Rule 1 – General Rules

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Summary of this Rule 1:

Rule 1 deals with definitions of terms used in the Rule book, and outlines the powers and authority of the Directors of Cleartrade. 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.

 

Definitions:

In these Rules the words standing in the first column of the following table shall bear the meanings set opposite them in the second column thereof, if not inconsistent with the subject or context:-

Words and their meanings:

Any words importing the singular number only shall include the plural number and vice versa. Words importing persons (except the word ‘individual’) shall include corporations and firms. The masculine shall include the feminine and the neuter and the singular shall include the plural and vice-versa as the context shall admit or require.References to a time of day are references to that time in Singapore.References to a statutory provision include a reference to the statutory provision as modified or re-enacted from time to time and to any subordinate legislation made under such statutory provision and shall include references to any repeated statutory provisions which have been so re-enacted (whether with or without modification).The invalidity, illegality or unenforceability of any Rule does not affect or impair the continuation in force of the remaining Rules.

“Administration Procedures” with regard to a product, means the administration procedures adopted by the Directors under Rule 9 (Contracts) in respect of Contracts for that product as amended from time to time;
“API” means the application program interface and transport software;
“Appeals Committee” means a committee established under Rule 5.9 by the Directors of the Exchange on a case by case basis. The chairman of the Appeals Committee shall be a lawyer;
“Authorized Member” means an entity admitted for membership and authorized for trading access to the Cleartrade Platform and approved by a Clearing Member to transact own business only;
“Baltic Exchange” means the Baltic Exchange Limited in London;
“Baltic Index” means one or more of the freight indices published by the Baltic Exchange;
“BCI” means the Baltic Capesize Index;
“BDI” means the Baltic Dry Index;
“BHSI” means the Baltic Handysize Index;
“Block Trade” means a transaction which is entered into the Cleartrade Platform as a pre-matched trade, according to Rule 7 (Trading Rules);
“BPI” means the Baltic Panamax Index;
“Broking Member” means an entity admitted for membership to transact business on behalf of Authorized Members only provided such Members have authorized the Broking Member to do so;
“BSI” means the Baltic Supramax Index;
“Business Day” means a day (excluding Saturdays and Sundays) on which banks in Singapore are open generally for the transaction of normal banking business;
“C3” means the freight route defined by the Baltic Exchange;
“C4” means the freight route defined by the Baltic Exchange;
“C5” means the freight route defined by the Baltic Exchange;
“C7” means the freight route defined by the Baltic Exchange;
“C12” means the freight route defined by the Baltic Exchange;
“Capesize” means a dry cargo vessel size of no less than 80,000 deadweight tons;
“Capesize contract” means an FFA settled against one or more of the indices set by the Baltic Exchange;
“Clearing agreement” means an agreement between an Authorized Member and a Clearing Member of the Relevant Clearing House for clearing and settlement of Contracts listed on the Exchange;
“Clearing House Rules” (also referred to as the Rules of the Relevant Clearing House) means the regulations, default rules and procedures of the Relevant Clearing House as amended from time to time;
“Clearing Member” means an entity admitted for membership which must be a Clearing Member of the Relevant Clearing House(s) and may transact own business and business for clients which are Authorized Members and receive trades from such clients whether executed directly by such clients or by authorized Broking Members through the Cleartrade platform for credit approval prior to clearing at the Relevant Clearing House;
“Cleartrade Block Trading Facility” means the facility for the entry of Block Trades by Members;
“Cleartrade Platform” means the electronic trading system for the trading of such contracts as determined by the Directors from time to time and administered by the Exchange and, in the case of a Broker, the term “the Cleartrade Platform” shall, where applicable, mean the Cleartrade Exchange Block Facility and any other implied or explicit terms relating to the Cleartrade Platform shall be construed accordingly;
“Cleartrade Platform central processing system” means that part of the Cleartrade Platform operated by or on behalf of the Exchange which performs the functions set out in documents from time to time published by the Exchange including controlling, monitoring and recording trading by Members and concluding transactions between Members;
“Cleartrade Platform trading hours” means the hours during which  Members may conduct Exchange business on the Cleartrade Platform, such hours to be determined by the Directors in accordance with Rule 1 (General Rules);
“Cleartrade Platform workstation” means a computer workstation connected to the Cleartrade Platform for the  purposes of conducting Exchange business by means of the Cleartrade Platform;
“Companies Act” means the Companies Act (Chapter 50) of Singapore;
“Complaints Resolution Procedure” means the procedure issued by the Exchange for the making of a complaint against the Exchange or its personnel by a complainant, and the investigation of such complaint as amended from time to time;
“Compliance Committee” means the committee appointed by the Directors to oversee the Compliance function of the Exchange under Rule 3 (Compliance);
“Compliance Officer”  means the person or (if more than one) any of the persons for the time being holding the office as compliance officer under Rule 3 (Compliance);
 “Contract” means a futures contract containing the terms set out in the Contract Rules and the Clearing House Rules and, for the avoidance of doubt, a contract shall not be regarded as falling outside this definition solely by virtue of the fact that it contains additional terms which apply on the default of a party to such contract provided that such terms do not conflict with the terms of the default rules, where such rules apply, or contains terms which modify the terms of the Contract Rules to take account of the fact that the Clearing House is not a party to such contract;
“Contract date” has the meaning given in Rule 9 (Contracts);
“Contract month” has the meaning given in Rule 9 (Contracts);
“Contract Rules” with regard to a product, means the contract rules applicable under the Rules to Contracts for that product as amended from time to time;
“Credit Filter” means the application interface of the Cleartrade Platform which is accessible by Clearing Members to verify, approve or decline transactions which has been entered in the Cleartrade Platform, prior to being sent to the Relevant Clearing House for clearing;
“C4TC” means the Capesize time charter average basket of freight indices for the Capesize vessel segment set by the Baltic Exchange;
“Default rules” means the rules set out in Rule 4 of the Rules as amended from time to time;
“Directors”, “Chairman” and “Chief Executive” means the executive officers of the Cleartrade Exchange Pte. Limited and who are ultimately responsible for the compliance of the Exchange with rules and instructions given by the MAS and under the Securities and Futures Act;
 “Dispute Resolution Rules”  means that part of the Rules which provides for the settlement of disputes by arbitration as amended from time to time;
 “Electronic User Agreement” means an agreement between a Member and the Exchange in a form prescribed by the Directors from time to time for the use of the Cleartrade Platform by the Member;
“Exchange”, “Cleartrade” or “Cleartrade Exchange”  means Cleartrade Exchange Pte. Limited;
“Fair market value” means in relation to any Block Trade price quoted by a Member to another Member or to a client or in respect of a Block Trade entered into by a Member, a price which is considered by the Member, to be the best available for a trade of that kind;
“FFA” means Forward Freight Agreement;
“Freight Contract” means cash settled derivative contract settled against a Freight Index set by the Baltic Exchange, and can be an FFA or a Freight Option Contract;
“Freight Option” means an Asian style option contract settled against a Freight Index set by the Baltic Exchange;
“Fertilizer Index” means the settlement Index provided under license to the LCHC by the panel of participating index providers comprising the Fertilizer Index;
“Fertilizer Contract” means a Fertilizer swap;
 “Front end application” means a graphical user interface developed by a Member, or provided by an ISV to a Member, or the graphical user interface provided to a Member by the Exchange as part of the Cleartrade Platform;
“Graphical user interface” means the software which interfaces with the Cleartrade Exchange API and both determines the requirement for sending, and sends, order handling messages to the Trading Server without necessarily requiring the intervention of an individual;
“Handysize” means a dry cargo vessel size of 28,000- 50,000 deadweight tons;
“H6TC”  means the Handysize time charter average basket of freight indices for the Handysize vessel segment set by the Baltic Exchange;
“In writing” means written, printed or lithographed or partly one and partly another and any other mode of representing or reproducing words in a visible form;
“ISV (Independent Software Vendor)” means the provider of graphical user interface software which interfaces with the Cleartrade Platform API and both determines the requirement for sending, and sends, order handling messages to the Trading Server without necessarily requiring the intervention of an individual;
“IronOre” means an ore from which iron can be extracted and which is the primary raw material from which Steel can be manufactured;
“IronOre Contract” means a cash settled derivative contract settled against an Iron Ore Index set by The Steel Index Limited;
“IronOre Swap” means an Iron Ore Contract;
“ITM” means a unique individual trader mnemonic assigned by the Exchange to a Member;
“LCHC” means the clearing house LCH.Clearnet Limited;
“Market” means the Cleartrade Platform or any other means of trading determined by the Exchange from time to time;
“Market Operator” means the company operating the Exchange which is recognized by the MAS as a Recognized Market Operator, currently the Cleartrade Exchange Pte. Limited;
“MAS” means the Monetary Authority of Singapore;
“Member” means an entity or a person who has been admitted to a category of membership referred to under Rule 2 (Membership);
“Membership Requirements” means any of the requirements applicable to the Members of the Exchange under Rule 2 (Membership);
“Memorandum” means the Memorandum of Association of the Market Operator;
“Minimum volume thresholds” means the thresholds as determined by the Exchange and published from time to time being the minimum number of lots in respect of each Block Trade Contract that can be traded as a Block Trade;
“Notice posted on the Market” means a notice in writing sent by post to Members, or a notice sent electronically to Members by e-mail (and/or if the context requires a notice sent via the Cleartrade Platform) and having effect at the time;
“Panamax” means a dry cargo vessel size of 65,000- 85,000 deadweight tons;
“Person subject to the Rules” means each of the following:
 I.            a Trader employed by a Member of the Exchange;
II.            a Member of the Exchange;
III.           the Traders and other staff of the Member registered with the Exchange, (or who should have been registered with the Exchange), who have access to the Trading Facilities;
IV.           a Responsible Individual registered with the Exchange, (or who should have been registered with the Exchange);
“P2A” means the freight route defined by the Baltic Exchange;
“P3A” means the freight route defined by the Baltic Exchange;
“PM4TC” means the Panamax time charter average basket of freight indices for the Panamax vessel segment set by the Baltic Exchange;
“Product” means the commodity in respect of which a Contract is made; but this definition does not detract from Rule 10 (Contract Procedures);
“Rules” means the rules of this Rule book and the Contract Rules as  are from time to time in force or any arrangements, directions and provisions made there under as the context may require;
“Relevant Clearing House means the clearing house(s) which from time to time is appointed by the Directors to perform clearing and settlement services to the Exchange;
“Representative” means a person authorized by the Responsible Individual of the Member to act and/or trade for the Member on the Exchange;
 “Responsible Individual” means an individual registered by a Member with the Exchange to conduct Exchange business on the Cleartrade Platform for that Member;
  “SFA” means the Securities and Futures Act (Chapter 289 of Singapore);
  “S6TC” means the Supramax time charter average basket of freight indices for the Supramax vessel segment set by the Baltic Exchange;
 “Steel Index” means the London based index publishing company The Steel Index Limited which publishes the settlement index for the  Iron Ore and other steel related contracts;
 “Supramax” means a dry cargo vessel size of  50,000- 65,000 deadweight tons;
 “Telephone Trading market” means the bilateral negotiation and execution of transactions contracts pursuant to Rule 7 (Trading) undertaken directly between Members who are authorized to trade on the Cleartrade Platform or if required, have comparable authorization from their regulator, the results of which are submitted to the Exchange for price dissemination, trade reporting, trade matching/processing and clearing;
 “Trader” means a Responsible Individual employed by or acting for a Clearing Member or an Authorized Member registered with the Exchange;
 “Trading Day” means a day on which the Market is open to trade as determined by the Exchange from time to time and otherwise in the calendar published by the Exchange from time to time;
 “Trading Facilities” means the Cleartrade Platform or such other facilities for the trading of Contracts as the Directors may determine from time to time;
 “Trading Procedures” means the procedures governing trading on the Cleartrade Platform and the registration of Block Trades as prescribed by the Directors or Compliance Officer in accordance with Rule 7; and
 “Trading Server” means the Cleartrade Platform central processing system.

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