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
SIAC DT Arbitration Rules
SIAC DC Arbitration Rules
Archive
SGX-ST Rules
Section D — Regulatory Framework
Chapter 11 — Capital and Financial Requirements
Rule Amendments

  Versions
(1 version)
 
Dec 29 2014 onwards

11.4.6 Qualifying Letter of Credit

(1) For the purpose of Rule 11.4, a Trading Member may include 1 or more Qualifying Letter(s) of Credit in its calculation of aggregate resources, subject to the total amount payable under the Qualifying Letter(s) of Credit or 50% of the Trading Member's total risk requirement, whichever is lower.
(2) For the purpose of Rule 11.4.6(1), a Qualifying Letter of Credit is a legally enforceable and irrevocable letter of credit that is made:—
(a) (i) in the case of a Trading Member who is not a Clearing Member, in favour of SGX-ST; or (ii) in the case of a Trading Member who is also a Clearing Member, in favour of CDP; and
(b) issued by a bank approved by, and in a form acceptable to SGX-ST or CDP, as the case may be;
but does not include any letters of credit provided by the Clearing Member to satisfy Rule 7 of the Clearing Rules of CDP or any other requirement imposed by CDP.
(3) SGX-ST shall reserve the right to call on any of the letter(s) of credit made in favour of SGX-ST pursuant to Rule 11.4.6 and apply the proceeds thereof in respect of the Trading Member's default to SGX-ST.

Added on 29 December 2014.