28.—(1) A commodity broker or spot commodity broker shall not withhold or withdraw from the market any order or any part of an order from a client for his own benefit, the benefit of any connected person, or for the convenience of any other person.
(2) A commodity broker or spot commodity broker shall not buy for his own account, accounts belonging to connected persons, or an account in which he has an interest (including any account over which he has discretion), if he has in hand orders to buy for others at the prevailing market price or at the same price.
(3) A commodity broker or spot commodity broker shall not sell for his own account, being accounts to connected persons or an account in which he has an interest (including any account over which he has discretion), if he has in hand orders to sell for others at the prevailing market price or at the same price.
(4) A commodity broker or spot commodity broker shall not knowingly take, directly or indirectly, the other side of an order from his client for his own account or for the accounts of connected persons, except with the client’s prior consent and in accordance with the rules of a commodity market as have been approved by the Board or any spot commodity market.
(5) A commodity broker or spot commodity broker shall not divulge information relating to an order held by him, unless such disclosure —
(a)
is necessary for the effective execution of such order;
(b)
is in compliance with the rules of the relevant commodity market as have been approved by the Board or any spot commodity market; or
(c)
is made at the request of the Board.
(6) Every commodity broker, spot commodity broker and their representatives shall not accept or agree to accept any power or authority from any person or any third party acting on behalf of such person to deal in any commodity market or spot commodity market for the account of such person, at the discretion of the broker or his representative, except in the following circumstances and upon the following terms and conditions:
(a)
at the request of a customer, a discretionary account accepted and operated only in circumstances when it is necessary to do so and at the request of the relevant customer;
(b)
the agreement for the operation of a discretionary account is duly executed by the customer, the broker and his representative, if any;
(c)
the agreement to operate a discretionary account contains the following statements which are printed in bold type and prominently displayed at the beginning of the agreement:
(i)
“This is a most important document, because it attaches personal liabilities to the customer. The customer is strongly advised to consult his accountant, bank manager, solicitor or other professional adviser prior to the customer’s execution of this document.”; and
(ii)
“The Singapore Commodity Exchange (or the name of the relevant market) has introduced certain guidelines for the operation of discretionary accounts, a copy of which will be made available to you upon request.”;
(d)
the broker explains fully to the customer, (before the agreement is executed), the statements contained in the agreement and the customer’s risks and liabilities thereunder;
(e)
the broker furnishes to the customer in writing at such times as are requested by the customer, full details of the transactions executed on the customer’s behalf and the positions and equity in the customer’s account; and
(f)
the broker ensures that all discretionary account orders are transmitted to the dealing room or trading floor in writing with the account designation clearly indicated on such orders.
(7) The risk disclosure document required by section 32(1) of the Act to be provided by a commodity broker or spot commodity broker to a prospective client shall be in Form 3 in the Second Schedule.