Whole Section

  • Chapter 10 — Foreign Market Linkages

    • 10.1 Definitions

      • 10.1.1

        In this Chapter, "Order" means:—

        (1) in respect of a Selected Foreign Security, an order placed via the Exchange Link by SGX-SPV with a Foreign Portal Dealer to buy or sell that Selected Foreign Security; and
        (2) in respect of a Selected SGX Security, an order placed via the Exchange Link by a Foreign Portal Dealer with SGX-SPV to buy or sell that Selected SGX Security.

        Amended on 23 January 200923 January 2009.

    • 10.2 Application of Chapter

      • 10.2.1

        A Trading Member (except SGX-SPV) and a Trading Representative are bound by this Chapter or any Directives when accessing a Foreign Market via the Exchange Link to execute Orders in a Selected Foreign Security.

      • 10.2.2

        SGX-SPV is bound by this Chapter to the extent that it is expressly referred to.

    • 10.3 Access to Foreign Markets

      • 10.3.1

        Subject to the provisions of this Chapter, a Trading Member may access a Foreign Market via the Exchange Link to execute Orders in a Selected Foreign Security.

      • 10.3.2

        SGX-ST may at any time, if it thinks fit:—

        (1) direct SGX-SPV to suspend or end a Trading Member's or a Trading Representative's access to a Foreign Market via the Exchange Link;
        (2) direct a Trading Member or Trading Representative to access the Foreign Market via the Exchange Link only on conditions that SGX-ST may specify; or
        (3) reinstate or re-establish a Trading Member's or a Trading Representative's access to a Foreign Market via the Exchange Link and if it sees fit, on conditions that SGX-ST may specify.
      • 10.3.3

        The Trading Member, Trading Representative and SGX-SPV must act on a direction of SGX-ST.

    • 10.4 Role and Responsibilities of SGX-SPV

      • 10.4.1

        SGX-SPV must be a Trading Member and a Clearing Member for the purpose of facilitating Orders pertaining to a Selected SGX Security for execution in SGX-ST (inbound) and Orders pertaining to a Selected Foreign Security for execution in a Foreign Exchange (outbound).

      • 10.4.2

        SGX-SPV must be admitted as a Trading Member of SGX-ST if SGX-ST is satisfied that the following conditions have been, or will be, met:—

        (1) SGX-SPV has, or has access to, adequate facilities or staff for:—
        (a) the expeditious and orderly transaction of business when trading in Selected Foreign Securities on a Foreign Market; and
        (b) management of the risks;
        (2) security arrangements are adequate to prevent unauthorised persons from accessing the systems and facilities relating to the Service;
        (3) the Authority has been notified of the intention to admit SGX-SPV and has not raised any objection; and
        (4) SGX-SPV holds any licence required by the Authority.
      • 10.4.3

        In relation to SGX-SPV as a Trading Member, SGX-ST will carry out its functions and exercise its powers in a like manner to the way it would carry out its functions in respect of other Trading Members, recognising the limited functions that SGX-SPV is intended to perform. SGX-SPV will not apply for an exemption, waiver or other exercise of discretion under the SGX-ST Rules unless it has first notified the Authority.

      • 10.4.4

        For outbound Orders, SGX-SPV:—

        (1) must receive and route Orders from a Trading Member via the Exchange Link to the Foreign Portal Dealer for entry into the trading system of the Foreign Market;
        (2) must provide electronic trade confirmation to the Trading Member in respect of an Order executed in the Foreign Market;
        (3) without affecting the settlement procedures between CDP and a Clearing Member, must make payment denominated in the Foreign Market currency or deliver securities in accordance with the home exchange rules (as a customer of the Foreign Portal Dealer), as may be owed by it to the Foreign Portal Dealer;
        (4) must effect delivery in accordance with the Clearing Rules. However, if SGX-SPV's obligations to deliver are delayed owing to a breakdown, error or malfunction of the systems or procedures of, or otherwise in connection with the Exchange Link, SGX-SPV must effect delivery as soon as practicable after rectification of the breakdown error or malfunction; and
        (5) is not required to comply with the rule that requires all transactions in securities to be due on the third Market Day following the date of the trade (T+3).
      • 10.4.5

        For inbound Orders, SGX-SPV, in its capacity as agent for the Foreign Portal Dealer, must:—

        (1) receive and route an Order from the Foreign Portal Dealer via the Exchange Link into the Trading System;
        (2) provide electronic trade confirmation to the Foreign Portal Dealer as soon as practicable after the Order is matched on the Trading System;
        (3) clear all trades resulting from the execution of the transactions as a Clearing Member of CDP; and
        (4) comply with the settlement procedures between CDP and a Clearing Member.

        Amended on 3 April 20083 April 2008.

      • 10.4.6

        SGX-SPV may close out a position or correct an error if, in its opinion, it is necessary or desirable to manage risks prudently or meet requirements for the operation of the Service.

      • 10.4.7

        (1) The following Rules do not apply to SGX-SPV:—
        Rule Heading
        4.1.1 Admission Criteria (as a Trading Member)
        4.6.1(2) Compliance (with admission criteria)
        4.6.5 Responsibility to SGX-ST
        4.6.11 Approved Executive Director
        4.6.12 Directors
        4.6.14 Memorandum and Articles of Association
        4.6.17 Business Name
        4.6.18 Issue of Shares
        4.6.19 Voluntary Liquidation
        6.16.5 Approved Executive Director
        9.5 Trades under Physical Delivery
        11.111.14 Capital and Financial Requirements
        12.3 Customer Accounts
        12.4 Trading Authority
        12.6 Contract Notes
        12.7 Statement of Account to Customers
        12.11 Customer's and Remisier's Money
        12.12 Customer's and Remisier's Assets
        12.17.4 Trading by Employees and Agents
        12.21 Use of Office Premises
        13.5 Arrangement with Customers
        13.12 Identification & Password
        Chapter 19 of these Rules  
        (2) For avoidance of doubt, nothing in Rule 10.4.7 prevents SGX-ST from waiving or modifying the Rules for SGX-SPV, provided Rule 10.4.3 is complied with.

        Amended on 23 January 200923 January 2009.

    • 10.5 Obligations of a Trading Member

      • 10.5.1

        When accessing a Foreign Market via the Exchange Link to trade in Selected Foreign Securities, a Trading Member:—

        (1) transacts with SGX-SPV as principal;
        (2) is not relieved of any obligation or liability otherwise applicable to it;
        (3) is solely responsible for the accuracy of details of Orders and other trading messages that are entered by it or on its behalf; and
        (4) owes its obligation in relation to Orders to SGX-SPV.
      • 10.5.2

        The following Rules apply to an Order executed on a Foreign Market via the Exchange Link by SGX-SPV:—

        (1) the settlement obligations are owed by the Trading Member (if it is a Clearing Member) or its qualifying Clearing Member to CDP instead of SGX-SPV; and
        (2) SGX-SPV's settlement obligations are owed to CDP.
      • 10.5.3

        A Trading Member is responsible for its Order, regardless of whether the Trading Member authorised the sending of the Order.

    • 10.6 Core Trading Principles

      • 10.6.1

        The primary object of the core trading principles is to promote proper and orderly trading of Selected Foreign Securities via the Exchange Link.

      • 10.6.2

        Rule 10.6 applies to:—

        (1) a Trading Member and a Trading Representative when trading in a Selected Foreign Security on a Foreign Market via the Exchange Link;
        (2) Orders placed via the Exchange Link; and
        (3) SGX-SPV in relation to Orders placed by it under Rule 10.4.6.
      • 10.6.3 Prevention of Disorderly Markets

        (1) A Trading Member or a Trading Representative must not enter bids or offers in Selected Foreign Securities on a Foreign Market via the Exchange Link that may result in, or have the effect of, creating a disorderly market in those securities.
        (2) When accessing a Foreign Market via the Exchange Link to trade in Selected Foreign Securities, a Trading Member or a Trading Representative must:—
        (a) ensure that an authorised person is available at all relevant times to communicate with SGX-SPV;
        (b) not intentionally or deliberately take advantage of any situation resulting from a breakdown, error or malfunction of the systems, procedures or otherwise of or in connection with the Exchange Link; and
        (c) comply with any instructions or directions issued by SGX-ST.
      • 10.6.4 Market Manipulation and False Market

        (1) A Trading Member or a Trading Representative must not engage in, or knowingly act with any other person in, any act or practice that will or is likely to:—
        (a) create a false or misleading appearance of active trading in any Selected Foreign Securities; or
        (b) lead to a false market on a Foreign Market.
        (2) A Trading Member must immediately inform SGX-ST if it reasonably suspects, or knows of, any attempted market manipulation or creation of a false market in a Selected Foreign Security via the Exchange Link. A Trading Member must not participate, or knowingly assist others, in any operation which might have such a result.
      • 10.6.5 Dealings in Suspended Securities

        Unless agreed by the Foreign Exchange concerned, a Trading Member and a Trading Representative must not trade, or make a market in, any Selected Foreign Security on the Foreign Market via the Exchange Link if that security is suspended.

      • 10.6.6 Cancellation of Contracts

        (1) A Trading Member may instruct SGX-SPV to request the Foreign Portal Dealer to cancel a contract made on a Foreign Market via the Exchange Link only in the circumstances allowable under the rules, customs or usages of the Foreign Market.
        (2) The Trading Member must meet any costs incurred in connection with the cancellation.
      • 10.6.7 Corner

        A Trading Member must not act itself or with 1 or more persons in concert with the object of securing or acquiring control of any security on a Foreign Market that the same cannot be obtained for delivery on existing contracts except at prices or on terms dictated by such person or persons.

      • 10.6.8 Short Selling

        A Trading Member must not short sell any Selected Foreign Security on a Foreign Market except as permitted by the Foreign Exchange concerned.

      • 10.6.9 Designated Securities

        A Trading Member must comply with any conditions on dealing imposed in a Foreign Market in relation to securities that may have been subject to manipulation or excessive speculation.

    • 10.7 Non-Compliance with Core Trading Principles

      • 10.7.1

        SGX-ST may undertake any investigation or inspection or take any other action under its Rules if it becomes aware of possible or alleged non-compliance with the core trading principles under Rule 10.6.

    • 10.8 No Liability

      Amended on 15 September 201715 September 2017.

      • 10.8.1

        None of SGX-ST, SGX-SPV, SGX RegCo, or their respective Directors, Officers, employees, representatives or agents shall be liable to a Trading Member or other person in respect of any loss or damage (including consequential loss or damage) which may be incurred, or arise directly or indirectly, in connection with:—

        (1) the Service;
        (2) inability to use the Service; or
        (3) any failure, error or omission on the part of SGX-SPV.

        Amended on 15 September 201715 September 2017.

      • 10.8.2

        The limitation of liability under Rule 10.8 includes any loss or damage arising in connection with:—

        (1) trading on the Foreign Market;
        (2) suspension, interruption, cancellation or closure of trading on the Foreign Market;
        (3) inoperability or malfunction of equipment, software or other product supplied to a Trading Member;
        (4) the installation, maintenance or removal of equipment, software or other product supplied to a Trading Member; or
        (5) the accuracy of information transmitted via the Exchange Link.
      • 10.8.3

        Rule 10.8 does not affect:—

        (1) rights against the Clearing Fund or Fidelity Fund; and
        (2) rights of a Foreign Exchange or Foreign Portal Dealer under any written agreement with SGX-SPV.