The materials on this website have been developed in response to amendments to the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission (“SFC Code of Conduct”) relating to
(i)      electronic trading effective 1 January 2014 and
(ii)     alternative liquidity pools effective 1 December 2015.

Algorithmic Trading


The purpose of the training materials is to ensure that a person who is approved to use algorithmic trading system of SG Securities (HK) Limited (“SGSHK”) has a good understanding of:
(a) the operation of the algorithmic trading system and trading algorithms; and
(b) the compliance and regulatory issues which may arise from the use of the algorithmic trading system and trading algorithms.

The objective of the materials is to provide training on:
(a) the use and operation of the algorithmic trading system;
(b) each of the trading algorithms contained in the algorithmic trading system including:
(i)     its trading characteristics and execution behavior;
(ii)    the potential market impact and risks to market integrity; and
(iii)   whether it is appropriate to use a particular trading algorithm under certain market conditions in the execution of certain orders in light of the regulatory requirements.

DMA Services


The purpose of the training materials is to ensure that clients using DMA services meet requirements including:
(a) the client has appropriate arrangements in place to ensure that its users are proficient and competent in using the system for the DMA services;
(b) the client understands and has the ability to comply with applicable regulatory requirements; and
(c) the client has in place adequate arrangements to monitor the orders entered through the DMA services.

Alpha-X (an Alternative Liquidity Pool)


The purpose of the Alpha-X Fact Sheet and Alpha-X Guidelines is to provide comprehensive and accurate guidance to the users of Alpha-X as required by the Securities and Futures Commission.

Training materials


This training material is given for you own information and contains a description of electronic services (including algos and DMA services) offered by SG to its clients. Should you have any additional question, please contact your SG correspondent or send us an email to the following email address: asiapac-mark-gef-etradingregulation@sgcib.com