3.2 Duties Applicable to All Members, Approved Traders and Registered Representatives
3.2.1 General Duties of Integrity, Fair Dealing and Care
When trading on the Markets, Members, Approved Traders and Registered Representatives are required to:(a) observe high standards of integrity, market conduct and fair dealing;(b) act with due skill, care and diligence; and(c) refrain from any act or course of conduct which is likely to harm the reputation of the Markets or any Members.
3.2.2 Constitutive Documents
A corporate Member shall ensure that its memorandum and articles of association or its constitutive documents conform to this Rules so as to enable that Member to perform the obligations, terms and covenants contemplated in this Rules. A corporate Member shall amend its memorandum and articles of association or its constitutive documents to the extent necessary to ensure consistency with this Rule 3.2.2.
3.2.3 Reporting of Change in Member's Circumstances
Without prejudice to Rule 2.14.1, a Member shall immediately inform the Exchange in writing of:(a) any material change to the information submitted in its application for Membership; or(b) any facts or circumstances which may change the legal form or organisation of the Member or its trading activities on the Markets, including (without limitation) any consolidation, re-organisation, merger, change of name, Change of Control or similar event.
3.2.3A Reporting and Other Requirements Pertaining to Specific Contracts
Each Member shall comply with such reporting and/or other requirements pertaining to specific Contracts as may be prescribed by the Exchange from time to time.
Refer to Regulatory Notice 3.2.3A.
Added on 22 November 2021.
3.2.4 Other Reporting Obligations of Members
A Member shall inform the Exchange in writing immediately if the Member, or any of its Approved Traders, Registered Representatives, directors, officers or employees, as the case may be:(a) breaches any provisions of the Act, this Rules or any applicable laws (foreign or local) governing the Member's activities;(b) breaches any rules of any other exchange or market (foreign or local) which has jurisdiction over the activities of the Member, its Approved Traders, Registered Representatives, directors, officers or employees;(c) breaches any provision involving fraud or dishonesty, whether in or out of Singapore;(d) breaches any director's duties as contemplated under common law or otherwise;(e) is the subject of a written complaint or investigation involving an allegation of fraud or dishonesty, whether in or out of Singapore;(f) is the subject of any disciplinary action taken by the Member involving suspension, termination, withholding of commissions, fines or any other significant limitation of activities;(g) engages in conduct that has the effect of circumventing the Act, other relevant applicable laws and regulatory requirements relating to the regulation of markets and licenced entities or this Rules;(h) engages in conduct which is inconsistent with the principles of good business practice;(i) engages in conduct which is detrimental to the financial integrity, reputation or interests of the Exchange or the Markets; or(j) is insolvent, or is the subject of bankruptcy or winding up proceedings.
The reporting obligations under this Rule 3.2.4 apply whenever any of the abovementioned events occurs, or threatens to occur.
3.2.5 Prohibitions on Conduct of Other Business
A Member may carry on its business on any market, unless the carrying-on of such business on such market has been prohibited by the Exchange. The Member shall fully comply with the prevailing constitution, rules, by-laws, regulations, customs and practices of such other markets.
3.2.6 Settlement of Margins Due
A Trading Member shall promptly settle all margin liabilities owed to its sponsoring Clearing Member.
3.2.7 Speculative Long and Short Positions for the Same Contract Month
A Member shall not be permitted to carry a speculative long position and a speculative short position for the same legal and beneficial owner in the same Contract for the same Contract Month.
3.2.8 Advertising Guidelines
A Member, Approved Trader and Registered Representative shall ensure that any advertising, market letters or similar information that they issue, in the form and context in which such advertisements, market letters or similar information appear or are used:(a) shall be true to the best of their knowledge and belief;(b) shall make no promise with respect to profits, always indicating the possibility of losses if profits are mentioned;(c) shall not misrepresent their Membership, registration, or the privileges which they enjoy under this Rules, in relation to the Exchange; and(d) shall not misrepresent any authorisation, licence or permission which they possess from, or any registration with, the appropriate regulatory body.
If the Exchange finds any advertising, market letters or similar information issued by a Member, Approved Trader or Registered Representative to be in contravention of this Rule 3.2.8, it may require all such prospective advertising, market letters or similar information issued by that Member, Approved Trader or Registered Representative to be submitted to the Exchange for approval prior to release.
A General Trading Member that holds a licence specified in Rule 2.4.1(b) shall not direct any advertising, market letters or similar information to deal in securities or Futures Contracts on the Exchange to customers domiciled in Singapore or to the extent that it may be acted upon by persons in Singapore.