Chapter 8 Trading
A security or futures contract listed or quoted on SGX-ST must be traded and matched through the Trading System or as otherwise allowed under this Chapter.
By entering an order into the Trading System, each Trading Member shall be deemed to have consented to the disclosure of its identity in any trade confirmation message generated by the Trading System to the relevant counterparty Trading Member, and to the provision of such information to any of SGX-ST's related corporations or to any other party for the purposes of facilitating the orderly clearing and settlement of any matched trade.
8.2 Trading Hours, Market Phases and Rules for Trading Matching
The trading hours, market phases, application of the market phases, and principles and rules for trade matching, are as published by SGX-ST. SGX-ST may vary the trading hours, market phases, application of the market phases, and principles and rules for trade matching.
Refer to Regulatory Notice 8.2.1.
8.3 Closing Price of Prescribed Instrument
A "Prescribed Instrument" refers to such security or futures contract or class of securities or futures contracts that SGX-ST may prescribe under this Rule.
Refer to Regulatory Notice 8.3.
The closing price of a Prescribed Instrument shall be calculated in accordance with the formula and procedure determined by SGX-ST. In determining such formula and procedure, SGX-ST may take into account factors, including but not limited to:(a) the last traded price;(b) prevailing bids and offers during the trading phase and/or closing routine; and(c) price data derived from pricing models selected or established by SGX-ST.
8.4 Contingency Order Withdrawal
Upon a Trading Member's request, SGX-ST may assist the Trading Member with the withdrawal of an order if the Trading Member is unable to do so without SGX-ST's assistance, provided that the circumstances, conditions and operational procedures as prescribed by SGX-ST are complied with.
Refer to Regulatory Notice 8.4.
Save for the unit share and buying-in market, the minimum order size is one board lot. The number of shares or units in a board lot is as determined by SGX-ST. Orders may be in multiples of a board lot or as otherwise determined by SGX-ST.
SGX-ST may prescribe the minimum bid size of each product.
Refer to Regulatory Notice 8.5.2.
Save as otherwise prescribed by SGX-ST, each order entered into the Trading System must specify the unique Position Account code, the Trading Account code and the price (where relevant) and quantity of the security or futures contract. The Trading Member shall ensure that each order entered into the Trading System is capable of being identified and traced to the relevant customer.
8.6 Trading Basis of Securities
Unless otherwise indicated, trading of securities is on a "cum" basis. A "cum" basis means that where the Issuer has declared an entitlement issue with respect to the security, such security is sold (and bought) with a right to that entitlement.
All securities that are designated by CDP as eligible for clearance will be traded on an "ex" basis for two Market Days before and up to the books closure date for an entitlement.
A buyer or seller of securities on an "ex" or "cum" basis, respectively, has no right to that entitlement.
8.7 Marking of Sell Orders
Each sell order for Specified Capital Markets Products shall be marked to indicate to SGX-ST whether it is a Short Sell Order or a normal sell order. The quantity, volume or value of the Specified Capital Markets Product in which a person intends to make or is making a Short Sell Order shall also be indicated.
A Trading Member and its Trading Representative shall not enter a sell order in the Trading System if a customer has not indicated whether the sell order is a Short Sell Order or a normal sell order and/or has not provided the information relating to the quantity, volume or value of the Specified Capital Markets Product in which the customer intends to make or is making a Short Sell Order.
In this Rule:(a) A "Specified Capital Markets Product" means any securities or futures contract that is listed or to be listed on SGX-ST that is, or that belongs to a class of capital markets products (as defined in the Securities and Futures Act) that is, prescribed by regulations made under section 137ZM of the Securities and Futures Act.(b) A "Short Sell Order" means any order to sell any Specified Capital Markets Product where the person who makes the order does not, at the time of the order, have an interest in the Specified Capital Markets Product as specified under section 137ZH of the Securities and Futures Act, and "short sell" shall be construed accordingly.
The requirement to mark sell orders as set out in this Rule shall include Direct Business reported through the married trade reporting system of the Trading System pursuant to Rule 8.10.
A Trading Member shall ensure that the necessary procedures and systems are implemented to facilitate compliance with the obligations set out in this Rule.
SGX-ST may, at its discretion, exempt any specific Specified Capital Markets Product from the requirement to mark sell orders as set out in this Rule.
SGX-ST may, at its discretion, waive the requirement to mark sell orders for specific classes of market participants.
A Trading Member and its Trading Representatives shall not be required to comply with this Rule in respect of sell orders from the market participants for whom SGX-ST has waived the requirement to mark sell orders for or in such Specified Capital Markets Products as exempted by SGX-ST.
Refer to Regulatory Notice 8.7 and 8.9.
8.8 Publication of Report of Short Sell Orders
SGX-ST shall report before the start of each Market Day the aggregate volume of Short Sell Orders matched and executed for the preceding Market Day and in respect of each Specified Capital Markets Product for which marking is required.
8.9 Reporting of Erroneously Marked Sell Orders
A Trading Member may submit a report of erroneously marked sell orders through such facility that is provided by SGX-ST.
8.10 Direct Business
A Trading Member may only execute Direct Business that is:(a) at least:(i) 50,000 units of securities or futures contracts, or in the case of Marginable Futures Contracts, 50,000 units of the underlying; or(ii) S$150,000 in terms of contract value;(b) a book-out trade from an error account to remedy an error; or(c) to complete a customer's order that was partially filled in the market, provided the original order met the minimum size in Rule 8.10.1(a) above.
Direct Business may be transacted between:(a) two Trading Members;(b) two customers of a Trading Member; or(c) a Trading Member and its customer.
SGX-ST may vary the minimum size or value of trades under Rule 8.10.1.
Direct Business must be reported through the married trade reporting system of the Trading System. The price, quantity, counterparty and other details as required under Rule 8.7.1 must be reported.
Direct Business must be reported within 10 minutes of execution save that Direct Business executed after market close must be reported in the first 20 minutes of the Opening Routine on the following Market Day.
8.11 Designated Instruments
SGX-ST may declare publicly a security or futures contract to be a "Designated Instrument" if, in its opinion, there has been manipulation of the security or futures contract (or its underlying), excessive speculation in the security or futures contract (or its underlying), or it is otherwise desirable in the interests of organised markets established or operated by SGX-ST.
Refer to Practice Note 8.11.1.
SGX-ST may impose any conditions it thinks fit on dealing or trading in a Designated Instrument. A condition applies from the date of declaration to all contracts of the Designated Instrument entered into on or after the date of declaration, or as indicated by SGX-ST. The conditions may include, but are not limited to, the following:(a) a requirement that Trading Members obtain margins from each customer in respect of the customer's dealing or trading in the Designated Instrument;(b) a restriction on dealing or trading in a Designated Instrument by a Trading Member if its outstanding contracts exceed 5% of the total issued shares or units of the relevant Issuer whose shares or units are designated or underlies the Designated Instrument, or any other percentage or benchmark that SGX-ST prescribes; or(c) a prohibition on any sale unless the seller holds the Designated Instrument, or in the case of a Designated Instrument that is a futures contract, the underlying. A seller holds a security, futures contract, or underlying if, at the time of sale, he has the security, futures contract or underlying in an account maintained with CDP, or delivers the share certificates and executed transfer forms to the Trading Member.
A Trading Member must give SGX-ST particulars of all its dealings or trades in Designated Instruments and of the customers involved upon SGX-ST's request. The Trading Member must do so by the next business day after the request is made.
SGX-ST may declare a corner in a listed or quoted security if, in its opinion, a single interest or a group has acquired or is likely to acquire sufficient control over the supply of the security such that the security may only be obtained for delivery at prices, or on terms, dictated by the single interest or group, or it is otherwise desirable in the interests of organised markets established or operated by SGX-ST.
SGX-ST may impose any conditions it thinks fit on dealing in a cornered security or in a futures contract on a cornered security. For avoidance of doubt, the conditions may include, but not limited to the following:(a) from time to time extending (or further extending) the due date for delivery; or(b) declaring that contracts will be cash settled (not delivered). SGX-ST may direct the terms of the cash settlement or apply the following terms (in whole or in part) as it thinks fit:(i) in the case of a seller who contracted to sell for less than the fair settlement price, the seller must pay the buyer the difference between the fair settlement price and the contract price;(ii) in the case of a seller who contracted to sell for more than the fair settlement price, the buyer must pay the seller the difference between the contract price and the fair settlement price;(iii) in the case of a buyer who contracted to buy for less than the fair settlement price, the seller must pay the buyer the difference between the fair settlement price and the contract price; and(iv) in the case of a buyer who contracted to buy for more than the fair settlement price, the buyer must pay the seller the difference between the contract price and the fair settlement price.
If SGX-ST imposes a condition that contracts are to be cash settled, it must establish a Settlement Committee to advise on the fair settlement price.
A Settlement Committee must comprise no less than five persons, including at least:(a) two members of the Board;(b) one public accountant; and(c) one advocate and solicitor.
The quorum of the Settlement Committee is all members when the meeting proceeds to business, but the Settlement Committee may complete the business with any three members present.
A Settlement Committee may include such other persons as SGX-ST thinks fit.
A Settlement Committee may hear evidence as it thinks proper and relevant to the discharge of its functions.
A Settlement Committee must report its findings to SGX-ST. The findings are advisory only and it is for the SGX-ST to decide on the fair settlement price at its discretion having considered the Settlement Committee's recommendation on the fair settlement price. SGX-ST may refer a matter to the Settlement Committee for further consideration, before deciding on the fair settlement price.
8.13 Suspension and Restriction of Trading
SGX-ST may suspend or restrict trading in any or all listed or quoted securities or futures contracts. It may do so for one or more markets, one or more trading sessions or any part of a trading session, and in any of the following circumstances:(a) in SGX-ST's opinion, the market is not orderly, informed or fair or circumstances are about to occur that may result in there not being an orderly, informed or fair market;(b) SGX-ST releases an announcement in relation to an Issuer which, in SGX-ST's opinion, is market sensitive;(c) an Issuer requests, and SGX-ST agrees to, the suspension;(d) access to the Trading System is generally restricted;(e) where Rule 8.14 applies;(f) any of the circumstances in Rule 1303 of the SGX-ST Listing Manual apply;(g) functions of SGX-ST are, or are threatened to be, severely and adversely affected by an emergency such as fire, terrorist activities, power failures, communication or transportation breakdowns, or computer malfunctions; or(h) in SGX-ST's opinion, it is in the public's interest.
Refer to Practice Note 8.13 and 8.15.
SGX-ST may restrict trading by such means as it considers appropriate, including placing the market into an Adjust Phase.
A suspension or a trading restriction may be lifted by SGX-ST at any time.
Securities or futures contracts that have been suspended from trading shall not be traded on the Trading System for the period of suspension. Except with SGX-ST's approval, a Trading Member must not execute any transactions in a security or futures contract that has been suspended.
Refer to Practice Note 8.13.4 and 8.15.7.
Unmatched orders in a security or futures contract in the Trading System may lapse in the event of a suspension of that security or futures contract, as determined by SGX-ST.
Refer to Practice Note 8.13 and 8.15.
Where SGX-ST has suspended or restricted trading in all listed or quoted securities or futures contracts in one or more markets, SGX-ST may extend a trading session for the market when trading recommences.
8.14 Circuit Breakers and Cooling-Off Periods
SGX-ST may prescribe, for certain securities or futures contracts, Circuit Breakers which are designed to temporarily restrict trading in these securities or futures contracts.
Refer to Regulatory Notice 8.14.1.
SGX-ST shall impose a Cooling-Off Period on such securities or futures contracts referred to in Rule 8.14.1 if an incoming order seeks to be matched, either partially or fully, with an existing order in the Trading System at a price outside the Circuit Breaker.
Where the Cooling-Off Period is activated pursuant to Rule 8.14.2, the following will apply:(a) the incoming order will not be matched with the existing order in the Trading System at a price outside the Circuit Breaker; and(b) such quantity of the incoming order that is not filled at the commencement of the Cooling-Off Period will be rejected by the Trading System.
8.15 Trading Halts
A trading halt may be imposed by SGX-ST at the request of an Issuer.
Refer to Practice Note 8.13 and 8.15.
A trading halt may be imposed by SGX-ST on a security or futures contract when its underlying, or such instrument on the same underlying as SGX-ST may prescribe, is subject to a Cooling-Off Period pursuant to Rule 8.14.2.
Refer to Practice Note 8.13 and 8.15.
A trading halt may be changed to a suspension by SGX-ST at any time.
A trading halt is for a minimum duration of 30 minutes or such period SGX-ST prescribes and may be imposed for up to three Market Days or such other extension as SGX-ST agrees.
Securities or futures contracts that are subject to a trading halt shall not be traded on the Trading System for the period of the trading halt. Except with SGX-ST's approval, a Trading Member must not execute any transactions in a security or futures contract that is subject to a trading halt.
Refer to Practice Note 8.13.4 and 8.15.7.
8.16 Emergency Powers
Where SGX-ST deems it necessary or desirable for ensuring a fair and orderly market or for ensuring a safe and efficient clearing facility, or for ensuring the integrity of the market or for proper management of systemic risk in the market, SGX-ST may, in relation to one or more Trading Members:(a) require that a portion of the positions in respect of Marginable Futures Contracts carried in any account(s) on the books of such Trading Member be transferred to the books of one or more Trading Members;(b) require such Trading Member to liquidate any of the positions carried in any account(s) on its books;(c) modify any term in any Contract Specifications, which may include bringing forward the Last Trading Day, or modifying the settlement obligations as set out in Chapter 9;(d) require such Trading Member to close any accounts;(e) impose such additional capital requirements on such Trading Member as SGX-ST deems necessary or desirable;(f) impose such limits and/or conditions to control the trading activities of such Trading Member as SGX-ST deems necessary or desirable; and(g) take such action or require the Trading Member to take such action as SGX-ST deems necessary or desirable.
SGX-ST shall, as soon as practicable, notify the Authority of any action taken pursuant to Rule 8.16.1.