Chapter 6 Dispute Resolution and Arbitration
This Chapter deals with dispute resolution between Members with respect to Contracts traded on the Markets. The Exchange recognises that the fair, speedy and cost-effective resolution of disputes between Members is important to the health of the Markets. Arbitration of such disputes in a neutral forum with the aid of specialist experts instills market confidence. Arbitration involving Contracts shall be before the Singapore International Arbitration Centre ("SIAC")* or such other forums as the parties may agree. The Exchange does not provide any in-house arbitral forum. Under this Rules, arbitration is not compulsory unless a dispute involves a deliverable Commodity Futures Contract. With respect to such Contracts, when any disputing Member elects to resolve the dispute via arbitration before the SIAC, the other disputing Member is compelled to submit to such arbitration. If neither Member elects for arbitration, the Members are free to resolve their dispute in such manner as they deem fit. Save for deliverable Commodity Futures Contracts, this Chapter does not seek to govern dispute resolution between Member and Customer, or between Customers^.#
* For more information regarding the procedural rules, fees and other matters please refer to www.siac.org.sg.
^ With respect to deliverable Commodity Futures Contracts, Customers are bound to submit to arbitration between their respective Members via contractual undertakings provided to their Members.
#Refer to Rule 6.2.4.
6.1 Dispute Resolution Involving Contracts Traded on the SGX-DT Market
Where any dispute arises from or in connection with a Contract traded on the SGX-DT Market (other than a complaint of a disciplinary nature), the disputing Members shall attempt to settle the dispute through good faith negotiations, failing which the disputing Members may choose to settle the dispute by such other means as they may elect, including arbitration before the SIAC in accordance with the rules of the SIAC.
6.2 Dispute Resolution Involving Deliverable Commodity Futures Contracts
6.2.1 Dispute Resolution Involving Deliverable Commodity Futures Contracts
Where any dispute arises from or in connection with a deliverable Commodity Futures Contract (other than a complaint of a disciplinary nature), the disputing parties shall first attempt to settle the dispute through any applicable claim procedures set forth in the relevant Contract Specifications. In the absence of such claim procedures, the disputing parties shall attempt to settle the dispute through good faith negotiations, failing which at the election of any disputing Member or the Clearing Member of any of the disputing parties, the dispute shall be settled by arbitration before the SIAC in accordance with the rules of the SIAC.
6.2.2 Awards Binding on Members and Members' Customers
The award of the SIAC arbitrator or panel of arbitrators shall be binding on the Members and Customers of the respective Members.
6.2.3 Rule Violation
The failure or refusal of a Member to arbitrate where the other Member elects to arbitrate under this Rule shall constitute a Rule Violation.
6.2.4 Customers to Submit to Arbitration
Each Member shall cause its Customers and their respective assigns to agree that where there is a dispute arising from or in connection with a deliverable Commodity Futures Contract:(a) the Customers and their respective assigns shall submit to arbitration before the SIAC at the election of their respective Members;(b) the award of the arbitrator or panel of arbitrators shall be final and binding on the Customers and their respective assigns; and(c) the Customers and their respective assigns shall comply with the applicable post-arbitral procedures set forth in this Rules.
6.3 Post-arbitral Award Procedures for Deliverable Commodity Futures Contracts
6.3.1 Service of Notice of Award on the Parties and the Clearing House
Upon the conclusion of arbitration and the grant of an arbitral award, a notice of the award will be served on the Clearing House and the parties to the arbitration by the SIAC.
6.3.2 Buying Member's Rights to the Performance Deposit
Where an arbitral award is made in favour of the Buying Member, the Buying Member shall be entitled to:(a) claim the Performance Deposit posted by the Selling Member with the Clearing House to the extent that the Performance Deposit satisfies the arbitral award; and(b) the return of the Performance Deposit posted by the Buying Member with the Clearing House, without any deduction or set-off.
6.3.3 Use of Performance Deposit to Satisfy Award
If the Performance Deposit posted by the Selling Member is insufficient to satisfy the arbitral award made in favour of the Buying Member, the Buying Member shall be entitled to pursue the balance of such award against the Selling Member. If such Performance Deposit is greater than the arbitral award made in favour of the Buying Member, the balance of the Performance Deposit shall be returned to the Selling Member.
6.3.4 Selling Member's Rights to the Performance Deposit
Where the arbitral award is made in favour of the Selling Member (as opposed to the Buying Member), Rules 6.3.2 and 6.3.3 shall apply with references to "Buying Member" and "Selling Member" being changed to "Selling Member" and "Buying Member" respectively. "Selling Member" and "Buying Member" as used in this Rule 6.3 refers to the Clearing Members of the Seller and Buyer respectively.
6.3.5 Procedures Not Applicable if Members elect for Alternative Delivery Procedure
For the avoidance of doubt, the above procedures do not apply if the Selling Member and the Buying Member have agreed to effect delivery via an Alternative Delivery Procedure.