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
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

7A.06.2 Security Deposit

Past version: effective from Aug 7 2012 - Nov 7 2012.
To view other versions open the versions tab on the right.

7A.06.2.1 Upon being granted eligibility by the Clearing House to clear a relevant Contract Class, each Clearing Member wishing to clear that Contract Class shall deposit with the Clearing House as security for its obligations to the Clearing House ("Security Deposit") the following amounts:
A. for clearing Contracts which are listed for trading on the Exchange or any Relevant Market and/or OTC Contracts, the higher of:
a. S$1,000,000 or such lower amount as prescribed by the Clearing House time to time in its discretion; or
b. 3.0%, or such lower amount as prescribed by the Clearing House from time to time in its discretion, of the daily average of the risk margin of such Clearing Member during the preceding three month period;
B. for clearing OTCF Contracts, the higher of:
a. US$5 million; or
b. 3.0%, or such lower amount as prescribed by the Clearing House from time to time in its discretion, the daily average of the risk margin of such Clearing Member for such OTCF Contracts during the preceding three month period; or
C. for clearing (i) Contracts which are listed for trading on the Exchange or any Relevant Market and/or OTC Contracts, and (ii) OTCF Contracts, the sum of the amounts set out in Rule 7A.06.2.1.A AND 7A.06.2.1.B.
7A.06.2.2 The Security Deposit shall be in the following forms:
A. for clearing Contracts traded on the Exchange or any Relevant Market or OTC Contracts, cash, government securities or an irrevocable Letter of Credit in a form and from a bank acceptable to the Clearing House;
B. for clearing OTCF Contracts, cash or government securities; and
C. for clearing both (i) Contracts which are listed for trading on the Exchange or any Relevant Market and/or OTC Contracts, and (ii) OTCF Contracts, a combination of:
a. any of the forms of collateral set out in Rule 7A.06.2.2.A in respect of the Security Deposit amount required for clearing Contracts listed for trading on the Exchange or any Relevant Market and/or OTC Contracts; AND
b. any of the forms of collateral set out in Rule 7A.06.2.2.B in respect of the Security Deposit amount required for clearing OTCF Contracts, or any other securities acceptable to the Clearing House from time to time.
7A.06.2.3 Letters of Credit, government securities or any other security acceptable to the Clearing House shall not exceed a prescribed proportion of the Security Deposit, as the Clearing House may specify from time to time in its discretion.
7A.06.2.4 This deposit may be withdrawn when such Clearing Member ceases to be a Clearing Member if, in the opinion of the Clearing House, all Contracts and obligations of such Clearing Member with the Clearing House have been settled and all sums owing to the Clearing House have been paid.

Added on 7 August 2012.