Cleartrade Exchange (CLTX) is approved and regulated by the Monetary Authority of Singapore as a Recognised Market Operator (RMO). As an independent exchange running its own set of rules, the rulebook reflects the nature of CLTX as an electronic execution-only facility. Below are a few key points listed in the CLTX Rulebook. A full copy of the Rulebook can be obtained here.
• All rules are in place to ensure the operation of a fair and orderly market.
• Market is open on all days specified in the Trading Calendar.
• CLTX will admit Trading members and Broking members only.
• Only corporate or institutional members are considered for membership – no private or retail customers are permitted unless executing through an existing trading or broker member of CLTX.
• All entities are required to provide evidence that they meet a nominal set of membership requirements.
• Members can be suspended or excluded if they breach the rules or enter into a default.
• CLTX is an execution-only facility – the rules are trading rules. Rules related to clearing, collateral requirements, licensing etc are dealt with by the clearing agreements in place between each member and their respective GCMs/FCMs and the relevant clearing houses.
• CLTX operates in a hit and lift market. Members will be notified of any additions to the functionality of the trading screen.
In CLTX’s hit and lift market,
1) Orders can be Firm, Indicative or Block – there are specific common rules on the priority of orders
2) Only Trading and Broking members can post Firm and IoI orders and aggress open orders
3) Block trading can be done by Broking members or the Market operations team on behalf of a broking member
4) Evidence of third party brokerage agreements need to be presented to CLTX before block trading on behalf of those entities.
5) Market Operations team has market monitoring role and enforces compliance with the rulebook together with Compliance officer and Compliance Committee
6) Fees are charged to brokers and trading members according to a schedule – fee schedule is common and same for everyone
7) There are specific listing rules for new products
8) Rules in CLTX may refer and link to existing clearing house rules and regulations