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Practice Note 3.3.5 — Customer Education

Past version: Effective up to 14 Mar 2013

Issue Date Cross Reference Enquiries
Added on 22 September 2006. Rule 3.3.5 Please contact Member Supervision:

Facsimile No : 6538 8273
E-Mail Address: membersup@sgx.com

1. Introduction

1.1 This Practice Note sets out the areas of information, guidance and training that a Member should ensure that its on-line Customers are provided with.

2. Information, Guidance and Training

2.1 A Member should ensure that its on-line Customers are provided with adequate information, guidance and training with respect to the separately enumerated areas below.
2.2 Potential limitations and risks of on-line 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 on-line account and recommended preventive security measures in relation to matters such as the protection of passwords and leaving an on-line screen unattended.
2.3 Prohibited trading practices, which refer to trading practices prohibited under this Rules, the Act or other Singapore laws.
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; and
(d) types of credit controls e.g. types of trading limits and how the trading limits are computed.
2.5 Contract Specifications, which include:
(a) contract size;
(b) ticker symbol;
(c) Contract Months;
(d) minimum price fluctuation; and
(e) settlement basis.