Rulebooks: Contents

Rulebooks
Mainboard Rules
Catalist Rules
SGX-ST Rules
CDP Clearing Rules
CDP Settlement Rules
DVP Rules [Entire Rulebook has been deleted]
CDP Depository Rules
Futures Trading Rules
SGX-DC Clearing Rules
Chapter 1 Application of Rules
Chapter 2 Clearing Membership
Chapter 3 Committees
Chapter 4 Enforcement of Rules
Chapter 5 Arbitration
Chapter 6 Delivery and Related Matters
Chapter 7 Clearing and Margins
Chapter 7A Suspension and Default
7A.01B Clearing Fund Loss Allocation Mechanism for Default in OTCF Contracts
7A.01B.3 Clearing Fund Loss Allocation Mechanism for Contributions of Members Active in OTCF Contracts
Chapter 7B Payments
Chapter 8 Mutual Offset System
Chapter 9 Definitions and Interpretation
Chapter 10 Transitional Provisions
Directives
Practice Notes
Appendices
Schedules
SIAC DT Arbitration Rules
SIAC DC Arbitration Rules
Archive
Rule Amendments

  Versions
(2 versions)
 
Jun 30 2014 - Nov 11 2018Nov 12 2018 onwards

7A.01B.3 Clearing Fund Loss Allocation Mechanism for Contributions of Members Active in OTCF Contracts

Subject to Rule 7A.01B.4, Clearing Members' Clearing Fund Deposits and Further Assessment Amounts apportioned to an auction will be used, notwithstanding Rules 7A.01A.2.b and c., to meet the losses remaining after the auction in the following descending order of priority and manner, with each source of funds to be completely exhausted, subject to the limitations contained therein, before the next source is applied:—

a. Clearing Fund Deposits of Participating Clearing Members which are apportioned to the auction, where such Participating Clearing Members did not participate in the auction.

Each such Participating Clearing Member's liability for the loss remaining will be on a pro-rata basis, calculated as the proportion of its Clearing Fund Deposit requirement for OTCF Contracts relative to the aggregate Clearing Fund Deposit requirement for OTCF Contracts of all Participating Clearing Members that did not participate in the auction.
b. Further Assessment Amounts of Participating Clearing Members which are apportioned to the auction, where such Participating Clearing Members did not participate in the auction.

Each such Participating Clearing Member's liability for the loss remaining will be on a pro-rata basis, calculated as the proportion of its Further Assessment Amount requirement for OTCF Contracts relative to the aggregate Further Assessment Amount requirement for OTCF Contracts of all Participating Clearing Members that did not participate in the auction.
c. Clearing Fund Deposits of Participating Clearing Members which are apportioned to the auction, where such Participating Clearing Members submitted bids in the auction and their bids were below the Reference Price.

Each such Participating Clearing Member's liability for the loss remaining will be on a pro-rata basis, calculated as the proportion of the product of:
i. the distance between such Clearing Member's bid price and the Reference Price; and
ii. its Clearing Fund Deposit requirement for OTCF Contracts,
relative to the aggregate of the product of Rule 7A.01B.3.c.i and ii for all Participating Clearing Members that submitted bids in the auction below the Reference Price.
d. Further Assessment Amounts of Participating Clearing Members which are apportioned to the auction, where such Participating Clearing Members submitted bids in the auction and their bids were below the Reference Price.

Each such Clearing Member's liability for the loss remaining will be on a pro-rata basis, calculated as the proportion of the product of:
i. the distance between such Clearing Member's bid price and the Reference Price; and
ii. its Further Assessment Amount requirement for OTCF Contracts,
relative to the aggregate of the product of Rule 7A.01B.3.d.i and ii for all Participating Clearing Members that submitted bids in the auction below the Reference Price.
e. Clearing Fund Deposits of Clearing Members which are apportioned to the auction and which are not available for use pursuant to Rule 7A.01B.3.a or c, or which have not been exhausted pursuant to Rule 7A.01B.3.c.

Each Clearing Member's liability for the loss remaining will be on a pro-rata basis, calculated as the proportion of its Clearing Fund Deposit requirement for OTCF Contracts relative to the aggregate Clearing Fund Deposit requirement for OTCF Contracts of all Clearing Members that have Clearing Fund Deposits available for use under this Rule 7A.01B.3.e for the auction.
f. Further Assessment Amounts of Clearing Members which are apportioned to the auction and which are not available for use pursuant to Rule 7A.01B.3.b or d, or which have not been exhausted pursuant to Rule 7A.01B.3.d.

Each Clearing Member's liability for the loss remaining will be on a pro-rata basis, calculated as the proportion of its Further Assessment Amount requirement for OTCF Contracts relative to the aggregate Further Assessment Amount requirement for OTCF Contracts of all Clearing Members that have Further Assessment Amounts available for use under this Rule 7A.01B.3.f for the auction.

Added on 30 June 2014 and amended on 12 November 2018.