Date Issued: 25 January 2007
Date Closed: 15 February 2007
Status: Consultation Closed

SGX ISSUES CONSULTATION PAPER ON AMENDMENTS TO THE FUTURES TRADING RULEBOOK IN RELATION TO SGX-DT MARKET ERROR TRADE POLICY

Singapore Exchange Ltd (the “Exchange”) is inviting public comments on its proposed amendment to the SGX-DT Market error trade policy.

Currently, an error trade may be cancelled if the error trade price falls outside the Non-Cancellation Range for the Contract and if the counterparties to the Contract agree to its cancellation.

In its proposal, the Exchange recommends the following revisions:

1. Other than transactions in listed strategies, trades involving implied orders as a result of strategy matching and most option trades, the error trade price may be adjusted to the nearest limit of a designated error trade price range. The agreement of the counterparties is not required.

2. Error trades which are not eligible for trade price adjustments may be cancelled, either partially or fully, at the Exchange’s discretion, if the counterparties agree to the cancellation.

3. For certain designated Contracts, the error trade price range is dynamic. This will allow trade price adjustments to a price which is closer to the real price.

The Exchange believes that the proposed amendments to the SGX-DT Market error trade policy will enhance trade and market certainty, and mitigate systemic risk arising from error trades.

Market participants and members of the public can forward their feedback and suggestions on the proposed changes from today to 15 February 2007 via email and either by post/courier or by fax.

Email:	rules@sgx.com
Post/Courier:	Singapore Exchange Limited 2 Shenton Way, SGX Centre 1 #19-00, Singapore 068804
Attn:	Glenn Seah AVP, Regulatory Policy
Fax:	(65) 6535 5573

SGX Consultation Paper - 30 March 2006
Title	(In PDF)
Consultation on Proposed Amendments to the Futures Trading Rulebook in Relation to SGX-DT Market Error Trade Policy