Trading US Markets

W-8BEN Form

Trading in US Markets via Phillip Securities is only available to non-US citizen / non-US resident.
You have to sign and mail-in the W-8Ben Form before trading in the US market.

When will W8-BEN form expire? 

W8-BEN form will remain in effect for a period of 3 years, starting on the date the form is signed and expiring on the last day of the 3rd succeeding calendar year. It is mandatory for you to renew this form before the last day of the 3rd succeeding calendar year in order to continue to trade in the US market. Failing which, Phillip Securities Pte Ltd “PSPL” will cease to provide custodian services to your US portfolio.

Over The Counter Shares (OTC/OTCBB)

You may contact the night dealing team at 6531 1225 if you wish to sell your existing OTC shares that are currently held with us. Phillip Securities does not allow new purchases or transfer in of OTC shares. Broker assisted rates apply for OTC trading.

American Depositary Receipt (ADR)

An ADR is a stock that trades in the United States but represents a specified number of shares in a foreign corporation. ADR agents (banks and investment banks) purchase stocks on foreign exchanges and then sell receipts for these shares on American exchanges. ADR agents charge these ADR fees to compensate for inventorying the foreign stocks and all other costs involving registration, compliance and recordkeeping services.

The ADR Fees will vary for each counter and you will be billed according to the shareholdings for each ADR shares.

Depository Receipt(DR)

A negotiable financial instrument issued by a bank to represent a foreign company’s publicly traded securities. The depositary receipt trades on a local stock exchange. Examples of DR include American Depository Receipt (ADR) that trades in the United States and Global Depository Receipt (GDR) that trades globally. DR agents (banks and investment banks) purchase stocks from the originating foreign exchanges and sell them on the domestic exchanges (e.g. American exchange). DR agents charge DR fees to compensate for inventorying the foreign stocks and all other costs involving registration, compliance and recordkeeping services

DR fees will vary for each counter and you will be billed according to the shareholdings for each DR shares.

US Stock Indices

You can access the following US Stock Indices on POEMS, kindly go to Stocks > LP1 > NYSE and select ‘Market Indices”.

  • Nasdaq Bank index
  • Nasdaq Biotechnology index
  • Nasdaq computer index
  • Nasdaq financial – 100 index
  • Nasdaq industrial index
  • Nasdaq insurance index
  • Nasdaq other financial index
  • Nasdaq telecommunication index
  • Nasdaq – 100 index
  • NYSE composite index
  • Wilshire 5000 equity index
Trade Control Rules

As electronic systems become increasingly prevalent, US stock exchanges and self regulatory organizations (SROs) are implementing policies that will address the problem of clearly erroneous trades – defined as trades resulting from a market participant placing a transaction or a series of transactions that adversely affect the market price of a security.

Please note that with effect from 2nd May 2011, our US counterparty will implement trading rules control check on all orders being routed to their order management system

The control rules will check order size relative to a percentage of the stock’s 30 days average daily volume (ADV) – Rule 612 – Check the price of the order relative to a percentage parameter against the National Best Bid/Best Offer (NBBO) quote during core trading session – Rule 614 Initiate a Reject outcome should the above rules be breached

Should your US orders submitted through our online systems fail to pass the new control rules check, the orders will be rejected automatically by the system and error messages will be updated in the order status as below:

  1. Rule 612 – Order Size Exceed 10% of 30 Days Avg Daily Vol Check
    Order size for US trades exceeding 10% of the stock’s 30 days average daily volume will be rejected by
    the system
  2. Rule 614 – Limit orders at or below $5 per share would be permitted up to 10%, between $5 to $50 per share would be permitted up to 5% and with limits above $50 per share would only be permitted 3% marketability
Why is my Buy/Sell order not done when it exceeds the day Low/High price?

Our system participates in the trading of NYSE/NYSE-MKT/NASDAQ listed stocks during exchange trading hours. We do not participate in the US pre-open and pre-close trading sessions. The US price feed reflected in our POEMS System may include trades done during off-market trading as well as trades from other US exchanges. As such, the opening, high, low and last done prices for US stocks in our system may include trades that are not executed on NYSE/ NYSE-MKT/ NASDAQ.

I placed an order on POEMS but my order was rejected

Please take note of following error messages

  1. Error Message “ Order Size Exceeds 30 Days Ave Daily Vol Check Order size for US trades exceeding the stock’s 30 days’ average daily volume will be rejected by the system.
  2. Error Message “ Limit Order Exceeding the Prevailing Quote Deviation by more than 8% during Market Hour” Buy orders above the prevailing Ask price by > 8% and sell orders below the prevailing Buy price by > 8% will be rejected by the system.
Can I trade US Counters through POEMS if I am a US Resident/ US Citizen /Canadian Citizen?

No. US Citizens or US Residents are not allowed to trade in US Stocks through PSPL.

Can I continue to trade in US markets if I subsequently become a US Resident/US Citizen/US Taxpayer? 

No. Once you are a US Resident/US Citizen/US Taxpayer, you will not be able to trade in US Stocks through PSPL and you are required to notify PSPL should there be any change of your citizen/residency status.