RULEBOOK

As a Recognised Market Operator (RMO) regulated by the Monetary Authority of Singapore (MAS), rules are in place to ensure the operation of a fair and orderly market.

For a PDF version of the Rulebook, please refer to the link below:

RULE 1 - GENERAL RULES

Summary of Rule 1:

Rule 1 deals with definitions of terms used in the Rule book, and outlines the powers and authority of the Directors of EEX Asia. Directors have the power to suspend or exclude Members from trading on the market if the Rules are breached or a Member is in proven default. Rule 1 also states that the Directors have a duty of confidentiality related to the Members of the Exchange, but that information may be shared with regulatory bodies if required by law. The Exchange and its Directors are excluded from liability in any dispute between Members, but can be brought in to assist in the settling of such disputes before going to arbitration or the courts. This Rule outlines the responsibility of Members when trading on the Exchange and stipulates that all Members must have adequate systems, oversight and knowledge to trade on the Exchange.

RULE 2 – MEMBERSHIP

Summary of Rule 2:

Rule 2 outlines the different categories of membership available as well as the membership criteria and requirements. The Rule also stipulates that all Members must abide by the Rules set out in this Rule book at all times and that it is the duty of the Member to ensure that all Rules are adhered to at all times. This Rule defines the ongoing notification requirements to the Exchange of all Members, in order to keep the Exchange abreast or material changes of each Member and those who represent the Member when trading on the Exchange. Rule 2 stipulates that any Member may be suspended or expelled from the Exchange under certain circumstances, and that any such suspension or expulsion may be appealed to the Directors and given a fair hearing. This Rule specifies the requirements of Members when executing transactions on the Exchange and which contracts each category of membership is allowed to trade. Rule 2 also deals with the duties of the Responsible Individuals appointed by each Member to supervise, transact and trade on the Exchange.

RULE 2A – BASE CAPITAL AND OTHER ONGOING REQUIREMENTS

Summary of Rule 2A:

Please view the PDF version of the rulebook for details.

RULE 3 – COMPLIANCE

Summary of Rule 3:

Rule 3 deals with Members’ requirements to comply with these Rules including the need for record keeping, the need to ensure all information kept and communicated is accurate, and that all complaints are documented and archived properly. This Rule also sets out the role of the Exchange Compliance Officer and the Compliance Committee, and what these two functions are required to do to ensure compliance with the Rules.

RULE 4 – DEFAULT

Summary of Rule 4:

Rule 4 deals with situations in which a Member is in default. The Exchange has a duty to investigate any information which indicates a Member is in default, and may after reviewing relevant evidence declare a Member to be a defaulter. In such cases, the Exchange has the right to instantly suspend all trading access to the Exchange and to inform those counterparties, be the banks, Clearing Members, Relevant Clearing Houses or others of its actions and the reasons for them. This Rule also stipulates the duties of a defaulting Member in co-operating with the Exchange to resolve all and any outstanding obligations or issues.

RULE 5 – DISCIPLINARY

Summary of Rule 5:

Rule 5 deals with circumstances in which acts of misconduct or breaches of the Rules have occurred, and the steps which the Exchange can take to sanction or punish a Member for such breaches. The Rule also outlines the right of the Exchange to investigate such breaches, and stipulates how such breaches should be dealt with in set procedures. Members have the right of appeal, and the appeals procedure is outlined in this Rule.

RULE 6 – REGISTRATION OF CONTRACTS

Summary of Rule 6:

Rule 6 outlines the listing rules of the Exchange and under which circumstances a contract can be made available for trading on the Exchange. The Rule stipulates that all Members have a duty to record all transactions and keep a register of such trades for a minimum of 5 years. Rule 6 also deals with the rules related to the EEX Asia Block Trading Facility and how this facility may be used by Broking Members.

RULE 7 – TRADING RULES

Summary of Rule 7:

Rule 7 outlines the Trading rules of the EEX Asia. Specifically this Rule sets out the procedures for trading by members using the EEX Asia Platform and the EEX Asia Block Trading Facility, showing what is and what is not allowed. The Rule also deals with the validity of Contracts and specifies at which time a Contract becomes binding on the parties involved. Rule 7 outlines the rules on priority, withholding and disclosure of orders as well as the rules related to Indications of Interest Orders (IoI). In the event of a disaster, the Exchange may close access to the market for all Members, and implement a Telephone Trading market in which Members can communicate orders and trades to the Exchange by telephone, email or fax.

RULE 7A – ADDITIONAL REQUIREMENTS

FOR CONDUCT OF BUSINESS

Summary of Rule 7A:

Please view the PDF version of the rulebook for details.

RULE 8 – DISPUTE RESOLUTION

Summary of Rule 8:

Rule 8 outlines the procedures for handling disputes between Members and the Exchange. It specifies that disputes shall be attempted to be resolved in good faith, and if this fails, shall be referred to arbitration in Singapore. For disputes between Members, Clearing Members of the Relevant Clearing Houses and the Clearing Houses themselves, all dispute resolution shall occur away from the Exchange and without the involvement of the Exchange other than in an advisory role. The Rule stipulates each party’s duty to participate in dispute resolution and which procedures are set as guidelines in case of disputes. This Rule also deals with the role of the Relevant Clearing House in relation to Contracts and the Exchange.

RULE 9 – CONTRACTS – GENERAL PROVISIONS

Summary of Rule 9:

Please view the PDF version of the rulebook for details.

RULE 10 – CONTRACT PROCEDURES

Contract definitions

All Contracts shall be by cash delivery on the last day of the contract month subject to the rules of the Relevant Clearing House.

 

Other definitions

In the Contract Rules and Administration Procedures the following terms shall bear the meanings set opposite them below, if not inconsistent with the subject or context:–

 

Month Contract” means a calendar month, of which there are 12 in a Calendar Year;

Quarter Contract” means three consecutive contract months grouped as follows: January, February and March (first quarter); April, May and June (second quarter); July, August and September (third quarter); and October, November and December (fourth quarter);

Half Year Contract” means a strip of 6 consecutive contract months commencing January and ending with June for the first Half and commencing July and ending with December for the second Half;

Calendar Year Contract” means a strip of 12 consecutive contract months commencing January and ending with December.

 

Price

The contract price shall be in United States dollars and cents per lot with minimum fluctuations as the contract specifications.

 

Security

Members may be required to put up full security to the Relevant Clearing House or the Clearing Member of the Relevant Clearing House in accordance with the policies and requirements of such Clearing House or Clearing Member.

 

Force Majeure

An event of force majeure shall mean any occurrence reasonably beyond the control of either party to the Contract which hinders or prevents the performance in whole or in part by the party affected of its obligations under the Contract (other than an obligation to make payments), including but not limited to fire, storm, flood, earthquake, natural disaster, explosion, accidents howsoever caused, strike, lockout, work to rule or other industrial dispute, acts of God, acts of government or other national or local authority or agency thereof, and delays in transportation or communications.

 

Neither party shall be deemed to be in default of its obligations nor shall any penalty or damages be payable if and to the extent that performance of such obligations is hindered or prevented by an event of force majeure.

 

If an event of force majeure hinders or prevents the affected party from performing any of its obligations under a Contract it shall immediately notify the Exchange and the Relevant Clearing House in writing of such event and the obligations under the Contract which are affected.

RULE 11 – RELEVANT CLEARING HOUSE

The following Clearing Houses have been appointed as a Relevant Clearing House providing global central counterparty services for the clearing of transactions. A further summary of the contractual relationships that arise during the clearing process is provided in the rule book of each Clearing House.

European Commodity Clearing AG

Augustusplatz 9

04109 Leipzig Germany

 

Singapore Exchange Derivatives Clearing Limited

2 Shenton Way

#19-00 SGX Centre 1

Singapore 068804