Members do not need to send a monthly statement to a customer if:
1. The information that is to be contained in the statement has already been sent to the customer by a Clearing House, which the Member is a member of; or
2. There has been no change to the customer’s account in the month; or
3. The customer is an Accredited Investor, or a corporation related to the Member, and: i. Real-time electronic statements have been made available to the customer, and the customer has agreed to using these electronic statements; or
ii. The customer has requested, in writing, not to receive such monthly statements

Initial margin is the minimum amount that must be deposited by customers with a Member in order to enter into a trade. Initial margin requirements are specified for every contract.

Additional margins are required to cover the unrealised losses for each trading day. This ensures that the customer’s account always starts the trading day with at least the maintenance margin requirements for his positions. Therefore total margin requirements for open positions are the sum of initial and additional margins.

Total net equity is the remaining amount of funds in a customer’s account, after setting aside the initial margin and additional margin amounts required to support his open positions.

For open positions, Members will refer to the maintenance margin requirements for the contract.
Maintenance margin is the minimum required level of margin the customer must maintain in his account at all times in order to support the trade, and it is usually lower than initial margin. When a customer’s total net equity falls below the maintenance margin requirements, a margin call is issued by the Member to the customer.

The margins required to be collected shall not be less than:
1. The minimum margins prescribed by the Clearing House for a futures contract equivalent to the over-the-counter spot trade concerned;
2. The minimum margins prescribed by those exchanges or Clearing Houses where the equivalent futures contracts are being traded, if the over-the-counter spot trade has no equivalent futures contract; or
3. 4% for initial margins and 3% for maintenance margins of the underlying contract value, if the over-the-counter spot trade has no equivalent futures contracts being traded on the SGX-DT and any other exchange.
When the position is liquidated or expires, the margins will be returned to the customer, after deducting any losses incurred in the trade

Members may accept margins in the following forms:
 Cash
 Government securities (includes securities issued by other countries besides Singapore)
 Common stocks
 Gold bars and gold certificates issued by Singapore-licensed banks
 Bank certificates of deposit
 Bank guarantees and bank letters of credit
 Other instruments as the Clearing House permits.

A customer might deposit $10,000 worth of gold bars as margin, but the price of gold will fluctuate over time. A haircut of 30% applied to the instrument would mean the customer’s account would be credited with only $7,000.

In cases where a customer holds long and short positions in the same contract, but on different exchanges, a Member is allowed to grant the customer a margin credit, therefore reducing the customer’s total amount of margin requirement.

All Members must maintain margins with SGX-DC for its own house positions separately from customers’ positions. In addition, margins for customers’ positions are computed on a gross basis, i.e. one customer’s long positions cannot be used to offset another customer’s short positions.

Members shall ensure that data and records:
1. Are made and kept in a way that is easily retrievable by authorised personnel;
2. Are kept secure from tampering;
3. Have back-ups, which are kept at a separate location from the original documents; and
4. Are kept for at least the minimum period of 5 years

Customer Correspondence
vi. Every written agreement entered into by the Member with its customer;
vii. Every statement acknowledging receipt of assets from a customer indicating the person in whose name the assets are registered;
viii. Every report, letter, circular, memorandum, publication, advertisement and other literature or advice distributed by the Member to any existing or prospective customer, indicating the date of publication;
ix. Every acknowledgment from a customer;

Particulars of every proprietary transaction of the Member, including:
x. The description and quantity of the assets
xi. The price and fee arising from the transaction;
xii. The transaction date and settlement or delivery date;
xiii. The name of the counterparty to the transaction; and
xiv. The realised or unrealised gain or loss

Particulars of all income and expenses of the Member, and:
xv. Particulars of all liabilities (including contingent liabilities) of the Member and,
xvi. Particulars of all assets of the Member, where they are held, and whether or not they have been pledged as security against loans or advances.

SFA102
Offences under this rule are punishable with a fine not exceeding $50,000 and a further fine not exceeding $5,000 for every day or part thereof that the offence continues after conviction.

SFR(LCB) 39
Offences under this rule are punishable with a fine not exceeding $50,000.

I & III.
Customer monies does not include money which is:
1. Used to reduce the amount owed by the customer to the holder;
2. To be paid to the customer or in accordance with the customer’s written direction;
3. Used to defray the holder’s brokerage and other proper charges; and
4. To be paid to any other person entitled to the money.

II & III.
Customer Details
i. Particulars of every customer, and guarantors;
ii. Particulars of authorized traders;
iii. Every power of attorney or other document authorising the Member to operate the account of the customer on a discretionary basis;
iv. Customer statement of accounts
v. Particulars of each customer asset, including:
(a) The amount, description and date of each asset held in trust for the customer;
(b) its beneficial owner;
(c) whether it is held for safe custody, mortgaged, charged, or pledged
(d) The date and quantity of each movement of assets into or out of the trust account or custodian account arising from any asset borrowing or lending activity;
(e) The date, amount and purpose of each withdrawal from the trust account or custody account; and
(f) The date and amount of, and the reason for, each disposal of collateral from the trust account or custody account.

I & IV.
“Customer” as used in this Rule does not include:
 The CMS licence holder carrying out any regulated activity for its own account;
 A director, officer, employee, Approved Trader or Registered Representative of the CMS licence holder or Member; or
 A related corporation of the CMS licence holder or Member with respect to an account belonging to and maintained wholly for the benefit of that related corporation.

III & IV.
The Member may invest customer monies in:
1. Any Singapore Government securities 2. Any debt instrument of the government of the country of the securities market or futures market, or securities exchange or futures exchange, on which the Member normally transacts its business; or
3. Any other securities or instrument as MAS may determine.

I & II.
The Member which maintains its customer’s assets in a custody account shall:
1. Determine if the custodian is suitable for its customers before opening the custody account; and
2. Keep a record of the reasons it determined the custodian to be suitable.

II & IV.
Before providing custodial services to its customers, CMS licence holders must notify the customer of the terms and conditions that would apply to the safe custody of the customers’ assets, including:
1. Arrangements for giving and receiving customer instructions with regards to custodial services, including any arrangements where authority is given to another person besides the customer;
2. Any lien over or security interest in the assets by the CMS licence holder or third parties;
3. Any circumstances under which the CMS licence holder may realise the assets held as collateral to meet the customer’s liabilities to the holder;
4. Where the customer’s assets are to be held with a custodian other than the CMS licence holder, the liability of the holder in the event of default by the custodian

I & III
Before placing its customer’s assets in a custody account with a custodian, the Member shall agree with the custodian, in writing, the following:
1. That the account shall be designated as that of the customer or customers;
2. That the custodian shall hold and record the assets in accordance with the Member’s instructions; and the records shall identify the assets as belonging to the Member’s customer and the assets shall be kept separate from any asset belonging to the Member or to the custodian;
3. That the custodian shall not claim any lien, right of retention or sale over any asset standing to the credit of the custody account, except:
(a) Where the Member has obtained the customer’s written consent and notified the custodian in writing of the written consent; or
(b) In respect of any charges as agreed upon in the terms and conditions relating to the administration or custody of the asset;
4. That the custodian shall provide sufficient information to the Member in order that the Member may comply with its record-keeping obligations under the Act or these Regulations or under any other law;

I & II.
Before depositing customers’ monies or assets in the trust or custody account, the Member shall give written notice to the financial institution and obtain an acknowledgment from the financial institution that:
1. All monies and assets deposited in the trust or custody account are held on trust by the Member for its customer and the financial institution cannot use those monies and assets to offset any debt owed by the Member to the financial institution; and
2. The account is designated as a trust or custody account, or a customer’s or customers’ account, which shall be distinguished and maintained separately from any other account in which the Member deposits its own monies and assets

The Member shall not withdraw any money from a customer’s trust account except for the purpose of:
1. Making a payment to any person entitled thereto;
2. Making a payment for the customer to meet the customer’s obligation that arises from any transactions;
3. Defraying its brokerage and other proper charges;
4. Making a payment to any other person or account in accordance with the written direction of the customer;
5. Reimbursing the Member any moneys that it has advanced to the account
6. Making a deposit to the Clearing House for the customer;
7. Making an investment in accordance with Section 2.13.4; or
8. Making a payment or withdrawal that is authorised by law.

II & III.
The Member may deposit customer monies with a Clearing House for the purposes of:
1. Margin requirements arising from the customer’s trades;
2. Settlement of customer’s trades; or
3. Any other purpose specified under the business rules and practices of the clearing house, futures exchange or overseas futures exchange.

I & IV.
There are 2 conditions that have to be satisfied before the Member may mortgage, charge, pledge or hypothecate its customer’s assets. The conditions are that:
1. The sum of the claims to which such customers’ assets are subject as a result of such mortgage, charge, pledge or hypothecation does not exceed the aggregate amounts owed by the customers to the Member; and
2. The claim to which each customer’s assets are subject as a result of such mortgage, charge, pledge or hypothecation does not exceed the amount owed by the customer to the Member.

II & III.
At least once a day, Members shall compute:
1. The total amount of moneys and assets deposited in its customers’ trust accounts and custody accounts;
2. The total amount of its customers’ moneys and its customers’ assets (required under the Act and Regulations) to be deposited in trust accounts and custody accounts; and
3. The amounts of the Member’s own residual interest in the trust accounts and custody accounts.

Members shall complete the above computation before noon of the next business day. Such computation with all supporting data shall be kept by Members for at least 5 years.

I & II.
SGX Futures Trading Rule 3.3.10
Offences are not compoundable and are subject to a mandatory minimum imposable penalty. An exception which is the failure to notify the Exchange of changes in requirement. Offences under the above Rule may be compounded with a fine. The penalty will be dependent on the number of prior violations by the Trading Member.

III & IV.
The aim of MAS, as the regulator of financial institutions in Singapore, is to have a sound and progressive financial services sector. These objectives are sought through the financial supervision and development of the banking and insurance industries as well as the capital markets. In addition to supervising the individual institutions to ensure that they are financially sound and reputable with good operational controls, one of MAS’ objectives is also to ensure fair, efficient and transparent markets.

II & IV.
The SFA & SGX Futures Trading Rules spell out the prohibited market conduct as:
 False Trading and Market Rigging Transactions
 Manipulation of Futures Prices Price of Futures Contract and Cornering
 Fraudulently Inducing Persons to Trade in Futures Contracts
 Employment of Fraudulent or Deceptive Devices,
 Insider Trading
 Dissemination of Information about Illegal Transactions