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.
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2. How is SI fee computed?
 
  • SGX charges $0.35 plus prevailing GST per SI.
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3. How is this SI Fee recovered from the client?
 
  • The SI Fee of $0.35 plus prevailing 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".
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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.
  • prevailing GST will then be computed on the converted USD amount.
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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.
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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
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    • 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:
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    • 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.
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  • Partial contra of the buy contract with residuals:
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    • 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).