Singapore legislation
Regulation 44
of Securities and Futures (Licensing and Conduct of Business) Regulations
Regulation 44
Priority of customers’ orders
Subregulation 1
Except as permitted by paragraph (2) —
the holder of a capital markets services licence to deal in capital markets products when acting as principal or on behalf of a person associated with or connected to the holder; or
a representative of such a holder when acting for his own account or on behalf of a person associated with or connected to the representative,shall not enter into a transaction for the purchase or sale of capital markets products that are permitted to be traded on an organised market of an approved exchange or a recognised market operator if a customer of that holder or representative, who is not associated with or connected to the holder or representative, has instructed the holder or representative to purchase or sell, respectively, capital markets products of the same class and the holder or representative has not complied with the instruction.
Subregulation 2
Paragraph (1) shall not apply to the holder of a capital markets services licence or a representative of such a holder —
if his customer required the purchase or sale of capital markets products on behalf of the customer to be effected only on specified conditions and he has been unable to purchase or sell the capital markets products by reason of those conditions; or
if the transaction is entered into in accordance to the business rules or practices of the approved exchange or the recognised market operator through which the transaction is entered into.
Subregulation 3
Any person who contravenes paragraph (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 or to imprisonment for a term not exceeding 12 months or to both.