Notice on Execution of Orders by Market Operators

Monetary Authority of Singapore SECURITIES AND FUTURES ACT (CAP. 289) NOTICE ON EXECUTION OF ORDERS BY MARKET OPERATORS

Notice No.: SFA02-N03 Issue Date: 3 September 2020 NOTICE ON EXECUTION OF ORDERS BY MARKET OPERATORS 1 INTRODUCTION 1.1 This Notice is issued pursuant to section 45 of the Securities and Futures Act (Cap.289) (“Act”) and applies to locally-incorporated market operators. 1.2 This Notice shall take effect on 4 September 2020. 2 DEFINITIONS 2.1 For the purposes of this Notice — “locally-incorporated market operator” means — (a) an approved exchange; or (b) a recognised market operator that is incorporated in Singapore; “order” means an offer or invitation to exchange, sell or purchase derivatives contracts, securities or units in a collective investment scheme, by any person other than an institutional investor. 2.2 The expressions used in this Notice shall, except where defined in this Notice or where the context otherwise requires, have the same meanings as in section 2 of the Act. 3 REQUIREMENTS 3.1 A locally-incorporated market operator which may exercise discretion in placing or executing orders or both, as the case may be, on its organised market must establish and implement written policies and procedures that are commensurate with the nature, scale and complexity of its business – (a) to place or execute or both, as the case may be, orders on the best available terms; and (b) to place or execute or both, as the case may be, comparable orders in accordance with the time of receipt of such orders.