Rulebooks: Contents

Rulebooks
Mainboard Rules
Catalist Rules
SGX-ST Rules
CDP Clearing Rules
Rule 1 — Application and Definitions
Rule 2 — Administration
Rule 3 — Membership
Rule 4 — Appointment of Chief Executive Officers and Directors
Rule 5 — Financial/Capital Requirements
Rule 5A — Position Accounts
Rule 6 — Clearing and Settlement between Clearing Members and CDP
Rule 6A — Margin Requirements
Rule 6B — Collateral
Rule 6C — Payments
Rule 7 — Clearing Fund
Rule 8 — Default Rules
Rule 9 — Suspension or Restriction of Clearing
Rule 10 — Liabilities
Rule 11 — Supervisory Rules
Rule 12 — Foreign Market Links
Rule 13 — General
Rule 14 — Transitional Provisions
Appendices
Regulatory Notices to CDP Clearing Rules
Practice Notes
Schedules
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
Rule Amendments

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  • Rule 7 — Clearing Fund

    • 7.1 Establishment of Clearing Fund

      • 7.1.1

        CDP shall establish and maintain a fund to be called the Clearing Fund.

      • 7.1.2

        The assets of the Clearing Fund shall be vested in CDP but shall be segregated from CDP's other property and shall be held by CDP on trust for the purposes set out in these Clearing Rules.

      • 7.1.3

        The Clearing Fund shall comprise:—

        (1) Contributions by Clearing Members;
        (2) CDP Contribution (as defined in Rule 7.4.1);
        (3) moneys paid by an insurer under a contract of insurance (if any) entered into by CDP under Rule 7.5; and
        (4) any other contributions to the Clearing Fund.

        Amended on 3 May 2011

    • 7.2 Contributions by Clearing Members

      • 7.2.1

        Except as otherwise provided in this Clearing Rules or as determined by CDP, each Clearing Member shall pay to CDP such amounts as may be determined under this Clearing Rules or as determined by CDP in its absolute discretion (the "Contribution") in respect of every Exchange Trade cleared and/or settled by the Clearing Member herein. Each Clearing Member shall pay to CDP its Contribution to the Clearing Fund by such time or times as stipulated by CDP.

        Amended on 1 July 2008 and 3 May 2011.

      • 7.2.1A

        The Contribution of a Clearing Member shall consist of the Collateralised Contribution and the Contingent Contribution. Each Clearing Member shall pay:

        (1) in respect of the Contribution, an amount as specified by CDP from time to time, in its discretion which shall not exceed 0.9 basis points of the Clearing Member's Turnover;
        (2) in respect of the Collateralised Contribution, an amount as specified by CDP from time to time, in its discretion which shall not exceed 0.6 basis points of the Clearing Member's Turnover; and
        (3) in respect of the Contingent Contribution, an amount which is determined by the rate which is the difference between the Contribution rate as specified by CDP under Rule 7.2.1A(1) and the Collateralised Contribution rate as specified by CDP under Rule 7.2.1A(2).

        Added on 3 May 2011

      • 7.2.2

        The aggregate Collateralised Contributions from Clearing Members shall at all times be at least $40 million or such lower amount as may be specified by CDP from time to time in its discretion.

        Amended on 1 January 2010, 3 May 2011.

      • 7.2.3

        Notwithstanding Rule 7.2.1A:

        (1) A Clearing Member's Collateralised Contribution shall be at least $500,000, or such lower amount as may be specified by CDP from time to time in its discretion; and
        (2) If the aggregate Collateralised Contributions from all Clearing Members do not meet the minimum amount specified in Rule 7.2.2, the shortfall shall be contributed by each Clearing Member according to its Proportion.

        Amended on 3 May 2011 and 21 January 2013.

      • 7.2.4

        Where there is reason to believe that the operations of the Clearing Member is or is likely to be impaired by any event or circumstances, or such action is in the interests of maintaining a safe and efficient clearing facility, CDP may require:

        (1) such additional amounts to be paid as a top-up to the Contribution of the Clearing Member as it may, in its absolute discretion, decide; or
        (2) a Clearing Member's Contingent Contribution to be deposited with CDP; or
        (3) both.

        Amended on 1 January 2010 and 3 May 2011.

      • 7.2.5

        CDP shall notify each Clearing Member in writing of its Contribution required under Rules 7.2.1A and 7.2.4.

        Added on 3 May 2011

    • 7.3 Form of Contributions

      • 7.3.1

        Each Clearing Member shall provide its Contribution in cash or in such other forms and subject to such conditions as may be prescribed by CDP from time to time. Such Contribution shall form part of the assets of the Clearing Fund.

        Amended on 1 July 2008 and 3 May 2011.

      • 7.3.2

        Where a Clearing Member provides its Contribution (or any part thereof) in the form of cash, CDP shall place the entire cash amount in an interest-bearing account with its bankers. CDP shall not be obliged to segregate the cash Contributions and may commingle cash Contributions for ease of administration.

      • 7.3.3 [Rule has been deleted.]

        Deleted on 21 January 2013.

      • 7.3.4

        CDP shall have the absolute discretion to decide upon the bank or banks with which the cash Contributions are to be placed on deposit and the terms of deposit, provided that any such bank shall be a licensed bank in Singapore within the meaning of the Banking Act (Cap. 19).

      • 7.3.5

        Save for manifest error, CDP's records shall be conclusive and binding on a Clearing Member as to its Contributions. Notwithstanding any manifest error in CDP's records, or any dispute in relation to such records, a Clearing Member shall provide, in accordance with these Clearing Rules, such Contributions as required by CDP, and any rectification shall be done as soon as practicable after the dispute is resolved.

        Added on 10 December 2018.

    • 7.4 Contributions by CDP

      • 7.4.1

        Contributions by CDP shall be an amount not less than 25% of the clearing fund size, as determined by CDP, and shall consist of:

        (1) an amount not less than 15% of the clearing fund size or $30 million, whichever is the higher (the "CDP Contribution"), to be applied pursuant to Rule 7.9.1(2); and
        (2) such other sums referred to in Rule 7.1.3(4), to be applied pursuant to 7.9.1(6).

        Amended on 1 January 2010 and 3 May 2011.

      • 7.4.2

        Contribution by CDP shall be in the form of cash or in such other form and subject to such conditions as may be determined by CDP. If any contributions by CDP (or any part thereof) is in the form of cash, such cash amount shall be placed in an interest bearing account with CDP's bankers and the entire interest earned on such contributions (or such part thereof) shall be paid to CDP.

        Amended on 3 May 2011

      • 7.4.3 [Rule has been deleted.]

        Deleted on 21 January 2013.

      • 7.4.4

        CDP shall have the absolute discretion to decide upon the bank or banks with which the cash portion of contributions by CDP is to be placed on deposit and the terms of deposit, provided that any such bank shall be a licensed bank in Singapore within the meaning of the Banking Act (Cap. 19).

        Amended on 3 May 2011

    • 7.5 Insurance Policy

      • 7.5.1

        CDP may take out a policy of insurance in respect of the Clearing Fund for such amount and with such insurer as it may, at its absolute discretion, determine and on such terms and conditions as it shall, at its absolute discretion, deem fit.

        Amended on 3 May 2011

      • 7.5.2

        The premium payable on such insurance policy and any other related costs and expenses shall be payable by CDP, provided always that CDP may, at its absolute discretion, require Clearing Members to reimburse it in respect of such moneys paid, in the Proportion, or in such other manner as CDP may, at its absolute discretion, consider fair and appropriate.

    • 7.6 CDP'S Standby Line of Credit [Rule has been deleted.]

      Deleted on 3 May 2011.

      • 7.6.1 [Rule has been deleted.]

        Deleted on 3 May 2011.

    • 7.7 Investment of Assets of Clearing Fund

      • 7.7.1

        CDP may invest the assets and resources of the Clearing Fund in such manner as it shall deem fit.

      • 7.7.2 [Rule has been deleted.]

        Deleted on 21 January 2013.

      • 7.7.3

        CDP may appoint such persons as it may deem suitably qualified to invest the assets and resources of the Clearing Fund.

      • 7.7.4

        CDP, if acting in good faith and in the absence of fraud or wilful misconduct on its part, shall not be liable for any losses in the investment of the assets or resources of the Clearing Fund.

    • 7.7A Interest and fees

      • 7.7A.1

        Each Clearing Member shall pay CDP such administrative fees as may be prescribed by CDP and notified to the Clearing Member from time to time for the investment and management of the assets of the Clearing Fund and any excess monies or assets placed with CDP in respect of the Clearing Fund. Administrative fees may be deducted from the interest on the assets of the Clearing Fund, and on any excess monies or assets placed with CDP in respect of the Clearing Fund, payable to the Clearing Member by CDP pursuant to this Rule 7.7A or paid directly to CDP as determined by CDP.

        Added on 21 January 2013.

      • 7.7A.2

        Interest and any other sums accruing to the assets of the Clearing Fund shall not form part of the assets of the Clearing Fund.

        Added on 21 January 2013.

      • 7.7A.3

        CDP shall pay the Clearing Member interest on their respective Contributions and on any excess monies or assets placed with CDP in respect of the Clearing Fund at such rate and in such manner as prescribed by CDP and notified to the Clearing Member.

        Added on 21 January 2013.

      • 7.7A.4

        Except as set forth in this Rule, CDP shall have no obligation to make payment of any other fees, interest and investment earnings arising from or in connection with the assets of the Clearing Fund, and any excess monies or assets placed with CDP in respect of the Clearing Fund, to any person.

        Added on 21 January 2013.

    • 7.8 Application of Clearing Fund

      • 7.8.1

        Subject to Rule 7.8.2 and unless otherwise provided in the Clearing Rules or as determined by CDP, the Clearing Fund may be applied:—

        (1) to make good all losses suffered by CDP as a result of the breach by a Defaulting Clearing Member of any of its Novated Contracts;
        (2) to make good any shortfall (resulting from the inapplicability of Rule 6.4 to the New Purchase Contracts and New Sale Contracts) of moneys payable by CDP to the other Clearing Members pursuant to Rule 6.4; and
        (3) in respect of the obligations and liabilities of CDP arising out of the Novated Contracts (including but not limited to the costs and expenses incurred in relation to making recoveries from a Defaulting Clearing Member and in relation to any action taken by CDP pursuant to Rule 8).

        Amended on 23 January 2009 and 21 January 2013.

      • 7.8.2

        CDP shall apply the Clearing Fund only after the Defaulting Clearing Member's Collateral deposited with or provided to CDP has been fully applied to satisfy the obligations of the Clearing Member to CDP in accordance with Rule 8.6B.

        Added on 21 January 2013.

    • 7.9 Order of Application of Contributions

      • 7.9.1

        Subject to the provisions of Rule 7.9, payments out of the Clearing Fund shall be in the following order:—

        (1) firstly, against the Contributions made by the Defaulting Clearing Member;
        (2) secondly, against CDP Contributions;
        (3) thirdly, against the Collateralised Contributions required from all other non-Defaulting Clearing Members on a pro rata basis of each Clearing Member's required Collateralised Contribution to the aggregate required Collateralised Contributions made by all other non-Defaulting Clearing Members';
        (4) fourthly, against the Contingent Contributions required from all other non-Defaulting Clearing Members on a pro rata basis of each Clearing Member's required Contingent Contribution to the aggregate required Contingent Contributions made by all other non-Defaulting Clearing Members';
        (5) fifthly, against such policy(ies) of insurance (if any) as may be in effect at the time; and
        (6) lastly, against any other contributions to the Clearing Fund,

        (the "Order", and each stage thereof shall be referred to as a "Stage" of the Order or as a certain "Stage of the Order").

        Amended on 3 May 2011

      • 7.9.2

        Subject to Rule 7.9.2 and Rule 7.9.3, in any Relevant Period, the Order shall be followed irrespective of the number of drawings on the Clearing Fund. In such Relevant Period, in the event that a drawing on the Clearing Fund shall draw on part only of the funds available at any Stage under Rules 7.9.1(2) to (6) of the Order (the "Unexhausted Stage") (whether or not funds from a previous Stage or previous Stages have also been drawn upon for that drawing), the next drawing on the Clearing Fund in the Relevant Period shall, after exhausting the Contributions made by the Defaulting Clearing Member in the Stage under Rule 7.9.1(1), draw first from the remaining funds available at the Unexhausted Stage before drawing from the next Stage(s) of the Order.

        Amended on 3 May 2011

      • 7.9.3

        Once all the Stages of the Order have been exhausted in any Relevant Period, any current or subsequent drawing on the Clearing Fund in that Relevant Period shall revert to the strict sequence of the Order, provided always that:—

        (1) (subject to Rule 7.12) CDP shall not be required to top up the CDP Contribution, once paid out in full. Nothing in this Rule prevents CDP from topping up the CDP Contribution, in such amounts as CDP may determine, during any Relevant Period or upon commencement of a new Relevant Period; and
        (2) the policy(ies) of insurance (referred to in Rule 7.9.1(5)), once paid out in full in any Relevant Period, may have limitations on the time periods during which the insured amount, after having been fully paid out in that Relevant Period, will be next available for payment out of the Clearing Fund (whether in that Relevant Period or the next Relevant Period), and any such current or subsequent drawing will be subject to any terms and conditions of the policy(ies) of insurance.

        Amended on 3 May 2011

      • 7.9.4

        Upon the commencement of a new Relevant Period, regardless of the Stage of the Order from which the last payment out from the Clearing Fund was made in the previous Relevant Period, the first drawing on the Clearing Fund in the new Relevant Period shall revert to the first Stage of the Order in Rule 7.9.1(1) and the subsequent Stages of the Order shall follow accordingly, provided always that subject to Rule 7.12, CDP shall not be required to top up the CDP Contribution, once paid out in full. Nothing in this Rule prevents CDP from topping up the CDP Contribution, in such amounts as CDP may determine, during any Relevant Period or upon the commencement of a new Relevant Period.

        Amended on 3 May 2011

      • 7.9.5

        Notwithstanding Rule 7.9.1, CDP shall be entitled to draw upon its available lines of credit or other such liquidity resources available to CDP at any time for the purposes set out in Rule 7.8 in the event that there is any delay in obtaining payment from the Clearing Fund in any Stage of the Order, such delays arising for example, where the cash deposits of the Clearing Fund are placed in fixed deposit accounts and penalty charges may be incurred for the premature termination of the fixed deposit accounts or arising out of the realisation or disposal of the resources and assets of the Clearing Fund or delay in obtaining payment from the policies, guarantees or other facilities of the Clearing Fund or where CDP, in its absolute discretion, deems it advisable to draw upon its available lines of credit or other such liquidity resources available to CDP first.

        Amended on 3 May 2011

      • 7.9.6

        Where the CDP draws down on any lines of credit or other such liquidity resources available to CDP pursuant to Rule 7.9.5, CDP shall be entitled to be reimbursed for this amount and all costs in relation to drawing down such lines of credit or other such liquidity resources available to CDP from the moneys which are eventually obtained from any relevant Stage of the Order.

        Amended on 3 May 2011.

    • 7.10 Top-Up of Clearing Member's Contributions in an Event of Default

      Amended on 3 May 2011

      • 7.10.1

        CDP shall notify a Clearing Member in writing whenever its Contribution (or any part thereof) is applied in accordance with Rule 7.9.1.

      • 7.10.2

        A Defaulting Clearing Member shall reimburse the Clearing Fund for any amount (except such Contributions made by the Defaulting Clearing Member) which was applied out of the Clearing Fund (the "Default Amount") as a result of his default.

      • 7.10.3

        If any amount is paid out of a Clearing Member's Contributions pursuant to the third Stage of the Order in Rule 7.9.1(3) or fourth stage of the Order in Rule 7.9.1(4), the Clearing Member shall, upon demand by CDP, top-up the deficiency in its Contribution arising from the said payment. CDP shall notify each of the Clearing Members in writing of the amount payable by it to CDP under this Rule.

        Amended on 1 July 2008 and 3 May 2011.

    • 7.11 Resignation

      • 7.11.1

        A Clearing Member who is required to make any payment to the Clearing Fund pursuant to Rule 7.10, may resign in accordance with Rule 3.11 to CDP after settlement of such payment.

      • 7.11.2

        From the date of receipt by CDP of the resignation notice, such Clearing Member's aggregate liability to make payment into the Clearing Fund by reason of events occurring before the termination of its status as a Clearing Member shall not exceed an amount equal to its required Contribution at the date of the resignation notice, plus 2 times such amount.

    • 7.12 Recovery of Sums

      • 7.12.1

        Subject to the provisions of this Rule, if any amount paid out of the Clearing Fund pursuant to Rule 7.8 and in accordance with Rule 7.9 is subsequently recovered by CDP in whole or in part, CDP shall credit the amount so received to the Clearing Fund in the reverse of the Order in which it was paid out. Where Contributions by Clearing Members had been paid out of the Clearing Fund, the amount so received for the relevant Stage of the Order shall be paid back to such Clearing Members on a pro-rata basis of each Clearing Member's required Contribution to the aggregate required Contributions from all Clearing Members other than the Defaulting Clearing Member for that relevant Stage of the Order, provided that if any Clearing Member has not paid any part of the moneys required to be paid into the Clearing Fund pursuant to Rule 7.10, such Clearing Member's Contribution of such amount shall be paid first into the Clearing Fund together with any interest accruing thereon from the date such amount was due to date of actual payment of such amount, and any excess shall be paid back to such Clearing Member. Where contributions by CDP have been paid out of the Clearing Fund, the amount so received shall be paid towards the relevant stage of the Order and not to CDP.

        Amended on 3 May 2011.

      • 7.12.2

        Where insurance moneys have been paid out of the Clearing Fund in any Relevant Period, any recovered moneys shall notwithstanding Rule 7.12.1 above:—

        (1) if the recovery is made in that Relevant Period, be paid to the insurer provided that the insurer agrees that the recovered moneys shall be used to reset the applicable limits on insurance coverage for the Relevant Period under the insurance policy; and
        (2) if the recovery is not made in that Relevant Period and:—
        (a) no other drawing has subsequently been made on the Clearing Fund whether or not in that Relevant Period), be paid to the insurer; or
        (b) drawings have subsequently been made on the Clearing Fund (whether or not in that Relevant Period), be paid in the reverse of the Stages of the Order in which such drawings were made if moneys have not already been recovered for such Stages, and any excess shall be paid to the insurer.

    • 7.13 Return of Contributions

      • 7.13.1

        Within 6 months of the termination of membership of the Clearing Member, provided that all liabilities of such Clearing Member to CDP at the time of termination, whether actual or contingent, shall have been satisfied or paid for in full, CDP may return to the Clearing Member the balance of its Contribution (taking into account any pending and previous applications of the Clearing Fund at the time of such termination).

    • 7.14 Calculation of Variable Deposit [Rule has been deleted.]

      Deleted on 3 May 2011.

      • 7.14.1 [Rule has been deleted.]

        Deleted on 3 May 2011.

      • 7.14.2 [Rule has been deleted.]

        Deleted on 3 May 2011.

      • 7.14.3 [Rule has been deleted.]

        Deleted on 3 May 2011.

      • 7.14.4 [Rule has been deleted.]

        Deleted on 3 May 2011.

      • 7.14.5 [Rule has been deleted.]

        Deleted on 3 May 2011.

    • 7.15 Time of Payment of Contributions

      • 7.15.1

        Clearing Members shall pay any amount required by CDP as its Collateralised Contribution or as a top-up to its Collateralised Contribution promptly within 3 Settlement Days after the date of the written notice from CDP requiring such payment, or within such other period as may from time to time be determined by CDP.

        Amended on 3 May 2011.

      • 7.15.1A

        Clearing Members shall pay any amount required to be deposited with CDP as its Contingent Contribution or as a top-up to its Contingent Contribution promptly, within such time as specified in the written notice from CDP requiring such payment.

        Added on 3 May 2011.

      • 7.15.2

        CDP shall be entitled to charge interest (at such rates and upon such terms, as it may in its absolute discretion determine) on any amount payable by a Clearing Member as its Contribution or as a top-up to its Contribution at such rate as may be determined by CDP in the event that such Clearing Member does not pay the required amount in accordance with these Clearing Rules.