FAQ Settlement Instruction Fees (SI Fee)

1. What is SI Fee?
 
  • Every trade or contract that settles through SGX’s settlement system involves settlement instructions (SI).
  • SGX charges SI Fee for such SI in the course of trade settlement.
  • Every trade or contract takes at least 1 SI to settle.
  • The SI Fee will be recovered from clients in the same way as other existing SGX charges.
   
2. How is SI fee computed?
 
  • SGX charges $0.35 plus GST per SI.
  • At the prevailing GST rate of 7%, the SI Fee chargeable is $0.37 ($0.35+$0.02 GST).
   
3. How is this SI Fee recovered from the client?
 
  • The SI Fee of $0.35 plus GST is automatically charged to the client’s buy or sell contract, because every trade will require at least 1 SI to settle.
  • The SI Fee will be charged on ALL contracts (Including CPF, SRS & SDT trades).
  • It will be reflected in the contract note as a separate line item named "FFP/SGX SI Fee".
   
4. How will the SI Fee be computed when the client’s buy/sell contract is settled in foreign currency e.g. USD?
 
  • The SI Fee of $0.35 will be converted to USD at the Company’s SGD-USD rate.
  • GST will then be computed on the converted USD amount.
    • E.g. The Company’s current day’s SGD-USD rate is 0.740740
    • The SI Fee is thus $0.35 * 0.740740 = USD0.26 (round to 2 decimal places)
    • The total SI Fee is thus USD0.28 (USD0.26 + USD0.02 GST)
   
5. If the SI Fee will be charged to the client's contract, why will it also be charged to the client's contra statement?
 
  • As mentioned in Point (1) above, the SI Fee of $0.35 is imposed by SGX on a per SI basis.
  • For every trade, the SI Fee for one SI is already charged to the contract because it takes at least one SI to settle.
  • If there are additional SI's associated with the particular trade, i.e. a partial contra, the additional SI Fee(s) will be recovered from the contra statement.
   
6. Here are some examples that will illustrate how the SI Fee is charged for different contra scenarios:
 
  • Full contra for both buy and sell contracts
    • Additional SI Fee chargeable: none, as there will  not be additional SI to settle the trade.
    • The SI Fee has already been factored in the Buy and Sell contracts.
 
  • Partial contra of the buy contract as follows:
    • Buy 10,000 (1 SI)
    • Sell 2,000 (1 SI), Additional Buy SI to split the Buy Contract for Contra
    • Sell 4,000 (1 SI) Additional  Buy SI to split the Buy Contract for Contra
    • Sell 4,000 (1 SI)
    • Total number of SI to settle the buy trade: 3 (3 contra SI)
    • Additional SI Fee chargeable:  2 (3 SI less the SI already charged in the Buy contract).
    • No additional SI Fee will be charged on the Sell contracts as there will be  no splitting and the SI Fee is already charged in the Sell contracts.
 
  • Partial contra of the buy contract with residuals:
    • Buy 10,000
    • Sell 8,000
    • Balance Buy 2,000 to be paid for by the client.
    • Total number of SI to settle the buy trade: 2 (1 contra SI & 1 payment/receipt SI)
    • Additional SI Fee chargeable: 1 (2 SI less the SI already charged in the Buy contract).
   
7. What if my contra for the buy/sell contract is in foreign settlement currency? How will the SI Fee be computed in the contra statement?
 
  • The SI Fee will be computed as detailed in Point (4).