Practice Note 19.7.1 — Permissible Use of Suspense Accounts for Marginable Futures Contracts
|Issue Date||Cross Reference||Enquiries|
|Added on 23 January 200923 January 2009.||Rule 19.7.1||
Please contact Member Supervision:
Facsimile No : 6538 8273
E-Mail Address: firstname.lastname@example.org
1.1 Rule 19.7.1 prohibits the use of all suspense accounts as described in Rule 12.16 for trading in Marginable Futures Contracts, unless otherwise permitted by SGX-ST.
1.2 This Practice Note provides for the permissible use of customer's suspense accounts and describes the terms under which such accounts may be used to trade in Marginable Futures Contracts.
2 Permissible Use of Customer's Suspense Accounts
2.1 Customer's suspense accounts may be used for trading in Marginable Futures Contracts provided that such accounts are used solely for the purpose of warehousing orders on an individual customer basis. Each account must not have more than one beneficial owner.
2.2 Where a Trading Member uses a customer's suspense account for trading in Marginable Futures Contracts, that Trading Member must:
(a) comply with Rule 12.16; and
(b) ensure that the customer complies with the margin requirements prescribed by Rule 19.10 from the first Market Day on which the trades are debited to the customer's suspense account.