FTT SGX Trading Rules

Question 1

What is the standard settlement cycle for securities traded on SGX?

Accepted Answer

T+2 (trade date plus 2 business days)

Answer

SGX operates on a T+2 settlement cycle, meaning that securities transactions must be settled two business days after the trade date. This is when payment and delivery of securities are exchanged.

Question 2

Which entity acts as the central counterparty for securities cleared on SGX?

Accepted Answer

The Central Depository (CDP)

Answer

The Central Depository (CDP), a wholly owned subsidiary of SGX, acts as the central counterparty and clearing entity for securities transactions, guaranteeing settlement and holding securities in book-entry form.

Question 3

What is the 'pre-open routine' on SGX?

Accepted Answer

A period before the market opens where orders are collected and a theoretical opening price is calculated

Answer

The pre-open routine on SGX is the period before market opening where orders are collected and the exchange calculates a theoretical opening price (TOP) and theoretical opening volume (TOV) based on the order book, before an opening auction determines the actual opening price.

Question 4

On SGX, the minimum tick size for securities priced between S$1.00 and S$9.99 is:

Accepted Answer

S$0.005 (half a cent)

Answer

For SGX-listed securities priced between S$1.00 and S$9.99, the minimum tick size is S$0.005 (half a Singapore cent), allowing for finer price increments in this price range.

Question 5

SGX's circuit breaker mechanism is triggered when:

Accepted Answer

A security's price moves beyond a specified collar threshold from a reference price within a set period

Answer

SGX's circuit breaker (trading halt) is triggered when the price of a security moves beyond a specified collar threshold from the reference price within a set time period, temporarily halting trading to prevent extreme volatility.

Singapore FTT Practice Test

Singapore FTT Practice Test

FTT SGX Trading Rules