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

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  • 2.28A Clearing Arrangements with Trading Members

    Added on 11 January 2011.

    • 2.28A.1

      In order to clear the trades of a Trading Member, a Clearing Member shall:—

      2.28A.1.1 inform the Clearing House of such clearing arrangement with the Trading Member, and if the Clearing House requests, such details of the Trading Member as the Clearing House may from time to time specify;
      2.28A.1.2 pay such administrative fee as the Clearing House may from time to time levy for the processing of such applications;
      2.28A.1.3 satisfy the Clearing House that it has in place adequate internal control measures and risk management systems, including automated pre-execution credit control checks, to monitor the Trading Member's trades and manage its risk exposure to such trades;
      2.28A.1.4 enter into a written agreement with the Trading Member setting out the terms and conditions governing their relationship, which shall include without limitation, risk management provisions such as the right to impose trading limits on the Trading Member;
      2.28A.1.5 undertake to inform the Clearing House if it has knowledge or has reasons to believe that a Trading Member whom it has a clearing arrangement with has defaulted or may default in any of its obligations under the trades transacted by the Trading Member; and
      2.28A.1.6 have processes in place to minimise and manage any conflicts of interest, including but not limited to separating its front office and back office functions.

      Added on 11 January 2011 and amended on 15 March 2013.

    • 2.28A.2

      If a Clearing Member wishes to cease clearing the trades of its Trading Member, it shall:—

      2.28A.2.1 give not less than 30 days' written notice (or such shorter period as the Clearing House may from time to time deem acceptable) to the Clearing House of its intention to cease clearing the trades of that Trading Member and the proposed date of cessation, provided always that the Clearing House may waive such notice requirement at any time with respect to any Clearing Member;
      2.28A.2.2 satisfy the Clearing House that it has taken before the proposed date of cessation proper steps to disable the Trading Member from entering into trades to be cleared by the Clearing Member;
      2.28A.2.3 satisfy the Clearing House that it has taken, or will take, proper steps for the orderly clearing and settlement of the Trading Member's trades;
      2.28A.2.4 comply with any reasonable direction of the Clearing House in relation to the orderly cessation of the clearing of the Trading Member's trades; and
      2.28A.2.5 take such steps including without limitation, procedural steps (whether of a technical or non-technical nature or otherwise) as the Clearing House may deem appropriate to ensure that none of the Trading Member's trades will be cleared and settled through the Clearing Member by the proposed date of cessation.

      Added on 11 January 2011.

    • 2.28A.3

      If a Clearing Member wishes to suspend its clearing arrangement with a Trading Member, it shall:—

      2.28A.3.1 notify the Clearing House of its decision to suspend its clearing arrangement with that Trading Member; and
      2.28A.3.2 comply with any reasonable direction of the Clearing House in relation to the suspension of the clearing of the Trading Member's trades.

      Added on 11 January 2011.

    • 2.28A.4

      A Clearing Member may suspend its clearing arrangement with a Trading Member for not more than 30 days. Before the end of the 30-day period, the Clearing Member must notify the Clearing House in writing of its intention to either resume with the clearing arrangement or cease clearing for the Trading Member. Where the Clearing Member intends to cease clearing for the Trading Member, Rule 2.28A.2 shall apply.

      Added on 11 January 2011.

    • 2.28A.5

      Notwithstanding the cessation or suspension of the clearing arrangement, the Clearing Member shall clear and settle all the trades of the Trading Member which are done right up to the point when the Trading Member has been disabled from entering trades to be cleared by the Clearing Member.

      Added on 11 January 2011.