5.5 Obligations of A Designated Market-Maker
A Designated Market-Maker must:—(1) comply with this Chapter, and any Directives SGX-ST prescribes; and(2) continue to satisfy the registration criteria.
5.5.2 Proprietary Accounts
A Designated Market-Maker may make a market in Specified Securities for 1 or more of the following:—(1) its proprietary accounts;(2) proprietary accounts of its related corporations or Associated Corporations; and(3) customers if it holds a Capital Markets Services Licence or is exempt under the Securities and Futures Act or Securities and Futures Regulations.
In this Rule, an Associated Corporation means any body corporate formed in or out of Singapore in which the Designated Market-Maker and its related corporations hold directly or indirectly a beneficial interest of not less than 20% of the issued share capital.
5.5.3 Bid and Offer Quotations
A Designated Market-Maker must publish on the Trading System competitive bid and offer quotations:—(1) on a continuous basis or in such manner as SGX-ST prescribes to provide for an adequately liquid market (with suitable disclosure to investors);(2) within the maximum spread; and(3) for not less than the minimum quantity that SGX-ST prescribes.
Refer to Directive No. 3.
5.5.4 Execution of Trades
If a Designated Market-Maker is not a Trading Member, its trades in any Specified Securities must be routed through a Trading Member.
5.5.5 Market-Making Representative
A Designated Market-Maker must appoint at least 1 person as its market-making representative to receive and execute orders on its behalf. The person must be registered with SGX-ST as a market-making representative.
5.5.6 Periodic Returns
A Designated Market-Maker must submit periodic returns as SGX-ST requires.
5.5.7 Auditors' Report
If asked, a Designated Market-Maker must provide an independent auditors' report to SGX-ST. This is for SGX-ST to review the Designated Market-Maker's performance or suitability as a Designated Market-Maker. The report may relate to the Designated Market-Maker's financial standing, personnel or internal control procedures.
A Designated Market-Maker must pay all fees, levies and charges SGX-ST prescribes. SGX-ST may reduce or waive any fee, levy or charge.
5.5.9 Notification of Adverse Changes
A Designated Market-Maker shall immediately notify SGX-ST if any of the following occurs, or is likely to occur:(1) any of the events under Rule 5.2.4; and(2) the inability of the Designated Market-Maker to satisfy any of its registration criteria and obligations as a Designated Market-Maker under this Rules.