CMFAS RES 1A The Trading System & Infrastructure question: SGX-ST member to debit and credit securities for sell and buy contracts executed through

CMFAS RES 1AThe Trading System & Infrastructure

On access to the exchange and to the depository: (a) a buyer or seller must be a Trading Member of the exchange, or a customer of a Trading Member, in order to trade on it. (b) an investor holding a direct securities account with CDP should ensure that his trading account with an SGX-ST member is linked to that securities account before trading. (c) the linkage operates as a standing instruction to CDP to act on the sole instruction of that SGX-ST member to debit and credit securities for sell and buy contracts executed through that trading account. (d) Clearing Members of CDP are governed by the SGX-DT Futures Trading Rules. Which of the following are CORRECT?

A (a) and (d) only
B (b), (c) and (d)
C All of (a), (b), (c) and (d)
D (a), (b) and (c)

Show the answer and explanation

Answer: D. (a), (b) and (c)

RES 1B ch.1.1.2 and 1.3.1.4. Clearing Members of CDP must adhere to the CDP Clearing Rules, the CDP Settlement Rules and the CDP Depository Rules. The Futures Trading Rules govern SGX-DT Trading Members, a different membership in a different market.

Common mistake

Rulebooks follow the membership you hold, so a CDP clearing member does not answer to the futures trading rules.

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A 'married deal' or negotiated off-market transaction reported to SGX is one where Mr Ismail holds Singapore listed shares and corporate bonds in a direct securities account with CDP, and has just started buying shares on an overseas exchange through the same broker. He notices that the overseas holdings do not appear in his CDP statement, and asks whether CDP can hold them and why his Singapore trades and his foreign trades are handled differently. Which answer reflects the guide?On the disclosure of short sell orders on SGX-ST

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Original study material mapped to the public CMFAS RES 1A syllabus. Unofficial, not endorsed by MAS or IBF. Verify figures and rules against current guidance before relying on them.