SGX RegCo consults on proposed changes to Futures Trading Rules and other rulebooks

30 October 2023

On 21 September 2023, Singapore Exchange Regulation (“SGX RegCo”) published a consultation paper seeking market feedback on several changes to its Futures Trading Rules (“FTR”), Singapore Exchange Securities Trading Rules (“SGX-ST Rules”) and Singapore Exchange Derivatives Clearing Rules (“SGX-DC Clearing Rules”). The consultation closed on 11 October 2023.

SGX RegCo’s proposed amendments to the FTR involve updates to policies and rules including those relating to:

• the admission and registration of Singapore Exchange Derivatives Trading (“SGX-DT”) members’ representatives;
• the requirements pertaining to customer margining where members will have more flexibility in managing margin cycles, customer funds and collateral;
• the requirements for automated trading to formalise key aspects of the Algorithmic Trading Regulatory Guide; and
• the emergency powers of SGX-DT.

The revision also aims to improve the clarity and readability of the rules and, where relevant, ensure consistency with a principle-based approach. These include reorganisation of the rulebook, moving rules that are more appropriate as non-binding guidance to practice notes, and reissuing certain directives and practice notes as regulatory notices as appropriate.

Amendments are proposed to align the SGX-ST Rules with the FTR, where relevant, and include changes to rules on automated trading and termination of membership.

Similarly, amendments to the SGX-DC Clearing Rules are proposed to reflect corresponding FTR changes governing customer collateral.

Reference materials

The consultation paper is available on the Singapore Exchange website www.sgx.com.