Directive No. 3 — Obligations of a Designated Market-Maker

Dates Cross Reference Enquiries
Added on
1 July 20051 July 2005
and amended on
3 April 20083 April 2008 and 27 May 201327 May 2013.
Rule 5.5 Please contact Member Supervision:—

Facsimile No : 6538 8273
E-Mail Address:

1. Bid and Offer Quotations

1.1 In accordance with Rule 5.5.3, a Designated Market-Maker must publish on the Trading System competitive bid and offer quotations:—
(a) on a continuous basis or in such manner as SGX-ST prescribes to provide for an adequately liquid market (with suitable disclosure to investors);
(b) within the maximum spread; and
(c) for not less than the minimum quantity that SGX-ST prescribes.
1.2 In the event a Designated Market-Maker ceases to make bid and offer quotations (whether due to foreseen or unforeseen circumstances), it must:—
(a) immediately notify SGX-ST of the cessation as well as the reasons for it; and
(b) make a public announcement of the cessation at the same time.
1.3 Upon resumption, the Designated Market-Maker must similarly notify SGX-ST and make a public announcement at the same time. At the appropriate juncture, the Designated Market-Maker must make a public announcement of the reasons for cessation of market-making.

2. Adequate Internal Control Systems

2.1 A Designated Market-Maker must establish and maintain adequate internal control systems to ensure smooth operation of its market-making activities.
2.2 A Designated Market-Maker shall pre-notify SGX-ST of any change to its internal control systems which may affect the carrying out of its obligations stipulated under paragraph 1.
2.3 SGX-ST reserves the right to review current or impose additional requirements if it is not satisfied with the internal control systems of the Designated Market-Maker.