SGX Trading Rules Flashcards

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

Answer: T+2 (trade date plus 2 business days)

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.

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

Answer: The Central Depository (CDP)

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.

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

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

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.

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

Answer: S$0.005 (half a cent)

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.

SGX's circuit breaker mechanism is triggered when:

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

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.

What does 'direct business' mean on SGX?

Answer: A trade negotiated between two parties off the exchange order book but reported to SGX

A direct business (off-market trade) is a transaction negotiated between two parties outside of SGX's central order book but reported and registered through SGX, subject to specific rules on pricing and reporting timeframes.