Appendix 1 Administration of Arbitration by SIAC

1. Introduction

SGX-DC has appointed SIAC to administer arbitrations of disputes between third parties and Members and between Members themselves.

Under this arrangement, SIAC will:
i. appoint a sole arbitrator from the SIAC SGX-DC 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 cleared by SGX-DC 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-DC users. This comprises SIAC's administration 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 Fees.
iii. Expedited arbitration procedure

Taking into account the nature of disputes likely to arise from transactions on SGX-DC, 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-DC Arbitration Rules) to govern arbitrations arising from transactions on SGX-DC. The SIAC SGX-DC Arbitration Rules are enclosed as Annex B.

Refer to Annex B — SIAC SGX-DC Arbitration Rules.
3. Changes to the SGX-DC Rules

Certain provisions of the SGX-DC Rules have been amended to effect the appointment of SIAC. Some of the major differences between an arbitration administered by the SGX-DC under the procedures in Chapter 5 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 more than 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.