(13)The conditions for admission to trading of financial instruments are set by the AE in its listing rules which specify the classes of products that may be traded on its market, the terms and conditions for listing, as well as the rules to ensure that members are able to meet their obligations. Under sections 29 and 41 of the SFA, AEs and RMOs are required to notify MAS before proceeding with the launch of a product. In addition, AEs and RMOs are required to certify to MAS that they have established appropriate controls and governance procedures to adequately address the key risks pertaining to the products, namely (i) the risk of disorderly trading that may be brought about by a sharp change in prices; (ii) the risk of persons acquiring significant amounts of the product which facilitates the ability of those persons to gain from market manipulation; (iii) the risk that daily settlement prices and final settlement prices will be subject to manipulation; (iv) the risk that the final settlement price of the product will not converge to its underlying; (v) the risk that the underlying of physically delivered products will not be delivered in a safe, reliable and timely manner; and (vi) the legal, operational and reputational risks surrounding the product. Under section 45 of the SFA, MAS has powers to take action if AEs and RMOs fail to provide appropriate controls and governance procedures, including imposing higher supervisory capital, requiring independent audit on specific processes and prohibiting the listing of new products. Under section 46 of the SFA, MAS may issue notice in writing to an AE or a RMO to prohibit trading in products if MAS is of the opinion that it is necessary to protect persons buying or selling such financial instruments.