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AMI 6.2.1

(1) An Exchange must have rules and procedures for fair, orderly and efficient operation of trading of Investments on its facilities. For this purpose, an Exchange must ensure that only Investments in which there is a Proper Market are traded on its facilities.
(2) For a Proper Market to exist in Investments:
(a) Derivatives traded on its facilities must meet the contract design specifications in Rule 6.3.2;
(b) relevant market information must be made available to Persons engaged in dealing on an equitable basis, including pre-trade and post-trade disclosure of orders, in accordance with the requirements in section 6.4.
(c) there must be adequate mechanisms to discontinue, suspend or remove from trading on its facilities any Investments in circumstances where the requirements relating to Proper Markets are not met;
(d) there must be in place controls to prevent volatility in the markets that is not the result of market forces, in accordance with the requirements in section 6.5;
(e) error trades must be managed, in accordance with the requirements in section 6.6;
(f) short selling and position concentration must be monitored and managed, in accordance with the requirements in section 6.7;
(g) there must be a fair and non-discretionary algorithm operating in respect of the matching of orders on its facilities;
(h) there must be in place adequate controls, to monitor and manage any foreign ownership restrictions applying to Investments traded on its facilities, in accordance with the requirements in section 6.8; and
(i) any liquidity incentive schemes must be offered only in accordance with the requirements in section 6.9.
Derived from RM118/2013 [VER15/07-13]