Product

1.1.1 MX Exchange is a digital asset exchange trading platform provided by and proprietary to MX Global Sdn Bhd (registered number: 1271022-M) (formerly known as ARXCHANGE Sdn. Bhd.), a company incorporated in Malaysia with its registered office at B-3-9, 3rd Floor, Block B, Megan Avenue 2, No.12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur. Reference in this Rule to “MX Exchange” refers to the said platform and where appropriate our company.

1.1.2. A principal function of MX Exchange is to provide a fair, orderly and transparent market for the trading of Supported Digital Assets.

1.1.3. This Rule sets out the requirements which apply to clients and the manner in which Supported Digital Assets are to be offered.

2.2.1 To become a Client, an applicant must apply to MX Global on its website via the online application form and manner that MX Global prescribes, and provide such information and any required documents to MX Global as it may in its discretion require in connection with the application.

2.2.2 MX Global may, in its absolute discretion, approve or reject an application to be a client, having due regard to, among other things, completeness, accuracy and appropriateness of information and documents provided, authenticity of the supporting documents, internal risk assessment outcome, whether the applicant has been convicted of an offence under the Capital Market and Services Act 2007 or any other laws and regulatory requirements deemed crucial by MX Global, whether the applicant in MX Global’s opinion, it would be contrary to the interests of the public to admit the applicant as a Client.

2.2.3. MX Global may approve an application subject to such conditions or restrictions as it may in its absolute discretion deem appropriate (the “Approval Conditions”) including but not limited to restrictions on the applicant’s monthly fiat deposit and withdrawal limit. MX Global shall inform the applicant of the imposition or withdrawal of any Approval Condition in writing. A breach of the Approval Conditions shall constitute a breach of this Rule.

2.2.4. This Application Procedures must be read and complied with together with the Terms & Conditions.

2.3.1. If MX Global rejects an application to be a Client, the applicant may, after he/she is notified of MX Global’s decision, resubmit his/her online application to MX Global.

2.3.2. MX Global may or may not accept the resubmission of application form.

2.3.3. The decision whether to approve or reject the Client is at MX Global’s sole discretion.

2.5.1. A Client’s right to access MX Exchange or recognized markets established or operated by MX Global will cease and he/she shall not enter any orders on such markets if:

a) The Client is suspended under the Rules; or

b) The Client’s account has been terminated; or

c) Any circumstances as set out under Terms & Conditions (Restriction, Suspension and Termination).

2.5.2. When a Client’s right to access MX Exchange or recognized markets established or operated by MX Global has ceased, MX Global may or may not notify all Clients of the effective date of cessation and the date of reinstatement of access rights (if applicable).

2.5.3. A Client whose right to access MX Exchange or recognized markets established or operated by MX Global has ceased must continue to comply with the relevant Rules. The Client remains liable for all obligations incurred in connection with its activities on MX Global before its access right ceased.

2.7.1. Clients must pay MX Global all fees, levies and charges that MX Global prescribes, within such time as MX Global prescribes. MX Global may reduce or waive any fee, levy or charge.

2.7.2 Fees and charges are as follow:

* Dynamic fees varies based on network traffic

* The Internal Wallet transfer applies to the transfer from one MX Global User account to another MX Global User Account

2.7.3 Deposit and withdrawal limits are as follow:

2.8.1. MX Global may, in its discretion, suspend, or otherwise impose restrictions or conditions on the activities of a Client if:

a) the Client has been charged with or is the subject of an investigation for any offence:

• under the Capital Market and Services Act 2007; or

• involving fraud or dishonesty, whether in or out of Malaysia.

b) the Client at any time fails to continue to satisfy any admission criteria, Approval Condition or any other requirement that is necessary to be complied with for subsistence of its membership;

c) the Client breaches any term, condition or restriction imposed by MX Global pursuant to its powers under the Rules;

d) the Client is, in MX Global’s opinion, engaging in conduct that is inconsistent with just and equitable principles of trading;

e) the Client is, in MX Global’s opinion, conducting its activities in a manner detrimental to the financial integrity, reputation or interests of MX Global, or MX Exchange or recognized markets established or operated by MX Global;

f) it is necessary or desirable in the interests of maintaining a fair and orderly market or for ensuring a safe and efficient clearing facility, or for ensuring the integrity of the market or for proper management of systemic risk, or for investor protection, or it is directed by any authority.

g) Any circumstances as set out under Terms and Conditions (Restriction, Suspension and Termination).

2.8.2. The suspension or restriction shall be for such duration as MX Global determines, save that in the case of a suspension or restriction by reason of the grounds under Rule 2.8.1. above, the suspension or restriction shall end when the Client is acquitted, the charge is not proceeded with, or no further action is taken in respect of the investigation.

2.8.3. During the time a Client is suspended, the Client:

• is unable to have access to MX’s wallet and exchange; and
• unable to enter into a new transaction; and
• any outstanding trades or transactions at the time of suspension shall be cancelled

2.8.4. The Client shall comply with any of MX Global’s directions issued in relation to the above and any failure to do so will constitute a breach of the Rules.

2.9.1. MX Global places greatest emphasis in protecting the financial integrity, reputation or interests of MX Global, or MX Exchange or recognized markets established or operated by MX Global. In this regard, MX Global may exercise its powers to suspend, restrict clients’ activities or terminate clients’ account, if in its opinion, is to the best interest of the market to ensure it remains fair, orderly and transparent.

2.9.2. Such circumstances are as described under Terms and Conditions (Restriction, Suspension and Termination).

2.10.1. MX Global shall notify its Client prior to the account termination.

2.10.2 A Client may, within 14 days of being notified of MX Global’s exercise of powers under the relevant rules, appeal in writing to MX Global. MX Global may or may not accept the appeal and the decision is at MX Global’s sole discretion.

3.1.1. Confidence in the financial system and effective intermediation of financial flow requires that markets be fair, orderly and transparent. Improper conduct which gives rise to a false or misleading appearance of trading activity, price movements or market information undermines market integrity and erodes investor confidence. MX Global seeks to ensure that its markets are fair and orderly and free of manipulative trading.

3.1.2. Clients must ensure that their trading is conducted in accordance with the MX Global Rules and the Capital Market and Services Act 2007.

3.2.1. Clients must not engage in any course of conduct that is likely to create a false or misleading appearance:

a) of active trading in any Securities; or

b) with respect to the market for, or the price of, any Security.

3.2.2. MX Global prohibits false trading and market rigging. This trading misconduct involves an intentional interference with the free forces of supply & demand and price the Security traded. This distortive effect occurs as a result of any trading strategy or practice that may be employed in order to artificially manage the market for, or the price of, the Security concerned.

3.2.3. MX Global’s determination of whether a course of conduct is likely to create a false or misleading appearance will be made on an objective basis. In other words, the Rule does not require the Client to have intended to create the false or misleading appearance, or knew that it or he was in fact creating a false or misleading appearance. Factors that MX Global may take into account when making the said determination are as follows:

a) whether the execution of the transaction is inconsistent with the recent trading activity in the marketplace, taking into account prevailing market conditions;

• Also identified as “Price Driver” when the execution of transactions is responsible for a large proportion of price increases/decreases but with only a small proportion of traded volume.

b) whether the non-bona fide orders placed is for the purpose of generating unnecessary volatility or creating a condition in which prices do not or will not reflect fair market values intended to mislead other clients.

c) whether the orders are initially placed in multiple price tiers on one side of the orderbook and having them switched to the other side of the orderbook.

• A client should not make large entries above or below the prevailing spread to facilitate filling an order on the other side of the market. The placing of buy (or sell) orders at various price steps below (or above) the market may create a false or misleading appearance that the entries are on behalf of genuine buyers (or sellers). The layering of orders also translates into a change in the depth screen and may mislead market clients with respect to interest in the marketplace.

d) whether the execution of transaction is likely to coincide with or influence the calculation of circuit breaker prices, settlement prices and valuations;

• Clients who purposely and persistently place orders near the price referencing determination which will move the price when executed.

e) whether the execution of the transaction involves the placing of multiple buy orders and sell orders at various prices higher or lower than the market price, or the placing of buy and sell orders that give the appearance of increased volume.

f) whether the parties involved in a transaction are connected or associated with each other;

• Also identified as “Money Pass” when client A is buying 1 BTC from client B and then selling back the 1 BTC to client B at the same price.

• Also identified as “Wash Sales” when client A is constantly matching any orders coming from client B and both of these clients are having common beneficial ownership and/or affiliation

• Also identified as “Collusion” when a group of clients is working together to influence the market supply or demand of a market to a specific pricing level in order to gain an unfair market advantage

g) whether the orders placed has been pre-arranged (or discussed with another market client prior to being placed on MX Global) for the purpose of creating an artificial price or other disruptive, fraudulent, non-competitive, or unfair impact on the MX Global’s marketplace.

h) whether the execution of transactions is responsible for any unusual price movement on one side of the orderbook and then to have execution of transactions in the reverse direction of the orderbook to capitalize on the price movement in several loops.

3.2.4. A Client must not deal in a marketplace in a manner that will or may have the effect of raising, lowering, maintaining or stabilizing the price of the Security or its underlying (where applicable), with intent to induce other persons to purchase or sell the Security.

3.2.5. A Client must immediately inform MX Global if he or she reasonably suspects, or knows of, any attempted market manipulation or any other prohibited trading conduct.

3.2.6. The Rule does not prevent Clients from carrying out legitimate trading strategies that reflect the forces of genuine supply and demand. However, Clients must do so bearing in mind their obligations to maintain an orderly market, and to conduct their trading activities with an appropriate degree of care.

3.2.7. MX Global is unlikely to have concerns if the order or transaction is executed in a proper manner and that there is a legitimate commercial rationale for engaging in the said course of conduct.

3.2.8. In determining whether a course of conduct is likely to create a false or misleading appearance, MX Global will make the necessary inference from circumstantial evidence, such as an unusual pattern of trading, as well as a person’s interest (whether genuine or ulterior motive) in the market in question.

3.2.9. In the event that a Client reasonably suspects that an order may be for some other ulterior purpose but continue to facilitate the transaction, the Client must be aware that his or her contributing act towards the transaction may be unlawful.

3.2.10. A Client must not knowingly take advantage of a situation arising from:

• a breakdown or malfunction in any of MX Global’s procedures or systems; or
• errors made by MX Global.

3.2.11. MX Global may cancel any orders found with the above elements or in MX Global’s opinion, is in the best interest of the marketplace and all Clients, to do so.

3.2.12. Other trading practices such as prohibited trading conduct, confidentiality of clients’ accounts, etc. are described under Terms and Conditions. All Clients are obligated to comply with the trading practices set out thereunder.

4.0.1. A Security listed on MX Exchange or recognized markets established or operated by MX Global must be traded and matched through the exchange matching algorithms or as otherwise allowed under this Chapter.

4.0.2. Unless otherwise provided in the Rules, all trading of Securities by Clients which are traded on MX Exchange or recognized markets established or operated by MX Global shall be affected through the Trading System in the manner stipulated in these Rules or any other directives issued by MX Global from time to time.

4.0.3. Unless otherwise specified by MX Global, a Client’s connection to the Trading System for the purpose of trading of Securities on MX Exchange or recognized markets established or operated by MX Global must be through an access point approved by MX Global.

4.0.4. All Clients shall be familiar with the use of Trading System for the purpose of effecting any trades of Securities on MX Exchange or recognized markets established or operated by MX Global, unless determined otherwise by MX Global.

4.0.5. It shall be the duty of every Client to take all reasonable Security measures to prevent unauthorized access to the Trading System, which include but are not limited to, allowing third parties from using the account for trading and practice precautionary measures to safeguard access of own account from theft, hacking, etc.

5.0.1. The market and trading session operate on 24/7.

5.0.2. Notwithstanding with the above, trading in Securities shall be carried out in trading sessions and trading hours as prescribed by MX Global in this Rules from time-to-time.

5.0.3. In addition, MX Global shall from time to time give or cause to be given to Clients directions as to the manner in which MX Exchange or recognized markets established or operated by MX Global is to be opened for trading by Clients.

5.0.4. If there arise circumstances where in the opinion of MX Global, the commencement of trading on any day is to be temporarily delayed, or trading should be temporarily suspended, in order to preserve an orderly market in accordance with the powers conferred to MX Global under these Rules and the Capital Markets and Services Act 2007, MX Global shall have the power to withhold from the Clients the facilities for trading or to suspend trading for the period of any such delay or suspension.

6.1.1. All transactions in MX Exchange or recognized markets established or operated by MX Global can only be conducted through digital wallets within MX Exchange.

6.1.2. MX Global requires the clients to make deposits of MYR or Supported Digital Assets into their respective MX’s wallets prior to any trading activities.

6.1.3. All orders will be posted by clients through MX Trading Portal at https://mx.exchange/.

6.1.4. All orders entered into the Trading System shall contain such particulars or information as may be prescribed by MX Global.

6.1.5. All order sizes entered into the exchange System shall at least meet the minimum amount prescribed by the MX Global.

6.1.6. Any order entered into the Trading System may be modified or cancelled by the Client prior to the matching of the order, subject always to the rights of MX Global not to allow for such modification or cancellation in circumstances it deems fit. MX Global may in circumstances prescribed in these Rules, cancel any order entered as long as has yet to be match or executed.

6.1.7. Simultaneous Buying and Selling

A Client prohibited to simultaneously enter orders to buy and sell a same Security, at the same or at a better price.

6.1.8. Pre–Arranged Orders

Unless determined otherwise by MX Global, no Clients shall enter into the Trading System orders, pursuant to a pre-arrangement where the orders of a particular Buyer are to be matched with the orders of a particular Seller when entered into the Trading System.

6.1.9. Entry of Orders

Clients must enter orders into the Trading System correctly and accurately, particularly in relation to the price and volume of the orders. A pop-up message detailing the orders the Clients are about to place will appear for Clients to confirm the orders.

6.1.10 Trading Pairs

The exchange is currently offering the following trading pairs to its users:

6.2.1. MX Global allows two order types: Fill-And-Kill Order & Limit Order:

a) A Fill-And-Kill (FAK) Order (buy or sell) will be executed immediately either partially or fully upon posting, against the resting limit orders within the orderbook at the best current available price. In the absence of liquidity, no FAK order will be placed in the queue within the orderbook. Client can only specify the amount of Supported Digital Asset to sell for sell orders or to buy for buy orders without having to specify a price for the order.

Illustration on a Fully Filled FAK Order

Initial Orderbook:

Transaction entered: A bid FAK Order for 1.000 BTC

Executed: The entered FAK order is executed immediately; taking up 0.500 BTC at RM119,000 and 0.500 BTC at RM120,000.

Remaining Orderbook:

Illustration on a Partially Filled FAK Order

Initial Orderbook:

Transaction entered: A bid FAK Order for 2.000 BTC

Executed: The entered FAK order is executed immediately; taking up 0.500 BTC at RM119,000 and 1.200 BTC at RM120,000. The remaining 0.300 BTC of the order is then cancelled.

Remaining Orderbook:

Illustration on a No Match FAK Order due to the Absence of Liquidity

Initial Orderbook:

Transaction entered: A bid FAK Order for 1.000 BTC

Executed: The entered FAK order is cancelled immediately due to the absence of liquidity on the opposite side of the orderbook.

b) A Limit Order (buy or sell) will be executed if the order matches the limit price set by the Client. A limit order is an order to buy or sell a given amount of Supported Digital Asset at a given price. A “buy” order will only be executed at the limit price (or lower), while a “sell” order will only be executed at the limit price (or higher). The order will remain active until it is either filled or cancelled. Limit orders can be partially filled.

If the order has a partial match, the portion where a match available will be executed, where the remaining portion will be placed as a resting order on the orderbook until it is cancelled by the Client or matched, whichever comes first.

Illustration on a Fully Filled Limit Order

Initial Orderbook:

Transaction entered: A bid Limit Order for 0.500 BTC @ RM119,000

Executed: The entered Limit Order is executed immediately; taking up 0.500 BTC at RM119,000.

Remaining Orderbook:

Illustration on a Partially Filled Limit Order

Initial Orderbook:

Transaction entered: A bid Limit Order for 2.000 BTC @ RM120,000

Executed: The entered Limit order is executed immediately; taking up 0.500 BTC at RM119,000 and 1.200 BTC at RM120,000. The remaining 0.300 BTC of the order is then placed on the buy side of the orderbook as a resting order.

Remaining Orderbook:

Illustration on a No Match Limit Order due to the Absence of Liquidity

Initial Orderbook:

Transaction entered: A bid Limit Order for 1.000 BTC @ RM120,000

Executed: The entered Limit order is placed immediately on the orderbook as a resting order due to the absence of liquidity on the opposite side of the orderbook.

Remaining Orderbook:

6.2.2. Notwithstanding the above, MX Global will from time-to-time, prescribe the types of orders that may be entered by Clients into the Trading System in any directives, notices or circulars.

6.2.3. Orders are executed automatically by MX’s order book matching engine.

6.3.1. All orders entered into the Trading System and matched in accordance with the provisions stipulated in this Rule are deemed executed except in the following circumstances: –

a) where the matching of the orders results in a breach of the price limit referred below; and

b) in any other circumstances prescribed by MX Global in any directives, notices or circulars issued from time to time.

6.3.2. Order matching:

a) Best Price Offer (FAK Order and Limit Order)

• Matching engine will always find the best price for a given order on a First-In, First-Out (FIFO) basis

• For a FAK Order that does not have a matching trade due to the absence of liquidity on the opposite side of the orderbook, the order will be cancelled.

6.3.3. Notwithstanding the above, MX Global will prescribe, from time-to-time, the matching algorithm based on which orders will be matched in any directives, notices or circulars.

6.3.4 Market Transparency

Ø MX Global makes available in a comprehensible manner and on a timely basis, material information or changes to the tradable Supported Digital Assets.

Ø MX Global ensures trading information, both pre-trade and post-trade, is made publicly available on a real-time basis.

• Pre-Trade Information

a) Orderbook

b) Recent Order Matched History

c) Account Balance

d) Pop Up Confirmation for Order Placing

• Post-Trade Information

a) Open Orders

b) Completed Transaction History

6.3.5 Circuit Breaker Mechanism

MX is taking a preventive approach to discourage disorderly markets; and to allow its Client(s) to reassess their strategies and positions and make investment decisions during sudden price volatility caused by rapid price movements by having a circuit breaker mechanism in place.

A Circuit Breaker is a term used for a market-wide approach to manage downward/upward movement of the market price by halting trading temporarily in the market during normal trading hours, during which time information is disseminated to all market participants.

Activating a Circuit Breaker provides the opportunity for information dissemination to all market participants, including investors, to make well-considered investment decisions.

1. The Circuit Breaker will be activated and will halt the current market trading automatically once the market price fall outside of the Price Fluctuation Threshold and an email notification regarding the event will be sent to all Client(s).

2. During the Suspension Period:

• MX Client(s) are not ALLOWED to place FAK orders or limit orders.
• MX Client(s) can cancel their existing open orders manually.
• MX Client(s) orders will remain on the orderbook until the orders are matched and executed if users choose not to cancel their orders.

Once the Suspension Period ends (1 hour), MX users will be able to resume their normal trading activities.

Any opportunity losses, including those due to the introduction of the circuit breaker system, are under no circumstances the responsibility of MX Exchange.

8.2.1. MX Global has three (3) key regulatory tools to support a fair, orderly and transparent market. They are as follows:

Designation of a Security.

MX Global may declare a listed Security to be a Designated Security where, in MX Global’s judgment, there is possible manipulation or excessive speculation in the Security or it is otherwise in the interest of the market to do so;

Suspension.

MX Global may suspend a Security or its clients where, in MX Global’s opinion, the market is not orderly, transparent or fair; and

Trading restriction.

MX Global may restrict or limit trading activities on the Designated Security where, in MX Global’s opinion, is in the best interest of the market to do so.

8.2.2. Designation is a tool that is used sparingly and only in exceptional circumstances that warrant such intervention. Such circumstances may include prolonged trading anomalies observed in the Security, such as order book imbalances and/or prolonged, excessive speculation in a Security. The objective of designation is to restore market equilibrium by removing the impact of such anomalies on price formation, and allow the price of the Security to be formed through demand and supply forces in an informed market. Designation would be lifted once, in MX Global’s opinion trading has returned to normalcy.

8.2.3. MX Global may rescind or vary a declaration of the Designated Security at any time. Any rescission or variation by MX Global will be made public.

9.0.1 MX Global may exercise its emergency powers in the event that there is reasonable cause to believe that any of the following circumstances or circumstances similar to the following exist:

a) in MX Global’s opinion, the market is not orderly, informed or fair or circumstances are about to occur that may result in there not being an orderly, informed or fair market;

b) a situation exists which threatens the integrity, liquidity or orderly liquidation of any Securities;

c) a situation exists which threatens the financial integrity of the recognized markets established or operated by MX Global or its Clients;

d) a manipulation, manipulative activity, attempted manipulation, corner or squeeze is occurring or threatened;

e) access to the Trading System is generally restricted;

f) functions of MX Global are, or are threatened to be, severely and adversely affected by an emergency such as fire, terrorist activities, power or system failures, communication or transportation breakdowns, or computer malfunctions;

g) an action of the Malaysia government or authority is likely to have a direct and adverse impact on the integrity, liquidity and orderly liquidation of any Securities;

h) in MX Global’s opinion, it is in the public’s interest;

i) Any circumstances as described in our Terms & Conditions.

9.0.2. Upon determination by MX Global under the Rules above, that an emergency has arisen or exists, MX Global may, without prejudice to the generality of such powers, order that all or any of the following actions be taken or take any other action that may be appropriate to remedy the situation:

a) suspend trading on MX Exchange or recognized markets established or operated by MX Global;

b) suspend trading on any Securities;

c) limit the trading volume of a Security ;

d) confine trading of a Securities to a specified price range;

e) modify trading hours;

f) suspend Clients’ trading rights; and

g) any other action deemed appropriate.

9.0.3. Notwithstanding the above, in the event that the operations of MX Exchange or recognized markets established or operated by MX Global are, or are likely to be severely and adversely affected by a physical emergency, including but not limited to fire or transportation breakdowns, computer malfunctions, or other hazard, power failure, communication or similar disruptive events, MX Global shall take any action necessary to deal with the emergency, including but not limited to, a suspension of trading.

9.0.4. When the emergency has abated sufficiently to permit the orderly functioning of MX Exchange or recognized markets established or operated by MX Global, MX Global shall order trading to be restored or remove any restrictions, which were previously imposed.

9.0.5 Securities that have been suspended from trading shall not be traded on the Trading System for the period of suspension. Except with MX Global’s approval, a Client must not execute any transactions in a Security that has been suspended.

9.0.6 Unmatched orders in a Security in the Trading System may lapse in the event of a suspension of that Security, as determined by MX Global.

9.0.7. Force Majeure

If delivery or acceptance of any Securities or any precondition or requirement thereto is prevented by strike, fire, accident, act of Government of any nation, state, or territory, or any institution thereof, act of God, or other emergency, the seller or buyer or the Clients, must immediately notify MX Global. On receipt of such notification, MX Global may take any steps or actions as may be necessary under the circumstances.

10.1.1. Unless otherwise specified by MX Global, delivery of Securities for settlement of trades in Securities is by book entry at MX Wallet. Unless otherwise agreed between a Client and MX Global, trades are settled in the currency determined by MX Global.

10.1.2. The MX Wallet must be maintained by all Clients with MX Global.

10.1.3. Details on the MX Wallet is as per Terms & Conditions (see The MX Wallet).

10.1.4. In relation to monies deposited to MX Global, no interest will be payable to the Client(s).

10.2.1. Before entering into any transactions with MX Global, prior upfront deposit of fiat or Supported Digital Assets are required.

10.2.2. Upon placing an order MX Global will instantaneously reflect such transactions, including fiat and Supported Digital Asset balances (minus out any fees and charges) at respective Clients’ MX Wallets.

10.3.1. Generally, all fiat withdrawal requests are processed within 2-3 working days, unless there is element of suspicion.

10.3.2. Suspicious withdrawal includes (but not limited to):

• withdrawal from an account with no history of trades performed

• high withdrawal frequency

• unusual large amount of withdrawal, not consistent with the past record or Client’s profile

• withdrawal from an account under the investigation of law enforcement body

• the name on the designated bank account does not match with the verified name on MX Global’s account.

10.3.3. Any withdrawal request deemed suspicious may be suspended until it is cleared from any of the above.

10.4.1. A Client must not transfer Securities from any external wallet addresses which are associated to any illicit activities to his or her MX wallet.

10.4.2. A Client must not transfer Securities from his or her MX wallet to any external wallets which are associated to any illicit activities.

10.4.3. In relation to any withdrawal of Securities from MX Wallet to any external wallets, there will be a processing duration to facilitate the withdrawal request.

11.1.1 MX Global will cancel an open order in any of the following circumstances:

a) if there is prima facie evidence of fraud or willful misrepresentation in relation to the trade; or

b) in MX Global’s reasonable opinion, based on the balance of probabilities (i.e. more likely than not) that the fraud is present, it is desirable to cancel the order to protect the market integrity, reputation or interests of the markets established or operated by MX Global.

c) in event of suspension of account

11.1.2. MX Global may impose any conditions it thinks appropriate for or in relation to the cancellation of a trade.

11.1.3. An action under this Rule is in addition to other actions which MX Global is entitled to take against the Clients.

11.2.1 Notwithstanding with the aforementioned circumstances above, MX Global reserves the right to review any Trade if MX Global deems it necessary for the proper maintenance of a fair and orderly market.

11.2.2. MX Global may consider any relevant information, including but not limited to the following when deciding whether to cancel any Trade:

a) the difference between the price at which the trade was done and the preceding traded price of the Security;

b) the market liquidity in the Security at the time the trade occurred;

c) the monetary loss involved if the trade is or is not cancelled;

d) the number of Clients involved;

e) the impact on the settlement process;

f) the reason(s) / additional information provided by Clients

12.1.1. MX Global may conduct an investigation if:

a) the investigation involves a possible breach of the Capital Market and Services Act 2007, any other relevant applicable laws and regulatory requirements relating to the regulation of recognized markets, or the Rules;

b) MX Global receives a written complaint involving any Clients;

c) there is a dispute between Clients on a trading matter;

d) in MX Global’s opinion, the circumstances warrant; or

e) the Authority directs.

12.1.2. MX Global may impose any requirement on any Client that it deems necessary to preserve the integrity of the investigation.

12.1.3. MX Global may appoint any person or persons to assist in its investigation (the “Exchange Examiner(s)”).

12.1.4. MX Global may delegate all or any of its powers under this Rule to the Exchange Examiner. The Exchange Examiner must report the results of the investigation to MX Global.

12.1.5. MX Global may refer any investigations to another relevant investigating authority if MX Global is of the opinion that the circumstances warrant the referral.

12.1.6. A Client shall promptly:

a) render all assistance as MX Global and/or the Exchange Examiner requires, at MX Global’s premises or elsewhere; and

b) provide MX Global and/or the Exchange Examiner with, and give MX Global and/or the Exchange Examiner access to such information, books and records that MX Global and/or the Exchange Examiner may request that, in MX Global’s and/or the Exchange Examiner’s opinion, may be relevant to the investigation.

12.1.7. A Client shall not:

a) willfully furnish or permit the furnishing of any false or misleading information, statement or report to MX Global or the Exchange Examiner; or

b) willfully make or permit the making of any false or misleading statement to MX Global or the Exchange Examiner or willfully omit or permit the omission of any entry or information in any report or statement to MX Global or the Exchange Examiner.