking of Sell Orders

2.1 The marking of sell orders should be viewed as part of information required for order entry.

2.2 Trading Members who are concerned about confidentiality of clients' order information should include in their client agreement that trading activities are subject to short selling requirements that are prescribed by SGX-ST and the Authority.

2.3 Trading Members should have in place the following measures to be in compliance with Rule 8.7.5:

(a) Sell orders received through voice broking

Clear procedures should be in place to require Trading Representatives to ask a customer whether a sell order is a Short Sell Order or a normal sell order. Procedures should also be in place to ensure that the Trading Representative or the dealing assistant correctly enters the sell order into the Trading System. The Trading Member is not required to put in place voice recording facilities beyond its existing practices.

(b) Sell orders entered through order management systems (including Internet Trading platforms)

The trading interface should require the customer to indicate whether a sell order is a Short Sell Order or a normal sell order at the point of order entry. It should also ensure that a sell order cannot be transmitted to the Trading System if it is not marked either as a Short Sell Order or a normal sell order.

(c) Sell orders entered by customers with Sponsored Access

A Trading Member must ensure that all customers with Sponsored Access to the Trading System ("Sponsored Customers") can fulfil the requirements of Rule 8.7.5. A Trading Member must ensure that all Sponsored Customers have the necessary operational and technical systems and procedures in place:

(i) to enable sell orders to be marked as a Short Sell Order or a normal sell order at the point of order entry in the customer's order management system; and

(ii) to ensure that a sell order cannot be transmitted to the Trading System if it is not marked either as a Short Sell Order or a normal sell order.

When determining whether the obligation on Trading Members set out in this paragraph 2.3(c) has been fulfilled by Trading Members, a relevant consideration for SGX-ST is whether the requirements on Sponsored Customers have been set out in legally enforceable documents.

(d) Record keeping

A Trading Member's daily record of orders received from customers, maintained in accordance with Rule 5.13, should show whether a sell order is a Short Sell Order or a normal sell order.

2.4 A Trading Member should also require each seller to split partial short orders, where he does not own the full quantity of securities to be sold, into two separate orders. One order is for the portion he owns (i.e. normal sell order) and the other for the portion that he does not (i.e. Short Sell Order).

3. Definition of a Short Sell Order

3.1 A person shall be deemed to have an interest in a Specified Capital Market Product if the person is deemed to have an interest in the Specified Capital Markets Product under section 137ZH of the Securities and Futures Act. Some examples of interest in a Specified Capital Markets Product are set out below:

(a) An investor purchases shares on T. He subsequently sells the same quantity of the shares one day later (i.e. on T+1) with settlement obligation accordingly due on T+3. The order to sell the shares is a normal sell order.

(b) An investor, whose shares in Company A are loaned out under a securities lending agreement, sells those shares on T. His settlement obligations are accordingly due on T+2. Under the terms of the securities lending agreement, the borrower is to return the shares to the investor before the time that the investor is to deliver the shares. The order to sell the shares is a normal sell order.

Compliance with Rule 8.7.1 under specific circumstances

3.2 SGX-ST wishes to clarify the treatment of sell orders under the following scenarios:

(a) A seller holds his shares in trust with an overseas custodian. In the ordinary course of business, the shares are available to CDP for settlement. An order to sell these shares is a normal sell order.

(b) A seller holds shares listed on an overseas exchange and held with an overseas custodian. An order to sell these shares on SGX-ST is a normal sell order if in the ordinary course of business, the shares are available to CDP for settlement. In order for the shares to be available to CDP for settlement, the shares must be in the seller's depository account, or if he is settling through a depository agent, his depository agent's sub-account maintained with CDP. The seller is required to instruct the overseas custodian to transfer the shares into the seller's depository account or his depository agent's sub-account maintained with CDP.

(c) A seller lends his shares but has a right of recall under the relevant securities borrowing and lending agreement. An order to sell these shares is a normal sell order if in the ordinary course of business where the seller recalls the shares, the shares are available to CDP for settlement. The seller is not required to recall the shares prior to placing the order.

(d) A lender liquidates the shares that a borrower had placed with him as collateral, due to the default of a borrower. An order to sell these shares is a normal sell order.

(e) A seller borrows the amount of shares being sold prior to placing the sell order. The seller is not deemed to have an interest in the shares under the Securities and Futures Act. Therefore, the sell order is a Short Sell Order.

(f) A seller agrees to buy shares at the day's closing price or at a volume-weighted average pricing as part of his client facilitation activities and does not have any reason to believe that the agreement would not be fulfilled. Before the price is confirmed, he sells the shares. The sell order is a normal sell order.

3.3 The marking of sell orders should be based on what the investor knows about its positions at the time of order entry. An example is set out below:

(a) An investor holds 5,000 shares of Stock A. He puts in a sell order for 5,000 shares of Stock A. This is a normal sell order. He also puts in a buy order for 3,000 shares of Stock A.

(b) Subsequently he enters a sell order for 2,000 shares of Stock A. At the point where he enters the sell order, the buy order for 3,000 shares of Stock A has not been filled. The investor should mark this sell order as a Short Sell Order.

4. Reporting of Erroneously Marked Sell Orders

4.1 A Trading Member can submit a report electronically to correct short sell information that was marked at order entry, in accordance with the requirements for submission established by SGX-ST.

4.2 The requirement to report erroneously marked sell orders only extends to erroneously marked sell orders that have been executed. If an erroneously marked sell order has not been executed, there is no requirement to make an error report.

4.3 For purposes of error reporting, the customer has to determine whether his sell orders marked as Short Sell Orders are accurate in light of the actual short sales volume executed and his actual shareholding. For example, a customer thought he did not own any shares of a counter, and entered an order to short sell 8,000 shares. The customer later discovers that he actually owned 2,000 shares of the counter.

(a) In a case where the order is totally executed

The customer has actually short sold only 6,000 shares (8,000 executed minus 2,000 owned). He will have to report the erroneously marked Short Sell Order, stating the volume that was disclosed as short sold (8,000 shares) and the actual short sales volume (6,000 shares).

(b) In a case where the order is partially filled (e.g. only 4,000 shares executed)

The customer has actually short sold only 2,000 shares (4,000 executed minus 2,000 owned). He will have to report the erroneously marked Short Sell Order, stating the volume that was disclosed as short sold and that was executed (4,000 shares) and the actual short sales volume (2,000 shares).

4.4 SGX-ST relies on the submissions of the Trading Members to publish an updated weekly aggregate report. Therefore, Trading Members must ensure that the report:

(a) adheres to the requirements for submission established by SGX-ST; and

(b) is complete and accurate.

4.5 A Trading Member is to ensure that the requisite fields in the report are completed in the correct format and the information communicated by their customers is accurately conveyed in the report. Reports that are not in the correct format, named incorrectly or have the securities name and code not correctly entered will not be processed.

4.6 SGX-ST may request for records of corrections to short sell information at the individual order level from Trading Members. Trading Members should retain this information in accordance with Rule 4.13.

4.7 The report can be submitted from the start of the trading day following the date of the sale to 17:45 hours on that day.

4.8 A Trading Member may wish to take note of the following matters on the submission of the report:

(a) A Trading Member should submit a single report for all Specified Capital Market Products that have been misreported. If the Trading Member wishes to update its report for the same Market Day, it should submit a revised report with the same file name before the deadline set out in paragraph 4.7.

(b) The transmission of the report will be via a designated Secured File Transfer Protocol ("SFTP") folder. Trading Members who do not have access to the designated SFTP folder should contact SGX-ST to apply for the requisite access.

(c) In the event that the SFTP is unavailable, SGX will extend the submission period. Trading Members will be informed of the extended submission period by way of circular.

5. Exemption from Marking of Sell Orders

5.1 SGX-ST may waive the requirement to mark sell orders for specific classes of market participants.

5.2 All persons exempted from section 137ZJ(1) of the Securities and Futures Act, are, to the same extent and subject to the same conditions, exempted from Rule 8.7.

Added on 3 June 2019 3 June 2019.

Regulatory Notice 8.14.1 — Circuit Breaker

1. Introduction

1.1 Rule 8.14.1 states that SGX-ST may prescribe, for certain securities and futures contracts, Circuit Breakers which are designed to temporarily restrict trading in these securities and futures contracts.

1.2 Rule 8.14.2 adds that SGX-ST shall impose a Cooling-Off Period on such securities or futures contracts referred to in Rule 8.14.1 if an incoming order seeks to be matched, either partially or fully, with an existing order in the Trading System at a price outside the Circuit Breaker.

1.3 The Cooling-Off Period can guard against disorderly situations in the face of rapid and unchecked market movements, by allowing the market and regulators a pause to take stock of the situation.

1.4 It is not intended to halt price movement. A fundamental role of a capital market is timely and accurate price discovery; as such, the market should be allowed to determine its own prices so long as it remains fair and orderly. Where large price movements are justified, what the circuit breaker facilitates is a more measured market movement enabled by the imposition of pauses that allow the market to analyse market conditions and all available information before resuming. By moderating the pace of big price movements, the circuit breaker prevents alarm to the market and averts contagion risk to other markets.

1.5 This Regulatory Notice sets out the securities and futures contracts for which SGX-ST has prescribed Circuit Breakers, the characteristics of Circuit Breakers and Cooling-Off Periods and the calculation of Circuit Breakers.

2. Coverage of Circuit Breaker

2.1 Circuit Breakers will apply to the following instruments:

(a) Securities that are components of the Straits Times Index or the MSCI Singapore Free Index;

(b) Stocks (excluding preference shares), stapled securities, real estate investment trusts, business trusts, funds, exchange traded funds, exchange traded notes, depository receipts and depository shares that are listed on SGX-ST and that have a reference price at the start of the Market Day of 0.50 or more in the underlying currency that Market Day. In the case of Yen-denominated instruments, Circuit Breakers are applied if the reference price at the start of the Market Day is ¥500 (denoted as "0.50" in the Trading System) or more that Market Day; and

(c) Marginable Futures Contracts with underlying instruments falling within (a) or (b) above.

2.2 The instruments are assessed against the criteria set out in paragraph 2.1 above on a daily basis to determine if Circuit Breakers will apply that Market Day.

2.3 As stated in Rule 8.15.2, SGX-ST may impose a trading halt on a security or futures contract when its underlying, or such instrument on the same underlying as SGX-ST may prescribe, is subject to a Cooling-Off Period pursuant to Rule 8.14.2. This includes structured and company warrants. The duration of such halt will be aligned with the Cooling-Off Period.

3. Characteristics of Circuit Breakers and Cooling-Off Periods

3.1 A Circuit Breaker will have the following features:

(a) The Circuit Breaker will be in operation during the Trading Phase.

(b) The Circuit Breaker, will take the form of a price band. Trading in a security or futures contract must be within or at the upper and lower thresholds of the price band. The price band is based on a prescribed percentage threshold from a reference price. The calculation of the price band is described in paragraph (d) below.

(c) When an incoming order seeks to match against a resting order at a price outside the upper or lower threshold, a Cooling-Off Period will be activated. The incoming order will be rejected and will not be matched at a price outside the upper and lower thresholds. An incoming order may be partially matched against other orders up to the price band, beyond which the outstanding order will be rejected. The trades that are executed at or within the price band will not be affected by activation of the Cooling-Off Period, and only the outstanding volume of the incoming order will be rejected.

(d) During the Cooling-Off Period, trading in a security or futures contract continues at or within the price band that was established when the Cooling-Off Period was activated. If an incoming order seeks to match against a resting order at a price outside the upper or lower threshold, the incoming order will be rejected and will not be matched at a price outside the upper and lower thresholds. This will not extend the cooling-off period.

(e) After the Cooling-Off Period ceases, the upper and lower thresholds of the Circuit Breaker will be adjusted. The adjustment of the price band is described in paragraph (d). Trading in a security or futures contract will continue within and at the new price band.

3.2 When a Cooling-Off Period is activated, the affected instrument(s) will have "CIRB" indicated in the "Rmk" column on the SGX website for the duration of the Cooling-Off Period. The change in session state will also be broadcast to Trading Members.

3.3 The duration of the Cooling-Off Period is five minutes. The Cooling-Off Period will cease upon the commencement of any of the following, even if five minutes have not elapsed:

(a) Pre-close Phase;

(b) Mid-Day Break;

(c) Suspension; and

(d) Trading Halt.

3.4 The Equilibrium Price at the end of the Opening Routine, Mid-Day Break, Closing Routine or Adjust Phase will not activate a Cooling-Off Period (refer to Regulatory Notice 8.2.1 for details on the Opening Routine, Mid-Day Break, Closing Routine and Adjust Phase).

4. Calculation of Circuit Breaker

4.1 The upper threshold is 10% above the reference price and the lower threshold is 10% below the reference price.

4.2 The reference price for the start of the Trading Phase in each trading session is as follows:

(1) the opening price of the security for that trading session, failing which

(2) either:

(a) (i) in the case of a Prescribed Instrument, the last traded price in the morning trading session, failing which, the closing price of the Prescribed Instrument on the previous Market Day, and (ii) in the case of any other security, the previous trading session's last traded price, or

(b) where a share consolidation or share split has occurred since the price stated in (a), a price derived from a pricing model established by SGX-ST (for example, the last traded price prior to the effective date of the consolidation, adjusted for the consolidation ratio), failing which

(3) the last available traded price.

4.3 The reference price at the start of the Trading Phase in each trading session is applicable to the first five minutes of that Trading Phase. The reference price for the rest of the Trading Phase is as follows:

(a) the last traded price as of five minutes prior to each potential trade; failing which

(b) the reference price at the start of the Trading Phase.

4.4 If there are trades done during the Cooling-Off Period, the reference price following the Cooling-Off Period will be as described in paragraph 4.3 above. If there are no trades done during the Cooling-Off Period, the first trade after the Cooling-Off Period will not be subject to the Circuit Breaker. The price of the first trade will then serve as the reference price for the five minutes following the trade. Thereafter, the reference price will be as described in paragraph 4.3 above.

4.5 In the event that an instrument is suspended or halted, the reference price immediately upon the lifting of a halt/suspension for a security will be as follows:

(a) the Equilibrium Price, failing which

(b) the last traded price in the Trading Phase preceding the halt/suspension, failing which

(c) the reference price at the start of the Market Day.

4.6. The reference price of a Marginable Futures Contract is the reference price of its underlying instrument at all times.

5. Illustration of Circuit Breaker operation

Scenario 1

5.1 Security A has an opening price of $1.00. The Circuit Breaker will apply to Security A on that Market Day.

5.2 No trades are executed after the market opens.

5.3 At 11:00 hours, an incoming buy order for one lot of Security A at $1.20 attempts to match against a resting sell order for five lots of Security A at $1.20.

5.4 The reference price of Security A at 11:00 hours is $1.00 because there have been no trades in the Trading Phase, and the opening price is $1.00.

Therefore, at 11:00 hours:

• The upper limit of Security A's price band is $1.00 + (10% x $1.00) = $1.10; and

• The lower limit of Security A's price band is $1.00 - (10% x $1.00) = $0.90.

5.5 As the incoming buy order, if matched, would result in a trade outside the upper limit of the price band, it is rejected, and the Cooling-Off Period begins. The Cooling-Off Period is in place from 11:00 hours to 11:05 hours, during which trading can occur within the price band i.e. at or between $0.90 and $1.10. If a buy order for one lot of Security A at $1.20 is re-entered at this time, it will be rejected.

5.6 No trades occur during the Cooling-Off Period. The first trade after the Cooling-Off Period will not be subject to the Circuit Breaker. If the incoming buy order for one lot of Security A at $1.20 is re-entered at this time (and the resting sell order for five lots at $1.20 is still in the order book), it will result in a traded price of $1.20. $1.20 will then be the new reference price for at least the next five minutes of trading.

Scenario 2

5.7 Security B has an opening price of $1.00. The Circuit Breaker will apply to Security B on that Market Day. At 10:00 hours, the last traded price as of five minutes ago (i.e. at 09:55 hours) is $0.90. This is therefore the reference price at 10:00 hours.

5.8 At 10:00 hours, two incoming sell orders are simultaneously placed for Security B at $0.82 (five lots) and $0.80 (five lots). The resting buy orders in terms of price priority are a resting buy order for five lots of Security B at $0.82, and another resting buy order for three lots of Security B at $0.80.

As the reference price of Security B at 10:00 hours is $0.90:

• The lower limit of Security B's price band is $0.90 - (10% of $0.90) = $0.81; and

• The upper limit of Security B's price band is $0.90 + (10% of $0.90) = $0.99.

5.9 The incoming sell order will be matched at $0.82 (five lots) against the resting buy order for five lots at $0.82. The remaining sell order of $0.80 (five lots) will then attempt to match against the resting buy order for three lots of Security B at $0.80.

5.10 As the incoming sell order for $0.80, if matched, will result in a trade outside the lower limit of the price band, the order is rejected, and the Cooling-Off Period begins. The Cooling-Off Period is in place from 10:00 hours to 10:05 hours, during which trading can occur within the price band i.e. at or between $0.81 and $0.99.

5.11 A buy market order comes in at 10:01 hours for five lots at $0.83, and a sell order for five lots at $0.83 is entered at 10:02 hours. This results in a matched trade for five lots of Security B at 10:02 hours.

5.12 The reference price immediately after the Cooling-Off Period ends at 10:05 hours is $0.82, reflecting the traded price five minutes ago just prior to the start of the Cooling-Off Period. At 10:07 hours, the reference price becomes $0.83, reflecting the traded price five minutes ago at 10:02 hours.

6. Exemption of new listings from circuit breaker

6.1 SGX-ST will exempt new listings from the circuit breaker on the first day of trading. This is because the offer price of a new listing may potentially differ significantly from market valuation. Applying the circuit breaker on the first day of trading may unnecessarily impede the price discovery process.

6.2 New listings refer to the following instruments that are newly listed, regardless of whether they are subject to an initial public offering or are placed out:

(a) Stocks;

(b) Stapled securities;

(c) Real estate investment trusts:

(d) Business trusts;

(e) Funds;

(f) Exchange traded funds;

(g) Exchange traded notes;

(h) Depository receipts; and

(i) Depository shares.

6.3 New listings will include stocks of companies that have been previously delisted but have gone through the listing process again.

6.4 New listings will also include stocks/units that are created by distribution of dividends in-specie.

6.5 New listings will not include any instruments that are created as a result of stock consolidation, stock splits and other similar actions that result in the replacement of existing counters. This is because the last traded price of the existing counters prior to delisting act as indicators that will allow market participants to adequately approximate the price of these new instruments. New listings will therefore also not include temporary odd-lot instruments that are created as a result of corporate actions or rights issues, and will also exclude schemes of arrangement.

Added on 3 June 2019 and Amended on 18 July 2022.

Regulatory Notice 11.4.2(d) — Computation of Monetary Loss

1. Introduction

1.1 Rule 11.4.2(d) states that SGX-ST may consider the monetary loss involved when deciding whether to cancel an Error Trade.

1.2 This Regulatory Notice sets out how monetary loss will be computed under Rule 11.4.2(d).

2. Computation of monetary loss

2.1 Subject to paragraph 2.2, the monetary loss referred to in Rule 11.4.2(d) will be the difference between the value of the Error Trade and the value of the intended trade. The value of the intended trade will be determined as:

(a) in the case of an error in the entry of the volume of the order, the value of a trade for the actual intended volume, at the price at which the order was entered;

(b) in the case of an error in the entry of the price of a structured warrant, the value of a trade for the volume of the order which was entered, at the Reference Price as determined in accordance with Rule 11.5.4(b);

(c) in the case of an error in the entry of the price of all other securities or futures contracts, excluding bonds, the value of a trade for the volume of the order that was entered, at the Reference Price in accordance with Rule 11.5.5(b) or Rule 11.5.5(c); and

(d) in the case of an error in the entry of the price of a bond, the value of a trade for the volume of the order that was entered, at:

(i) the last traded price immediately preceding the Error Trade, where such preceding trade was executed on the same trading day as the Error Trade; or

(ii) the best bid or best offer price at the time of the execution of the first share of the Error Trade.

2.2 Where an erroneous order results in more than one Error Trade, monetary loss will be the aggregate monetary loss of all such Error Trades executed at prices outside the upper and lower limits of the no-cancellation range applied pursuant to Rule 11.5.1, that are referred to SGX-ST for review under Rule 11.3.3.

Added on 3 June 2019 3 June 2019.

Regulatory Notice 11.4.2(g) — Application of the Force Key

Introduction
1. SGX-ST provides a pre-execution Error Trade prevention mechanism, known as the "Force Key" function to minimise the occurrence of Error Trades arising from the erroneous entry of order prices. The Force Key is intended to complement, and not replace, Trading Members' responsibility to adopt adequate and appropriate measures and practices to safeguard against the execution of Error Trades.
2. This Regulatory Notice sets out the application of the Force Key.

Application of Force Key

Orders entered at prices outside the price range specified by SGX-ST ("Forced Order Range") must be confirmed using the Force Key, before they may be submitted.

Unless otherwise determined by SGX-ST, the Forced Order Range of the following products shall be as follows:

S/N	Product	Price Range ($)	Minimum Bid Size ($)	Forced Order Range
1	Stocks (excluding preference shares), real estate investment trusts (REITs), business trusts, company warrants and any other class of securities or futures contracts not specified in paragraph 2.2	Below 0.20	0.001	+/- 30 bids
		0.20 – 0.995	0.005
		1.00 and above	0.01
2	Structured warrants	Below 0.20	0.001	+/- 30 bids
		0.20 – 1.995	0.005
		2.00 and above	0.01
2A	Daily Leverage Certificates	0.001 to 0.005	0.001	+/- 300%
		0.006 to 0.195	0.001	+/- 50%
		0.20 – 1.995	0.005
		2.00 and above	0.01
3	Exchange traded funds and exchange traded notes	All	0.01 or 0.001 as determined by SGX-ST	+/- 10%
4	Debentures, bonds, loan stocks and preference shares quoted in the $1 price convention	All	0.001	+/- 30 bids
5	Debentures, bonds, loan stocks and preference shares quoted in the $100 price convention	All	0.001	+/- 1,000 bids

The Forced Order Range and Force Key will not be applicable prior to the first trade on the first day of trading of any newly-listed instrument.
SGX-ST may, at its discretion apply the Force Key in particular cases notwithstanding paragraph 2.3. If SGX-ST uses its discretion to apply the Force Key to any such case SGX-ST will give prior notice to Members.

Use of the Force Key
1. In order to minimise the occurrence of Error Trades resulting from the erroneous entry of order prices, Trading Members should:
  1. ensure that the Force Key alert is available;
  2. encourage Trading Representatives to exercise judgment when accepting an instruction from a customer to execute an order priced outside the Forced Order Range; and
  3. ensure that procedures are in place to determine if there are legitimate commercial reasons for orders priced outside the Forced Order Range.

Added on 3 June 20193 June 2019 , Amended on 17 January 2022 and Amended on 2 September 2024.

Practice Notes

Practice Note 3.7 and 3.9 Remote Trading Member Exposure to Single Customer and Single Security

1. Introduction

1.1

Rules 3.7.1 and 3.9.1 require Remote Trading Members to have in place adequate tools and procedures to monitor their exposure to a single customer or single security.

Added on 3 June 2019 3 June 2019.

1.2

A Remote Trading Member may be required to demonstrate the adequacy of such tools and procedures. This Practice Note explains the tools and procedures that a Remote Trading Member may have in place to satisfy the requirement for adequate tools and procedures.

Added on 3 June 2019 3 June 2019.

2. Adequate Tools and Procedures

2.1

Tools and procedures to monitor a Remote Trading Member's exposure to a single customer or single security that SGX-ST deems adequate include, but are not limited to the following:

(a) The Remote Trading Member may, based on its available financial resources, establish the level of concentration risks arising from exposure to a single customer or single security that is acceptable to it. Thereafter, the Remote Trading Member should monitor its exposures to a single customer or single security against such acceptable level of risk.

(b) The Remote Trading Member may have in place adequate systems to monitor its exposure to customers on an individual customer and aggregated basis, and generate reports describing the results of such monitoring.

Added on 3 June 2019 3 June 2019.

2.2

SGX-ST shall have the right to require a Remote Trading Member to demonstrate the adequacy of such tools and procedures as it deems necessary.

Added on 3 June 2019 3 June 2019.

Practice Note 3.10 Margin Financing

1. Introduction

1.1

Rule 3.10.9 requires a Trading Member to review all margin financing accounts carried on its books daily to ensure that credit is not over-extended beyond the approved facility limits and that the margin financing requirements and limits prescribed in Rule 3.10 are met at all times. The Rule also requires the Trading Member to establish and maintain a robust framework to govern the conduct of such reviews.

Added on 1 April 2025.

1.2

This Practice Note sets out SGX-ST’s expectations on the matters that should be included in the framework.

Added on 1 April 2025.

2. Margin Financing Review Framework

2.1

To ensure that the review of margin financing accounts is robust, the framework include at least the following:

Policies and procedures to be put in place for determining the suitability and valuation of acceptable collateral;
Concentration limits to be set at security and single customer level to prevent the firm from taking on excessive risks;
Performance of timely monitoring of adverse news and market developments to identify potential matters that may impact the valuation of collaterals (e.g. trade with caution alerts, trade suspension, corporate actions); and
Performance of daily mark to market of margin collateral and daily margin calls to restore margin ratios.

Added on 1 April 2025.

2.2

The Trading Member should review its policies at least annually and during times of market volatility, to ensure the suitability of acceptable collateral and their valuation.

Added on 1 April 2025.

2.3

For the purposes of paragraph 2.1, “single customer” shall have the same meaning ascribed to it in Rule 3.6.6.

Added on 1 April 2025.

2.4

The framework should provide, for the purpose of computing margin financing requirements in a margin financing account, that:

all transactions done on the same day shall be combined on a transaction date basis;
the total cost of purchase or the net proceeds of sale, including any commission charged and other expenses, shall be taken into account; and
the Trading Member may use either:
1. the last done price of the Specified Product on the preceding Market Day, or in the case of a Prescribed Instrument, the closing price of the Prescribed Instrument on the preceding Market Day, or
2. the market price of the Specified Product at the point of calculation on the current Market Day. Where the Trading Member uses real-time market prices for margin valuation, computation of margin financing requirements and issuance of margin calls where required should be carried out at the same time.

Added on 1 April 2025.

2.5

The framework should require that there be a determination of the suitability and valuation of the margin collateral in a margin financing account and require that the following factors be taken into account for that purpose:

type and quality of margin collateral;
price volatility of margin collateral;
where the margin collateral is listed or traded in a foreign jurisdiction or is cash in a foreign currency, matters such as:
1. exchange rate volatility,
2. ease of liquidating collateral in the foreign jurisdiction, and
3. differences in legal and regulatory framework between such foreign jurisdiction and Singapore; and
where the margin collateral is custodised in a foreign jurisdiction, matters such as:
1. risks arising from differences in custody arrangements in such foreign jurisdiction; and
2. treatment of, or legal protection afforded to, customer collateral in the foreign jurisdiction, e.g. prohibition of title transfer for retail customer collateral.

Added on 1 April 2025.

Practice Note 4.2 Direct Market Access And Sponsored Access

1. Introduction

1.1

This Practice Note provides further guidance on the definitions of Direct Market Access and Sponsored Access as used in Rule 4.2.

Added on 3 June 2019 3 June 2019.

2. Direct Market Access

2.1

Direct Market Access may take place in the following manner:

(a) where the Trading Member permits its customer to use its member ID to transmit orders for execution directly to SGX-ST without using the Trading Member's infrastructure. This is known as Sponsored Access.

(b) where the Trading Member permits its customer to transmit orders electronically to the Trading Member's infrastructure (i.e. system architecture, which may include technical systems and/or connecting systems), and the order is in turn automatically transmitted for execution to a market under the Trading Member's member ID.

Added on 3 June 2019 3 June 2019.

Practice Note 4.9.3 Conflicts of Interest

1. Introduction

1.1

Rule 4.9.3 provides that a Trading Member must have processes in place to minimise and manage conflicts of interest, including but not limited to separating its front and back office functions.

Added on 3 June 2019 3 June 2019.

1.2

This Practice Note provides guidance on how front office and back office functions of Trading Members should be separated.

Added on 3 June 2019 3 June 2019.

2. Separation of Key Functions

2.1

The purpose of separating a Trading Member's various key functions is to minimise and manage conflicts of interests among these functions.

Added on 3 June 2019 3 June 2019.

2.2

Examples of proper separation include:

(a) access into the dealing or trading room to be restricted to authorised personnel only;

(b) setting and authorising credit or trading limits on customers by senior management staff who are independent of sales and dealing functions, and are not related to the customer in question;

(c) setting and authorising credit or trading limits on Trading Representatives by senior management staff who are independent of sales and dealing functions; and

(d) having adequate separation of management responsibilities e.g. the heads of sales, dealing, or marketing functions should not have responsibilities over all middle and back office functions of Trading Members.

Added on 3 June 2019 3 June 2019.

2.3

The basis for determining and amending trading limits should be properly documented. Adequate audit trail reports should be maintained to show all changes to trading limits, the date and time of the modifications and the authorised person who approved the changes. In addition, sufficient checks and procedures should be in place to ensure that all limits and parameters set and modified by the credit control administrator are accurate and have been approved.

Added on 3 June 2019 3 June 2019.

Practice Note 4.10.1(b) Pre Execution Checks

1. Introduction

1.1

Rule 4.10.1(b) requires Trading Members to ensure that adequate pre-execution risk management control checks are conducted, including automated credit control checks on every order and trading limits for each Trading Representative.

Added on 3 June 2019 3 June 2019.

1.2

This Practice Note sets out the types of pre-execution checks contemplated in Rule 4.10.1(b).

Added on 3 June 2019 3 June 2019.

2. Pre-execution checks

2.1

The purpose of requiring Trading Members to ensure that adequate pre-execution risk management control checks are conducted is to prevent overtrading and for credit risk management. As such, the checks must be appropriately set to effectively limit the firm's risk exposure arising from every order (including proprietary orders) to prevent the taking on of excessive risk.

Added on 3 June 2019 3 June 2019.

2.2

The parameters of such pre-execution checks and filters may include but are not limited to:

(a) dollar limit to control the gross buy and sell value and/or net buy/sell value. This limit may be applied to an individual customer, a Trading Representative, a group of related accounts or a proprietary account carried on the books of the Trading Member;

(b) security limit to control the dollar/quantity exposure to each security. This limit may be used to control concentration risk for each customer and for the Trading Member's accounts as a whole on a per-security basis;

(c) dollar/quantity limit and price limit for each order. This allows for the detection of errors in inputting orders. For example, if a customer or Trading Representative were to enter an unusually large sized order or an order at a price that is far from the prevailing price, they could be alerted for confirmation of the order before it is accepted by the system; and

(d) controls to restrict customers to selected markets, order types and securities.

Added on 3 June 2019 3 June 2019.

2.3

By way of illustration, pre-execution risk management control functions may include the following:

(a) the ability to adjust credit or quantity limits in real time during a trading session;

(b) the ability to set permission levels (e.g. access to selected products/instruments) and revoke the access of a Trading Representative or customer on a real time basis; and

(c) the ability to intercept orders that exceed credit or trading limits on a real-time basis and trigger error-prevention alerts.

Added on 3 June 2019 3 June 2019.

2.4

Trading Members who authorise Sponsored Access will be able to meet the requirement in Rule 4.10.1(b) by being able to directly set and control pre-determined automated limits in the Sponsored Access customer's system, having automated alerts whenever such limits are altered, and by conducting regular post-execution reviews of trades. Trading Members should assess and continue to ensure that the pre-execution risk management control checks are robust on an ongoing basis.

Added on 3 June 2019 3 June 2019.

2.5

Where a Trading Member has allowed its Clearing Member to directly set and control pre-determined automated limits in the Trading Member's system, the Trading Member should have the appropriate internal controls to prevent unauthorised modification of the limits set by the Clearing Member.

Added on 3 June 2019 3 June 2019.

Practice Note 4.10.1(c) Error Prevention Alerts

1. Introduction

1.1

Rule 4.10.1(c) requires Trading Members to have error prevention alerts to bring attention to possible erroneous entries of price, order size and other data fields.

Added on 3 June 2019 3 June 2019.

1.2

This Practice Note explains the types of error-prevention alerts contemplated in Rule 4.10.1(c).

Added on 3 June 2019 3 June 2019.

2. Error-prevention alerts

2.1

The purpose of requiring Trading Members to have error prevention alerts is to give Trading Members the opportunity to review the order and confirm its accuracy before it is transmitted to the Trading System for matching.

Added on 3 June 2019 3 June 2019.

2.2

The types of error-prevention alerts to be made available may include but are not limited to the following:

(a) maximum quantity per order — to alert Trading Representatives and customers of possible erroneous entries in relation to quantity; and

(b) price alerts — to alert Trading Representatives and customers of possible erroneous entries in relation to price.

Added on 3 June 2019 3 June 2019.

2.3

Price alerts. Price alerts should trigger when the order price is far away from the prevailing market price in that it deviates by:

(a) a certain percentage; or

(b) a certain number of ticks,

as compared to the prevailing market price. The prevailing market price may be the last traded price, the previous settlement price, the closing price or the opening price, as appropriate.

Added on 3 June 2019 3 June 2019.

2.4

Order size alerts. Order size alerts should trigger when the order size exceeds a pre-set threshold. The threshold may be set in terms of quantity or value of an order.

Added on 3 June 2019 3 June 2019.

2.5

Other data field alerts. Other data field alerts may include order type alerts that would trigger when an order is of a type that differs from other orders existing in the market (e.g. a buy order instead of a sell order).

Added on 3 June 2019 3 June 2019.

Practice Note 4.10.2 Firm Level Monitoring of Capital and Financial Requirements and Prudential Limits

1. Introduction

1.1

Rule 4.10.2 provides that a Trading Member must have automated processes and procedures in place to monitor at the firm level if the Trading Member is at risk of breaching capital and financial requirements and prudential limits on exposures to a single customer and a single security, so as to restrict trading activity, inject additional capital or take such steps as are necessary to prevent such breach.

Added on 3 June 2019 3 June 2019.

1.2

This Practice Note explains the requirement for monitoring potential breaches of capital and financial requirements and prudential limits on exposures to a single customer and a single security.

Added on 3 June 2019 3 June 2019.

2. Firm-level monitoring of capital requirements and prudential limits

2.1

In an electronic trading environment where orders are processed and routed at speed, Trading Members should use appropriate measures to monitor if the firm is at risk of breaching its capital or financial requirements or any prudential limits, for example:

(a) setting automated filters on firm-wide aggregated exposures;

(b) having processes to generate warnings; or

(c) having processes to route large value orders for review.

Added on 3 June 2019 3 June 2019.

Practice Note 4.12 Business Continuity Requirements

1. Introduction

1.1

Rule 4.12 requires Members to:

(a) maintain adequate business continuity arrangements;

(b) document business continuity arrangements in a business continuity plan;

(c) test and review business continuity plans regularly; and

(d) appoint emergency contact persons.

Added on 3 June 2019 3 June 2019.

1.2

The objective is to ensure that Members have the ability to:

(a) react swiftly to emergency situations; and

(b) maintain critical functions and fulfil obligations to customers and counterparties in the event of major operational disruptions.

Added on 3 June 2019 3 June 2019.

2. Business continuity plan

2.1 Critical elements of a business continuity plan

2.1.1

Rule 4.12.1 requires Members to maintain adequate business continuity arrangements, and document such arrangements in a business continuity plan. As a guide, a Member's business continuity plan should document the following elements:

(a) Risk assessment. This includes a comprehensive assessment of business continuity risks (including financial and operational risks) and threat scenarios which may severely disrupt a Member's operations. Such scenarios may include prolonged power outages, IT system software or hardware failures, loss of voice or data communication links, acts of terrorism, and outbreak of infectious diseases.

(b) Business impact analysis. This is an evaluation of the impact of the risks and threat scenarios identified in (a) above. The business impact analysis should identify critical business functions (including support operations and related information technology systems) and potential losses (monetary and non-monetary) to enable the Member to determine recovery strategies/priorities and recovery time objectives.

(c) Work area recovery. This refers to continuity arrangements for a Member's critical functional capabilities in the event that the Member's primary office becomes inaccessible, for example, availability of a disaster recovery site ready for activation within a reasonable period of time.

(d) Crisis communications. This refers to a communications plan for the Member to liaise with its internal and external stakeholders such as employees, customers and regulatory authorities during a crisis.

(e) Roles and responsibilities. This refers to the identification of a Member's key personnel and management staff, their roles and responsibilities, and reporting lines. Alternates should be identified to cover the responsibilities of absent key personnel.

(f) Backup for critical functions, information technology systems and data. Critical functions refer to business functions whose failure or disruption may incapacitate the firm.

(g) Key service providers. This refers to assessing a Member's dependencies on key service providers in recovery strategies and recovery time objectives, and taking steps to ensure that key service providers are capable of supporting the Member's business, even in disruptions. Key service providers refer to third-parties who are performing functions that are not normally carried out by Member firms internally, but are critical to Member firms' ability to carry on business operations, for example, IT system hardware/software vendors.

(h) Outsourcing service providers. This refers to assessing whether the service provider has established satisfactory Business Continuity Plans commensurate with the nature, scope and complexity of the outsourced services. Outsourcing service providers refer to third parties who are performing functions that would normally be performed by Members firms internally, for example, Operations and Technology.

(i) Any other elements that the Member deems necessary to be included in its business continuity plan or which SGX-ST may prescribe from time to time.

Added on 3 June 2019 3 June 2019.

2.2 Emergency response during crisis

2.2.1

A Member should establish and maintain a crisis management plan as part of its business continuity plan. The crisis management plan should include (but not be limited to):

(a) Emergency response procedures;

(b) Roles and responsibilities of the crisis management team;

(c) Command and control structures; and

(d) Salvage and restoration procedures.

Added on 3 June 2019 3 June 2019.

2.2.2

SGX-ST may declare a wide-area crisis in the event of a major and widespread incident. When such declaration is made, SGX-ST may require a Member to submit status reports to SGX-ST. A wide-area crisis may include any incident where the operations of a large number of market participants are disrupted simultaneously.

Added on 3 June 2019 3 June 2019.

2.3 Regular review, testing and training

2.3.1

Rule 4.12.1 also requires a Member to review and test its business continuity plan regularly. Members should do so at least once a year to ensure that their business continuity plans remain relevant.

Added on 3 June 2019 3 June 2019.

2.3.2

Where there are material changes to a Member's business activities and operations, the Member should update its business continuity plan accordingly. Regular training should be conducted for staff to be updated and aware of any relevant changes to the Member's business continuity arrangements. As a principle, training should be conducted when:

(a) changes have been made to the Member firm's BCP; and

(b) new staff are recruited.

Member firms should also conduct refresher courses for existing staff where appropriate.

Added on 3 June 2019 3 June 2019.

2.4 Application to a Remote Trading Member

2.4.1

The features of a business continuity plan set out in paragraphs 2.1, 2.2 and 2.3 may not be applicable to a Remote Trading Member. A Remote Trading Member should meet any applicable business continuity plan requirements that are prescribed by its Relevant Regulatory Authority. The Trading Member may further adopt the recommended features of a business continuity plan set out in this Practice Note 4.12.

Added on 3 June 2019 3 June 2019.

3. Emergency contact persons

3.1

Rule 4.12.3 requires a Trading Member to appoint emergency contact persons and furnish the contact information of such persons to SGX-ST. Members may appoint an emergency contact person and up to two alternates. A template is attached as Appendix A to this Practice Note for the notification of contact information (postal address, email, telephone, mobile telephone and facsimile numbers) to SGX-ST.

Refer to Appendix A of Practice Note 4.12.

Added on 3 June 2019 3 June 2019.

3.2

Members are to ensure that the contact information provided to SGX-ST is updated on a semi-annual basis. Nonetheless, where there are changes to a Member's emergency contact persons and contact information, the Member should notify SGX-ST immediately in writing.

Added on 3 June 2019 3 June 2019.

3.3

A Member's authorised emergency contact person should immediately notify SGX-ST in the event where:

(a) A Member's business operations are or will be significantly disrupted; and/or

(b) A Member's business continuity plan is activated.

Added on 3 June 2019 3 June 2019.

Appendix A to Practice Note 4.12 Business Continuity Management Emergency Contact Person(s)

Business Continuity Management Emergency Contact Person(s)

Company Name: ____________________________

Name	Department	Designation	Office No.	Mobile No.	E-mail Address

Prepared by:

_____________________________

Name:____________________________

Designation:_______________________

Added on 3 June 2019 3 June 2019.

Practice Note 4.15.2(a) and (b) Opening of Customer Accounts: Obtaining Adequate Particulars, Verification of Identity, and Verification of Authority to Trade

1. Introduction

1.1

Rules 4.15.2(a) and (b) state that prior to opening a customer account, a Trading Member shall satisfy itself that it has (a) obtained adequate particulars of each customer, and (b) verified the identity of each customer, and in the case of a non-individual customer verified that it is validly constituted and that the person opening the account has the requisite authority to do so, and in the case of an agency customer, verified the identity of the principal and the customer's authority to trade for its principal.

Added on 3 June 2019 3 June 2019.

1.2

This Practice Note sets out some of the ways in which a Trading Member may comply with its obligations under Rule 4.15.2(a) and (b).

Added on 3 June 2019 3 June 2019.

2. Individual customer account

2.1

The particulars that a Trading Member may obtain include the following:

(a) full name;

(b) copy of identity card or passport;

(c) specimen signature (where applicable);

(d) residential and mailing addresses;

(e) telephone numbers;

(f) occupation;

(g) name of customer's employer;

(h) address of customer's employer; and

(i) telephone number of customer's employer.

Added on 3 June 2019 3 June 2019.

2.2

If the customer does not open the account in person, a Trading Member should take suitable steps to verify the customer's identity. The Trading Member may employ one or more of the following means to establish the customer's identity:

(a) Accept account opening forms that are certified by:

(i) a Justice of Peace, a commissioner for oaths, a notary public, or an advocate and solicitor;

(ii) members of other securities exchanges that have established information sharing agreements with SGX-ST; or

(iii) branches of banks in which the customer holds a banking account.

A Trading Member should verify the certification, for example through direct telephone contact with persons performing the certification.

(b) Establish telephone contact with the customer on an independently verified home or business number;

(c) With the customer's consent, contact the personnel department of the customer's employer on a listed business number to confirm his employment; or

(d) Obtain from the customer statements from a bank, the Central Provident Fund Board, income tax authority or such equivalent authority.

Added on 3 June 2019 3 June 2019.

3. Corporate/Non-individual customer account

3.1

The particulars that a Trading Member may obtain include the following:

(a) full name;

(b) residential and mailing addresses;

(c) full names of persons authorised to trade on the customer's behalf;

(d) specimen signatures of persons authorised to trade on the customer's behalf (where applicable);

(e) certified true copy of the certificate of incorporation of the customer;

(f) either:

(i) a copy of the directors' resolution of the customer approving the opening of a corporate/non-individual customer account with the Trading Member and empowering specific directors to trade in securities or futures contracts for the corporate/non-individual customer account and execute all documentation for trading and settlement in the customer account;

(ii) a power of attorney (in English) certified by a notary public authorising identified persons to open a corporate/non-individual customer account and trade on behalf of the corporate/non-individual customer; or

(iii) noting in writing the basis upon which the Trading Member believes the corporate/non-individual customer may open the corporate/non-individual customer account and engage in transactions and that the persons acting for the corporate/non-individual customer have been duly authorised to trade on the customer's behalf.

Added on 3 June 2019 3 June 2019.

4. Digital Signature

4.1

A Trading Member is encouraged to explore the use of digital signatures for online identification and verification. The identification and verification procedures for acceptance of digital signatures must be at least as rigorous as those which a Trading Member would normally have employed.

Added on 3 June 2019 3 June 2019.

Practice Note 4.15.2(d) Understanding a Customer's Risk Appetite and Investment Objectives

1. Introduction

1.1

Rule 4.15.2(d) states that prior to opening a customer account, a Trading Member shall satisfy itself that it has understood each customer's risk appetite and investment objectives (if applicable).

Added on 3 June 2019 3 June 2019.

1.2

This Practice Note provides guidance on the procedures to understand a customer's risk appetite and investment objectives.

Added on 3 June 2019 3 June 2019.

2. Risk Appetite and Investment Objectives

2.1

Investment objectives of a customer would include:

(a) the types of securities or futures contract that the customer may want to trade in, such as:

(i) securities or futures contracts listed or quoted on SGX-ST, and

(ii) securities offered in reliance on the exemptions under Sections 274 or 275 of the SFA, where the requirement to lodge a prospectus or profile statement with the Authority before making an offer of the securities does not apply;

(b) such other objectives prescribed by the Relevant Regulatory Authority.

Added on 3 June 2019 3 June 2019.

2.2

Trading Members that hold a Capital Markets Services Licence should bear in mind the effect of Sections 274, 275 and 276 of the SFA. If a customer wants to trade in a security that is offered in reliance on the exemptions under Sections 274 or 275 of the SFA, Trading Members should:

(a) explain to the customer the effect of Sections 274, 275 and 276 of the SFA, and the definition of "Relevant Person" under Section 275 of the SFA;

(b) obtain documents to satisfy themselves that the customer is an institutional investor or a Relevant Person; and

(c) prominently disclose to the customer in writing that:

(i) the aforesaid security is one that is offered in reliance on the exemptions under Sections 274 or 275 of the SFA,

(ii) for such a security, the requirement to lodge a prospectus or profile statement with the Authority and SGX-ST does not apply.

Added on 3 June 2019 3 June 2019.

2.3

For the avoidance of doubt, the above requirements are applicable to the trading of global depository receipts ("GDRs") which are offered in reliance on the exemptions under Sections 274 or 275 of the SFA. Trading Members should also observe relevant provisions of the Listing Manual in relation to GDRs.

Added on 3 June 2019 3 June 2019.

2.4

All the documents obtained under paragraph 2.2(b) should form part of the permanent records of the Trading Members. If the customer's account carried on the books of the Trading Member is closed, the documents should be kept for at least the minimum period required by law.

Added on 3 June 2019 3 June 2019.

Practice Note 4.15.3 Additional Safeguards for Trading by Young Investors

1. Introduction

1.1

Rule 4.15.2(a) provides that prior to opening a customer account, a Trading Member shall satisfy itself that it has obtained adequate particulars of each customer. Such particulars include the age of the customer.

Added on 3 June 2019 3 June 2019.

1.2

Rule 4.15.3 provides that before opening a customer account for a customer under the age of 21 ("Young Investor"), a Trading Member shall assess the customer's suitability to trade and disclose the risks of trading to the customer.

Added on 3 June 2019 3 June 2019.

1.3

This Practice Note provides guidance on how a Trading Member shall assess a Young Investor's suitability to trade and disclose the risks of trading to the Young Investor and also sets out the measures and operational procedures that Trading Members should take as part of good business practice when Young Investors open securities trading accounts with them.

Added on 3 June 2019 3 June 2019.

2. Suitability assessment and risk disclosure

2.1

When a Young Investor opens an account carried on the books of the Trading Member, the Trading Member should undertake the following procedures, in addition to their own account opening procedures, and give appropriate emphasis to the following:

(a) Suitability assessment. A Trading Member should assess the suitability, taking into account the financial knowledge and risk capacity of the Young Investors to trade. A specific suitability assessment should also be made before allowing a Young Investor to trade in more complex instruments or products (such as a derivative contract or product with embedded derivatives). The decision to allow the Young Investor to trade in such instruments or products should be approved by a senior executive of the Trading Member. A Remote Trading Member should carry out suitability assessments of Young Investors in accordance with the applicable standards prescribed by the Relevant Regulatory Authority.

(b) Risk disclosure. The risks and uncertainties associated with investing or trading in securities and other products to be sold by the Trading Member should be properly explained to the Young Investor. This is to ensure that he or she has an appropriate understanding of the key risks and commitments involved. A Remote Trading Member should provide risk disclosure to Young Investors in accordance with the applicable standards prescribed by the Relevant Regulatory Authority.

Added on 3 June 2019 3 June 2019.

3. Supervision

3.1

Trading Members should ensure that the relevant staff members are adequately trained and familiar with the safeguards put in place for Young Investors. Similarly, any additional procedures should be communicated to all Trading Representatives to ensure proper adherence and consistent application.

Added on 3 June 2019 3 June 2019.

3.2

In addition, a senior executive should be appointed to oversee and take responsibility for managing all issues relating to Young Investors. This includes monitoring the Trading Member's dealings with the Young Investors and making appropriate adjustments to the procedures and processes, where necessary.

Added on 3 June 2019 3 June 2019.

4. Investor Education

4.1

Trading Members should offer basic investment courses to Young Investors, as well as product-specific courses to those who wish to trade in more sophisticated instruments and products. These courses will enable Young Investors to be more aware of the implications of their trading decisions and to be able to make better investment choices.

Added on 3 June 2019 3 June 2019.

4.2

Such courses may be organised or conducted by third party course providers or in-house trainers.

Added on 3 June 2019 3 June 2019.

Practice Note 4.15.5 Approval of Customer Accounts

1. Introduction

1.1

Rule 4.15.5 provides that at least one member of senior management or delegate staff (whether of the Trading Member or the Trading Member’s related corporation or otherwise) independent of the Trading Member’s sales or dealing, must approve the opening of a customer account carried on the books of the Trading Member.

Added on 24 March 2020 24 March 2020.

1.2

This Practice Note provides guidance on how a Trading Member may satisfy the above requirement.

Added on 24 March 2020 24 March 2020.

2. Approval based on pre-defined criteria approved by senior management or delegate

2.1

A Trading Member will be deemed to have obtained the approval of senior management or delegate staff independent of the Trading Member’s sales or dealing for the opening of a customer account if:

(a) at least one member of senior management or delegate staff independent of the Trading Member’s sales or dealing pre-defines a set of approval criteria; and

(b) the customer satisfies that approval criteria.

Added on 24 March 2020 24 March 2020.

2.2

In the spirit of the rule, the pre-defined approval criteria should minimally address the risks posed by the client with regard to credit, money laundering and terrorist financing.

Added on 24 March 2020 24 March 2020.

2.3

An example of a set of pre-defined approval criteria is as follows:

(a) the identity of the customer can be verified via a centralised national database (e.g. MyInfo by the Singapore Government); and

(b) the customer does not have any adverse credit, money laundering, terrorist financing or relevant criminal record, based on screening against relevant information sources.

Added on 24 March 2020 24 March 2020.

2.4

It is strongly recommended that the Trading Member should have in place:

(a) a robust risk assessment process for determining the pre-defined approval criteria;

(b) proper documentation to record (i) the basis of the pre-defined approval criteria and (ii) the member(s) of senior management or delegate staff independent of the Trading Member’s sales and dealing who is(are) responsible for establishing the pre-defined approval criteria; and

(c) a process to review the implementation and effectiveness of the pre-defined approval criteria on a periodic basis, and enhance them if necessary.

Added on 24 March 2020 24 March 2020.

Practice Note 4.18 Education for Internet Trading Customers

1. Introduction

1.1

Rule 4.18 states that save for Accredited Investors, Institutional Investors and Expert Investors, a Trading Member must provide its Internet Trading customers with adequate information, guidance and training on (a) prohibited trading practices; (b) potential limitations and risks of Internet Trading; (c) system functionalities and order management procedures; and (d) market conventions such as minimum bid sizes and board lot sizes. With respect to Accredited Investors, Institutional Investors and Expert Investors, a Trading Member's obligation relates solely to the provision of adequate information in relation to prohibited trading practices.

Added on 3 June 2019 3 June 2019.

1.2

This Practice Note provides guidance on the information that a Trading Member should provide to its Internet Trading customers.

Added on 3 June 2019 3 June 2019.

2. Information, Guidance and Training

2.1

A Trading Member should provide its Internet Trading customers with adequate information, guidance and training with respect to the areas below.

Added on 3 June 2019 3 June 2019.

2.2

Prohibited trading practices, which refer to trading practices prohibited under these Rules, the SFA or other Singapore laws.

Added on 3 June 2019 3 June 2019.

2.3

Potential limitations and risks of Internet Trading, which include:

(a) possibility of delays in order transmission and confirmation of order execution, and what to do in case of such delays;

(b) not being able to withdraw erroneous orders in time due to the speed of electronic trading; and

(c) danger of unauthorised access to a customer's internet account and recommended preventive security measures in relation to matters such as the protection of passwords and leaving an on-line screen unattended.

Added on 3 June 2019 3 June 2019.

2.4

System functionalities and order management procedures, which include:

(a) system access requirements;

(b) how to place, modify and withdraw orders;

(c) types of trading controls e.g. types of error-prevention alerts and how to interpret system alerts;

(d) types of credit controls e.g. types of trading limits; and

(e) types of orders e.g. Good till Cancelled and All or None.

Added on 3 June 2019 3 June 2019.

2.5

Market conventions, which include:

(a) board lot size;

(b) minimum bid size;

(c) convention for price quotation of different securities; and

(d) corporate actions and their effect on prices.

Added on 3 June 2019 3 June 2019.

Practice Note 4.24.3(c) Evidence of Informed Consent for Contract Notes in Electronic Form

1. Introduction

1.1.

Rule 4.24.3(c) requires that a Trading Member, before issuing contract notes in electronic form, must obtain the customer's prior revocable and informed consent for receipt of contract notes in electronic form. The Trading Member must retain evidence of the customer's consent. To constitute informed consent, a customer must be told of the manner of delivery and retrieval of the electronic record and any costs that may be incurred.

Added on 3 June 2019 3 June 2019.

1.2.

This Practice Note provides guidance on how a Trading Member may show evidence of informed consent.

Added on 3 June 2019 3 June 2019.

2. Evidence of Informed Consent

2.1.

To show evidence of a customer's informed consent for receipt of contract notes in electronic form, a Trading Member may maintain records to show that the customer had been given adequate prior notice of the cessation or non-provision of paper statements and had been provided with instructions on how to opt out of electronic-only statements.

Added on 3 June 2019 3 June 2019.

Practice Note 4.38 Soft Dollar Receipts or Payments

1. Introduction

1.1

Rule 4.38.1 says that a Trading Member and its Trading Representatives may receive goods and services from a broker for directing business to the broker under certain conditions.

Added on 3 June 2019 3 June 2019.

1.2

Rule 4.38.2 says that a Trading Member may pay for goods and services to a customer for directing business to the Trading Member under certain conditions.

Added on 3 June 2019 3 June 2019.

1.3

This Practice Note provides guidance on the types of goods and services that do not qualify for soft dollar receipts or payments.

Added on 3 June 2019 3 June 2019.

2. Good and Services that do not qualify as soft dollar receipts or payments

2.1

The following goods and services do not qualify as acceptable soft dollar receipts or payments for the purpose of Rule 4.38:

(a) Travel, accommodation and entertainment expenses.

(b) General administrative goods and services including office equipment and premises expenses.

(c) Membership fees.

(d) Employees' salaries.

(e) Direct money payment. This does not include payment of referral fees under a referral agreement.

Added on 3 June 2019 3 June 2019.

2.2

A Trading Member or its Trading Representative should not receive goods and services from a broker, if the act of it compromises the interest of the customer or may result in the breach of the Rules or other regulatory requirements by the Trading Member or its Trading Representatives.

Added on 3 June 2019 3 June 2019.

Practice Note 5.7 Precedence of Customer Orders

1. Introduction

1.1

Rule 5.7.1 states that save in specified situations, neither a Trading Member nor a Trading Representative shall deal in securities or futures contracts for its own account or for a Prescribed Person's account if the Trading Representative has an unexecuted order on the same terms from a customer.

Added on 3 June 2019 3 June 2019.

1.2

Rule 5.7.2 defines "Prescribed Person" as including a person, a group of persons, a Corporation or a group of Corporations, or family trusts, whom the Trading Member, or any Director, Officer, Trading Representative, employee or agent of the Trading Member is associated with or connected to.

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1.3

This Practice Note explains the application of Rule 5.7.

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2. Application of Rule 5.7.1

2.1

An order includes an order for a single stock futures contract or futures contracts.

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2.2

An unexecuted order from a customer includes an order that has been received but not entered into the Trading System.

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2.3

"On the same terms" includes:

(a) orders for the same counter, same buy/sell instruction and limit price;

(b) a price limit order and a careful discretion order in the same counter and same buy/sell instruction; and

(c) an order for the underlying security on the one hand and an order for single stock futures or Marginable Futures Contracts over that underlying security on the other.

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2.4

The Trading Member or Trading Representative must ensure that customers' orders are not compromised when squaring off a house error position on the same terms. Where the customer's order is a careful discretion order, trades allocated to the customer's account must not be worse off to that allocated to the house error account (such accounts being accounts carried on the books of the Trading Member).

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2.5

In considering whether Rule 5.7.1 has been complied with, the following factors are relevant:

(a) whether the Trading Member or the Trading Representative acts in accordance with the Trading Member or the Trading Representative's customers' instructions;

(b) whether orders that do not involve the exercise of discretion by the Trading Representative are entered in the sequence in which they are received, and otherwise as expeditiously as practicable;

(c) whether in a situation where the time the orders were received cannot be clearly established and one of the orders is for the Trading Member or the Trading Representative's own account, the Trading Member or the Trading Representative gives preference to the order of a customer over any order for the Trading Member or the Trading Representative's own account;

(d) whether the Trading Member or the Trading Representative who is aware of a customer's unexecuted instructions ensures that it does not use that information to:

(i) the disadvantage of the customer; or

(ii) the Trading Member or the Trading Representative's own benefit.

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3. Interpretation of Rule 5.7.2

3.1

"Prescribed Person" includes a person, group of persons, a Corporation or a group of Corporations or family trusts, whom the Trading Member, Director, employee or Trading Representative of the Trading Member is associated with or connected to.

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3.2

However, where the Trading Member, Director, employee or Trading Representative of the Trading Member has no control or influence over the associated or connected person, group of persons, Corporation or group of Corporations, or family trusts, they would not fall within the definition of "Prescribed Person".

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Practice Note 5.12 False Trading and Market Rigging

1. Introduction

1.1

Confidence in the financial system and effective intermediation of financial flow requires that markets be fair, orderly and transparent. Improper conduct which gives rise to a false or misleading appearance of trading activity, price movements or market information undermines market integrity and erodes investor confidence. SGX-ST seeks to ensure that its markets are fair and orderly and free of manipulative trading.

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1.2

Trading Members and Trading Representatives must ensure that their trading is conducted in accordance with the SGX-ST Rules and the Securities and Futures Act.

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2. False Trading and Market Rigging

2.1

Rule 5.12.1 states that a Trading Member or a Trading Representative must not engage in any course of conduct that is likely to create a false or misleading appearance:

(a) of active trading in any securities or futures contracts; or

(b) with respect to the market for, or the price of, any security or futures contract.

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2.2

Rule 5.12.1 prohibits false trading and market rigging. This trading misconduct involves an intentional interference with the free forces of supply and demand, such that a distortive effect is created vis-à-vis the market for, or the price of, the security or futures contract traded. This distortive effect occurs as a result of any trading strategy or practice that may be employed in order to artificially manage the market for, or the price of, the security or futures contract concerned.

Added on 3 June 2019 3 June 2019.

2.3

SGX-ST's determination of whether a course of conduct is likely to create a false or misleading appearance will be made on an objective basis. In other words, the Rule does not require the Trading Member or Trading Representative to have intended to create the false or misleading appearance, or knew that it or he was in fact creating a false or misleading appearance. Rule 5.12.2 identifies the factors that SGX-ST may take into account when making the said determination.

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2.4

The Rule does not prevent Trading Members and Trading Representatives from carrying out legitimate trading strategies that reflect the forces of genuine supply and demand. However, Trading Members and Trading Representatives must do so bearing in mind their obligations to maintain an orderly market, and to conduct their trading activities with an appropriate degree of care.

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2.5

Trading Representatives (as licensed professionals) must not act as mere order takers and accept their customers' instructions blindly, without conducting any due diligence.

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2.6

SGX-ST is unlikely to have concerns if the order or transaction is executed in a proper manner and that there is a legitimate commercial rationale for engaging in the said course of conduct.

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3. Guidance on Rule 5.12.2

Rule 5.12.2 identifies the factors that SGX-ST may take into account when making the determination of whether a course of conduct is likely to create a false or misleading appearance.

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3.1

Rule 5.12.2(a): Whether the execution of the transaction is inconsistent with the recent trading activity in the security or futures contract, taking into account prevailing market conditions.

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3.1.1

Trading Members and Trading Representatives would generally be familiar with the patterns of trading in each security or futures contract. They are therefore expected to exercise judgment, based on their experience and knowledge of trading in the security or futures contract, in assessing the likely impact of a proposed transaction on the market for a security or futures contract. This is especially so if the execution of the transaction would result in a significant change in the price (which is inconsistent with the recent trading activity in the security or futures contract, including the intra-day, daily, weekly or monthly price range) and represent a significant proportion of the daily traded volume in the security or futures contract.

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3.1.2

The Rule does not prevent a Trading Member or Trading Representative from executing an order simply because it will have an impact on the market for, or the price of, a security or futures contract.

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3.2

Rule 5.12.2(b): Whether the execution of the transaction is likely to cause or contribute to a material change in the price of, or the market for, the security or futures contract, and whether the person involved or another person with whom the first person is collaborating may directly or indirectly benefit from alterations in the market or price.

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3.2.1

In the absence of a good reason to buy or sell quickly, customers generally want to obtain the best price. A Trading Member or Trading Representative who receives an order that would materially alter the market for, or the price for, the security or futures contract, should consider whether it is genuine or manipulative.

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3.2.2

Trading Members and Trading Representatives must also know their customers. Orders placed by a customer or a related party of that customer, who may have an interest in creating a material change in the market for, or the price of, a particular security or futures contract, should be closely examined.

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3.2.3

Examples:

(a) Orders placed by a large holder of a particular security or futures contract who may have an interest in inflating the value of that holding (e.g. window dressing for investment performance purposes), or decreasing the price of the security or futures contract (e.g. as a precursor to a takeover bid or for purposes which include lowering a conversion price).

(b) Buying during the period of a rights issue by an underwriter, sub-underwriter or any other party which increases or maintains the price of the underlying security may include, as a purpose, inducing others to take up their rights entitlement under the issue.

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3.3

Rule 5.12.2(c): Whether the execution of the transaction involves the placing of multiple buy and sell orders at various prices higher or lower than the market price, or the placing of buy and sell orders that give the appearance of increased volume.

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3.3.1

A Trading Member or Trading Representative should not make large entries above or below the prevailing spread to facilitate filling an order on the other side of the market. The placing of buy (or sell) orders at various price steps below (or above) the market may create a false or misleading appearance that the entries are on behalf of genuine buyers (or sellers). The layering of orders also translates into a change in the depth screen and may mislead market participants with respect to interest in the counter.

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3.4

Rule 5.12.2(d): Whether the execution of the transaction is likely to coincide with or is likely to influence the calculation of reference prices, settlement prices and valuations.

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3.4.1

A Trading Member or Trading Representative should consider carefully any orders placed with instructions to execute them in or near the Closing Routine, particularly if a price target is set. A Trading Member or Trading Representative should also be alert to orders placed in or near the Closing Routine on the last trading day of the month, quarter or year, or on the expiry dates of options, warrants or futures contracts, which will move the price when executed.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

3.4.2

A customer who, to the knowledge of the Trading Member or Trading Representative, declines the opportunity to obtain a better price during the day and prefers to pay a higher (or lower) price in or near the Closing Routine should be queried as to the strategy. This is important if the order is to buy (or sell) a small volume of the security or futures contract, which is likely to move the price and possibly fix the closing price. Further, if the Trading Member or Trading Representative received a series of similar orders over a number of days, each of which generated a price movement in or near the Closing Routine, the Trading Member or Trading Representative should be satisfied that the customer is not attempting to create a false or misleading appearance with respect to the price of the security or futures contract.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

3.4.3

Examples:

(a) A fund manager's quarterly performance will improve if the valuation of his portfolio at the end of the quarter in question is higher. By placing a large order to buy relatively illiquid securities and/or futures contracts, which are also components of his portfolio, to be executed in or just before the Closing Routine, his purpose might be to distort the price in his favour.

(b) The expiry of futures contracts may require a timed unwinding of the countervailing security position. In these circumstances, price impact in some securities may be inevitable, particularly in less liquid securities. However, a Trading Member or Trading Representative should be alert to a customer seeking to cause unnecessary price impact to improperly generate a profit or move the index.

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3.5

Rule 5.12.2(e): Whether parties involved in the transaction are connected or associated with each other.

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3.5.1

A concern here might arise if the security or futures contract is held in the name of a colluding party but the market risk actually remains with the seller. There may effectively be no change in beneficial interest.

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3.6

Rule 5.12.2(f): Whether the order or orders for the purchase (or sale) of a security or futures contract is or are entered with the knowledge that an order or orders of substantially the same size, at substantially the same time, and at substantially the same price, for the sale (or purchase) of the security or futures contract has been or will be entered by or for the same or different parties (excluding Direct Business).

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3.6.1

The time proximity of orders and the fact that they are for substantially the same price (particularly if the price is out-of-range) and quantity may suggest that the transaction is pre-arranged. Pre-arranged transactions have the effect of creating a false or misleading appearance of active trading, or improperly excluding other market participants from the transaction since the first bid or offer was not adequately exposed to the market.

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3.6.2

Pre-arranged trading can create an unfair market as it is, in substance, executing risk-free transactions at pre-determined prices rather than at market prices. As the transfer of beneficial interest or market risk (if any) is only between persons who are acting in concert or collusion, there is essentially no legitimate commercial rationale behind pre-arranged transactions. Likewise, a Trading Representative who consistently matches his own buy and sell orders may be considered to have engaged in pre-arranged trading as the transactions are unlikely to be executed for a legitimate economic purpose.

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3.6.3

The execution of crossings or transactions between the same parties for the same volumes, which are subsequently reversed at the same prices, also raises questions whether the transactions involve a change in beneficial ownership, or are for rollover of trades to extend settlement, or for a purpose of engaging in a circular trading scheme to create the impression of turnover.

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3.7

Rule 5.12.2(g): Whether the execution of the transaction is likely to cause the price of the security or futures contract to increase or decrease, but following which the price is likely to immediately return to about its previous level.

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3.7.1

The key question in this area is whether there appears to be any logical trading pattern to the price and volume of the security or futures contract, or whether it seems erratic. Trading is manipulative if it is intended to move the price of the security or futures contract.

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3.8

Rule 5.12.2(h): Whether the bid (or offer) is higher (or lower) than the previous bid (or offer) but is withdrawn or amended to avoid execution.

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3.8.1

This could indicate that the order is not genuine, especially where a distinctive pattern of such orders is observed. At the time the bid (or offer) was made, the Trading Member or Trading Representative did not intend to buy (or sell), but intended that the bid (or offer) would not trade and would be withdrawn eventually. Sometimes, such orders are entered to induce buyers (or sellers) into the market to facilitate the filling of an order on the other side of the market.

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3.8.2

Circumstances that should be carefully reviewed by Trading Members and Trading Representatives include where there is a particularly high ratio of order to trade volume or a record of actively entering and amending orders on both sides of the order book but only trading on one side.

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3.9

Rule 5.12.2(i): Whether the volume or size of the order or transaction is excessive relative to reasonable expectations of the depth and liquidity of the market at the time.

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3.9.1

This Rule does not restrict Trading Members and Trading Representatives trading significant volumes where there is a legitimate purpose for the transaction and where the transaction is executed in a proper manner. However, trading significant volumes with the purpose of controlling the price of a security or futures contract will amount to manipulative trading.

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3.9.2

Example:

A Trading Representative purchased substantial volume in a thinly traded counter, which accounted for a large proportion of the market volume, to establish a predetermined price. Sometimes, this may be followed by up-ticking the bid despite the absence of bona fide investor demand for the security or futures contract.

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3.9.3

In the same vein, entering excessively large order(s) that is disproportionate to the depth of the order book may be manipulative, as it can create an imbalance between the quantum of demand and supply on the order book and in turn, mislead market participants with respect to interest in the security or futures contract.

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3.10

Rule 5.12.2(j): Whether the buy (or sell) order is likely to trade with the entire best offer (or bid) volume and part of the offer (or bid) at the next price level.

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3.10.1

If a customer regularly buys (or sells) on the up-tick (or down-tick) in the face of consistent selling (or buying) pressure, the Trading Member or Trading Representative should query whether the customer is a bona fide purchaser (or seller). Repetitive orders to clear the best offer (or bid) volume, particularly within a short time, suggest that the Trading Member or Trading Representative might be attempting to break the market. The trading spikes or troughs were meant to excite the market and attract spectators to join in.

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3.11

Rule 5.12.2(k): Whether the buy (or sell) order forms part of a series of orders that successively and consistently increase (or decrease) the price of the security or futures contract.

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3.11.1

If a customer places a sell order well above the best ask and one or more buy orders which would increase the price towards the customer's ask price, a Trading Member or Trading Representative should query the customer as to the strategy. It may be that the buy orders are intended to get the price running and facilitate the sale at the higher price. Illiquid securities or futures contracts, in particular, are susceptible to this type of improper trading.

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3.12

Rule 5.12.2(l): Whether there appears to be a legitimate commercial reason for the transaction.

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3.12.1

Many orders for legitimate commercial reasons can change the market for, or the price of, a security or futures contract when executed. Such orders are acceptable despite the volume and/or price impact, but the Trading Member or Trading Representative must consider any additional intentions that may exist and execute the order in an appropriate manner, bearing in mind its or his obligations, including the requirement to maintain an orderly market.

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3.12.2

Examples:

(a) A Trading Member conducting index arbitrage as principal and entering orders in an illiquid security or futures contract may have a material impact on the price of some securities or futures contracts, even with small orders. Index arbitrage orders are a legitimate commercial reason for trading, but the Trading Member must exercise sufficient care to ensure that the order did not result in a false or misleading appearance with respect to the price of a security or futures contract.

(b) A Trading Representative accepting orders from a customer seeking to replicate an index at a time when one or more of the securities or futures contracts are being included or excluded from the relevant index, or when the size of the portfolio is being increased or decreased, should consider the impact the orders may have. If the Trading Representative attempts to execute a large proportion of the order during the Pre-Close phase, having ignored opportunities earlier in the day, and the order has a material impact on the closing price, it may result in allegations that the Trading Representative created a false or misleading appearance with respect to the price of that security or futures contract.

(c) A Trading Member or Trading Representative trading as principal to hedge an exposure should be alert to the impact its trading may have on the market for, or the price of, a security or futures contract.

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4. Conclusion

4.1

SGX-ST expects that Trading Members and Trading Representatives act as "gatekeepers" against market manipulation of any kind. Trading Members and Trading Representatives should provide frontline protection against manipulative activity and not contribute or act as an accessory to such trading misconduct.

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4.2

In determining whether a course of conduct is likely to create a false or misleading appearance, SGX-ST will make the necessary inference from circumstantial evidence, such as an unusual pattern of trading, as well as a person's interest (whether genuine or ulterior motive) in the security or futures contract in question.

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4.3

SGX-ST acknowledges that Trading Members and Trading Representatives may not always know if a customer's particular interest in a security or futures contract is genuine or not. However, a Trading Member or Trading Representative who receives an unusual order must be able to establish that it or he has made due enquiries and is satisfied as to the reason for the trading, i.e. taking into account the circumstances of the order, the purpose is unlikely to create a false or misleading appearance.

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4.4

In the event that a Trading Member or Trading Representative reasonably suspects that an order may be for some other ulterior purpose but continue to facilitate the transaction, the Trading Member or Trading Representative must be aware that its or his contributing act towards the transaction may be unlawful.

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Practice Note 5.12.3 Transaction with no change in beneficial ownership

1. Introduction

1.1

Rule 5.12.3 states that a Trading Member or a Trading Representative must not effect, take part in, be concerned in, or carry out, directly or indirectly, any transaction to purchase or sell a security or futures contract, being a transaction that does not involve any change in the beneficial ownership of the security or futures contract as defined in Section 197(5) of the Securities and Futures Act.

Added on 3 June 2019 3 June 2019.

1.2

Rule 5.12.3 further states that it is a defence if the Trading Member or Trading Representative can show that the purpose or purposes for which it or he purchased or sold the security or futures contract was not, or did not include, the purposes of creating a false or misleading appearance with respect to the market for, or the price of, the security or futures contract.

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2. Guidance on Rule 5.12.3

2.1

A transaction that does not involve any change in beneficial ownership will not be considered to be for the purpose or purposes of creating a false or misleading appearance with respect to the market for, or the price of, the relevant security or futures contract if the transaction arises under any of the following circumstances:

(a) orders from a fund manager whose instructions are intended to switch the security or futures contract from one sub-account to another for legitimate commercial reasons; or

(b) orders from an affiliate overseas, acting on behalf of different beneficial owners, and the trades will be booked out eventually to these beneficial owners.

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Practice Note 5.12.9 Processes for Review of Orders and Trades

1. Introduction

1.1

Rule 5.12.9 states that a Trading Member must have in place processes to review orders and trades for the purpose of detecting suspicious trading behaviour.

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1.2

This Practice Note provides guidance on what Trading Members could do as part of their processes for post-execution review of orders and trades.

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2. Guidance on processes

2.1

Trading Members should adopt processes to place suspicious orders and trades on exception reports or to trigger automated alerts for review. Exception reports and alerts should be reviewed by an independent party like a compliance officer or other appropriately qualified person on a regular basis to detect orders and trades or patterns of orders and trades that give rise to the possibility of non-compliance with the Rules and regulations. The review process may involve further enquiry with Trading Representative and/or customers or reviewing other Trading Representative or customer-related information such as past trading activity.

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2.2

Trading Members are expected to follow up on suspicious orders and trades and keep on file the result of their review process. Where it has been established that has been non-compliance with the Rules and Regulations, or if there is any doubt as to its compliance, apart from reporting such activity to SGX-ST pursuant to Rule 5.12.8, Trading Members are expected to take appropriate action, such as advising the Trading Representative or customer to refrain from such activity, performing a closer monitoring of the Trading Representative or customer and ultimately to close the account carried on the books of the Trading Member if the suspicious activity persists. Trading Members should note that the mere fact that an order has been placed on an exception report does not absolve them from their underlying compliance responsibilities.

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3 Parameters to assist in detecting suspicious trading behaviour

3.1

The effectiveness of processes to identify suspicious trading behaviour depends to a large extent on the types and size of the parameters set. A list of suggested parameters is below:

(a) To detect orders/trades that are inconsistent with recent trading (not justified by assets, earnings, income yield or prospects) in the security or that would materially alter the market, such as:

(i) orders/trades more than x% or a number of price steps from the previous bid/offer/last traded or closing price;

(ii) several orders usually for small quantities placed close together at increasing or decreasing prices to create 'layering' of buy/sell orders in the market. Such orders may have a material impact on price but could potentially avoid detection by filters designed to pick up large one-time moves in price as the layering of orders results in many small price moves;

(iii) the excessive use of Force Key in entering orders. This may be indicative of a Trading Representative and/or customer or a group of Trading Representatives and/or customers working to move the price far beyond the current price; and/or

(iv) orders entered during pre-opening and pre-close at such a quantity and price that have the effect of creating a false or misleading appearance of the market for, or the price of, such securities.

(b) Orders/trades that result in no change in beneficial ownership of a security or that create a false or misleading appearance of active trading, for example:

(i) orders/trades arising from orders placed on both the buy and sell side of the market at a similar price and time by the same Trading Representative or customer or by a group of Trading Representatives and/or customers acting in concert.

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3.2

Trading Members' processes should be able to identify the above irregular orders/trades regardless of whether they originate from one Trading Representative or customer or a group of Trading Representatives and/or customers acting in concert. In addition, they should also be able to identify consistent patterns of irregular trades done over a period of time.

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3.3

In setting the above parameters, Trading Members should take note of securities that are illiquid or those with small free floats which make them susceptible to cornering and price manipulation.

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3.4

Trading Members should also pay attention to orders entered after a corporate action to ensure that the orders reflect the change in price and/or quantity after the corporate action. This is to prevent securities being traded at dramatically wrong prices/quantities due to a lack of knowledge or a misunderstanding of the corporate action by uninformed customers.

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Practice Note 8.11.1 Designated Instruments

1. Introduction

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.

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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".

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2. Designation as a regulatory tool

2.1.

SGX-ST has three key regulatory tools to support a fair, orderly and transparent market. They are as follows:

(a) Query to listed companies. SGX may issue a query to listed companies in situations where there is unusual trading that is not explained by announced developments or industry trends. The query serves to raise investors' awareness that trading activity is unusual;

(b) Designation of a security or futures contract. SGX may declare a listed or quoted security or futures contract to be a Designated Instrument where, in SGX's judgment, there is possible manipulation or excessive speculation in the security or futures contract (or its underlying), or it is otherwise in the interest of the market to do so; and

(c) Suspension. SGX may suspend a security or futures contract where, in SGX's opinion, the market is not orderly, informed or fair.

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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.

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3. Conditions that may be imposed on a Designated Instrument

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.

(a) Requirement for collateral to be furnished. Trading Members may be required to obtain margins from each customer in respect of the customer's dealing in the Designated Instrument. This may also be imposed as a requirement for the Trading Member to obtain partial or full payment for any buy order from a customer, prior to executing the order. Such requirements would be specified in the conditions for the designation;

(b) Trading restrictions on specific Trading Members. Trading restrictions may also be imposed on specific Trading Members in relation to a Designated Instrument if the Trading Member has outstanding unsettled positions in the security (or the underlying security of the futures contract) that is more than 5% (or any percentage that SGX-ST may prescribe) of the paid-up capital of the company whose securities are designated;

(c) Restrictions on sale. A prospective seller of a Designated Instrument may be prohibited from placing a sell order unless he is already holding the security (or underlying security of the futures contract) at the time of sale. The seller may be required to provide evidence that he/she holds the security (or the underlying security of the futures contract). This evidence could be in the form of statements by CDP or a custodian showing that the seller is holding a sufficient quantity of the security. Furthermore, the Trading Member may be required to cite such evidence prior to the execution of the sale order; and

(d) Other conditions such as prohibitions on short-selling, contra trading or Internet Trading.

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Practice Note 8.13 and 8.15 Characteristics of Suspension and Trading Halt

1. Introduction

1.1

Rule 8.13.1 states that SGX-ST may suspend or restrict trading in any or all listed or quoted securities or futures contracts. It may do so for one or more markets, one or more trading sessions or any part of a trading session in specified circumstances.

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1.2

Rule 8.15.1 states that a trading halt may be imposed by SGX-ST at the request of an issuer. Rule 8.15.2 states that a trading halt may be imposed by SGX-ST on a security or futures contract when its underlying, or such instrument on the same underlying as SGX-ST may prescribe, is subject to a Cooling-Off Period pursuant to Rule 8.14.2.

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1.3

This Practice Note explains the characteristics of a suspension and a trading halt.

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2. Characteristics of a suspension and a trading halt

Characteristic	Suspension	Trading Halt
Initiating party	A suspension can be imposed by SGX-ST under the circumstances stated in Rule 8.13.1. An Issuer may also request a suspension if its request for extension of a trading halt is not approved by SGX-ST.	A trading halt can be imposed by SGX-ST under the circumstances stated in Rules 8.15.1 and 8.15.2.
Status of unmatched orders	During a market suspension, unmatched orders in the Trading System may lapse, as determined by SGX-ST. SGX-ST will notify Trading Members of the status of their unmatched orders before the lifting of a market suspension. During a suspension of a single security or futures contract, all unmatched orders will lapse.	During a trading halt, all existing orders in the Trading System remain valid. Orders can still be entered, modified or withdrawn but will not be matched.
Duration of suspension or trading halt	A suspension may persist for a prolonged period.	A trading halt is usually intra-day, with a minimum duration of 30 minutes. SGX-ST may extend the duration of a trading halt beyond three Market Days upon the Issuer's request.
Upon lifting of suspension or trading halt	Upon lifting of a suspension, the suspended security or futures contract will enter into an Adjust Phase for at least 15 minutes.	Upon lifting of a trading halt, orders that can be matched will be matched at a single price computed based on the algorithm set by SGX-ST. Unmatched orders will be carried forward into the market phase that the market is in when the trading halt is lifted.

Added on 3 June 2019 3 June 2019.

Practice Note 8.13.4 and 8.15.7 Approval of Off-Market Trades in a Security or Futures Contract Subject to Suspension or Trading Halt

1. Introduction

1.1

This Practice Note explains the rationale and the circumstances under which SGX-ST may approve the trading of a security or futures contract that is the subject of a suspension or trading halt.

Added on 3 June 2019 3 June 2019.

1.2

Rule 8.13.4 says securities or futures contract that have been suspended from trading shall not be traded on the Trading System. Except with SGX-ST's approval, a Trading Member must not execute any transactions in a suspended security or futures contract.

Added on 3 June 2019 3 June 2019.

1.3

Rule 8.15.7 says securities or futures contracts that are subject to a trading halt shall not be traded on the Trading System. Except with SGX-ST's approval, a Trading Member must not execute any transactions in a security or futures contract subject to a trading halt.

Added on 3 June 2019 3 June 2019.

2. Rationale for Rules

2.1

All market participants should have equal opportunity. The objective of a suspension and trading halt is usually to facilitate proper dissemination of material information to the market place to ensure the operation of a fair market. Hence, SGX-ST Rules 8.13.4 and 8.15.7 stop all trading of a security or futures contract by a Trading Member if the security or futures contract is under suspension or trading halt. However, SGX-ST recognises that there may be circumstances under which off-market trading of the security or futures contract is appropriate.

Added on 3 June 2019 3 June 2019.

3. Circumstances under which SGX-ST may approve off market trades in a security or futures contract subject to suspension or trading halt

3.1

SGX-ST may, on a case-by-case basis, approve off-market trades in a security or futures contract that is subject to suspension or trading halt, if the buying customer and selling customer are informed of the reasons for suspension or trading halt and there is a reason for the trade beyond simply wanting to trade. Circumstances under which SGX-ST may approve off-market trades include:

(a) A seller, being in financial difficulty, needs to sell a security, or liquidate a futures contract in relation to a security, that may be suspended for an indefinite period.

(b) A seller who short-sold a security or futures contract that is subsequently subject to suspension or trading halt, and the clearing house requires the seller to cover the short position within a prescribed period.

(c) A security or futures contract is suspended prior to delisting on SGX-ST. The minority shareholders may wish to sell the security or futures contract to the majority shareholders.

(d) The trustee of the estate of a deceased investor needs to liquidate a security or futures contract that may be suspended for an indefinite period.

Added on 3 June 2019 3 June 2019.

Practice Note 9.6.4(b) Money Received on Account of Customer

1. Rule 9.6.4(b) states that a buying customer who is not a buying customer specified in Rule 9.6.4(a) must pay the Trading Member for its trade on Intended Settlement Day, regardless of whether the securities have been delivered by CDP.

2. For the avoidance of doubt, where securities have not been delivered by CDP on Intended Settlement Day, the payment by the customer provided in Rule 9.6.4(b) shall be treated as money received on account of its customer for the purposes of SFR (Licensing and Conduct of Business). The Trading Member must therefore still comply with Rule 4.30.2 in relation to any money paid by the buying customer to the Trading Member, including, where relevant, the requirement to deposit the money received on account of its customer in a trust account no later than such time as required in the SFR (Licensing and Conduct of Business). The Trading Member is permitted to withdraw such money from the trust account for the purpose of making payment to CDP for the customer's trade when such payment is due.

3. This Practice Note does not preclude the Trading Member from applying the payment towards permitted uses set out in the SFR (Licensing and Conduct of Business) and/or relevant law.

Added on 3 June 2019 3 June 2019.

Practice Note 11.1.2 and 11.3 Trade Cancellation Procedures

1. Introduction

1.1

Rule 11.1.2 states that SGX-ST may cancel a contract in various circumstances including the following:

(a) if the contract arises from an Error Trade and:

(i) the Trading Members to the contract agree to the cancellation; or

(ii) SGX-ST is satisfied that the contract should be cancelled; and

(b) if the contract arises from a Trade at Close and subsequent to the trade, SGX-ST:

(i) invalidates the Closing Auction Price on which the trade is based; or

(ii) determines an alternate closing price for the security.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

1.2

Rule 11.3 sets out the procedures for the cancellation of Error Trades. This Practice Note further sets out the steps that a Trading Member should take if it wishes to cancel an Error Trade.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

1.3

This Practice Note also sets out the procedure when SGX-ST cancels a contract arising from a Trade at Close.

Added on 3 June 2019 3 June 2019.

2. Cancellation Procedures for Error Trades

2.1 Definitions

2.1.1

Rule 11.2.1 states that an "Error Trade" refers to a trade that is executed on the Trading System and that results from:

(a) An erroneous entry in relation to the price and/or volume of an order; and/or

(b) An erroneous entry in relation to the name of the securities or futures contracts.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

2.1.2

For the purpose of this Practice Note, the party that caused the Error Trade will be referred to as the "TM in error"; any counterparty to the Error Trade will be referred to as a "counterparty TM"; and both parties will be referred to collectively as the "parties".

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

2.2 Preliminary Steps

2.2.1

When an Error Trade occurs, the TM in error must:

(a) Inform SGX-ST by telephone at (+65) 6713 7088 within 30 minutes from the time the Error Trade occurred; and

(a) Contact the counterparty TM(s) without delay and seek its(their) agreement to cancel the Error Trade.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

2.2.2

Both the TM in error and the counterparty TM(s) must take all necessary steps to minimise any likely market impact caused by the Error Trade.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

2.2.3

Rule 11.4.1 gives SGX-ST the discretion to review any Error Trade if SGX-ST deems it necessary for the proper maintenance of a fair and orderly market. As such, market participants are advised that even if they do not initiate the procedure for cancelling an Error Trade, SGX-ST may exercise its discretion under Rule 11.4.1 to review the Error Trade.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

2.3 Cancellation Procedures

2.3.1

Upon being notified by a TM in error of an Error Trade, the counterparty TM must contact all its affected clients to:

(a) inform them of the Error Trade and seek their instructions on the cancellation of the Error Trade;

(b) inform them on the possibility that the Error Trades may be referred by the TM in error to SGX-ST for review and may be cancelled upon the conclusion of the review; and

(c) inform them not to close their position until the issue has been resolved.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

Mutual cancellation

2.3.2

In the event that the parties agree to cancel an Error Trade, the following procedures will apply:

(a) The TM in error must inform SGX-ST of the mutual cancellation without delay; and

(b) Both parties must submit the duly completed trade cancellation request forms to SGX-ST.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

2.3.3

If the counterparty TM agrees to cancel an Error Trade, the TM in error should consider compensating, on an ex gratia basis, the counterparty TM for any losses that would be incurred as a result of the mutual cancellation.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

No mutual cancellation

2.3.4

If the parties cannot mutually agree to cancel the Error Trade, the TM in error may submit a written request to SGX-ST to review the Error Trade.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

2.3.5

In making the request to SGX-ST to review an Error Trade, the TM in error must:

(a) refer the matter to SGX-ST within 60 minutes from the time the Error Trade occurred or before 18:00 hours on the day the Error Trade occurred, whichever is earlier; and

(b) notify the counterparty TM that it has referred the matter to SGX-ST for review.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

2.3.6

In a situation where multiple counterparty TMs are involved in an Error Trade and some agree to a mutual cancellation while the others do not, the TM in error must notify all the counterparty TMs of any referral to SGX-ST for review.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

2.3.7

If a TM in error makes a request to SGX-ST to review an Error Trade, the counterparty TM must provide the TM in error and SGX-ST with its reasons for not agreeing to a mutual cancellation of the Error Trade.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

2.3.8

The timeframe referred to in paragraph 2.3.5 for the TM in error to make the request to review an Error Trade is to minimise the impact of any cancellation on the market. In this regard, SGX-ST reserves the right not to facilitate any request to review an Error Trade if SGX-ST receives the request after the said timeframe.

Added on 3 June 2019 3 June 2019.

2.4 Review Procedures

2.4.1

A TM in error must pay a non-refundable trade review fee of S$1,000 for each referral accepted for review by SGX-ST, regardless of the outcome of the review.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

2.4.2

In its referral to SGX-ST for review, the TM in error shall provide details of:

(a) the name of the counter to which the Error Trade pertains;

(b) the price and volume at which the Error Trade was done;

(c) the timestamp of the Error Trade;

(d) the Trade ID; and

(e) the reasons for the erroneous entry in relation to the Error Trade.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

2.4.3

Once SGX-ST has reviewed an Error Trade, SGX-ST will inform the market of the outcome of the review (i.e. whether the Error Trade remains valid or has been cancelled) through various media which may include but not be limited to the use of market broadcast and publication on any website by SGX.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

2.4.4

SGX-ST will also notify the parties of the outcome of the review in writing.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

2.5 No-cancellation Range

2.5.1

Rule 11.4.1 gives SGX-ST the discretion to review any Error Trade if SGX-ST deems it necessary for the proper maintenance of a fair and orderly market, notwithstanding any no-cancellation range.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

2.5.2

Rule 11.5.3 states that SGX-ST has the discretion to apply or remove a no-cancellation range.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

2.5.3

Market participants are advised that an Error Trade may be cancelled by SGX-ST even if the Error Trade falls within the no-cancellation range.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

2.6 Extension of Time

2.6.1

SGX-ST may in its discretion allow for an extension of time for any submission of information and documents in relation to the Error Trade, particularly during the review stage.

Added on 3 June 2019 3 June 2019 and 3 June 2019 3 June 2019.

3. Cancellation Procedures for contracts arising from a Trade at Close

3.1 Cancellation Procedures

3.1.1

If SGX-ST cancels a contract arising from a Trade at Close, SGX-ST will inform the market of the cancellation through various media which may include but not be limited to the use of market broadcast and publication on any website by SGX.

Added on 3 June 2019 3 June 2019.

3.1.2

Subsequently, SGX-ST will notify both parties to the Trade at Close in writing of the cancellation.

Added on 3 June 2019 3 June 2019.

Practice Note 11.5.5(c) Alternative Reference Price For No-cancellation Range

1. Introduction

1.1

Rule 11.5.5(c) provides that SGX-ST may, in its discretion, use an alternative price as the Reference Price for the no-cancellation range if (a) the price of the last good trade is not available; or (b) SGX-ST deems the price of the last good trade to be unreliable or inappropriate as a Reference Price.

Added on 3 June 2019 3 June 2019.

1.2

In normal market conditions, the price of the last good trade is adopted as the Reference Price. However, SGX-ST has considered that there may be situations where the price of the last good trade is not available or not appropriate. In such situations, SGX would seek to establish a Reference Price from alternative sources.

Added on 3 June 2019 3 June 2019.

1.3.

This Practice Note sets out the alternative prices that SGX-ST may consider in establishing the Reference Price when the price of the last good trade is inappropriate.

Added on 3 June 2019 3 June 2019.

2. Alternative prices

2.1.

For all securities except bonds and structured warrants, SGX-ST may use any of the following alternative prices as the Reference Price for the no-cancellation range.

(a) The previous closing price.

(b) The average of the last quoted bid price and the last quoted offer price for the security immediately preceding the error trade. The selection will not include the quotes provided by the parties who are involved in the error trade that is under review.

(c) A price derived from a pricing model established by SGX-ST. For example, in the case of a share consolidation, SGX-ST may use the last traded price prior to the effective date of the consolidation, adjusted for the consolidation ratio.

Added on 3 June 2019 3 June 2019 and amended on 30 May 2023.

2.2.

In addition, SGX-ST may also use the alternative prices set out in the table below for the instruments stated:

Instrument	Alternative prices that may be used as the Reference Price
Extended settlement contracts	• The price of the last good trade in the underlying stock.
Depository receipts	• The previous closing price of the underlying instrument in home market. • In the case of ADRs, the previous closing price of the ADR in the US market.
Exchange traded funds	• The previous closing price as determined in accordance with Rule 8.3. • The average of the last quoted bid price and the last quoted offer price for the exchange traded fund immediately preceding the error trade. The selection will not include the quotes provided by the Designated Market-Maker who is involved in the error trade that is under review. • The indicative net asset value.
Exchange traded notes	• The average of the last quoted bid and the last quoted offer price for the exchange traded note immediately preceding the error trade. The selection will not include the quotes provided by the Designated Market-Maker who is involved in the error trade that is under review. • The price of other debt papers with a similar credit rating.

Added on 30 May 2023.

2.3.

Where any of the prices set out in paragraphs 2.1 and 2.2 is denominated in a currency different from that of the instrument on SGX-ST, SGX-ST may apply such exchange rate factor as it deems appropriate.

Added on 30 May 2023.

3. Alternative prices unsuitable

3.1.

Where SGX-ST determines that an appropriate Reference Price cannot be established, it will not establish a no-cancellation range.

Added on 3 June 2019 3 June 2019.

Schedule A

Chapter 1 General

Rule Violation

Whether composition may be offered

Composition amount that may be offered by SGX-ST, where SGX-ST has determined the Trading Member, Chief Executive Officer 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)

Chief Executive Officer

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 1 — General

1.9

Limitation of Liability

1.9.4

Trading Member to ensure that its customers agree to and are bound by the limitations under Rule 1.9

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.

1.10

Indemnity

1.10.2

Registered Person to reimburse SGX-ST for such expenses and payments as specified

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

1.10.3

Registered Person to pay SGX-ST for such cost as specified

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

1.11

Provision of Information

1.11.1

Information or records provided not to contain untrue statements, are not misleading and include rather than omit material statements

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A

1.11.2

Registered Person to undertake that it has obtained consent from any individual for it to disclose such personal data to SGX-ST, and for SGX-ST to collect, use and disclose such personal data for the Purposes

Not Compoundable

$10,000

1.11.3

Failure to provide information or records SGX-ST may require under the Rules

Not Compoundable

$10,000

Added on 3 June 2019 3 June 2019.

Chapter 2 Admission and Registration of Trading Members, Chief Executive Officers and Trading Representatives

Rule Violation

Whether composition may be offered

Composition amount that may be offered by SGX-ST, where SGX-ST has determined the Trading Member, Chief Executive Officer 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)

Chief Executive Officer

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 2 — Admission and Registration of Trading Members, Chief Executive Officers and Trading Representatives

2.5

Trading Rights

2.5.4

Remote Trading Member not to execute Agency Trades for customers resident 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.

2.6

Appointment and Registration of Chief Executive Officer

2.6.1

Trading Member to appoint a Chief Executive Officer to be registered 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.

2.6.2

Remote Trading Member to appoint a Chief Executive Officer to be registered 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.

2.6.3

Trading Member to notify SGX-ST at least seven days prior to the appointment of a Chief Executive Officer

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.

2.7

De-Registration of Chief Executive Officer

2.7.1

Trading Member to notify SGX-ST immediately upon trigger of CEO de-registration condition

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.

2.8

Appointment and Registration of Trading Representatives

2.8.1

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.

2.8.3

Trading Member to maintain records evidencing Trading Representative's satisfaction of the registration criteria in Rule 2.8.2 and provide all information that SGX-ST may require in the registration process

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.

2.8.6

Trading Representative may deal in securities or futures contracts on SGX-ST only upon his Trading Member being notified by SGX-ST that he or she has been entered into the Register of Trading Representatives.

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

2.8.7

Trading Representative to act for only one Trading 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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

2.9

De-Registration of Trading Representative

2.9.1

Trading Member to notify SGX-ST immediately upon trigger of Trading Representative de-registration condition

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.

2.10

Compliance

2.10.1(a)

Trading Member to comply with the Rules

[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.

Failure to continue to satisfy the admission criteria, any Approval Conditions, and any other conditions or restrictions imposed by SGX-ST from time to time

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.

2.10.1(b)

Remote Trading Member to comply with principles of good business practice in relation to the areas covered by those Rules that have been expressed to not apply to Remote Trading Members

[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.

2.10.2

Chief Executive Officer to comply with the Rules

[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.

2.10.3

Trading Representative to comply with the Rules and continue to satisfy the registration criteria and any conditions imposed by SGX-ST from time to time

[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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

2.11

Payment

2.11.1

Trading Members, Chief Executive Officers and Trading Representatives to pay all fees, levies or charges

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

$250

$500

$1,000

N.A.

2.12

Constitutional Documents

2.12.1

Trading Member to inform SGX-ST before any change to its Constitution or equivalent constitutional documents 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.

2.13

Business Name/Contact Details

2.13.1

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.

2.13.2

Trading Representative to inform his Trading Member in writing of any change in his/her contact details

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

$250

$500

$1,000

N.A.

2.13.3

Trading Member to inform SGX-ST in writing of any change in its Trading Representatives' contact details

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

$250

$500

$1,000

N.A.

2.14

Board of Directors

2.14.1

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.

2.14.2

Trading Member to appoint a Director of an SGX-listed company as a non-executive Director, but not as an executive Director

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.

2.15

Directorship of SGX-ST listed company

2.15.1(a)

Chief Executive Officer or Trading Representative to inform SGX-ST of the proposed appointment in writing at least 14 days before the effective date of appointment

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

2.15.1(b)

Chief Executive Officer or Trading Representative to furnish SGX-ST at least seven days before the effective date of appointment an explanation of how conflicts of interest have been addressed and an undertaking to disclose to customers the directorship

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

2.15.1(c)

Trading Member to inform SGX-ST in writing at least seven days before the effective date of appointment that it is aware of the directorship and is satisfied that conflicts of interest have been sufficiently addressed

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.

2.16

Change in Control

2.16.1

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.

2.16.2

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

Not Compoundable

N.A.

$10,000

2.17

Other Businesses

2.17.1

Trading Member to inform SGX-ST before engaging in, or acquiring 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.

2.17.2

Chief Executive Officer to give SGX-ST necessary notice before engaging in or holding substantial shareholdings in any other business that might potentially conflict with being a Chief Executive Officer

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.

2.17.3

Chief Executive Officer to ensure that his Trading Member agrees to the engagement or 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.

2.17.4

Engagement or shareholding not to breach the law, Rules or any applicable law or regulation

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.

2.17.5

Trading Member or Chief Executive Officer to supply SGX-ST with any information SGX-ST requires regarding engagement or acquisition or holding 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.

2.17.6

Trading Member or Chief Executive Officer not to proceed with engagement or acquisition of shareholding if SGX-ST objects

Not Compoundable

N.A.

$10,000

2.17.7

Trading Member to satisfy any conditions and restrictions imposed by SGX-ST on any engagement or acquisition of shareholding end any engagement or shareholding if required to do so by SGX-ST

Not Compoundable

N.A.

$10,000

2.17.8

Trading Member or Chief Executive Officer to end an engagement or shareholding if required to do so by SGX-ST

Not Compoundable

N.A.

$10,000

2.17.10

Trading Member to have in place controls and processes to ensure that its Trading Representative do not engage in, or acquire or hold any substantial shareholding in, any other business that meet the criteria stated in this Rule 2.17.10.

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.

2.18

Reporting of Adverse Events

2.18.1

Trading Member to report adverse events set out in this Rule 2.18.1

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.

2.18.2

Trading Member to inform SGX-ST no later than one hour after discovery of a situation set out in Rule 2.18.1(h)

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.

2.19

Voluntary Liquidation

2.19.1

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

Not Compoundable

N.A.

$10,000

2.20

Cessation of Trading Rights

2.20.1

Trading Member not to enter orders on organised markets if its rights to access such markets cease under the circumstances set out

Not Compoundable

N.A.

$10,000

2.21

Action against Defaulters

2.21.2

Failure to inform SGX-ST of act that may result in default

Not Compoundable

N.A.

$10,000

2.22

Suspension and Restriction of Activities

2.22.1

Trading Member, Chief Executive Officer and Trading Representative to comply with SGX-ST's restrictions and conditions on its activities

Not Compoundable

$10,000

2.22.3(a)

Trading Member and its Trading Representatives must not enter into a new transaction without the approval of SGX-ST

Not Compoundable

$10,000

2.22.3(b)

Trading Member and its Trading Representatives must not deliver on any transaction or settle any transaction without the approval of SGX-ST

Not Compoundable

$10,000

2.22.5

Trading Member to comply with the directions of SGX-ST

Not Compoundable

N.A.

$10,000

2.25

Voluntary Suspension of Business

2.25.1

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.

2.25.2

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

Not Compoundable

N.A.

$10,000

2.26

Resignation

2.26.1(a)

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.

2.26.1(b)

Trading Member not to enter into a contract seven 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.

2.26.1(c)

Trading Member to satisfy that it has taken, or will take, steps for the orderly winding down of its business 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.

2.26.1(d)

Trading Member to satisfy SGX-ST that it has fulfilled or is able to fulfil (i) its obligations to SGX-ST; and (ii) its obligations to all its customers as SGX-ST may specify

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 3 June 2019 3 June 2019.

Chapter 3 Capital and Financial Requirements

Rule Violation

Whether composition may be offered

Composition amount that may be offered by SGX-ST, where SGX-ST has determined the Trading Member, Chief Executive Officer 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)

Chief Executive Officer

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 3 — Capital and Financial Requirements

3.2

Base Capital Requirement

3.2.1

Trading Member not to cause or permit its base capital or net head office funds to fall below the base capital requirement

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.

3.2.3

Trading Member to notify SGX-ST in the case of failure to comply or awareness of impending failure to comply with the base capital requirement

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.

3.3

Financial Resources Requirement

3.3.2

Trading Member not to cause or permit its financial resources or adjusted net head office funds to fall below its total risk requirement

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.

3.3.5

Trading Member to notify SGX-ST in the case of failure to comply or awareness of impending failure to comply with the financial resources requirement

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.

3.3.6

Trading Member to notify SGX-ST when financial resources or adjust head office funds falls below 150% of its total risk requirement

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.

3.3.7

Trading Member to comply with SGX-ST's requirements, when financial resources or adjusted net head office funds fall below 150% of its total risk requirement

Not Compoundable

N.A.

$10,000

3.3.8

Trading Member to notify SGX-ST when financial resources or adjusted net head office funds fall below 120% of its total risk requirement

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.

3.3.9

Trading Member to comply with SGX-ST's requirements when financial resources or adjusted net head office funds fall below 120% of total risk requirement

Not Compoundable

N.A.

$10,000

3.4

Aggregate Indebtedness Requirement

3.4.2

Trading Member not to cause or permit the aggregate indebtedness to exceed 1,200% of aggregate resources

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.

3.4.3

Trading Member to notify SGX-ST of failure to comply or awareness of impending failure to comply with the aggregate indebtedness requirement

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.

3.4.4

Trading Member to notify SGX-ST if aggregate indebtedness exceeds 600% of aggregate resources

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.

3.4.5

Trading Member to comply with SGX-ST's requirements when aggregate indebtedness exceeds 600% of aggregate resources

Not Compoundable

N.A.

$10,000

3.5

Powers to Impose Other Requirements

3.5.1

Trading Member to comply with additional requirements prescribed 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.

3.6

Exposure to Single Customer

3.6.2

Trading Member to notify SGX-ST if Trading Member's exposure to a single customer exceeds 20% of its average aggregate resources

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.

Trading Member to comply with SGX-ST's direction to reduce risk exposure to single customer

Not Compoundable

N.A.

$10,000

3.7

Remote Trading Member: Exposure to Single Customer

3.7.1

Trading Member to have in place adequate tools and procedures to monitor exposure to a single 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.

3.7.2

Trading Member to notify SGX-ST if remote Trading Member's exposure to a single customer exceeds its internal threshold

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.

3.8

Exposure to Single Security

3.8.2

Trading Member to notify SGX-ST if the Trading Member's exposure exceeds the stipulated 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.

3.8.3

Trading Member to comply with risk management requirements imposed by SGX-ST to reduce risk exposure to a single security

Not Compoundable

N.A.

$10,000

3.8.7

Trading Member not to permit exposure to a suspended security quoted on SGX-ST or recognised group A securities exchange above the stipulated limit

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.

3.9

Remote Trading Members: Exposure to Single Security

3.9.1

Trading Member to have in place adequate tools and procedures to monitor exposure to a single security

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.

3.9.2

Trading Member to notify SGX-ST if Trading Member's exposure to a single security exceeds its internal threshold

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.

3.10

Margin Financing

3.10.2

Remote Trading Member to comply with such requirements prescribed by the Relevant Regulatory Authority

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.

3.10.3

Trading Member to obtain written agreement for margin account 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.

3.10.4

Trading Member to obtain the specified informed written consent and discretion from its 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.

3.10.4A

A Trading Member not to enter into contract, arrangement or transaction of which the purpose or effect is to transfer any right, interest, benefit or title in assets or monies received from a retail customer to itself or any other person, other than in the specified cases

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.

3.10.5

Margins deposited by the customer to a Trading Member to be in the acceptable form

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.

3.10.6
[Deleted]

[Deleted]

3.10.7/3.10.8

Trading Member not to cause or permit the equity in a customer's margin account to fall to or below the stipulated limit. Where equity in a customer's margin account falls to or below the stipulated limit, Trading Member:
(i) to require the customer to provide additional margin, and
(ii) not to cause or permit any new transaction to be made in the customer’s margin account, unless such transaction increases the percentage of equity over debit balance in the account

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.

3.10.9

Trading Member to conduct daily review of all margin accounts in the prescribed manner, and establish and maintain a framework to govern such reviews

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.

3.10.11

Trading Member not to allow customers to withdraw cash or assets from their accounts when the equity is 110% or less or the amount of cash sought to be withdrawn exceeds the cash balance in their accounts

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.

3.10.12(a)

Trading Member not to cause or permit the aggregate of the margin exposures of all customers to exceed the stipulated limit

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.

3.10.12(b)

Trading Member not to cause or permit the aggregate of the margin exposures of all customers in respect of Specified Products, other than Specified Products quoted on SGX-ST, to exceed the stipulated limit

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.

3.10.12(c)

Trading Member not to cause or permit the debit balance in each customer's margin account to exceed the stipulated limit

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.

3.10.13

Transactions in a margin account to be on a ready basis

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.

3.10.14

Trading Member to apply haircuts prescribed by SGX-ST in computing the market value of Specified Products

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.

3.10.15

Trading Member to comply with SGX-ST's requirements for margin financing transactions

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.

3.11

Borrowing and Lending of Specified Products

3.11.1

Remote Trading Member to comply with such requirements prescribed by the Relevant Regulatory Authority and principles of good business practice in relation to the areas set out in this Rule 3.11

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.

3.11.2

Trading Member to enter into written agreement with the borrower or lender before engaging in activity

Not Compoundable

N.A.

$10,000

3.11.3(b)

Trading Member to obtain collateral from borrower before delivering loaned Specified Products

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.

3.11.3(c)

Trading Member not to accept collateral that is not in the form specified in Regulation 45(9) of the SFR (Licensing and Conduct of Business)

Not Compoundable

N.A.

$10,000

3.11.3(d)

Collateral that is obtained from the borrower not to be less than the prescribed level

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.

3.11.3(e)

Trading Member to notify the borrower to provide additional collateral to meet the prescribed level

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.

Trading Member not to allow new borrowings until the value of the collateral is restored to the prescribed level

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.

3.11.3(g)

Trading Member not to allow a borrower to withdraw collateral unless the specified conditions are met

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.

3.12

Submission of Returns

3.12.1(a)

Trading Member to submit indicated financial returns and statements

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.

3.12.1(b)

Remote Trading Member to submit indicated financial returns and statements

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.

3.12.3

Trading Member to request for any extension of time at least three Market Days prior to the due date

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.

3.12.4

Trading Member to resubmit statements and documents and take other steps SGX-ST may require if they are inaccurate or incomplete

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.

3.13

Annual Financial Audit

3.13.1

Trading Member to obtain SGX-ST's prior approval for any change of its existing external auditors, or to notify SGX-ST by the prescribed time, as applicable

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

3.13.2

Trading Member to comply with SGX-ST's direction for the removal and appointment of another external auditor

Not Compoundable

N.A.

$10,000

3.13.3

Trading Member to furnish the indicated information to 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.

3.13.4

Trading Member to procure that the Trading Member's auditor report immediately the indicated matters to 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.

3.13.6

Trading Member to request for any extension of time at least three Market Days prior to the due date

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.

3.14

Provision in Annual Accounts

3.14.1

Trading Member to make provisions in its annual accounts as required 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.

3.15

Other Financial Requirements

3.15.2

Trading Member not to reduce its paid-up ordinary share capital without prior 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.

3.15.3(a)

Trading Member to notify SGX-ST prior to the issue of any preference share

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.

3.15.3(b)

Trading Member not to redeem any redeemable preference shares when the necessary conditions are not met

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.

3.15.4(a)

Trading Member to obtain prior approval of SGX-ST if it enters a subordinated loan agreement in a format other than prescribed format

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.

3.15.4(b)

Trading Member to notify SGX-ST of the drawing down of a qualifying subordinated loan by the prescribed time

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

3.15.4(c)

Trading Member not to repay any subordinated loan principal before the maturity date without prior 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.

3.15.4(d)

Trading Member not to repay any subordinated loan principal that has matured when the stipulated conditions are not met

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.

3.15.5

Trading Member not to make any unsecured loan or advance, payment of dividend or increase in director's remuneration when conditions are not met

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.

3.15.6

Remote Trading Member to notify SGX-ST immediately of any actions taken relating to the prescribed activities

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.

3.15.7

Trading Member that holds a Capital Markets Services Licence 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.

Added on 3 June 20193 June 2019 and amended on 1 April 2025.

Chapter 4 Operational Requirements

Rule Violation

Whether composition may be offered

Composition amount that may be offered by SGX-ST, where SGX-ST has determined the Trading Member, Chief Executive Officer 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)

Chief Executive Officer

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 — Operational Requirements

4.1

Member Systems

4.1.1

Trading Member to ensure that systems and connections to the Trading System operate properly, and have adequate redundancy and scalable capacity to accommodate current and anticipated trading volume levels; and that it complies with terms and conditions, and any other requirements imposed by SGX-ST, for accessing the Trading System or other management systems

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.

4.2

Direct Market Access and Sponsored Access

4.2.2

Trading Member to maintain a Sponsored Access register

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.

Trading Member to produce Sponsored Access register when requested

Not Compoundable

N.A.

$10,000

4.2.3

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.

4.2.3(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.

4.2.3(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.

4.2.3(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.

4.2.3(d)

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

Not Compoundable

N.A.

$10,000

4.2.3(e)

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

Not Compoundable

N.A.

$10,000

4.2.3(f)

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.

4.2.3(g)

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.

4.2.3(h)

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.

4.2.3(i)

Trading Member to have conditions restricting who can delegate 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.

4.2.4

Trading Member to provide report by independent reviewer

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.

4.3

Suspension and Termination of Direct Market Access

4.3.1

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

Not Compoundable

N.A.

$10,000

4.3.2

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

Not Compoundable

N.A.

$10,000

4.4

Control of Access

4.4.1

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

Not Compoundable

N.A.

$10,000

4.6

Training and Supervision

4.6.1

Trading Member to ensure that each of its Trading Representatives undergoes adequate education and training

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.

4.6.2

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.

4.6.3(a)

Trading Member to establish and maintain procedures and systems to prevent any breach of the Rules 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.

4.6.3(b)

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.

4.7

Compliance Review

4.7.1

Trading Member to carry out checks to ensure compliance with all regulatory requirements

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 carry out checks through stipulated department/person

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

Good Business Practice

4.8.1

Trading Member and Trading Representatives 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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

4.9

Control of Operations

4.9.1

Trading Member to establish and maintain adequate internal control systems

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.

4.9.2

Trading Member to establish internal policies and procedures to restrict the flow of material non-public information between persons and departments within the Trading Member

Not Compoundable

N.A.

$10,000

4.9.3

Trading Member to separate front and back office functions.

Not Compoundable

N.A.

$10,000

4.10

Risk Management and Financial Controls

4.10.1(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.

4.10.1(b)

Trading Member to have adequate 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.

4.10.1(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.

4.10.1(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.

4.10.2

Trading Member to have automated processes and procedures 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.

4.11

Outsourcing Conditions

4.11.1(a)

Trading Member to comply with any guidelines or requirements on outsourcing as prescribed by the Relevant Regulatory Authority.

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.

Remote Trading Member to inform SGX-ST of any changes to such requirements and comply with additional requirements as SGX-ST may prescribe

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.

4.11.1(b)

Trading Member to have adequate audit trails of the activities performed by the service provider

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.

4.11.1(c)

Trading Member to ensure the service provider provides SGX-ST with requested information within the prescribed timeline

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.

4.11.1(d)

Trading Member to ensure that service provider provide SGX-ST access to all relevant records and systems and that SGX-ST is able to perform on-site inspections of the outsourced operations

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.

4.11.1(e)

Trading Member to inform SGX promptly of any disciplinary actions taken against the service provider, or any issues raised by internal or external auditors or any authority that regulates the service provider

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.

4.11.1(f)

Trading Member to ensure that internal audit requirements prescribed by SGX-ST extends to outsourced operations

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.

4.11.2

Trading Member to ensure that the service provider is operative whenever SGX-ST is open for trading

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.

4.12

Business Continuity Requirements

4.12.1

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.

Trading Member to document its business continuity arrangements in a business continuity plan, and review and test them 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.

4.12.2

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.

Remote 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.

4.12.3

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.

4.13

Records for Compliance

4.13.1(a)

Trading Member and Trading Representative to maintain complete and accurate records in accordance with the SFA, or requirements prescribed by the Relevant Regulatory Authority

[Unless otherwise specified in this Schedule]

Not Compoundable

$10,000

Trading Member and Trading Representative to maintain complete and accurate records in accordance with the Rules

[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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

Remote Trading Member to notify SGX-ST of changes to requirements prescribed by the Relevant Regulatory Authority

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.

Remote Trading Member to comply with additional requirements prescribed by SGX-ST

Not Compoundable

N.A.

$10,000

4.13.1(b)

Trading Member and Trading Representative not to make false or misleading entries

Not Compoundable

$10,000

4.13.1(c)

Trading Member and Trading Representative to make all relevant entries in any Document

Not Compoundable

$10,000

4.13.1(d)

Trading Member and Trading Representative not to alter, conceal or destroy any Documents

Not Compoundable

$10,000

4.13.2

Trading Member and Trading Representative to ensure integrity, security and confidentiality in the transmission and storage of records

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

4.13.3

Trading Member to make records available to SGX-ST as required

Not Compoundable

N.A.

$10,000

4.14

Confidentiality of Customer's Information

4.14.1

Trading Member and Trading Representative to maintain confidentiality of customer's information

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

4.14.2

Failure to ensure that a person to whom customer's information is disclosed maintains confidentiality

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.

4.15

Opening of Customer Accounts

4.15.2(a)

Trading Member to obtain the necessary particulars before opening an individual or agency customer account

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.

4.15.2(b)

Trading Member to verify customer's identity, and in the case of a non-individual customer verified that it is validly constituted and that the person opening the account has the requisite authority to do so, and in the case of an agency customer, verified the identity of the principal and the customer's authority to trade for its principal

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.

4.15.2(c)

Trading Member to have agreed with the customer procedures for the communication of trading instructions to guard against unauthorised trading (if applicable)

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.

4.15.2(d)

Trading Member to have understood each customer's risk appetite and investment objectives (if applicable)

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.

4.15.3

Trading Member to assess the suitability to trade and disclose the risk of trading to a customer under the age of 21

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.

4.15.4(a)

Trading Member to allow customers to open a joint account only if the specified conditions are met

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

4.15.4(b)

Trading Member not to permit a joint account to be operated by more than two individuals

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

4.15.4(c)

Trading Member to maintain the necessary information for the operation of a joint account

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

4.15.4(d)

Trading Member to require each joint account holder to specify whether he/she is jointly and severally liable for debts incurred in the joint account

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

4.15.5

Customer accounts to be approved in the stipulated manner

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

4.16

Risk Disclosure

4.16.1

Trading Member to obtain a written risk acknowledgement statement from a customer, and inform the customer whether the Trading Member is acting as a principal or an agent for the customer in accordance with Regulation 47DA of the SFR (Licensing and Conduct of Business), or requirements prescribed by the Relevant Regulatory Authority, as applicable

Not Compoundable

N.A.

$10,000

Remote Trading Member to notify SGX-ST of changes to requirements prescribed by the Relevant Regulatory Authority

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.

Remote Trading Member to comply with additional requirements prescribed by SGX-ST

Not Compoundable

N.A.

$10,000

4.17

Separate Trading Accounts and Account Designation

4.17.1

Trading Member to maintain separate Trading Accounts for each customer or each group of joint customers (as the case may be) whose account is carried on the books of the Trading 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.

4.17.2

Trading Member to identify and designate each Trading Account by the full name of the customer(s) whose account is carried on the books of the Trading Member and by a unique Trading Account code, which must be reported to SGX-ST prior to any order

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

4.18

Customer Education

4.18.2

Trading Member to provide Internet Trading customers with adequate information on specific areas

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

4.19

Trading by Employees and Agents

4.19.1

Trading Member to put in place procedures to ensure that agents who are privy to confidential information do not use the information to trade for their own benefit

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.

4.19.2

Trading Member to put in place procedures to monitor trading activities of Director, Officer, Trading Representative, 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.

4.20

Arrangements with Remisiers

4.20.1

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.

4.20.2

Trading Member to enter into written agency agreement with a Remisier

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

4.21

Remisiers Working in Teams

4.21.2(a)

Trading Member to maintain a list of Remisiers working in teams

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

4.21.2(b)

Trading Member to establish in writing the terms and conditions of each team arrangement with its Remisiers

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

4.21.2(c)

Trading Member to ensure that Remisiers working in teams will not compromise their compliance with all relevant legislation and regulations

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

4.21.2(d)

Trading Member to monitor team operations to ensure there is no overtrading, and that irregularities do not occur

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.

4.21.3

Trading Member to keep customers informed of team arrangements, and give customers the option not to be serviced by Remisiers working in teams

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

Trading Member to keep customers informed of any changes to team compositions

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

4.21.4

Remisier to record details of the customer's order if it is passed along a chain of Remisiers in a team

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

4.22

Trading Authority

4.22.2

Trading Member to obtain written authorisation from the customer before accepting orders from a third party

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.

4.23

Brokerages and Charges

4.23.1

Commission rate chargeable to comply with specified rates, if so prescribed 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.

4.23.2

Trading Member to disclose charges and expenses to be borne by the customer

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

4.24

Contract Notes

4.24.1

Trading Member to send customer a contract note for purchase and sale of securities or futures contracts

Not Compoundable

N.A.

$10,000

4.24.2

Trading Member to state on the contract note that the contract is subject to the Rules and Directives of SGX-ST

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

4.24.3(a)

Trading Member to include information in the contract note in accordance with SFR

Not Compoundable

N.A.

$10,000

4.24.3(b)

Trading Member to show separately in the contract note, the stipulated fees, tax and charges

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

4.24.3(c)

Trading Member to obtain customer's consent before issuing contract notes in electronic form

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.

4.24.4

Remote Trading Member to comply with such requirements prescribed by the Relevant Regulatory Authority in respect of contract notes

Not Compoundable

N.A.

$10,000

Remote Trading Member to comply with such requirements prescribed by the Relevant Regulatory Authority before sending contract notes in electronic form

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.

Remote Trading Member to notify SGX-ST of changes to requirements prescribed by the Relevant Regulatory Authority

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.

Remote Trading Member to comply with additional requirements prescribed by SGX-ST

Not Compoundable

N.A.

$10,000

4.24.5

Trading Member to produce contract notes to SGX-ST in the same form as when given to customers

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.

4.25

Statements of Account to Customers

4.25.1

Trading Member to send customer statements of account on a regular basis in accordance with Regulation 40 of the SFR (Licensing and Conduct of Business) or such requirements prescribed by the Relevant Regulatory Authority

Not Compoundable

N.A.

$10,000

4.25.1(a)

Trading Member to include information in the statement of account in accordance with SFR

Not Compoundable

N.A.

$10,000

4.25.1(b)

Remote Trading Member to comply with such requirements prescribed by the Relevant Regulatory Authority in respect of statements of account

Not Compoundable

N.A.

$10,000

Remote Trading Member to notify SGX-ST of changes to requirements prescribed by the Relevant Regulatory Authority

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.

Remote Trading Member to comply with additional requirements prescribed by SGX-ST

Not Compoundable

N.A.

$10,000

4.25.2

Trading Member to produce statement of accounts to SGX-ST in the same form and containing the same information as when given to customers

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.

4.26

Amendment of Contract

4.26.2

Amendment of contract to be approved by the specified 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.

Approval to be given before contract is amended

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.

4.27

Communication with Customers

4.27.2

Trading Member to communicate directly with customers

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.

4.27.3

Trading Member to send contract notes and statements to the customer in the indicated manner

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.

Trading Member to explain risk of unauthorised trading to customer and obtain written authorisation

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.

Trading Member to monitor customer accounts for unauthorised trading activities

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.

4.27.4

Trading Member not to allow a third party to collect cash or stipulated documents without written authorisation

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.

4.28

Payment to Customers

4.28.2

All cheques to customers to be crossed unless stipulated conditions are met

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.

4.28.3

Trading Member not to accept a house cheque unless the stipulated conditions are met

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.

4.29

Segregation of Customer's and Remisier's Monies and Assets

4.29.1

Trading Member to meet the stipulated fiduciary obligations to its Customers

Not Compoundable

N.A.

$10,000

4.29.3

Remote Trading Member to comply with such requirements prescribed by the Relevant Regulatory Authority in respect of stipulated fiduciary obligations

Not Compoundable

N.A.

$10,000

Remote Trading Member to notify SGX-ST of changes to requirements prescribed by the Relevant Regulatory Authority

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.

Remote Trading Member to comply with additional requirements prescribed by SGX-ST

Not Compoundable

N.A.

$10,000

4.30

Segregation of Customer's and Remisier's Monies and Assets — Monies

4.30.2

Trading Member to comply with the stipulated provisions in the SFR (Licensing and Conduct of Business)

Not Compoundable

N.A.

$10,000

4.30.3

Trading Member to designate the accounts maintained with a financial institution as a trust account, or customer or Remisier account, as the case may be

Not Compoundable

N.A.

$10,000

4.30.4

Trading Member to deposit money received on account of customers (other than Remisiers) in a separate trust account from Remisiers

Not Compoundable

N.A.

$10,000

4.30.5

Trading Member not to commingle money received with Trading Member's own funds

Not Compoundable

N.A.

$10,000

4.30.6

Trading Member not to withdraw Remisier's money from a trust account when the prescribed conditions are not met

Not Compoundable

N.A.

$10,000

4.30.7

Trading Member to notify the Remisier of the withdrawal made by the next business day

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.

4.31

Segregation of Customer's and Remisier's Monies and Assets — Assets

4.31.2

Trading Member to comply with the stipulated provisions in the SFR (Licensing and Conduct of Business)

Not Compoundable

N.A.

$10,000

4.31.3

Trading Member to designate accounts maintained with a financial institution as a trust account, customer, or Remisier account

Not Compoundable

N.A.

$10,000

4.31.4

Trading Member to deposit assets of its customers in a separate custody account from Remisiers

Not Compoundable

N.A.

$10,000

4.31.5

Trading Member not to commingle assets of a customer or Remisier, with Trading Member's own assets

Not Compoundable

N.A.

$10,000

4.31.6

Trading Member not to withdraw Remisier's assets from a custody account when the prescribed conditions are not met

Not Compoundable

N.A.

$10,000

4.31.7

Trading Member to notify the Remisier of the withdrawal of assets by the next business day

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.

4.32

Reporting of Delinquent Accounts

4.32.2

Trading Member to inform SGX-ST of the particulars of delinquent accounts

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

4.33

Stock Account

4.33.2

Trading Member to make trades of securities or futures contracts for the Trading Member's proprietary account under a separate stock account

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.

4.33.3

Stock Account to be operated by a person who is licensed to trade

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.

Trading Member to ensure that the senior management or delegate staff oversee the operation of the Stock Account by the designate

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.

4.34

Position Accounts

4.34.2

Authorised Trading Member to comply with requirements in Rule 5A.1.2 of the Clearing Rules in respect of each Authorised Account

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A

N.A.

Authorised Trading Member to maintain separate Position Accounts for each customer or each group of joint customers whose account is carried on the books of the Authorised Trading Member, pursuant to Rule 5A.1.1 and 5A.2 of the CDP Clearing Rules

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

N.A.

4.34.2

Authorised Trading Member to comply with requirements in Rule 5A.1.2 of the Clearing Rules in respect of each Authorised Account

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

Authorised Trading Member to comply with requirements in Rules 5A.1.1, 5A.2, 5A.3 and 5A.6 of the Clearing Rules in respect of each Authorised Account

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.

4.34.3

Trading Member is to identify or make available to SGX-ST the identity of any underlying beneficial owner and/or any controlling party of an Authorised Account, upon request by SGX-ST within such time as SGX-ST may require

Not Compoundable

N.A

$10,000

4.34.4(a)

Trading Member to instruct its Clearing Member to allocate positions of each trade cleared by the Clearing Member to the Trading Member's Position Account or in accordance with the relevant customer's instructions, as soon as practicable

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

N.A.

4.34.4(b)

Trading Member to ensure conditions set out in Rules 4.34.4(b)(i) and 4.34.4(b)(ii) are satisfied in the case of any sub-allocation of positions from a Position Account to another Position Account

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

N.A.

4.34.5(a)

A Position Account to be used to hold positions for different customers only where the Trading Member has procedures to ensure fair allocation

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

N.A.

4.34.5(b)

Trading Member to ensure that no trades are warehoused for more than one Market Day, unless under exceptional circumstances, where the Trading Member must document the reasons for the extension of time

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

N.A.

4.35

Broker-linked Balances

4.35.1

Trading Member linked to a broker-linked balance to have written agreement with the holder of the broker-linked balance, setting out the required matters

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.

Trading Member must provide the written agreement to SGX-ST for inspection if requested

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.

4.35.2

Trading Member to act in accordance with the written agreement, the Rules and the Act

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.

4.35.3

Subject to Rule 4.35.4, Trading Member to approve the release of securities from the broker-linked balance linked to it by the prescribed timelines

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.

4.35.5

Trading Member that does not approve a customer's request for release of any securities must (a) inform the customer that the request had been rejected and the securities will not be released; (b) provide the reason(s) for not releasing the securities, including necessary details, if so requested by the customer; and (c) provide the customer with such information as may be prescribed from time to time, within the relevant prescribed timelines

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.

4.35.7

Resigning Trading Member must, in respect of each customer that has a broker-linked balance linked to it, release all securities in the broker-linked balance into the customer's main balance by the effective date 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.

4.36

Advertising

4.36.1

Trading Member to ensure that advertising or publicity adheres to the stipulated requirements

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.

4.36.2

Remote Trading Member not to direct advertising or publicity to customers resident 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.

4.37

Use of Office Premises

4.37.1

Trading Member not to allow unauthorised persons to use the Trading Member's office premises

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.

4.38

Soft Dollar Commissions

4.38.1

Trading Member and Trading Representatives not to receive goods and services from a broker when the stipulated criteria are not met

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

4.38.2

Trading Member not to pay for goods and services to customers when the stipulated criteria are not met

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.

4.39

Research and Corporate Finance Activities

4.39.2(a)

Trading Member to inform SGX-ST before engaging in research or corporate finance activities

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.

4.39.2(b)

Research department of Trading Member to engage only in the permitted activities

Not Compoundable

N.A.

$10,000

4.39.2(c)

Trading Member and corporate finance staff to engage only in permitted activities

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.

4.39.2(d)

Trading Member and its staff undertaking research or corporate finance activities to obtain and maintain the appropriate licence, prior to engaging in and while undertaking research or corporate finance activities

Not Compoundable

N.A.

$10,000

4.39.2(f)

Trading Member to supply SGX-ST with information it requires regarding its research or corporate finance activities

Not Compoundable

N.A.

$10,000

4.39.3(a)(i)

Trading Member to supervise its staff undertaking research or corporate finance activities

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.

4.39.3(a)(ii)

Trading Member to implement written supervisory procedures to ensure that research analysts and corporate finance staff comply with this Rule 4.39

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.

4.39.3(a)(iii)

Trading Member to implement any procedure or recommendation 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.

4.39.4(a)

Trading Member to separate research activities from dealing, corporate finance and back office operations

Not Compoundable

N.A.

$10,000

4.39.4(b)

Trading Member to implement any control or procedure 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.

4.39.5

Trading Member to employ adequate staff with relevant expertise and experience

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.

4.39.6

Underwriting commitment limits to be set by appropriate personnel

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.

4.39.7(a)

Trading Member to have adequate basis, supported by research for making an investment recommendation

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.

4.39.7(b)

Trading Member to maintain independence and objectivity in producing a research report or making an investment recommendation

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.

4.39.7(c)

Trading Member not to issue a research report or make an investment recommendation that is not consistent with its relevant staff's views

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.

4.39.8

Trading Member to maintain records of research report or investment recommendation for stipulated period

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.

4.39.9(a)

Trading Member to disclose interest at date of disseminating research report or investment recommendation

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.

4.39.9(b)

Trading Member to disclose monetary compensation or benefits receivable in respect of research report or investment recommendation

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.

4.39.10(a)

Trading Member and research analyst not to knowingly trade in a security or futures contract while in possession of non-public material information

Not Compoundable

N.A.

$10,000

4.39.10(b)

Trading Member and research analyst not to knowingly trade in a security or futures contract when transaction may create a conflict of interest

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.

4.39.10(c)

Trading Member and research analyst not to procure a third party to trade when prohibited to do so

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.

4.39.10(d)

Trading Member and research analyst not to buy or sell a security or futures contract contrary to the most recent research report published by the Trading Member, unless sufficient time has passed since the report's publication for the market to react to the information

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.

4.39.11(a)

Trading Member to maintain a restricted list of securities

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.

4.39.11(b)

Security to be moved onto the restricted list no later than the date the deal is mandated

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.

4.39.11(c)

Restricted list to be circulated only to appropriate personnel

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.

4.39.11(d)

Staff who are privy to the restricted list not to trade in the restricted securities, or any derivative of such securities

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.

4.40

Application of Chapter 4 to Remote Trading Member

4.40.1

Remote Trading Member to comply with such requirements prescribed by the Relevant Regulatory Authority and principles of good business practice in respect of the stipulated requirements in relation to Rules 4.15.2, 4.15.3, 4.21.2, 4.21.4, 4.22, 4.26, 4.27, 4.28, 4.30, 4.31, 4.33 and 4.39

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.

Remote Trading Member to comply with such requirements prescribed by the Relevant Regulatory Authority and principles of good business practice in respect of the stipulated requirements in relation to Rules 4.15.4, 4.15.5, 4.18, 4.21.3 and 4.32

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

Added on 3 June 2019 3 June 2019.

Chapter 5 Trading Practices and Conduct

Rule Violation

Whether composition may be offered

Composition amount that may be offered by SGX-ST, where SGX-ST has determined the Trading Member, Chief Executive Officer 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)

Chief Executive Officer

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 5 — Trading Practices and Conduct

5.2

Contracts

5.2.1

Trading Member to honour the terms of each contract

Not Compoundable

N.A.

$10,000

5.3

Qualification by a Clearing Member

5.3.1

Trading Member not to execute a contract on SGX-ST while not qualified by a Clearing Member, or admitted itself as a Clearing Member

Not Compoundable

N.A.

$10,000

5.3.2

Trading Member not to be qualified by more than one 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.

5.3.3(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.

5.3.3(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.

5.3.4

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.

5.4

Acting as Principal to Customer

5.4.2

Customer to first be informed if a Trading Member or Trading Representative trades against the customer as principal

Not Compoundable

$10,000

5.4.3

Trading Member to indicate in the contract note that the Trading Member or Trading Representative acted as principal

Not Compoundable

N.A.

$10,000

5.5

Acting as Agent to Customer

5.5.1(a)

Trading Member and Trading Representative to carry out customer's instructions

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

5.5.1(b)

Trading Member and Trading Representative to exercise skill, care and diligence

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

5.5.1(c)

Trading Member and Trading Representative to act in good faith

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

5.5.1(d)

Trading Member and Trading Representative to act in the best interests of customers

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

5.5.1(e)

Trading Member and Trading Representative to disclose all circumstances and risks to a 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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

5.5.1(f)

Trading Member and Trading Representative to inform the customer of the best bid and offer prices on the Trading 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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

5.5.1(g)

Trading Member and Trading Representative to disclose the commission and any benefit receivable on a transaction

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

5.5.1(h)

Trading Member and Trading Representative not to enter into a transaction which may conflict with a duty owed to the 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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

5.5.1(i)

Trading Member and Trading Representative not to disclose a customer's order unless permitted under the Rules

Not Compoundable

$10,000

5.5.1(j)

Trading Member to ensure that a person to whom it discloses a customer's order maintains confidentiality

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.

5.6

Separation of Customer and Proprietary Trading Activities

5.6.1

Trading Member to put in place procedures to prevent conflict of interest

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.

5.7

Precedence of Customer Orders

5.7.1

Trading Member or Trading Representative not to deal in securities or trade in futures contracts for own account when there is an unexecuted order on the same terms from a customer

Not Compoundable

$10,000

5.8

Arrangement with Customers

5.8.1(a)

Trading Member or Trading Representative not to accept or have an arrangement to share in the profits of a customer's account

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

5.8.1(b)

Trading Member or Trading Representative not to have an arrangement with a third party to allocate profits or losses to a customer's account

Not Compoundable

$10,000

5.8.1(c)

Trading Member or Trading Representative not to lead customer to believe that he will not suffer loss as a result of opening an account or dealings

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

5.9

Customer Margin Management for Trading Members

5.9.1(b)

Trading Member to comply with SGX-ST's directions to take such action to offset all or part of the positions to rectify a margin deficiency

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.

5.10

Unauthorised Trading

5.10.1(a)

Trading Representative not to execute personal trades in the account of a 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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

5.10.1(b)

Trading Representative not to execute a customer's trades in his personal account

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

5.10.1(c)

Trading Representative not to use a customer's account for third party trading without prior written authorisation

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

5.11

Excessive Trading

5.11.1

Trading Member or Trading Representative not to encourage transactions to generate commission

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

5.12

Prohibited Trading Conduct

5.12.1

Trading Member or Trading Representative not to engage in an act likely to create a false or misleading appearance of active trading or lead to a false market

Not Compoundable

$30,000

5.12.3

Trading Member or Trading Representative not to deal in securities or execute an order for the sale and purchase of futures contracts that involve no change in beneficial ownership

Not Compoundable

$30,000

5.12.4

Trading Member or Trading Representative not to execute knowingly, or hold himself out as having executed, an order for the purchase or sale of futures contracts without having effected in good faith a purchase or sale of that futures contract in accordance with the order or with the business rules and practices of an organised market on which the derivatives contract is to be purchased or sold

Not Compoundable

$30,000

5.12.5

Trading Member or Trading Representative not to deal in securities or trade in futures contracts in a manner that will affect price of the securities with intent to induce others to trade

Not Compoundable

$30,000

5.12.6

Trading Member or Trading Representative not to disseminate information that is false or misleading

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

5.12.7

Trading Member or Trading Representative not to participate in any prohibited market conduct in securities or futures contracts or in any insider trading

Not Compoundable

$30,000

5.12.8

Trading Member or Trading Representative to immediately inform SGX-ST of suspected market manipulation, insider trading or other prohibited trading conduct

Not Compoundable

$10,000

5.12.9

Trading Member to have in place processes to review orders and trades for suspicious trading activity

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.

5.13

Record of Orders

5.13.1

Trading Member or Trading Representative to maintain a daily record of orders received from customers

Not Compoundable

$10,000

5.13.2

Trading Member to have adequate security measures to prevent unauthorised access to and/or tampering of the audit trail of orders entered into Trading 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.

5.14

Dealing Assistant

5.14.1

Trading Member to ensure that each Trading Representative has no more than one dealing assistant

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.

5.14.2(a)

Trading Member to ensure that the dealing assistant does not deal in securities or futures contracts

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.

5.14.2(b)

Trading Member to ensure that the dealing assistant does not exercise any discretion over the entry of 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.

5.14.2(c)

Trading Member to ensure that the dealing assistant does not give investment advice or make recommendations to customers

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.

5.14.2(d)

Trading Member to ensure that the dealing assistant does not accept instructions from customers

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.

5.14.2(e)

Trading Member to ensure that the dealing assistant does not communicate with customers regarding settlement

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.

5.14.2(f)

Trading Member to ensure that the dealing assistant does not collect cash, cheques or share certificates

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.

5.14.3

Trading Member to provide SGX-ST the necessary particulars of dealing assistants appointed

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

5.14.4

Trading Member to inform SGX-ST if a dealing assistant ceases to act

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

5.15

Responsibility for Orders

5.15.1

Trading Member to ensure the accuracy of orders entered into the Trading System by its Trading Representatives and any dealing assistant

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.

5.15.2

Trading Representative to ensure the accuracy of orders entered into the Trading System by or on behalf of the Trading Representative

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

5.15.3

Orders to be entered in accordance with the procedures prescribed 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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

5.15.4

Trading Member to have in place processes to prevent unauthorised changes to order information

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.

5.16

Identification and Password

5.16.1

Trading Representative to have a unique identification number of not more than three characters and password for entering orders into the Trading System and maintain confidentiality

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

5.16.2

Trading Member to submit and maintain a list of Trading Representative identification numbers and names to SGX-ST, and notify SGX-ST of any amendments to the list on an ongoing basis

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.

5.17

Miscellaneous

5.17.1

Trading Member and Trading Representative not to take advantage of a situation arising from a breakdown or malfunction in SGX-ST's procedures or systems or errors made by SGX-ST or CDP

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

Added on 3 June 2019 3 June 2019 and 15 June 2020 15 June 2020.

Chapter 6 Designated Market-Maker ("DMM")

Rule Violation

Whether composition may be offered

Composition amount that may be offered by SGX-ST, where SGX-ST has determined the Trading Member, Chief Executive Officer 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)

Chief Executive Officer

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 6 — Designated Market-Maker ("DMM")

6.6

Obligations of a Designated Market-Maker

6.6.1(a)

DMM to comply with the Rules

[Unless otherwise specified in this Schedule]

Compoundable

$2,000 – $4,000

$4,000 – $7,000

$7,000 – $10,000

N.A.

DMM to continue to satisfy the registration criteria and any approval conditions or restrictions prescribed by SGX-ST

Compoundable

$2,000 – $4,000

$4,000 – $7,000

$7,000 – $10,000

N.A.

6.6.2

DMM to publish on the Trading System competitive bid and offer quotations in the prescribed manner

Compoundable

$2,000 – $4,000

$4,000 – $7,000

$7,000 – $10,000

N.A.

6.6.3(a)

DMM to establish and maintain adequate internal control systems

Compoundable

$2,000 – $4,000

$4,000 – $7,000

$7,000 – $10,000

N.A.

6.6.3(b)

DMM to pre-notify SGX-ST of any change to its internal control systems

Compoundable

$2,000 – $4,000

$4,000 – $7,000

$7,000 – $10,000

N.A.

6.6.3(c)

DMM to comply with additional requirements prescribed by SGX-ST

Compoundable

$2,000 – $4,000

$4,000 – $7,000

$7,000 – $10,000

N.A.

6.6.3(d)

DMM to establish adequate segregation between their market-making and regulated activities

Compoundable

$2,000 – $4,000

$4,000 – $7,000

$7,000 – $10,000

N.A.

6.6.4

DMM to route trades through a Trading Member, if it is not a Trading Member

Compoundable

$2,000 – $4,000

$4,000 – $7,000

$7,000 – $10,000

N.A.

6.6.5

DMM to appoint and register with SGX-ST at least one person as a market-making representative

Compoundable

$2,000 – $4,000

$4,000 – $7,000

$7,000 – $10,000

N.A.

6.6.6

DMM to provide an independent auditors' report, upon request by SGX-ST

Not Compoundable

N.A.

$10,000

6.6.7

DMM to pay all fees, levies and charges prescribed by SGX-ST

Compoundable

$500

$1,000

$2,000

N.A.

6.6.8

DMM to report adverse events set out in Rule 6.6.8

Compoundable

$2,000 – $4,000

$4,000 – $7,000

$7,000 – $10,000

N.A.

6.7

Suspension or Restriction of Trades in Specified Instruments

6.7.2

DMM not to make a market in a Specified Instrument that was suspended or in which trading was halted, without SGX-ST's approval

Not Compoundable

N.A.

$10,000

6.7.3

DMM not to make a market in Specified Instruments that will breach any restrictions on trades imposed by SGX-ST.

Not Compoundable

N.A.

$10,000

6.11

Resignation

6.11.1(a)

DMM to give necessary notice of resignation

Compoundable

$2,000 – $4,000

$4,000 – $7,000

$7,000 – $10,000

N.A.

Added on 3 June 2019 3 June 2019.

Chapter 7 Listing and Quotation

Rule Violation

Whether composition may be offered

Composition amount that may be offered by SGX-ST, where SGX-ST has determined the Trading Member, Chief Executive Officer 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)

Chief Executive Officer

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 7 – Listing and Quotation

7.2

Non-Listed Securities Traded on SGX-ST

7.2.6

Failure to state in the contract note that Non-Listed Security is not listed on SGX-ST and is not subject to SGX-ST's listing requirements

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

Added on 3 June 2019 3 June 2019.

Chapter 8 Trading

Rule Violation

Whether composition may be offered

Composition amount that may be offered by SGX-ST, where SGX-ST has determined the Trading Member, Chief Executive Officer 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)

Chief Executive Officer

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 8 — Trading

8.1

Trading

8.1.1

Securities and futures contracts to be traded and matched through the Trading System or as otherwise permitted under this Chapter

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

8.5

Orders

8.5.3

Trading Member to specify the unique Position Account code, Trading Account code and the price (where relevant) and quantity of the security or futures contract for each order entered into the Trading System

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

$250

$500

$1,000

N.A.

8.7

Marking Of Sell Orders

8.7.2

Trading Member or Trading Representative not to enter a sell order in the Trading System if a customer has not indicated whether the sell order is a Short Sell Order or a normal sell order and/or has not indicated the required information

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

$250

$500

$1,000

N.A.

8.7.4

Trading Member or Trading Representative not to report Direct Business through the married trade reporting system in the Trading System if a customer has not indicated whether the Direct Business sell order is a Short Sell Order or a normal sell order

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

$250

$500

$1,000

N.A.

8.7.5

Trading Member to ensure that the necessary procedures and systems are implemented to facilitate compliance with the obligations set out in Rule 8.7

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.

N.A

8.9

Reporting of Erroneously Marked Sell Orders

8.9.2

Trading Member to ensure that report submitted adheres to the requirements set out by SGX-ST and is complete and accurate

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.

N.A

8.10

Direct Business

8.10.1

Direct Business to be transacted in accordance with the stipulated requirements

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

8.10.5

Direct Business to be reported within the stipulated timelines

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

8.10.6

Compliance with the suspension of Direct Business imposed 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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

8.11

Designated Instruments

8.11.2

Compliance with any conditions imposed by the Board on dealings or trades in a Designated Instrument

Not Compoundable

$30,000

8.11.3

Trading Member to provide SGX-ST with the particulars of all its dealings or trades in Designated Instruments and its customers involved within the stipulated timeline

Not Compoundable

N.A.

$10,000

8.12

Corner

8.12.2

Compliance with any conditions imposed by the Board on dealing in a cornered security, or a futures contract on a cornered security

Not Compoundable

$10,000

8.13

Suspension and Restriction of Trading

8.13.4

Trading Member not to execute transactions in a suspended security or futures contract without SGX-ST's approval

Not Compoundable

$10,000

8.15

Trading Halts

8.15.7

Trading Member not to execute transactions in a security or futures contract subject to a trading halt without SGX-ST's approval

Not Compoundable

$10,000

Added on 3 June 2019 3 June 2019.

Chapter 9 Settlement

Rule Violation

Whether composition may be offered

Composition amount that may be offered by SGX-ST, where SGX-ST has determined the Trading Member, Chief Executive Officer 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)

Chief Executive Officer

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 9 — Settlement

9.4

Relationship Between Trading Member and Selling Customer

9.4.2

Trading Member must make payment of sale proceeds to the selling customer within prescribed timelines

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.

9.5

Relationship Between Trading Member and Clearing Member

9.5.5

Buying Trading Member must, where relevant, submit delivery-versus-payment settlement instructions within prescribed timelines, and/or make payment for its trade within prescribed timelines

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.

9.6

Relationship Between Trading Member and Buying Customer

9.6.2

Trading Member, if informed by CDP or its Clearing Member that a right to receive securities pursuant to an Exchange Trade is to be replaced with a right to receive a monetary sum ("Cash Settlement Amount") pursuant to the Clearing Rules, to immediately inform the relevant buying 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.

9.6.3

Trading Member to deliver securities to the buying customer within prescribed timelines; and/or make payment of any Cash Settlement Amount, corporate action entitlements or compensation for corporate action entitlements pursuant to the Clearing Rules, to the buying customer, within prescribed timelines

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.

9.6.5

Subject to Rule 9.4.4, if a buying customer fails to meet any of the timelines in Rule 9.4.3A, Trading Member to force-sell the securities of the buying customer within prescribed timelines

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.

9.4.8

Trading Member not to engage in imprudent credit practices when exercising discretion with regard to deferment of force-sale

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 3 June 2019 3 June 2019.

Chapter 10 Requirements on Specific Securities and Futures Contracts

Rule Violation

Whether composition may be offered

Composition amount that may be offered by SGX-ST, where SGX-ST has determined the Trading Member, Chief Executive Officer 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)

Chief Executive Officer

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 10 — Requirements on Specific Securities and Futures Contracts

10.7

Management of Positions

10.7.2

Trading Member to immediately notify SGX-ST of the details of any account which exceeds the monitoring thresholds on positions that have not been set-off

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.

10.7.4

Trading Member to comply with measures imposed by SGX-ST to reduce its risk exposure

Not Compoundable

N.A.

$10,000

10.8

Internal Controls

10.8.1(a)

Trading Member to establish and maintain adequate internal control systems to set credit limits or position 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.

10.8.1(b)

Trading Member to establish and maintain adequate internal control systems to monitor positions and comply with notification requirements on monitoring thresholds

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.

10.8.1(c)

Trading Member to establish and maintain adequate internal control systems to compute and collect margins

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.

10.8.1(d)

Trading Member to establish and maintain adequate internal control systems to monitor margin calls

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.

10.8.1(e)

Trading Member to establish and maintain adequate internal control systems to manage customers' accounts that are in margin deficit

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.

10.8.1(f)

Trading Member to establish and maintain adequate internal control systems to manage customers' accounts that may fail to meet settlement 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.

10.8.1(g)

Trading Member to establish and maintain adequate internal control systems to define and manage sources of liquidity to meet increased settlement 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.

10.8.1(h)

Trading Member to establish and maintain adequate internal control systems to limit the impact of significant market movements

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.

10.8.1(i)

Trading Member to establish and maintain adequate internal control systems to meet such other requirements as SGX-ST may prescribe

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.

10.9

Margin Requirements

10.9.2(a)

Trading Member to procure Initial Margins from its customers and require customers to meet the Required Margins

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.

Initial Margins and Required Margins to be met in the form of collateral as SGX-ST prescribes

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.

Valuation of collateral to be in accordance with the haircut rates prescribed 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.

10.9.2(b)

Trading Member not to accept specified currency for the purpose of meeting margin requirements

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.

10.9.3

Trading Member to call for additional margins if the Customer Asset Value falls below the Required Margins

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.

10.9.4

Trading Member not to allow customer to incur new trades unless the stipulated conditions are met

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.

10.9.5

Trading Member not to set margin requirements that are less stringent than those prescribed 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.

10.9.8

Trading Member not to allow a customer to withdraw Excess Margins unless the stipulated conditions are met

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.

10.9.9

Trading Member to comply with requirements prescribed by SGX-ST on the computation and monitoring of customer's margins

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.

10.9.10(a)

Trading Member to notify SGX-ST of any under-margined account

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.

10.9.10(b)

Trading Member to submit to SGX-ST information pertaining to any matter and within such time stipulated by SGX-ST

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

10.9.11

Trading Member to require a customer to comply with the margin requirements

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.

10.9.12

Trading Member not to enter into a financing arrangement with a customer in respect of that customer's margin requirements

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.

10.10

Capital Requirement for Marginable Futures Contracts

10.10.2

Trading Member to compute Total Risk Requirement in the same manner as prescribed in the RBC Notice

Not Compoundable

N.A.

$10,000

10.11

Prohibited Trading Practices

10.11.1(a)

Trading Member and Trading Representative not to execute any trade beyond any limits imposed

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

$1,000 – $3,000

$3,000 – $6,000

$6,000 – $8,000

N.A.

10.13

Additional Obligations in respect of American Depository Receipts

10.13.1

Trading Member to disclose risks pertaining to trading in American Depository Receipts

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 3 June 2019 3 June 2019.

Chapter 11 Cancellation of Contracts and Error Trades

Rule Violation

Whether composition may be offered

Composition amount that may be offered by SGX-ST, where SGX-ST has determined the Trading Member, Chief Executive Officer 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)

Chief Executive Officer

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 11 — Cancellation of Contracts and Error Trades

11.3

Procedures for Cancellation

11.3.1(a)(i)

Trading Member that caused the error to notify SGX-ST of the error in accordance with the specified requirements

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.

11.3.1(a)(ii)

Trading Member that caused the error to contact the counterparty Trading Member immediately to seek agreement to cancel an error trade

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.

11.3.1(b)

Both Trading Members to take necessary action to minimise any potential market impact caused by the error trade

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.

11.3.2(a)

Trading Member that caused the error to inform SGX-ST of the agreement without delay

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.

11.3.2(b)

Both Trading Members to submit the necessary trade cancellation request forms to 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.

11.3.5

Requesting Trading Member to pay the trade review fee

Compoundable

$500

$1,000

$2,000

$250

$500

$1,000

N.A.

Added on 3 June 2019 3 June 2019.

Chapter 12 Supervision and Enforcement

Rule Violation

Whether composition may be offered

Composition amount that may be offered by SGX-ST, where SGX-ST has determined the Trading Member, Chief Executive Officer 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)

Chief Executive Officer

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 12 — Supervision and Enforcement

12.1

Investigations by SGX-ST

12.1.6

Registered Person and other specified persons to cooperate with investigations

Not Compoundable

$10,000

12.1.7

Registered Person and other specified persons not to wilfully furnish false or misleading statements or information to SGX-ST or the Exchange Examiner

Not Compoundable

$10,000

12.2

Inspections by SGX-ST

12.2.3

Registered Person and other specified persons to cooperate with inspections

Not Compoundable

$10,000

12.2.4

Registered Person and other specified persons not to wilfully furnish false or misleading statements or information to SGX-ST or the Exchange Inspector

Not Compoundable

$10,000

Added on 3 June 2019 3 June 2019.

Chapter 1 General

1.1 Application of Rules

1.1.1

1.1.2

1.1.3

1.1.4

1.1.5

1.2 Waivers or Variation

1.2.1

1.2.2

1.3 Rules, Directives and Regulatory Notices

1.3.1

1.3.2

1.4 Practice Notes

1.4.1

1.5 Transitional Arrangements

1.5.1

1.6 Order of Precedence

1.6.1

1.7 Delegation and Assignment

1.7.1

1.7.2

1.8 SGX RegCo's Authority

1.8.1

1.9 Limitation of Liability

1.9.1

1.9.2

1.9.3

1.9.4

1.10 Indemnity

1.10.1

1.10.2

1.10.3

1.11 Provision of Information

1.11.1

1.11.2

1.11.3

1.12 Disclosure of Information by SGX-ST

1.12.1

1.12.2

1.13 Registers

1.13.1

1.13.2

1.14 Fidelity Fund

1.14.1

1.15 Governing Law and Jurisdiction

1.15.1

Chapter 2 Admission and Registration of Trading Members, Chief Executive Officers and Trading Representatives

2.1 Trading Member Admission Criteria

2.1.1

2.1.2

2.2 Application Procedures

2.2.1

2.2.2

2.2.3

2.2.4

2.2.5

2.2.6

2.3 Appeals

2.3.1

2.4 Register of Trading Members

2.4.1

2.5 Trading Rights

2.5.1

2.5.2

2.5.3

2.5.4

2.6 Appointment and Registration of Chief Executive Officer

2.6.1

2.6.2

2.6.3

2.6.4

2.6.5

2.7 De-Registration of Chief Executive Officer

2.7.1

2.7.2

2.8 Appointment and Registration of Trading Representatives

2.8.1

2.8.2