Singapore legislation

Clause 10

Business rules of securities exchange and futures exchange and listing rules of securities exchange

Without limiting the generality of section 9, the business rules of a securities exchange or futures exchange or, where appropriate, the listing rules of a securities exchange, shall make provision to the satisfaction of the Authority —

(a)

for the exclusion from membership of persons who are not of good character and high business integrity;

(b)

for the expulsion, suspension or disciplining of members for conduct inconsistent with just and equitable principles in the transaction of business, or for a contravention of the business rules of the proposed securities exchange or futures exchange;

(c)

with respect to the terms and conditions under which securities may be listed for quotation or quoted on the securities market of the proposed securities exchange, or under which futures contracts may be listed for trading on the futures market of the proposed futures exchange;

(d)

with respect to the class or classes of securities that may be dealt in or futures contracts that may be traded by members and the terms and conditions governing dealing in securities or trading in futures contracts by members;

(e)

with respect to fair and properly supervised floor trading practices;

(f)

with respect to measures to prevent manipulation, market rigging and artificial market conditions in its securities market or futures market;

(g)

with respect to the recording and publishing of details of trading;

(h)

with respect to the clearing and other arrangements made, and the financial condition of —

(i)

the proposed securities exchange or futures exchange;

(ii)

the clearing house of the proposed securities exchange or futures exchange; and

(iii)

the members of the proposed securities exchange or futures exchange,such as to provide reasonable assurance that all obligations arising out of the dealing in securities or trading in futures contracts on the securities market of that proposed securities exchange or futures market of that proposed futures exchange will be met;

(i)

with respect to the establishment of any compensation arrangement, or any other scheme or system accepted by the Authority, which would compensate customers who suffer pecuniary loss through the defalcation of a member, or any of its directors, officers, employees or representatives, in respect of any money or other property that was entrusted to or received by a member, or any of its directors, officers, employees or representatives, for or on behalf of any person or by reason that the member was a trustee of the money or other property; and

(j)

generally for carrying on the business of the proposed securities exchange or futures exchange with due regard to the interests and protection of the investing public.

Read in full context — Securities and Futures Bill →