2.1 Access and Trading
2.1.1 Access to the Trading System
A Member or Customer may access the Trading System via:(a) an Exchange-provided OMS; or(b) an Exchange-approved OMS developed by a Member or an independent software vendor (commonly referred to as ISVs).
"OMS" refers to an order management system through which orders are routed to the Trading System. "Exchange-approved OMS" refers to an OMS that has passed conformance testing and meets appropriate technical specifications as required by the Exchange.
2.1.2 Conditions Governing Direct Market Access(1) With respect to each Customer for which the Member has authorised Direct Market Access, the Member must have measures in place for each Customer to:(a) 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) have appropriate procedures in place to assure that all relevant persons:—(i) are familiar with and comply with these Rules;(ii) have knowledge and proficiency in the use of the order management system;(c) be provided information concerning its access to the Trading System and applicable laws:(d) be subject to a legally binding agreement governing the terms and conditions for such Direct Market Access;(e) have security arrangements in place to ensure that unauthorised persons are denied such Direct Market Access; and(f) assist the Exchange in any investigation into potential violations of this Rules and applicable laws. Such assistance shall be timely and shall include, but is not limited to, the provision of information to the Exchange relating to the identity and address of any person who may be responsible for the execution of an order or trade.(2) Where a Member permits the delegation of Direct Market Access by its authorised Customer and any other persons, the Member must include in the legally binding agreement referred to in Rule 2.1.2(1)(d) the requirement for such Customer and any other persons delegating Direct Market Access to ensure that all persons with Direct Market Access are subject to the requirements set out in Rules 2.1.2(1)(a) to (f).(3) The Exchange may require a Member to provide to the Exchange a report by an independent reviewer on the Member's compliance with Rules 2.1.2, 2.1.2A and 2.1.2B.
2.1.2A Conditions Governing Sponsored Access(1) Where a Member authorises Sponsored Access for its Customers, in addition to the requirements set out in Rule 2.1.2, the Member must:—(a) maintain a register recording the identity and address of all Customers with Sponsored Access;(b) produce to the Exchange the register referred to in Rule 2.1.2A(1)(a) at such time as the Exchange requires; and(2) Where a Member permits the delegation of Sponsored Access by its authorised Customer and any other persons: —(a) the Member must have measures to ensure that the authorised Customer and any other persons delegating Sponsored Access:(i) are persons regulated by a recognised regulatory authority in respect of any regulated activity; or(ii) where such persons are not regulated in accordance with Rule 2.1.2A(2)(a)(i), that such persons are Members of the Exchange, and that such persons shall only be permitted to delegate Sponsored Access to their Related Corporations; and(b) the Member must include in the legally binding agreement referred to in Rule 2.1.2(1)(d) the requirement for such Customer and any other persons delegating Sponsored Access to ensure that all persons with Sponsored Access are included in the register referred to in Rule 2.1.2A(1)(a) and subject to the requirements set out in Rule 2.1.2A(1)(c).
For the purpose of this Rule 2.1.2A, "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 Act.
2.1.2B Suspension and Termination of Direct Market Access(a) The Exchange may suspend or terminate, or direct a Member to suspend or terminate a person's Direct Market Access:(i) where the person has failed to assist the Exchange with an investigation in accordance with Rule 2.1.2(1)(f);(ii) in the interest of a fair, orderly and transparent market; or(iii) where the person has caused the Member to breach requirements in the Rules.(b) A Member must have the ability to immediately suspend or terminate a person's Direct Market Access when necessary for the fulfillment of its duties under Rule 3.2.1 or any other reason.
2.1.3 Access to Partner Market
The Exchange or its related corporations may provide access facilities to enable Persons to execute trades on contracts listed on a Partner Market. Such Persons accessing the Partner Market are required to comply with this Rules as well as applicable rules, laws and regulations governing trading in the Partner Market.
2.1.3A Conditions Governing Access to Connect Market(1) A Trading Member shall be required to enter into a legally binding agreement with the Connect Broker, in such form and terms as the Connect Broker may stipulate, in order to participate in the Connect Market.(2) A Trading Member may authorise access to the Connect Market to its Customers through such means made available by the Connect Broker and ensure that such Customers be subject to a legally binding agreement that would govern the terms and conditions for such access. Members that access or provide their customers with access to a Partner Market will be subject to such additional terms or conditions as the Exchange or its related corporations may prescribe in this Rules or in separate agreements.(3) All trades executed through the Connect Broker shall be cleared by the Clearing House through a Clearing Member pursuant to the Clearing Rules. A Trading Member shall be required to have the requisite clearing arrangement with a Clearing Member.(4) The Exchange may, from time to time, designate and approve a Connect Contract for Negotiated Large Trade transactions. Connect Contracts eligible for Negotiated Large Trade transactions shall comply with the minimum volume thresholds, related notification requirements and such other procedures as prescribed by the Exchange from time to time.
Refer to Regulatory Notice 2.1.3A(4); 4.1.11.
Added on 29 July 2022.