SIAC DT Arbitration Rules
Circular No. DT/AM 69 of 2005
SGX — Derivatives Circular For All Members
30 June 2005
Circular No. DT/ AM 69 of 2005
ADMINISTRATION OF ARBITRATION BY SIAC
Following a review of the SGX-DT arbitration framework and procedure, the Exchange is pleased to inform Members that it has appointed the Singapore International Arbitration Centre (SIAC) to administer arbitrations among Members and market participants resulting from SGX-DT transactions with immediate effect.
The SIAC will have an SIAC SGX-DT Panel of Arbitrators comprising industry experts and legal professionals, some who have or are currently serving on SGX-DT Business Conduct and Disciplinary Committees. The attached Appendix 1 provides a guide to Members who may wish to arbitrate their disputes.
Should you need any clarification on this circular, please contact Mr Wong Sow Wei of our Legal Department at telephone number 6236-8330. For clarification on the arbitration procedure and/or the use of SIAC's services, please contact Ms Sabiha Shiraz or Mr Ganesh Chandru of SIAC at telephone number 6334-1277.
SENIOR VICE PRESIDENT & HEAD
LEGAL & COMPANY SECRETARY
Appendix 1 Guide to Administration of Arbitration by SIAC
Administration of Arbitration by SIAC1. Introduction
SGX-DT has appointed SIAC to administer arbitrations among Members and market participants arising from transactions on SGX-DT. Under this expedited arrangement, SIAC will:i. appoint a sole arbitrator from the SIAC SGX-DT Arbitration Panel unless the parties agree to a bigger panel or the Chairman of SIAC is of the view that one is necessary;ii. manage all the financial aspects of the arbitration;iii. monitor and supervise the progress of the arbitration;iv. arrange for logistics, facilities and services for hearings;v. perform all other clerical and administrative services;Arbitrations arising from transactions on SGX-DT differ from the usual SIAC arbitrations in that the former provides for a pre-determined fee structure and an expedited arbitration procedure.2. Benefits of appointing SIAC to administer arbitrations
The benefits of the appointment are as follows:i. Wealth of experience in administering arbitrations
SIAC is an established arbitral institution operating since 1991 and has accumulated a wealth of experience and expertise in administering arbitrations. Users will benefit from having their dispute arbitrated in a professional manner at a competitive fee.ii. Certainty of Costs
SIAC has put together a scale of arbitration fees for SGX-DT users. This comprises SIAC's management fee and the Tribunal's fee and is pegged to the amount of the claim and counterclaim (if any) based on the appointment of a sole arbitrator. Where additional arbitrators are appointed, the arbitrator's fees will be increased accordingly. Each scale peg sets a minimum and maximum fee limit which gives parties a clear indication of arbitration fees before proceedings are commenced. This will enable parties to evaluate their requirement for arbitration and settlement options once proceedings have commenced. The arbitration fee structure is enclosed at Annex A.
Refer to Annex A — Schedule of Feesiii. Expedited arbitration procedure
Taking into account the nature of disputes likely to arise from transactions on SGX-DT, SIAC has formulated an expedited arbitration procedure allowing for a more speedy resolution of disputes. To facilitate this, SIAC has drafted a separate set of arbitration rules (known as the SIAC SGX-DT Arbitration Rules) to govern arbitrations arising from transactions on SGX-DT. The SIAC SGX-DT Arbitration Rules are enclosed as Annex B.
Refer to Annex B — SIAC SGX-DC Arbitration Rules.3. Changes to the SGX-DT Rules
Certain provisions of the SGX-DT Rules have been amended to effect the appointment of SIAC. Some of the major differences between an arbitration administered by the SGX-DT under the procedures in Chapter 6 and one conducted by the SIAC are detailed in the FAQs enclosed as Annex C. These include the fact that arbitrations by the SIAC will be heard by a sole arbitrator instead of a panel of 3 (unless the parties agree to a bigger panel or the Chairman of SIAC decides that one is necessary), the inclusion of a right to challenge the appointment of an arbitrator on the grounds of his impartiality or independence and the removal of the right of appeal to the Appeals Committee.
Refer to Annex C — FAQs.
Annex B SIAC SGX-DT Arbitration Rules — effective 1 July 2005
(1st Edition, 1 July 2005)1. Application1.1. Any dispute, claim or controversy betweena. SGX-DT Members arising out of or in connection with a transaction on the Exchange;b. an SGX-DT Member and a Member of a Participating Exchange arising out of or in connection with a transaction on the Exchange pursuant to the Mutual Offset System;c. an SGX-DT Member and a Non-Member Customer arising out of or in connection with a transaction on the Exchange;may be submitted for arbitration under these Rules.1.2. An arbitration or reference to arbitration made under these Rules shall be deemed to be an arbitration or reference under the International Arbitration Act (Cap 143A).1.3. The submission to arbitrate under these Rules shall be in the form of a Submission to Arbitration.12. Definitions2.1. These Rules shall be referred to as "the SIAC SGX-DT Arbitration Rules".2.2. In these Rules:
"Act" refers to the International Arbitration Act (Cap 143A) and any statutory re-enactments thereof.
"Centre" refers to the Singapore International Arbitration Centre.
"Chairman" refers to the Chairman of the Singapore International Arbitration Centre and includes the Deputy Chairman.
"Exchange" refers to the Singapore Exchange Derivatives Trading Limited by whatever name from time to time called.
"Participating Exchange" refers to an exchange which is a party to the Mutual Offset System and has assumed the rights and obligations thereunder.
"Member" refers to a Clearing Member, a Corporate Non-Clearing Member, an Individual Non-Clearing Member or a Commercial Associate Member.
"Non-Member Customer" means a person who is a customer of a Member and is not himself a Member.
"Registrar" refers to the Registrar of the Singapore International Arbitration Centre and includes an Assistant Registrar.
"SIAC SGX-DT Panel" refers to the list of persons admitted to serve as arbitrators under these Rules.
"Tribunal" refers to the arbitrator or arbitrators appointed in accordance with these Rules.2.3 For the purposes of these Rules, the terms "Mutual Offset System", "Clearing Member", "Corporate Non-Clearing Member", "Individual Non-Clearing Member" and "Commercial Associate Member" as used herein shall have the same meaning as defined in the SGX-DT Rules.3. Notice, Calculation of Periods of Time3.1. For the purposes of these Rules, any notice, including a notification, communication or proposal, is deemed to have been received if it is physically delivered to the addressee or if it is delivered at his habitual residence, place of business or mailing address, or, if none of these can be found after making reasonable inquiry, then at the addressee's last-known residence or place of business. Notice shall be deemed to have been received on the day it is so delivered.3.2. For the purposes of calculating a period of time under these Rules, such period shall begin to run on the day following the day when a notice, notification, communication or proposal is received. If the last day of such period is an official holiday or a non-business day at the residence or place of business of the addressee, the period is extended until the first business day which follows. Official holidays or non-business days occurring during the running of the period of time are included in calculating the period.3.3. Without prejudice to the effectiveness of any other form of written communication, written communication may be made by fax, email or any other means of electronic transmission effected to a number, address or site of a party.3.4. The transmission is deemed to have been received on the day of transmission.4. Commencement of Arbitration4.1. Any party wishing to commence an arbitration under these Rules ("the Claimant") shall file with the Registrar and serve on the other party ("the Respondent"), a written Notice of Arbitration ("the Notice of Arbitration")2 which shall include the following:a. a request that the dispute be referred to arbitration;b. the names and addresses of the parties to the dispute;c. the market, counter, time, date reference number of the contract or transaction in dispute;d. a brief statement describing the nature and circumstances of the dispute;e. the amount in dispute;f. the relief or remedy sought; andg. the name of the Claimant's nominated arbitrator.5. Response by Respondent5.1. Within 7 days of receipt of the Notice of Arbitration, the Respondent shall file with the Registrar and serve on the Claimant, a Response3 including:a. a confirmation or denial of all or part of the claims;b. a brief statement of the nature and circumstances of any envisaged counterclaims;c. the estimated value of any such envisaged counterclaims;d. any comment in response to any proposals contained in the Notice of Arbitration; ande. the name of the Respondent's nominated arbitrator.6. Filing of Case Statements6.1. Unless the Registrar otherwise directs, the Notice of Arbitration and the Response shall constitute the Claimant's Case and Respondent's Defence respectively.6.2. If the Registrar directs parties to file statements, the following shall apply:a. Within 14 days after the filing of the Notice of Arbitration, the Claimant must file with the Registrar and serve on the Respondent, a Statement of Claimant's Case.b. Within 14 days after the Service of the Statement of Claimant's Case, the Respondent must file with the Registrar and serve on the Claimant, a Statement of Respondent's Defence and Counterclaim (if any).c. Within 14 days after the Service of the Statement of Respondent's Defence, if the Claimant intends to challenge anything in the Statement of Respondent's Defence and/or Counterclaim, the Claimant must then file with the Registrar and serve on the Respondent, a Statement of Claimant's Reply and if necessary, Defence to Counterclaim.d. No further case statements may be filed without the leave of the Registrar or if a Tribunal has been appointed, the Tribunal.7. Default in Filing and Serving of Case Statements7.1. If the Claimant fails within the time specified under these Rules or as may be fixed by the Registrar, to submit its Statement of Case, the Registrar may issue an order for the termination of the arbitral proceedings or make such other directions as may be appropriate in the circumstances.7.2. If the Respondent fails to submit a Statement of Respondent's Defence, the Registrar may nevertheless proceed with the arbitration and make the award.7.3. If a Tribunal has been appointed, the Tribunal may exercise the powers of the Registrar given under this Rule.8. Appointment of Tribunal8.1. A sole arbitrator shall be appointed unless the parties have agreed otherwise or unless the case is such that in the Chairman's view, more than one (1) arbitrator is necessary.8.2. The Chairman will appoint the arbitrator within 10 days following receipt of the all case statements. The Chairman is not bound to appoint any of the names nominated by the parties.8.3. An arbitrator to be appointed under these Rules shall be a person on the SIAC SGX-DT Panel as at the date of the appointment.8.4. In the event of the death, resignation or withdrawal of the arbitrator, a substitute arbitrator must be appointed by the same procedure by which the arbitrator concerned was appointed.9. Independence and Impartiality of Tribunal9.1. The Tribunal conducting an arbitration under these Rules shall be and remain at all times independent and impartial, and shall not act as advocate for any party.9.2. A prospective arbitrator shall disclose to those who approach him in connection with his possible appointment, any circumstances likely to give rise to justifiable doubts as to his impartiality or independence.9.3. An arbitrator, once nominated or appointed, shall disclose any such circumstance referred to in Rule 9.2 to the Registrar and/or to all parties.10. Challenge of Arbitrator10.1. An arbitrator may be challenged if there are circumstances that give rise to justifiable doubts as to his impartiality or independence.10.2. A party may challenge an arbitrator appointed on its nomination or with its agreement only for reasons of which it becomes aware after the appointment has been made.10.3. A party who intends to challenge an arbitrator shall file with the Registrar and serve on the other party or all other parties, whichever is applicable, a Notice of Challenge.10.4. The Notice of Challenge must be filed and served within 7 days from the appointment of the arbitrator or within 7 days after the circumstances mentioned in Rule 10.2 became known to that party. Once 7 days have lapsed, the party losses its right to challenge.10.5. The Notice of Challenge must state the reasons for the challenge.10.6. The arbitration shall be suspended until the challenge is resolved or decided upon.10.7. When an arbitrator has been challenged by one party, the other party may agree to the challenge, in which event, the arbitrator shall be deemed to have withdrawn from the arbitration. The arbitrator may also withdraw from his office after the challenge, regardless of whether the other party has agreed to such challenge. However, in both cases it is not implied that there has been an acceptance of the validity of the grounds for the challenge. The procedure provided in Rule 8 shall be used for the appointment of a substitute arbitrator.10.8. If within 7 days of the Notice of Challenge, the other party does not agree to the challenge and the challenged arbitrator does not withdraw, the decision on the challenge is made by the Chairman. If the Chairman sustains the challenge, a substitute arbitrator shall be appointed and Rule 8 similarly applies. The Chairman's decision is final and not subject to appeal or review.11. Transmission of File to the Tribunal11.1. The Registrar shall, as soon as practicable transmit to the Tribunal, a file containing the Notice of Arbitration, the Response and (if applicable) all case statements to the Tribunal together with all the documents submitted by the parties.11.2. The Tribunal shall as soon as practicable, after consultation with the parties, issue such orders and/or directions as are necessary for the conduct of the arbitration to conclusion, including a timetable for steps to be taken in the arbitration and for the hearing of the arbitration.12. Hearing12.1. Wherever possible documents and evidentiary material should be agreed and the case should proceed based on documents and/or evidentiary material or oral arguments only.12.2. The Tribunal has the discretion to allow oral evidence to be presented. Where oral evidence is requested and directed, the hearing should not exceed 3 days.12.3. The Tribunal shall set the date, time and place of hearing and shall communicate this to the parties, by writing, at least 7 days in advance.12.4. If any party fails to appear at a hearing, of which notice has been given, without showing sufficient cause for such failure, the Tribunal may proceed with the arbitration and may make the award on the evidence before it.12.5. Any party may be represented by legal practitioners or any other representatives.12.6. The Tribunal shall have the widest discretion allowed by the Act to ensure the just, expeditious, economical and final determination of the dispute.12.7. All meetings and hearings shall be in private unless the parties agree otherwise.13. Witnesses13.1. The Tribunal may direct any party to give notice of the identities of the witnesses it intends to call as well as the subject matter of their testimony and its relevance to the issues. The Tribunal has absolute discretion to allow, refuse or limit the appearance of witnesses.13.2. Evidence may be given in the form of signed written statements, video or audio recordings, Exchange records, trading notes and other evidentiary material.13.3. Exchange officials, floor traders and industry experts may be permitted to give evidence on trade practices and usages.13.4. A party shall be responsible for the practical arrangements, cost and availability of any witness he is allowed to call by the Tribunal.14. Centre to Provide Assistance14.1. At the request of the Tribunal or either party, the Registrar will render such assistance as is required for the conduct of the arbitration, including arranging for facilities, suitable accommodation for sittings of the Tribunal, secretarial assistance or interpretation.14.2. Any additional expense incurred or to be incurred for any such arrangements shall be borne by the parties.15. Juridical Seat of Arbitration15.1. The juridical seat of the arbitration shall be Singapore.15.2. An award made under these Rules shall be deemed to be an award made in Singapore.16. Language of Arbitration
The language of the arbitration shall be in English.17. Closure of Hearings17.1. The Tribunal may inquire of the parties if they have any further proof to offer or submission to be heard and if there are none, declare the hearings closed.17.2. The Tribunal may also, in view of exceptional circumstances, reopen the hearings at any time before the award is made.18. Deposits to Costs and Expenses18.1. The Tribunal's fees and the Centre's management fees shall be ascertained in accordance with the Schedule of Fees in force at the time of commencement of the arbitration.18.2. The Claimant shall at the time of filing the Notice of Arbitration make payment of:a. the management fee for the claim; andb. one-half of the Tribunal's feeascertained in accordance with the Schedule of Fees.18.3. The Respondent shall at the time of filing the Response make payment of:a. where there is a counterclaim, the management fee; andb. one-half of the Tribunal's feeascertained in accordance with the Schedule of Fees.18.4. Where the amount of the claim or the counterclaim is not quantifiable at the time payment is due a provisional estimate will be made by the Registrar. The management and Tribunal's fees will be adjusted in the light of such information as may subsequently become available. If the arbitration is settled or disposed of without a hearing, the amount of the management and Tribunal's fee shall be finally determined by the Registrar, who will have regard to all the circumstances of the case, including the stage of proceedings at which the arbitration is settled or otherwise disposed of.18.5. The Registrar may from time to time direct parties to make one or more deposit(s) towards any further expenses incurred or to be incurred on behalf of or for the benefit of the parties.18.6. All deposit(s) shall be made to and held by the Centre. Any interest which may accrue on such deposit(s) shall be retained by the Centre.18.7. If a party fails to make the payments or deposits required or directed, the Tribunal may refuse to determine the claims or counterclaims, whichever is applicable, by the non-complying party, although it may proceed to determine claims or counterclaims by any party who has complied with orders.18.8. The parties shall remain jointly and severally liable to the Centre for payment of all such fees and expenses until they have been paid in full even if the arbitration is abandoned, suspended or concluded, by agreement or otherwise, before the final award is made.18.9. In the event that payment obligations under this Rule are not complied with by one party (the "Defaulting Party"), the non-defaulting party may apply to the Registrar or Tribunal to make payment in respect of the deposits owing by the Defaulting Party.18.10. Should the parties fail to make the deposits requested for under this Rule either wholly or in part, the Registrar may direct the Tribunal to suspend its work until such deposits are paid.19. The Award19.1. The award shall be made promptly by the Tribunal within 14 days after close of hearing, or where the case proceeds on documents and evidentiary material only, from the date when all documents and evidentiary material are submitted to the Tribunal.19.2. The Registrar may extend the time for the making of the award by the Tribunal.19.3. The Tribunal need not state the reasons for the award.19.4. The Tribunal may award simple or compound interest on any sum awarded at such rate or rates and in respect of such period or periods ending not later than the date of the award as the Tribunal considers just.19.5. All awards must be issued through the Registrar.19.6. The Tribunal must deliver to the Registrar a number of original copies of the award sufficient for the parties, the Exchange and for filing with the Registrar.19.7. The Registrar shall release the award to the parties and the Exchange upon the full settlement of fees and expenses.19.8. The award shall be final, binding and enforceable according to its terms and the parties undertake to carry out the award without delay.20. Correction of Award20.1. Within 7 days of receiving an award, unless another period of time has been agreed upon by the parties, a party may by notice to the Registrar request the Tribunal to correct in the award, any errors in computation, any clerical or typographical errors or any errors of similar nature.20.2. If the Tribunal considers the request to be justified, it shall make the correction (s) within 7 days of receiving the request. Any correction shall be notified in writing to the parties and shall become part of the award.20.3. The Tribunal may correct any error of the type referred to in Rule 20.1 on its own initiative within 7 days of the date of the award.21. Settlement21.1. If, before the award is made, the parties agree on a settlement of the dispute, the Tribunal shall either issue an order for the termination of the arbitral proceedings or, if requested by both parties and accepted by the Tribunal, record the settlement in the form of an arbitral award on agreed terms.21.2. The parties shall:a. notify the Tribunal and the Registrar immediately if the arbitration is settled or otherwise terminated;b. make provision in any settlement for payment of all the costs of the arbitration and fees due to the Centre and any expenses of the Tribunal.21.3. Copies of the order for termination of the arbitral proceedings or of the arbitral award on agreed terms, signed by the Tribunal, shall be communicated by the Tribunal to the Registrar and the Exchange.22. Costs22.1. The Tribunal shall specify in the final award, the costs of the arbitration and decide which party shall bear them and in what proportion they shall be borne.22.2. In this Rule, "costs of the arbitration" shall include:a. The fees of the Tribunal and the Centre as determined by the Registrar in accordance with the Schedule of Fees;b. The costs of expert advice or of other assistance rendered; andc. All expenses which are reasonably incurred by the Centre in connection with the arbitration.22.3. The Tribunal has power to order in its award, that all or part of the legal or other costs of one party shall be paid by the other party. Such costs shall, unless the award otherwise fixes or directs, be taxable by the Registrar.23. Waiver
A party which is aware of non-compliance with these Rules and yet proceeds with the arbitration without promptly stating its objection to such non-compliance, shall be deemed to have waived its right to object.24. Confidentiality24.1. The parties and the Tribunal must at all times treat all matters relating to the arbitration (including the existence of the arbitration) and the award as confidential. A party or any arbitrator must not, without the prior written consent of the other party or the parties, as the case may be, disclose to a third party any such matter except:a. for the purpose of making an application to any competent court;b. for the purpose of making an application to the courts of any State to enforce the award;c. pursuant to the order of a court of competent jurisdiction;d. in compliance with the provisions of the laws of any State which is binding on the party making the disclosure; ore. in compliance with the request or requirement of any regulatory body or other authority which, if not binding nonetheless would be observed customarily by the party making the disclosure.24.2. The Centre and the Exchange may however publish any award made under these Rules in any form provided that the names or identities of the parties shall not be disclosed without the consent of all the parties.25. Exclusion of Liability25.1. The Tribunal, the Chairman, the Centre, the Exchange and any of its officers, employees or agents shall not be liable to any party for any act or omission in connection with any arbitration conducted under these Rules, unless the act or omission is shown to have been in bad faith.25.2. After the award has been made and the possibilities of correction and additional awards referred to in Rule 20 have lapsed or been exhausted, neither the Tribunal nor the Chairman shall be under any obligation to make any statement to any person about any matter concerning the arbitration, and no party shall seek to make any arbitrator or the Chairman or the Centre a witness in any legal proceedings arising out of the arbitration.26. General
In all matters not expressly provided for in these Rules, the Tribunal and the Registrar shall act in the spirit of these Rules and shall make every reasonable effort to ensure that the disputes are resolved expeditiously and fairly and the awards are legally enforceable.27. Amendments to Rules
These Rules may from time to time be amended by the Centre in consultation with the Exchange whenever necessary.
1 See prescribed Form A Submission to Arbitration.
2 The Claimant may use Form B to submit a Notice of Arbitration.
3 The Respondent may use Form C to submit a Response.
Annex C Frequently Asked Questions About Arbitration and the Singapore International Arbitration Centre
1. What is the difference between arbitration and mediation?
In an arbitration, the arbitrator looks into the legal rights and wrongs of a dispute and makes a decision. Once the arbitrator has arrived at a decision, it is binding on parties whether they agree with it or not. It is very much like the way a court case is decided by a judge, except that the process does not take place in a court room, and it is not open to the public. As in a court case, there is usually a winning and a losing party in an arbitration.
In a mediation, the mediator, essentially, helps parties to settle their disputes by a process of discussion and narrowing differences. The mediator helps the parties to arrive at an agreed solution. He does not decide the dispute. A successful mediation results in an agreement signed by the parties, whereas a contested arbitration results in a decision by the arbitrator himself without the agreement of the parties. In a mediation, there is no such thing as a winning or losing party, because there is no binding decision without both parties agreeing to one.
The Singapore International Arbitration Centre handles arbitration cases in Singapore. Mediation is managed by the Singapore Mediation Centre.
2. What are the advantages of resolving disputes by arbitration?
Arbitration is a less formal procedure than court litigation, and it is conducted in private, away from the glare of the media and the public. Parties are free to appoint their own arbitrators and can chose more practical procedures and rules for the conduct of an arbitration. Arbitration awards are final and binding, and have extra-territorial enforceability in over 130 countries under the New York Convention. Generally, arbitration can also be more cost-efficient and speedier than court litigation.
3. Is there a difference between Singapore International Arbitration Centre (SIAC) and Singapore Institute of Arbitrators (SIArb)?
Yes, they are separate and distinct organisations. SIAC is an arbitral institution that offers a neutral and independent venue in which parties can resolve their disputes. It provides institutional support for the conduct of arbitration. Among other things, this includes the appointment of arbitrators, the financial management of arbitration and arranging for facilities and other support services for the conduct of an arbitration.
SIArb is an institution that caters to the training needs of arbitrators. SIAC works closely with SIArb by lending resources to conduct some of its training modules.
4. How do I commence arbitration proceedings?
Under the SGX-DT Rules, SGX-DT Members, CME Clearing Members and Non-Member Customers may refer unresolved disputes among Members and market participants arising from transactions on SGX-DT to the SIAC for arbitration.
In order to proceed with arbitration under the SIAC SGX-DT Rules, both parties must sign a Submission to Arbitration on the prescribed Form A.
The party initiating the arbitration (the "Claimant") should then file with the SIAC Registrar a written Notice of Arbitration setting out the requirements in Rule 2.1 of the SIAC SGX-DT Arbitration Rules governing the conduct of arbitrations. A copy of the Notice of Arbitration should concurrently be served on the other party to the dispute (the "Respondent"). For the convenience of parties, there are prescribed forms that can be used when filing a Notice of Arbitration (Form B) and Response (Form C).
5. How is the Arbitration Fee structure in Annex A derived?
There are two components of the Arbitration Fee — the Management Fee and the Tribunal's Fee. The Management Fee is pegged to the quantum of the claim, or the counterclaim if any and covers SIAC's cost of administering the arbitration.
The Tribunal's Fee is set at the rate of $500.00 per hour but is capped based on the estimated total time in which the Arbitrator is expected to take to decide a case and is based on the appointment of a sole arbitrator (i.e. including the time taken in preparing for the hearing, the hearing itself and issuing the Award). The cap is based on the aggregate of the quantum of the claim and the counterclaim. Where the parties agree to a bigger panel of arbitrators or the Chairman of SIAC decides that one is necessary, the fees will increase according to the number of arbitrators appointed.
6. What if it is determined midway through the arbitration proceedings that the quantum of claim or counterclaim is more/less than the original estimation in the Notice of Arbitration and/or the Response by Respondent?
If the quantum of the claim or counterclaim is more than the initial estimation, the Registrar will direct the Claimant or the Respondent as the case may be to pay the additional fees before the case may proceed.
If the quantum of the claim or counterclaim is less than the initial estimation, the additional Arbitration Fees paid will not be refunded to the parties until and unless the Registrar so directs.
7. Does SIAC have the experience and expertise to administer arbitrations to a specialized sector of the community such as SGX-DT?
Yes. SIAC has experience in administering arbitrations in specialized industries. In November 2004, SIAC launched a new division, the Singapore Chamber of Maritime Arbitration, to deal specifically with disputes arising from the maritime industry. Its rules of arbitration were tailored to govern maritime disputes, taking the nature of the industry into account.
SIAC had previously tailored the Bunker Claims Procedure for the oil bunkering trade and also assisted the timber and rubber trading community in tailoring industry-specific arbitration procedures.
On a related note, the SIAC SGX-DT Panel of Arbitrators comprises industry experts and legal professionals, some who have or are serving on the Business Conduct Committee (the SGX-DT committee that previously heard disputes arising from transactions on SGX-DT) and the SGX-DT Disciplinary Committee.
8. What are some of the major differences between arbitration under the former procedures in Chapter 6 administered by SGX-DT compared to an arbitration administered by SIAC?
An arbitration conducted by the SGX-DT is heard by a panel of 3 arbitrators whereas arbitrations by the SIAC will be conducted by a sole arbitrator unless the parties agree to a bigger panel of arbitrators or where the Chairman of the SIAC decides that one is necessary. This will help keep the cost of the arbitration low and expedite the arbitration process whilst at the same time ensuring that justice is done between the parties.
The SIAC SGX-DT Arbitration Rules, however, provide for a party to challenge the appointment of an arbitrator where there are circumstances that give rise to justifiable doubts as to his impartiality or independence within 7 days of his appointment. A party nominating or agreeing to the appointment of the arbitrator may also challenge the appointment of an arbitrator within 7 days after becoming aware of circumstances that give rise to doubts about his impartiality or independence after the appointment has been made.
There will also no longer be an avenue for applications to the Appeals Committee refusing to arbitrate or appeals to the Appeals Committee against the decision of the arbitration. Decisions of the arbitrator will be final and binding on the parties. This is to simplify the dispute resolution process and provide finality to the decision of the arbitrator. This, however, is not unlike the procedure used for an arbitration under the SGX-DT Rules as parties would be required to sign an agreement excluding appeals against decisions of the tribunal.
Notwithstanding this, the parties may still apply to the High Court to set aside an award of the arbitrator under the International Arbitration Act (Cap. 143A) and the UNCITRAL Model Law, inter alia, where:(a) the making of the award was induced or affected by fraud or corruption; or(b) a breach of the rules of natural justice occurred in connection with the making of the award by which the rights of any party have been prejudiced.
This is similar to the existing procedures and standards for review by the Appeals Committee under Rule 607 of the SGX-DT Rules.
Please refer to the SIAC SGX-DT Arbitration Rules for the complete list of the rights and obligations of a party to an arbitration.
9. Who may I contact if I require clarification on arbitration procedure and/or the arbitration services provided by SIAC?
You may contact Ms Sabiha Shiraz or Mr Ganesh Chandru at +65 6334 1277 regarding any queries you may have on the arbitration procedure and/or the arbitration services provided by SIAC.