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
2.29 [Rule has been deleted.]
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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  • Chapter 2 Clearing Membership

    • 2.01 General

      • 2.01.1

        No Clearing Member shall have any right to receive notices of any General Meetings required to be given under the Articles of Association of the Clearing House, to attend thereat or to vote thereat or to participate in the assets or profits of the Clearing House.

      • 2.01.2 [Rule has been deleted.]

        Deleted on 27 March 2006.

      • 2.01.3

        Clearing Membership to the Clearing House shall comprise such classes of Clearing Membership as may from time to time be provided in this Rules. All Clearing Memberships to the Clearing House are granted pursuant, and subject, to this Rules and such other terms and conditions as may be imposed at the Clearing House's discretion.

        Amended on 27 March 2006.

      • 2.01.4

        The Clearing Membership of each Clearing Member is conditional upon such Clearing Member being subject to and bound by this Rules and such other terms and conditions as may be specified in the Clearing Membership certificate issued to such Clearing Member or such other terms as may be prescribed by the Clearing House.

        Amended on 27 March 2006.

      • 2.01.5

        Any member of the Exchange, whose name validly remains on the Register of Members of the Exchange as a "Clearing Member" under the Trading Rules at the close of business on the Qualifying Date shall, subject to this Rules, be deemed to be a Clearing Member on and from the Transfer Date.

      • 2.01.6

        All relevant membership certificates issued to such Clearing Members of the Exchange and in effect on the Qualifying Date shall be deemed to continue in full force and effect on and after the Transfer Date as if issued by the Clearing House subject to this Rules.

      • 2.01.7

        In consideration of such recognition and continued registration, such Clearing Members shall be deemed thereby to have agreed that they shall observe, comply with and be bound by this Rules and such other terms and conditions as may be specified by the Clearing House. Such Clearing Members shall have the same rights and obligations applicable to them on the Qualifying Date, subject only to such amendments provided under this Rules.

        Amended on 27 March 2006.

    • 2.02 Eligibility Criteria for General Clearing Members

      • 2.02.1

        Unless otherwise prescribed by the Clearing House, to be eligible for Clearing Membership as a General Clearing Member, an applicant must satisfy the Clearing House that:—

        2.02.1.1 it is a corporation with the requisite financial and business standing and repute and is or will upon admission be carrying on the business whether in Singapore or elsewhere;
        a. it has a base capital of not less than S$5,000,000; or
        b. in the case of an applicant admitted as a clearing member of the Clearing House and CDP, it has a base capital of not less than S$8,000,000;
        or such other capital and financial requirements as may be prescribed by the Clearing House from time to time;
        2.02.1.2 [Rule has been deleted];
        2.02.1.2A it holds a Capital Markets Services Licence unless exempted under the SFA or SFR (Licensing and Conduct of Business);
        2.02.1.3 it has, and upon admission will maintain, minimum capital and financial requirements pursuant to Rule 2.07 or Rule 2.08;
        2.02.1.4 it has, and upon admission will maintain, a special reserve fund pursuant to Rule 2.09 or Rule 2.10, as the case may be;
        2.02.1.5 its managerial or executive staff have a high standard of integrity and a level of knowledge (as may be deemed acceptable by the Clearing House) on the nature, risks and obligations in respect of the market or contracts that it wishes to clear;
        2.02.1.6 it must have in place sufficient resources and establish and maintain adequate systems for preserving a sound liquidity and financial position at all times including the maintaining of adequate staff and facilities for monitoring its cashflow and funding requirements and maintaining sufficient liquidity for its day to day operations;
        2.02.1.7 it must maintain segregated and adequate back-office functions; and
        2.02.1.8 it satisfies any and all other requirements and criteria for such Clearing Membership, which the Clearing House may from time to time hereafter prescribe.

        Amended on 27 March 2006, 22 September 2006, 10 August 2007, 31 December 2013 and 29 December 2014.

      • 2.02.2

        Unless otherwise prescribed by the Clearing House, to be eligible for Clearing Membership as a General Clearing Member that clears (i) House OTCF Contracts or (ii) House OTCF Contracts and Customer OTCF Contracts, an applicant must, in addition to the eligibility criteria prescribed under Rule 2.02.1, satisfy the Clearing House that:

        2.02.2.1 it has a base capital of not less than S$50,000,000 or such other capital and financial requirements as may be prescribed by the Clearing House from time to time;
        2.02.2.2 it or its holding company:
        a. is licensed and/or regulated by a financial authority; and
        b. has obtained a long term credit rating that indicates, at least, a strong overall creditworthiness supporting the fulfilment of its financial obligations;
        2.02.2.3 it has obtained a guarantee in a form acceptable to the Clearing House from a bank that:
        a. is licensed and/or regulated as such by a financial authority; and
        b. has obtained a long term credit rating that indicates, at least, a strong overall creditworthiness supporting the fulfilment of its financial obligations, and a credit rating that indicates, at least, adequate intrinsic safety and soundness, excluding external credit support, and a limited ability to withstand adverse business or economic conditions, from any rating agency registered with an appropriate authority; and
        2.02.2.4 it has in place the appropriate procedures and capabilities to participate in the default management activities contemplated under Rule 7A.02.1.5.

        Added on 3 November 2010 and amended on 26 April 2013 and 31 December 2013.

      • 2.02.2A

        Unless otherwise prescribed by the Clearing House, to be eligible for Clearing Membership as a General Clearing Member that clears only Customer OTCF Contracts, an applicant must, in addition to the eligibility criteria prescribed under Rule 2.02.1, satisfy the Clearing House that:

        2.02.2A.1 it has a base capital of not less than S$50,000,000 or such other capital and financial requirements as may be prescribed by the Clearing House from time to time;
        2.02.2A.2 it has in place the appropriate procedures and capabilities to participate in the default management activities contemplated under Rule 7A.02.1.5;
        2.02.2A.3 it or its holding company:
        a. is licensed and/or regulated by a financial authority; and
        b. has obtained a long term rating from any rating agency registered with an appropriate authority that indicates, at least, a strong overall creditworthiness supporting the fulfilment of its financial obligations; and
        2.02.2A.4 it has obtained a guarantee in a form acceptable to the Clearing House from a bank or its holding company, provided that such bank or holding company:
        a. is licensed and/or regulated by a financial authority; and
        b. has obtained:
        i. a long term rating from any registered rating agency that indicates, at least, a strong overall creditworthiness supporting the fulfilment of its financial obligations; and
        ii. in the case of a bank, a rating that indicates, at least, adequate intrinsic safety and soundness, excluding external credit support, and a limited ability to withstand adverse business or economic conditions.

        Added on 31 December 2013.

      • 2.02.3

        If there is at any time any downgrade in the rating of a General Clearing Member approved by the Clearing House to clear OTCF Contracts or, as the case may be, its holding company, such that it falls below the minimum prescribed rating, the Clearing House may, in its absolute discretion, impose additional conditions as it deems fit for permitting the General Clearing Member to continue to clear OTCF Contracts.

        Added on 3 November 2010 and amended on 31 December 2013.

    • 2.02A Eligibility Criteria for Direct Clearing Members

      • 2.02A.1

        Unless otherwise prescribed by the Clearing House, to be eligible for Clearing Membership as a Direct Clearing Member, an applicant must satisfy the Clearing House that:—

        2.02A.1.1 it fulfills the criteria and requirements set out in Rule 2.02 (except for Rules 2.02.1.1.b and 2.02.1.4); and
        2.02A.1.2 it or its holding company has obtained a long term credit rating from any rating agency registered with an appropriate authority, that indicates, at least, a very strong overall creditworthiness supporting the fulfilment of its financial obligations.

        Added on 27 March 2006 and amended on 10 August 2007 and 26 April 2013.

      • 2.02A.2

        Upon admission as a Direct Clearing Member, if there is any downgrade in the rating of the Direct Clearing Member or its holding company such that it falls below the minimum prescribed rating, the Clearing House may, at its absolute discretion, impose additional conditions as it deems fit, for permitting the Direct Clearing Member to continue to clear Contracts through the Clearing House.

        Added on 27 March 2006 and amended on 10 August 2007.

    • 2.02B Eligibility Criteria for Bank Clearing Members

      • 2.02B.1

        Unless otherwise prescribed by the Clearing House, to be eligible for Clearing Membership as a Bank Clearing Member, an applicant must satisfy the Clearing House that:—

        2.02B.1.1 it is authorised to conduct banking business in Singapore pursuant to section 4 of the Banking Act (Chapter 19);
        2.02B.1.2 it or its parent bank has obtained:
        a. a long term credit rating that indicates, at least, a strong overall creditworthiness supporting the fulfilment of its financial obligations; and
        b. a credit rating that indicates, at least, adequate intrinsic safety and soundness, excluding external credit support, and a limited ability to withstand adverse business or economic conditions, from any rating agency registered with an appropriate authority.
        c. [Rule has been deleted.]
        d. [Rule has been deleted.]
        2.02B.1.3 [Rule has been deleted.]
        2.02B.1.4 it or its parent bank has, at the point of application, at least S$50,000,000 of base capital or net head office funds, as the case may be, and complies with such other capital and financial requirements as may be prescribed by the Clearing House from time to time;
        2.02B.1.4A it has in place the appropriate procedures and capabilities to participate in the default management activities contemplated under Rule 7A.02.1.5;
        2.02B.1.5 it has, and upon admission will maintain, minimum capital and financial requirements pursuant to Rule 2.07.1B or Rule 2.08.1B;
        2.02B.1.6 its managerial or executive staff have a high standard of integrity and a level of knowledge (as may be deemed acceptable by the Clearing House) on the nature, risks and obligations in respect of the market or contracts that it wishes to clear;
        2.02B.1.7 it must have in place sufficient resources and establish and maintain adequate systems for preserving a sound liquidity and financial position at all times including the maintaining of adequate staff and facilities for monitoring its cashflow and funding requirements and maintaining sufficient liquidity for its day to day operations governed by this Rules;
        2.02B.1.8 it must maintain segregated and adequate back-office functions in respect of its operations governed by this Rules;
        2.02B.1.9 it satisfies any and all other requirements and criteria for such Clearing Membership, which the Clearing House may from time to time hereafter prescribe; and
        2.02B.1.10 [Rule has been deleted.]
        2.02B.1.11 [Rule has been deleted.]

        Added on 10 August 2007 and amended on 10 May 2010, 3 November 2010, 26 April 2013, 31 December 2013 and 22 April 2019.

      • 2.02B.2

        Upon admission as a Bank Clearing Member, if there is any downgrade in the rating of the Bank Clearing Member or its parent bank such that it falls below the minimum prescribed rating, the Clearing House may, at its absolute discretion, impose additional conditions as it deems fit, for permitting the Bank Clearing Member to continue to clear Contracts through the Clearing House.

        Added on 10 August 2007.

      • 2.02B.3

        Rule 2.02B.1.4 shall not apply to a Bank Clearing Member who clears only OTCF Contracts (and not any other Contract Class).

        Added on 3 November 2010 and amended on 31 December 2013 and 22 April 2019.

    • 2.02C Eligibility Criteria for Remote Clearing Members

      • 2.02C.1

        Unless otherwise prescribed by the Clearing House, to be eligible for Clearing Membership as a Remote Clearing Member that clears (i) Non-Relevant Market Contracts, and/or (ii) Customer OTCF Contracts, an applicant must satisfy the Clearing House that:

        2.02C.1.1 it is licensed and regulated for the provision of clearing services by a recognised regulator of the jurisdiction for which it provides the remote clearing services, which shall be a jurisdiction outside of Singapore and acceptable to the Clearing House, and is governed by the laws of such jurisdiction;
        2.02C.1.2 it is not incorporated in Singapore, has no business presence in Singapore related to the provision of financial services (including clearing services) and does not serve Singapore domiciled customers in respect of such business;
        2.02C.1.3 it has a base capital of at least S$50,000,000 and complies with such other capital and financial requirements as may be prescribed by the Clearing House from time to time;
        2.02C.1.4 it has in place the appropriate procedures and capabilities to participate in the default management activities contemplated under Rule 7A.02.1.5;
        2.02C.1.5 it has, and upon admission will maintain, minimum capital and financial requirements pursuant to Rule 2.08;
        2.02C.1.6 its managerial or executive staff have a high standard of integrity and a level of knowledge (as may be deemed acceptable by the Clearing House) on the nature, risks and obligations in respect of the market or contracts that it wishes to clear;
        2.02C.1.7 it has in place sufficient resources and establishes and maintains adequate systems for preserving a sound liquidity and financial position at all times including the maintaining of adequate staff and facilities for monitoring its cashflow and funding requirements and maintaining sufficient liquidity for its day to day operations;
        2.02C.1.8 it maintains segregated and adequate back-office functions;
        2.02C.1.9 it has the ability to conduct its clearing activities, including the maintenance of adequate contactable staff, during the Clearing House's business hours; and
        2.02C.1.10 it satisfies any and all other requirements and criteria for such Clearing Membership, which the Clearing House may from time to time hereafter prescribe.

        Added on 31 December 2013.

      • 2.02C.2

        Unless otherwise prescribed by the Clearing House, to be eligible for Clearing Membership as a Remote Clearing Member that clears (i) Non-Relevant Market Contracts, and/or (ii) Customer OTCF Contracts, an applicant must, in addition to the eligibility criteria prescribed under Rule 2.02C.1, satisfy the Clearing House that:

        2.02C.2.1 it or its holding company:
        a. is licensed and regulated by a financial authority; and
        b. has a long term rating that indicates, at least, a strong overall creditworthiness supporting the fulfilment of its financial obligations from any rating agency registered with an appropriate authority;
        2.02C.2.2 it has obtained a guarantee in a form acceptable to the Clearing House from a bank or its holding company, provided that such bank or holding company:
        a. is licensed and/or regulated as such by a financial authority; and
        b. has obtained:
        i. a long term rating from any registered rating agency that indicates, at least, a strong overall creditworthiness supporting the fulfilment of its financial obligations; and
        ii. in the case of a bank, a rating that indicates, at least, adequate intrinsic safety and soundness, excluding external credit support, and a limited ability to withstand adverse business or economic conditions.

        Added on 31 December 2013.

      • 2.02C.3

        Unless otherwise prescribed by the Clearing House, to be eligible for Clearing Membership as a Remote Clearing Member that clears House OTCF Contracts, an applicant must, in addition to the eligibility criteria prescribed under Rule 2.02C.1, satisfy the Clearing House that:

        2.02C.3.1 it or its holding company:
        a. is licensed and/or regulated by a financial authority; and
        b. has obtained a long term rating from any registered rating agency that indicates, at least, a strong overall creditworthiness supporting the fulfilment of its financial obligations; and
        2.02C.3.2 it has obtained a guarantee in a form acceptable to the Clearing House from a bank that:
        a. is licensed and/or regulated as such by a financial authority; and
        b. has obtained:
        i. a long term rating from any registered rating agency that indicates, at least, a strong overall creditworthiness supporting the fulfilment of its financial obligations; and
        ii. a rating that indicates, at least, adequate intrinsic safety and soundness, excluding external credit support, and a limited ability to withstand adverse business or economic conditions.

        Added on 31 December 2013.

      • 2.02C.4

        If, at any time, the rating of a Remote Clearing Member or its holding company falls below the rating prescribed by and acceptable to the Clearing House, the Clearing House may in its absolute discretion impose additional conditions in permitting the Remote Clearing Member to continue its clearing activities.

        Added on 31 December 2013.

    • 2.02D Eligibility Criteria for FCM Clearing Members

      • 2.02D.1

        Unless otherwise prescribed by the Clearing House, to be eligible for Clearing Membership as an FCM Clearing Member, an applicant must, in addition to the relevant eligibility criteria prescribed under Rule 2.02, 2.02B or 2.02C, as the case may be, satisfy the Clearing House that:

        2.02D.1.1 it is properly registered as an FCM with the CFTC; and
        2.02D.1.2 it complies with all regulatory financial requirements (whether relating to capital, equity, risk or otherwise) applicable to it as an FCM, including without limitation the applicable requirements of CFTC Regulation 1.17 and Part 22 of the CFTC Regulations.

        Added on 31 December 2013.

    • 2.03 Honorary Clearing Membership

      • 2.03.1

        The Clearing House may invite any person of distinction to be an Honorary Clearing Member for such period and on such terms as it deems fit.

    • 2.04 Application

      • 2.04.1

        An application for Clearing Membership shall be made to the Clearing House and shall be in such form or forms as the Clearing House may from time to time hereafter prescribe. An applicant for Clearing Membership shall provide to the Clearing House such evidence as the Clearing House may require and shall pay such fees as the Clearing House may from time to time hereafter prescribe. The Clearing House may refuse an application for Clearing Membership.

    • 2.05 Admission

      • 2.05.1

        The Clearing House will endeavour to process, consider and decide upon an application to be a Clearing Member in a timely fashion, but owes no obligation to do so.

      • 2.05.2

        The Clearing House may require the applicant to provide such evidence as it may require and may require the applicant to be present at such time and place as the Clearing House requires. The Clearing House, if it deems necessary, may conduct such investigation and make enquiries upon the applicant and any information and particulars given by the applicant.

      • 2.05.3

        Upon approval of application being granted by the Clearing House, the Clearing House shall promptly notify the applicant in writing.

      • 2.05.4

        If the Clearing House refuses an application, it shall notify the applicant in writing of its decision and it shall not be required to give any reason to the applicant for its decision.

    • 2.06 Compliance

      • 2.06.1 Rules

        An applicant who has been admitted as a Clearing Member or deemed to have been admitted as a Clearing Member shall comply with this Rules. Without prejudice to the generality of the foregoing the criteria and requirements for Clearing Membership prescribed in this Rules and/or in the Clearing Membership certificate, and/or prescribed by the Clearing House from time to time shall continue to apply even after an applicant has been admitted as a Clearing Member or deemed to have been admitted as a Clearing Member and shall continue to apply during its Clearing Membership. A Clearing Member who fails to comply with such criteria and requirements shall be dealt with in such manner as the Clearing House deems appropriate, including but not limited to suspension of or expulsion from Clearing Membership.

        Amended on 27 March 2006.

      • 2.06.2 SFA

        Every Clearing Member which is licensed or is exempted from licensing but whose activities are still subject to regulation by the SFA and thus by the Authority shall comply with all applicable provisions of the SFA, and any applicable order, circular, direction or other requirement made by the Authority pursuant to the SFA, and shall procure that each of its directors, officers, agents, employees and representatives complies with the same.

        Violation of this Rule 2.06 may be a major offence.

        Amended on 27 March 2006.

    • 2.06A Reporting

      • 2.06A.1

        Except for a Bank Clearing Member, a Clearing Member must inform the Clearing House in writing immediately if it or any of its directors, officers, Registered Persons, employees, or agents:—

        2.06A.1.1 breaches the SFA, SFR or any other applicable laws;
        2.06A.1.2 breaches this Rules;
        2.06A.1.3 breaches any relevant law or regulation which governs that person's other business activities;
        2.06A.1.4 breaches the rules of any other exchange or clearing house;
        2.06A.1.5 breaches any provision involving fraud or dishonesty, whether in or out of Singapore;
        2.06A.1.6 breaches director's duties;
        2.06A.1.7 is the subject of a written complaint involving an allegation of fraud or dishonesty, whether in or out of Singapore;
        2.06A.1.8 is the subject of an investigation involving an allegation of fraud or dishonesty, whether in or out of Singapore;
        2.06A.1.9 is the subject of any disciplinary action taken by the Clearing Member involving suspension, termination, withholding of commissions, fines or any other significant limitation of activities;
        2.06A.1.10 engages in conduct that has the effect of circumventing the SFA, SFR, this Rules or any other applicable laws;
        2.06A.1.11 engages in conduct which is inconsistent with the principles of good business practice;
        2.06A.1.12 engages in conduct which is detrimental to the financial integrity, reputation or interests of the Clearing House, or clearing facilities established or operated by the Clearing House; or
        2.06A.1.13 is insolvent, or has been issued a bankruptcy or winding up proceeding.

        Amended on 27 March 2006, 3 November 2010 and 31 December 2013.

      • 2.06A.2

        A Bank Clearing Member must inform the Clearing House immediately in writing if it or any of its director(s) who is(are) resident in Singapore and/or responsible for its business governed by this Rules, officers, Registered Persons, employees, or agents, in respect of its business governed by this Rules, :—

        2.06A.2.1 breaches the SFA or SFR;
        2.06A.2.2 breaches this Rules;
        2.06A.2.3 breaches the rules of any other exchange or clearing house;
        2.06A.2.4 breaches any provision involving fraud or dishonesty, whether in or out of Singapore;
        2.06A.2.5 breaches director's duties;
        2.06A.2.6 is the subject of a written complaint involving an allegation of fraud or dishonesty, whether in or out of Singapore;
        2.06A.2.7 is the subject of an investigation involving an allegation of fraud or dishonesty, whether in or out of Singapore;
        2.06A.2.8 is the subject of any disciplinary action taken by the Clearing Member involving suspension, termination, withholding of commissions, fines or any other significant limitation of activities;
        2.06A.2.9 engages in conduct that has the effect of circumventing the SFA, SFR or this Rules;
        2.06A.2.10 engages in conduct which is inconsistent with the principles of good business practice;
        2.06A.2.11 engages in conduct which is detrimental to the financial integrity, reputation or interests of the Clearing House, or clearing facilities established or operated by the Clearing House; or
        2.06A.2.12 is insolvent, or has been issued a bankruptcy or winding up proceeding.

        Added on 3 November 2010.

    • 2.07 Minimum Capital and Financial Requirements of Clearing Members Incorporated in Singapore

      • 2.07.1

        Each General Clearing Member incorporated in Singapore shall at all times :—

        2.07.1.1 Base Capital Requirement
        a. maintain a base capital of not less than S$5,000,000;
        b. in the case of a General Clearing Member who is also a clearing member of CDP, maintain a base capital of not less than S$8,000,000; or
        c. in the case of a General Clearing Member who wishes to clear OTCF Contracts, maintain a base capital of not less than S$50,000,000;
        or such other amount as may be prescribed by the Clearing House from time to time.
        2.07.1.2 Financial Resources Requirement

        not cause or permit its financial resources to fall below its total risk requirement;
        2.07.1.3 Aggregate Indebtedness Requirement

        not cause or permit its aggregate indebtedness to exceed 1,200% of its aggregate resources; and
        2.07.1.4 Other Requirements

        comply with the accounting, reporting, book-keeping and any other financial and operational requirements prescribed by the Clearing House.

        Amended on 27 March 2006, 10 August 2007 and 3 November 2010.

      • 2.07.1A

        Each Direct Clearing Member incorporated in Singapore shall at all times:—

        2.07.1A.1 Base Capital Requirement
        maintain a base capital of not less than S$5,000,000;
        2.07.1A.2 Financial Resources Requirement
        not cause or permit its financial resources to fall below its total risk requirement;
        2.07.1A.3 Aggregate Indebtedness Requirement
        not cause or permit its aggregate indebtedness to exceed 1,200% of its aggregate resources; and
        2.07.1A.4 Other Requirements
        comply with the accounting, reporting, book-keeping and any other financial and operational requirements prescribed by the Clearing House.

        Added on 27 March 2006 and amended on 10 August 2007.

      • 2.07.1B

        Each Bank Clearing Member incorporated in Singapore shall at all times:—

        2.07.1B.1 Base Capital Requirement
        a. maintain a base capital of not less than S$5,000,000; or
        b. in the case of a Bank Clearing Member who is also a clearing member of CDP, maintain a base capital of not less than S$8,000,000; or
        c. in the case of a Bank Clearing Member who clears only OTCF Contracts, maintain a base capital of not less than S$50,000,000;

        or such other amount as may be prescribed by the Clearing House from time to time;
        2.07.1B.2 RRA Financial Requirement

        comply with all applicable RRA Financial Requirements; and
        2.07.1B.3 [Rule has been deleted.]
        2.07.1B.4 Other Requirements

        comply with the accounting, reporting, book-keeping and any other financial and operational requirements prescribed by the Clearing House in relation to the Bank Clearing Member's business governed by this Rules.

        Added on 10 August 2007 and amended on 3 November 2010, 31 December 2013 and 22 April 2019.

      • 2.07.2 [Rule has been deleted.]

        Amended on 27 March 2006, 10 August 2007 and deleted on 10 May 2010.

      • 2.07.3

        The Clearing House may from time to time prescribe other minimum capital and financial requirements and conditions for exemptions or exceptions therefrom.

      • 2.07.4

        The Clearing House reserves the right to call on any of the letters of credit and all other forms of security furnished pursuant to this Rules and apply the proceeds thereof in respect of the Clearing Member's default to the Clearing House and/or its common bond liability under Rule 7A.05 and 7A.06.

        Amended on 10 August 2007 and 7 August 2012.

      • 2.07.5

        A Clearing Member shall immediately notify the Clearing House if it fails to meet the minimum capital and financial requirements prescribed in the preceding paragraphs or becomes aware that it will fail to comply with such requirements.

      • 2.07.6

        If the Clearing House is notified by a Clearing Member under Rule 2.07.5 or becomes aware (whether or not there has been any notification by the Clearing Member under Rule 2.07.5) that the Clearing Member has failed to comply with the minimum capital and financial requirements prescribed in the preceding paragraphs, the Clearing House may direct the Clearing Member to do one (1) or more of the following actions:—

        2.07.6.1 liquidate or cease any increase in positions for any account carried by the Clearing Member;
        2.07.6.2 liquidate or transfer all or part of any customer's positions, margins, collateral, assets and accounts to one (1) or more other Clearing Members. For the avoidance of doubt, reference to "customer's positions, margins, collateral, assets and accounts" in relation to a Bank Clearing Member, shall refer to customer's positions, margins, collateral, assets and accounts falling within the Bank Clearing Member's business governed by this Rules;
        2.07.6.3 operate its business or in the case of a Bank Clearing Member, its business governed by this Rules, in such manner and on such conditions as the Clearing House may impose.

        Amended on 27 March 2006 and 10 August 2007.

      • 2.07.7

        The Clearing House may prescribe for one (1) or more Clearing Members, capital, financial and other requirements in excess of the minimum prescribed under this Rules on the basis of volume, types of positions carried, margin policies, nature of business conducted or to be conducted or its membership in any exchange or market and such other criteria as deemed necessary by the Clearing House.

        Amended on 27 March 2006.

      • 2.07.8 [Rule has been deleted.]

        Deleted on 22 April 2019.

    • 2.07A Early Warning Financial Requirements of Clearing Members Incorporated in Singapore

      • 2.07A.1

        Each General Clearing Member or Direct Clearing Member incorporated in Singapore shall immediately notify the Clearing House:—

        2.07A.1.1 if its financial resources fall below 120% of its total risk requirement; or
        2.07A.1.2 if its aggregate indebtedness exceeds 600% of its aggregate resources.

        Amended on 10 August 2007, 3 November 2010 and 22 April 2019.

      • 2.07A.2

        If the Clearing House is notified by a Clearing Member under Rule 2.07A.1.1 or becomes aware (whether or not there has been any notification by the Clearing Member under Rule 2.07A.1.1) that such Clearing Member's financial resources have fallen below 120% of its total risk requirement, the Clearing House may direct such Clearing Member to comply with one (1) or more of the directions prescribed under Regulation 7(3) of the SFR (Financial and Margin Requirements).

        2.07A.2.1 [Rule has been deleted]
        2.07A.2.2 [Rule has been deleted]
        2.07A.2.3 [Rule has been deleted]

        Amended on 27 March 2006, 10 August 2007, 3 November 2010 and 22 April 2019.

      • 2.07A.3

        If the Clearing House is notified by a General Clearing Member or a Direct Clearing Member under Rule 2.07A.1.2 or becomes aware (whether or not there has been any notification by such Clearing Member under Rule 2.07A.1.2) that such Clearing Member's aggregate indebtedness has exceeded 600% of its aggregate resources, the Clearing House may direct:—

        2.07A.3.1 where such Clearing Member is a General Clearing Member, to comply with one (1) or more of the directions prescribed under Regulation 17(2) of the SFR (Financial and Margin Requirements);
        2.07A.3.2 where such Clearing Member is a Direct Clearing Member, to comply with one (1) or more of the directions described under Regulation 17(2) of the SFR (Financial and Margin Requirements).

        Amended on 27 March 2006 and 10 August 2007.

      • 2.07A.4

        The Clearing House may from time to time prescribe other early warning financial requirements and conditions for exemptions or exceptions therefrom on all or any of the Clearing Members.

    • 2.07B Notification Requirements of Clearing Members Incorporated in Singapore

      • 2.07B.1

        Each Clearing Member incorporated in Singapore shall:

        2.07B.1.1 in the case of a General Clearing Member or Direct Clearing Member, immediately notify the Clearing House if its financial resources fall below 150% of its total risk requirement; and
        2.07B.1.2 in the case of a Bank Clearing Member, immediately notify the Clearing House of any event in relation to its regulatory capital and liquidity ratios that is required to be reported to its Relevant Regulatory Authority.

        Amended on 3 November 2010 and 22 April 2019.

      • 2.07B.2

        The Clearing House may from time to time prescribe other notification requirements and conditions for exemptions or exceptions therefrom on all or any of the Clearing Members.

      • 2.07B.3

        If the Clearing House is notified by a Clearing Member under Rule 2.07B.1 or becomes aware (whether or not there has been any notification by the Clearing Member under Rule 2.07B.1)that such Clearing Member's financial resources have fallen below 150% of its total risk requirement or that a reportable event in relation to its regulatory capital and liquidity ratios has occurred, the Clearing House may direct such Clearing Member to do one (1) or more of the following actions:—

        2.07B.3.1 submit (where applicable), the statements of assets and liabilities, financial resources, total risk requirement, aggregate indebtedness, and such other statements as required by the Clearing House at such interval and for such time frame as determined by the Clearing House;
        2.07B.3.2 operate its business, or in the case of a Bank Clearing Member, its business governed by this Rules, in such manner and on such conditions as the Clearing House may impose.

        Added on 10 August 2007 and amended on 3 November 2010 and 22 April 2019.

    • 2.07C Qualifying Letter of Credit

      • 2.07C.1

        For the purpose of Rules 2.07 and 2.07A, a Clearing Member may include one (1) or more qualifying letter(s) of credit deposited with the Clearing House in its calculation of aggregate resources, subject to the total amount payable under the qualifying letter(s) of credit or 50% of its total risk requirement, whichever is lower. In the case of a Clearing Member admitted as a clearing member of the Clearing House and CDP, and which has deposited such qualifying letter(s) of credit with CDP, pursuant to the corresponding provisions in the CDP Clearing Rules, it need not deposit another qualifying letter(s) of credit with the Clearing House.

        Amended on 10 August 2007 and 29 December 2014.

      • 2.07C.2

        For the purpose of Rule 2.07C.1, a qualifying letter of credit is a legally enforceable and irrevocable letter of credit that:—

        2.07C.2.1 is made in favour of the Clearing House;
        2.07C.2.2 is issued by a bank approved by, and in a form acceptable to the Clearing House; and
        2.07C.2.3 does not include any letters of credit provided by the Clearing Member to satisfy Chapter 7 or Chapter 7A or any other requirement imposed by the Clearing House.

        Amended on 10 August 2007 and 7 August 2012.

      • 2.07C.3

        The Clearing House reserves the right to call on any of the qualifying letters of credit furnished pursuant to this Rules and apply the proceeds thereof in respect of the Clearing Member's default to the Clearing House and/or its common bond liability under Rule 7A.05 and 7A.06. In the case of a Clearing Member admitted as a clearing member of the Clearing House and CDP, the Clearing House shall have the discretion to apportion in any manner, the use of the proceeds between the Clearing House and CDP. In deciding on the apportionment, the Clearing House may, in consultation with CDP, take into account factors, including but not limited to, the amount owed by the Clearing Member to the Clearing House and CDP respectively.

        Amended on 10 August 2007 and 7 August 2012.

    • 2.08 Minimum Capital and Financial Requirements of Clearing Members Incorporated Outside Singapore

      • 2.08.1

        Each General Clearing Member incorporated outside Singapore shall at all times:—

        2.08.1.1 Base Capital Requirement
        a. maintain net head office funds of not less than S$5,000,000;
        b. in the case of a General Clearing Member who is also a clearing member of CDP, maintain net head office funds of not less than S$8,000,000; or
        c. in the case of a General Clearing Member who wishes to clear OTCF Contracts, maintain net head office funds of not less than S$50,000,000;
        or such other amount as may be prescribed by the Clearing House from time to time.
        2.08.1.2 Financial Resources Requirement
        not cause or permit its adjusted net head office funds to fall below its total risk requirement;
        2.08.1.3 Aggregate Indebtedness Requirement
        not cause or permit its aggregate indebtedness to exceed 1,200% of its aggregate resources; and
        2.08.1.4 Other Requirements
        comply with the accounting, reporting, book-keeping and any other financial and operational requirements prescribed by the Clearing House.

        Amended on 27 March 2006, 10 August 2007 and 3 November 2010.

      • 2.08.1A

        Each Direct Clearing Member incorporated outside Singapore shall at all times:—

        2.08.1A.1 Base Capital Requirement
        maintain net head office funds of not less than S$5,000,000;
        2.08.1A.2 Financial Resources Requirement
        not cause or permit its financial resources to fall below its total risk requirement;
        2.08.1A.3 Aggregate Indebtedness Requirement
        not cause or permit its aggregate indebtedness to exceed 1,200% of its aggregate resources; and
        2.08.1A.4 Other Requirements
        comply with the accounting, reporting, book-keeping and any other financial and operational requirements prescribed by the Clearing House.

        Amended on 10 August 2007.

      • 2.08.1B

        Each Bank Clearing Member incorporated outside Singapore shall at all times:—

        2.08.1B.1 Base Capital Requirement
        (a) maintain a base capital of not less than S$5,000,000; or
        (b) in the case of a Bank Clearing Member who is also a clearing member of CDP, maintain a base capital of not less than S$8,000,000; or
        (c) in the case of a Bank Clearing Member who clears OTCF Contracts, maintain a base capital of not less than S$50,000,000 or such other amount as may be prescribed by the Clearing House from time to time;
        2.08.1B.2 RRA Financial Requirement

        comply with all applicable RRA Financial Requirements; and
        2.08.1B.3 Other Requirements

        comply with the accounting, reporting, book-keeping and any other financial and operational requirements prescribed by the Clearing House in relation to the Bank Clearing Member's business governed by this Rules.

        Added on 10 August 2007 and amended on 25 August 2009, 3 November 2010 and 22 April 2019.

      • 2.08.1BA Liquidity Resource Requirement

        Each Bank Clearing Member incorporated outside Singapore shall deposit liquidity resources with the Clearing House upon the Clearing House's request, if the Clearing House determines that any conditions exist which may threaten the ability of the Bank Clearing Member to satisfy its obligations to the Clearing House and/or CDP under this Rules and the CDP Clearing Rules respectively.

        Such liquidity resources shall be an amount up to S$5,000,000, or S$8,000,000 in the case of a Bank Clearing Member who is also a clearing member of CDP, and shall be paid in cash and/or acceptable government securities within such time as determined by the Clearing House.

        Added on 22 April 2019.

      • 2.08.1C [Rule has been deleted]

        Deleted on 22 April 2019.

      • 2.08.1D

        Each Remote Clearing Member incorporated outside Singapore shall at all times:

        2.08.1D.1 Base Capital Requirement

        maintain a base capital of not less than S$50,000,000;
        2.08.1D.2 RRA Financial Requirement

        comply with all applicable RRA Financial Requirements; and
        2.08.1D.3 [Rule has been deleted.]
        2.08.1D.4 Other Requirements

        comply with the accounting, reporting, book-keeping and any other financial and operational requirements prescribed by the Clearing House.

        Added on 31 December 2013 and amended on 22 April 2019.

      • 2.08.1E

        In addition to the other applicable requirements under Rule 2.08, each FCM Clearing Member shall at all times maintain an adjusted net capital, in accordance with CFTC Regulation 1.17, of not less than US$50,000,000.

        Added on 31 December 2013.

      • 2.08.2 [Rule has been deleted.]

        Amended on 27 March 2006 and 10 August 2007 and deleted on 10 May 2010.

      • 2.08.3

        The Clearing House may from time to time prescribe other minimum capital and financial requirements and conditions for exemptions or exceptions therefrom.

      • 2.08.4

        The Clearing House reserves the right to use or call on any cash and/or acceptable government securities deposited with the Clearing House or CDP pursuant to Rule 2.08.1B.1, letters of credit and all other forms of security furnished pursuant to this Rules and apply the proceeds thereof in respect of the Clearing Member's default to the Clearing House and/or its common bond liability under Rule 7A.05 and 7A.06.

        Amended on 27 March 2006, 10 August 2007 and 7 August 2012.

      • 2.08.5

        A Clearing Member shall immediately notify the Clearing House if it fails to meet the minimum capital and financial requirements prescribed in the preceding paragraphs or becomes aware that it will fail to comply with such requirements.

        Amended on 10 August 2007.

      • 2.08.6

        If the Clearing House is notified by a Clearing Member under Rule 2.08.5 or becomes aware (whether or not there has been any notification by the Clearing Member under Rule 2.08.5) that such Clearing Member has failed to comply with the minimum capital and financial requirements prescribed in the preceding paragraphs, the Clearing House may direct such Clearing Member to do one (1) or more of the following actions:—

        2.08.6.1 liquidate or cease any increase in positions for any account carried by the Clearing Member;
        2.08.6.2 liquidate or transfer all or part of any customer's positions, margins, collateral, assets and accounts to one (1) or more other Clearing Members. For the avoidance of doubt, reference to "customer's positions, margins, collateral, assets and accounts" in relation to a Bank Clearing Member shall refer to customer's positions, margins, collateral, assets and accounts falling within the Bank Clearing Member's business governed by this Rules;
        2.08.6.3 operate its business or in the case of a Bank Clearing Member, its business governed by this Rules, in such manner and on such conditions as the Clearing House may impose.

        Amended on 27 March 2006 and 10 August 2007.

      • 2.08.7

        The Clearing House may prescribe for one (1) or more Clearing Members, capital, financial and other requirements in excess of the minimum prescribed under this Rules on the basis of volume, types or positions carried, margin policies, nature of business conducted or to be conducted or its membership in any other exchange or market and such other criteria as deemed necessary by the Clearing House.

        Amended on 27 March 2006.

      • 2.08.8 [Rule has been deleted.]

        Deleted on 22 April 2019.

    • 2.08A Early Warning Financial Requirements of Clearing Members Incorporated Outside Singapore

      • 2.08A.1

        Each General Clearing Member or Direct Clearing Member incorporated outside Singapore shall immediately notify the Clearing House:—

        2.08A.1.1 if its adjusted net head office funds fall below 120% of its total risk requirement; or
        2.08A.1.2 if its aggregate indebtedness exceeds 600% of its aggregate resources.

        Amended on 10 August 2007, 25 August 2009, 3 November 2010, 31 December 2013 and 22 April 2019.

      • 2.08A.2

        If the Clearing House is notified by a Clearing Member under Rule 2.08A.1.1 or becomes aware (whether or not there has been any notification by the Clearing Member under Rule 2.08A.1.1) that such Clearing Member's adjusted net head office funds have fallen below 120% of its total risk requirement, the Clearing House may direct such Clearing Member to comply with one (1) or more of the directions prescribed under Regulation 7(3) of the SFR (Financial and Margin Requirements).

        2.08A.2.1 [Rule has been deleted]
        2.08A.2.2 [Rule has been deleted]
        2.08A.2.3 [Rule has been deleted]

        Amended on 27 March 2006, 10 August 2007, 25 August 2009, 3 November 2010, 31 December 2013 and 22 April 2019.

      • 2.08A.3

        If the Clearing House is notified by a Clearing Member under Rule 2.08A.1.2 or becomes aware (whether or not there has been any notification by such Clearing Member under Rule 2.08A.1.2) that such Clearing Member's aggregate indebtedness has exceeded 600% of its aggregate resources, the Clearing House may direct such Clearing Member to comply with one (1) or more of the directions prescribed under Regulation 17(2) of the SFR (Financial and Margin Requirements).

        2.08A.3.1 [Rule has been deleted]
        2.08A.3.2 [Rule has been deleted]

        Amended on 27 March 2006, 10 August 2007, 31 December 2013 and 22 April 2019.

      • 2.08A.4

        The Clearing House may from time to time prescribe other early warning financial requirements and conditions for exemptions or exceptions therefrom on all or any of the Clearing Members.

    • 2.08B Notification Requirements of Clearing Members Incorporated Outside Singapore

      • 2.08B.1

        Each Clearing Member incorporated outside Singapore shall:

        2.08B.1.1 in the case of a General Clearing Member or Direct Clearing Member, immediately notify the Clearing House if its financial resources fall below 150% of its total risk requirement;
        2.08B.1.2 in the case of a Bank Clearing Member, immediately notify the Clearing House of any event in relation to its regulatory capital and liquidity ratios that is required to be reported to its Relevant Regulatory Authority; and
        2.08B.1.3 in the case of a Remote Clearing Member, immediately notify the Clearing House of any event in relation to its regulatory capital and liquidity ratios that is required to be reported to its Relevant Regulatory Authority, subject to a minimum requirement to notify the Clearing House if its base capital falls below 150% of its minimum risk requirement.

        Amended on 10 August 2007, 25 August 2009, 3 November 2010 and 22 April 2019.

      • 2.08B.2

        The Clearing House may from time to time prescribe other notification requirements and conditions for exemptions or exceptions therefrom on all or any of the Clearing Members.

        Amended on 10 August 2007.

      • 2.08B.3

        If the Clearing House is notified by a Clearing Member under Rule 2.08B.1 or becomes aware (whether or not there has been any notification by the Clearing Member under Rule 2.08B.1)that such Clearing Member's adjusted net head office funds or cash and/or acceptable government securities deposited with the Clearing House or CDP pursuant to Rule 2.08.1B.1 (whichever is applicable), have fallen below 150% of its total risk requirement, or that a reportable event in relation to its regulatory capital and liquidity ratios has occurred, the Clearing House may direct such Clearing Member to do one (1) or more of the following actions:—

        2.08B.3.1 submit (where applicable), the statements of assets and liabilities, adjusted net head office funds, cash and/or acceptable government securities deposited with the Clearing House or CDP, aggregate indebtedness, total risk requirement and such other statements as required by the Clearing House at such interval and for such time frame as may be determined by the Clearing House;
        2.08B.3.2 operate its business, or in the case of a Bank Clearing Member, its business governed by this Rules, in such manner and on such conditions as the Clearing House may impose.

        Added on 10 August 2007 and amended on 25 August 2009, 3 November 2010 and 22 April 2019.

    • 2.08C Qualifying Letter of Credit

      • 2.08C.1

        Unless otherwise exempted under Rule 2.08.8, for the purpose of Rules 2.08 and 2.08A, a Clearing Member may include one (1) or more qualifying letter(s) of credit deposited with the Clearing House in its calculation of aggregate resources subject to the total amount payable under the qualifying letter(s) of credit or 50% of its total risk requirement, whichever is lower. In the case of a Clearing Member admitted as a clearing member of the Clearing House and CDP, and which has deposited such qualifying letter(s) of credit with CDP, pursuant to the corresponding provisions in the CDP Clearing Rules, it need not deposit another qualifying letter(s) of credit with the Clearing House.

        Amended on 10 August 2007, 3 November 2010 and 29 December 2014.

      • 2.08C.2

        For the purpose of Rule 2.08C.1, a qualifying letter of credit is a legally enforceable and irrevocable letter of credit that:—

        2.08C.2.1 is made in favour of the Clearing House;
        2.08C.2.2 is issued by a bank approved by, and in a form acceptable to the Clearing House; and
        2.08C.2.3 does not include any letters of credit provided by the Clearing Member to satisfy Chapter 7 or Chapter 7A or any other requirement imposed by the Clearing House.

        Amended on 10 August 2007 and 7 August 2012.

      • 2.08C.3

        The Clearing House reserves the right to call on any of the qualifying letters of credit furnished pursuant to this Rules and apply the proceeds thereof in respect of the Clearing Member's default to the Clearing House and/or its common bond liability under Rule 7A.05 and 7A.06. In the case of a Clearing Member admitted as a clearing member of the Clearing House and CDP, the Clearing House shall have the discretion to apportion in any manner, the use of the proceeds between the Clearing House and CDP. In deciding on the apportionment, the Clearing House may, in consultation with CDP, take into account factors, including but not limited to, the amount owed by the Clearing Member to the Clearing House and CDP respectively.

        Amended on 10 August 2007 and 7 August 2012.

    • 2.09 Special Reserve Fund for General Clearing Members Incorporated in Singapore

      • 2.09.1

        In addition to the minimum capital and financial requirements in Rule 2.07, every General Clearing Member incorporated in Singapore shall maintain a special reserve fund to which a sum of not less than 30% of the audited net profits of each year shall be transferred out of the net profits after due provision has been made for taxation, so long as the base capital less unappropriated profits in the latest audited accounts is less than S$15,000,000.

        Amended on 27 March 2006.

      • 2.09.2

        The special reserve fund for the time being set aside pursuant to this Rule 2.09 shall not be available for the declaration of dividends without the prior written approval of the Clearing House.

        Amended on 27 March 2006.

    • 2.10 Special Reserve Fund for General Clearing Members Incorporated Outside Singapore

      • 2.10.1

        In addition to the minimum capital and financial requirements in Rule 2.08, every General Clearing Member incorporated outside Singapore shall maintain a special reserve fund to which a sum of not less than 30% of the audited net profits of each year shall be transferred out of the net profits after due provision has been made for taxation, so long as the net head office funds is less than S$15,000,000.

        Amended on 27 March 2006.

      • 2.10.2

        The special reserve fund for the time being set aside pursuant to this Rule 2.10 shall not be available for the declaration of dividends without the prior written approval of the Clearing House.

        Amended on 27 March 2006.

    • 2.11 Other Financial Requirements

      • 2.11.1 Reduction in Paid-Up Ordinary Share Capital or Paid-Up Irredeemable and Non-Cumulative Preference Share Capital

        2.11.1.1 Each Clearing Member incorporated in Singapore, except in the case of a Bank Clearing Member, shall not reduce its paid-up ordinary share capital or paid-up irredeemable and non-cumulative preference share capital without the prior approval of the Clearing House.

        Amended on 27 March 2006, 10 August 2007 and 29 December 2014.

      • 2.11.2 Preference Share

        2.11.2.1 Each Clearing Member incorporated in Singapore, except in the case of a Bank Clearing Member, shall immediately notify the Clearing House prior to the date of issue of any preference share.
        2.11.2.2 A Clearing Member incorporated in Singapore, except in the case of a Bank Clearing Member, shall not repay the principal of any preference share (other than any paid-up irredeemable and non-cumulative preference share capital) that is computed as part of its financial resources, through repurchase or redemption:—
        a. unless the Clearing Member notifies the Clearing House within such time before the proposed date of repurchase or redemption as prescribed by the SFR (Financial and Margin Requirements);
        b. if at the date of repurchase or redemption:—
        i. the financial resources of the Clearing Member is less than 150% of its total risk requirement; or
        ii. the aggregate indebtedness of the Clearing Member exceeds 600% of its aggregate resources;
        c. if such a repurchase or redemption will cause an event in Rule 2.11.2.2.b above to occur; or
        d. if the Clearing House has prohibited in writing such a repurchase or redemption.

        Amended on 27 March 2006, 10 August 2007 and 29 December 2014.

      • 2.11.3 Qualifying Subordinated Loans

        2.11.3.1 Each General Clearing Member or Direct Clearing Member incorporated in Singapore, shall immediately notify the Clearing House when it draws down a qualifying subordinated loan no later than the date of draw down.
        2.11.3.2 A General Clearing Member or Direct Clearing Member incorporated in Singapore:—
        a. shall not repay, whether in part or in full, any subordinated loan principal before the maturity date without the prior approval of the Clearing House;
        b. shall not repay, whether in part or in full, any subordinated loan principal that has matured:—
        i. unless the Clearing Member notifies the Clearing House at least one (1) Business Day before the date of repayment;
        ii. if the financial resources ofthe Clearing Member, are less than 150% of its total risk requirement;
        iii. in the case of a General Clearing Member or Direct Clearing Member, if the aggregate indebtedness of the General Clearing Member or Direct Clearing Member exceeds 600% of its aggregate resources;
        iv. if such a repayment will cause an event in Rules 2.11.3.2.b.ii or iii to occur; or
        v. if the Clearing House has prohibited in writing such a repayment.

        Amended on 27 March 2006, 10 August 2007, 29 December 2014 and 22 April 2019.

      • 2.11.4 Making of Unsecured Loan or Advance, Payment of Dividend or Director's Fees or Increase in Director's Remuneration

        2.11.4.1 Each Clearing Member, except for a Bank Clearing Member or a Remote Clearing Member, shall not, without the prior written approval of the Clearing House, make any unsecured loan or advance, pay any dividend or director's fees or increase any director's remuneration if:—
        a. in the case where the Clearing Member is incorporated in Singapore:—
        i. the base capital of the Clearing Member is less than the base capital requirement applicable to the Clearing Member under Rule 2.07;
        ii. the financial resources of the Clearing Member are less than 150% of its total risk requirement;
        iii. the aggregate indebtedness of the Clearing Member exceeds 600% of its aggregate resources; or
        iv. such a loan, advance, payment or increase will cause an event in Rules 2.11.4.1.a.i, ii or iii to occur;
        or
        b. in the case where the Clearing Member is incorporated outside Singapore:—
        i. the net head office funds of the Clearing Member are below the net head office funds requirement applicable to the Clearing Member under Rule 2.08;
        ii. the adjusted net head office funds of the Clearing Member are less than 150% of its total risk requirement;
        iii. the aggregate indebtedness of the Clearing Member exceeds 600% of its aggregate resources; or
        iv. such a loan, advance, payment or increase will cause an event in Rules 2.11.4.1.b.i, ii or iii to occur.
        2.11.4.1A A Remote Clearing Member shall notify the Clearing House immediately of any action taken that has or may have a financial or capital impact on the Remote Clearing Member and is required to be reported to the Relevant Regulatory Authority, or in relation to the events set out in Rule 2.11.4.1.

        Amended on 27 March 2006, 10 August 2007, 29 December 2014 and 22 April 2019.

      • 2.11.5 [Rule has been deleted.]

        Deleted on 19 September 2016.

    • Rights and Obligations of Clearing Members

      • 2.12 Rights of Clearing Members

        • 2.12.1

          Every Clearing Member shall have only such rights and obligations as are set out in the terms and conditions governing its Clearing Membership. Such terms and conditions shall also set out the Contract Class or Contract Classes, as the case may be, that each class of Clearing Membership is eligible to clear. The rights and obligations attaching to such Clearing Member's Clearing Membership may be varied or abrogated by the Clearing House from time to time.

          Amended on 27 March 2006, 10 August 2007 and 3 November 2010.

        • 2.12.2

          A General Clearing Member can, subject to the Rules and/or unless otherwise notified by the Clearing House:—

          2.12.2.1 clear its own trades and trades of Third Parties;
          2.12.2.2 by its Clearing Membership with the Clearing House participate in the clearing system established and maintained by the Clearing House to clear Contracts; and
          2.12.2.3 have access to each Mutual Offset System.

          Amended on 27 March 2006 and 10 August 2007.

        • 2.12.3

          A Direct Clearing Member can, subject to the Rules and/or unless otherwise notified by the Clearing House:—

          2.12.3.1 clear only its own trades and the proprietary trades of its related corporations; and
          2.12.3.2 by its Clearing Membership with the Clearing House participate in the clearing system established and maintained by the Clearing House to clear Contracts.

          Added on 10 August 2007.

        • 2.12.4

          A Bank Clearing Member can, subject to the Rules and/or unless otherwise notified by the Clearing House:—

          2.12.4.1 clear its own trades and trades of Third Parties;
          2.12.4.2 by its Clearing Membership with the Clearing House participate in the clearing system established and maintained by the Clearing House to clear Contracts; and
          2.12.4.3 have access to each Mutual Offset System.

          Added on 10 August 2007.

        • 2.12.5

          A Remote Clearing Member can, subject to the Rules and/or unless otherwise notified by the Clearing House:

          2.12.5.1 clear its own trades, proprietary trades of its related corporations and trades of Third Parties; and
          2.12.5.2 by its Clearing Membership with the Clearing House participate in the clearing system established and maintained by the Clearing House to clear only Non-Relevant Market Contracts and OTCF Contracts.

          Added on 31 December 2013.

    • 2.12A [Rule has been deleted.]

      Added on 27 March 2006 and deleted on 10 August 2007.

    • 2.13 Duties and Responsibilities of Clearing Members

      • 2.13.1

        A Clearing Member shall, subject to the Rules, also have the following responsibilities and duties:—

        2.13.1.1 To maintain bank accounts in the currencies that may incur settlement and with banks acceptable to the Clearing House;
        2.13.1.2 Subject to the same being accepted by the Clearing House, to clear Non-Relevant Market Contracts and/or Contracts made on any Relevant Market by such members of the Relevant Market with whom it has agreed to clear;
        2.13.1.3 Not to directly carry any account and/or clear any Contract for the direct or indirect benefit of an employee or officer of another Clearing Member if such employee or officer shall be trading for his own account, unless the prior written approval of that other Clearing Member has been obtained;
        2.13.1.4 Not to provide funds, credit or finance to any other Clearing Member or a member of any Relevant Market for any purpose except with the prior written approval of the Clearing House, and except that this Rule 2.13.1.4 shall not apply to Bank Clearing Members;
        2.13.1.5 To provide and maintain such Clearing Fund Deposit as specified in Rule 7A.06.2 in addition to any security deposit requirement that may be required of it as a Clearing Member of the Clearing House;
        2.13.1.6 To maintain minimum capital and financial requirements as specified in Rule 2.07 or 2.08;
        2.13.1.7 To clear such Contracts made on any Relevant Market by any person through any approved electronic trading terminal or facilities provided to it or to such members of the Relevant Market to whom it shall have agreed to provide clearing services;
        2.13.1.8 To have in place sufficient resources and establish and maintain adequate internal control and risk management system, including written risk management policies and procedures, for its business, and in the case of a Bank Clearing Member, its business governed by this Rules;
        2.13.1.8A Where the Clearing Member is registered with and regulated by the CFTC, including as an FCM, swap dealer or major swap participant, it shall make information and documents regarding its risk management policies, procedures and practices directly available to the CFTC upon the CFTC's request; and
        2.13.1.9 To comply with such other requirements as may be prescribed by the Clearing House from time to time.

        Amended on 27 March 2006, 10 August 2007, 7 August 2012, 8 November 2012, 31 December 2013 and 12 November 2018.

    • 2.13A Business Continuity Requirements

      Refer to Practice Note 2.13A.

      • 2.13A.1

        A Clearing Member must assess its business and operational risks and maintain adequate business continuity arrangements.

      • 2.13A.2

        A Clearing Member must document its business continuity arrangements in a business continuity plan.

      • 2.13A.3

        A Clearing Member's senior management shall be responsible for the Clearing Member's business continuity plan. Sufficient awareness of the risks, mitigating measures and state of readiness must be demonstrated by way of an attestation to the Clearing Member's Board of Directors.

      • 2.13A.4

        A Clearing Member must review and test its business continuity plan regularly.

      • 2.13A.5

        A Clearing Member must appoint emergency contact persons, and furnish the contact information of such persons to the Clearing House. The Clearing Member's emergency contact persons must be contactable at all times, and must immediately notify the Clearing House in the event of emergencies.

        Added on 22 January 2009.

    • 2.14 Required Records and Reports

      • 2.14.1

        Each Clearing Member shall prepare, maintain and keep current those books and records required by this Rules, the SFA any applicable laws. Such books and records shall be open to inspection and promptly provided to the Clearing House upon request.

        Amended on 27 March 2006 and 31 December 2013.

      • 2.14.2

        Each Clearing Member must file any information requested by the Clearing House within the time period specified in the request.

      • 2.14.3

        Each Clearing Member shall maintain at all times the ability to provide to the Clearing House in an acceptable form a complete set of equity system reports (including, at a minimum, the equity run, open position listing, day trade listing, cash adjustments listing and margin call and debit equity listing). Such reports shall forthwith be available to the Clearing House upon the Clearing House's request. Where such request is made at or before 12 p.m. on a Business Day (the "Request Date"), the Clearing Member shall report the required information up to and as at the two (2) Business Days immediately before the Request Date, and where such request is made after 12 p.m. on a Business Day, the Clearing Member shall report the required information up to and as at the Business Day immediately before the Request Date.

      • 2.14.3A

        Each Clearing Member shall submit to the Clearing House, in the manner as prescribed from time to time:—

        2.14.3A.1 a report on all its credit facilities with its financial institutions, on a monthly basis.
        2.14.3A.2 any change to its credit facilities, including variation of credit limits and addition or termination of credit facilities, immediately upon such change.
        2.14.3A.3 the identities of the owners or controlling parties for any House Account or Customer Account which:
        a. is used for trading of Contracts or carrying of Contracts; or
        b. contains positions required to be reported pursuant to Rules 7.09.1 and 7.16.1;
        within such time as prescribed by the Clearing House.

        Added on 22 September 2006.

      • 2.14.3B

        A Clearing Member must maintain separate accounts for each person whose account is carried on the books of the Clearing Member.

        Added on 26 April 2013.

      • 2.14.4

        Where a Clearing Member at any time fails to make or keep current the books and records required by the Clearing House it shall notify the Clearing House of such failure on the same day, specifying the relevant books and records, and shall thereafter comply with all orders of the Clearing House.

        Violation of this Rule may be a major offence.

        Amended on 27 March 2006.

      • 2.14.5

        2.14.5.1 In addition to the foregoing requirements under Rule 2.14, each Remote Clearing Member shall submit to the Clearing House:
        a. any other reports, including any early warning reports, which may be required to be provided by the Remote Clearing Member to its home regulator; and
        b. any other reports, including any early warning reports, which may be required to be provided by the Remote Clearing Member to a self-regulatory organisation with oversight over the Remote Clearing Member, if applicable.
        2.14.5.2 In addition to the other applicable requirements under Rule 2.14, each FCM Clearing Member shall submit to the Clearing House:
        a. accurate and complete information—
        i. the first time it clears on behalf of a Cleared Swaps Customer, to enable the identification of such Cleared Swaps Customer; and
        ii. at least once each business day thereafter or on such more frequent basis as the Clearing House may require, to enable the identification of the positions of Cleared Swaps Customers and associated Cleared Swaps Customer Collateral, including the amount of Cleared Swaps Customer Collateral posted in excess of that required by the Clearing House, in accordance with the requirements of Part 22 of the CFTC Regulations; and
        b. the financial reports specified in CFTC Regulation 1.10.

        Added on 31 December 2013.

      • 2.14.6

        A Clearing Member who:

        a. reports, or clears on behalf of a customer who reports, to a swap data repository under Part 45 of the CFTC Regulations; or
        b. is, or clears on behalf of a customer who is, a U.S. person as construed by the CFTC,
        shall as soon as technologically practicable after registration of a Non-Relevant Market Transaction or an OTCF Transaction for clearing with the Clearing House:
        1. report all primary economic terms data of the relevant transaction, as defined in CFTC Regulation 45.1, to the Clearing House; and
        2. inform the Clearing House of the identity of the swap data repository that the relevant transaction was previously reported to, if any.

        Added on 31 December 2013 and amended on 1 May 2014.

    • 2.15 Audit Requirements

      • 2.15.1 Statutory Audit Report for General Clearing Members

        Without prejudice to such audit and/or reporting requirements as may be imposed by the Clearing House from time to time, a General Clearing Member shall furnish to the Clearing House within five (5) months of the end of its financial year or within such longer period as may be permitted in writing by the Clearing House, the relevant forms which a General Clearing Member is required to lodge in the prescribed format under Regulation 27(9) of the SFR (Financial and Margin Requirements), the annual accounts duly audited by, and the certificate of, its auditor or auditors who shall be a public accountant or a firm of public accountants acceptable to the Clearing House. The certificate shall pertain to the audit conducted by such auditor or auditors in respect of the financial year aforesaid and shall be in such form prescribed by the Relevant Regulatory Authority.

        2.15.1.1 [Rule has been deleted.]
        2.15.1.2 [Rule has been deleted.]
        2.15.1.3 [Rule has been deleted.]
        2.15.1.4 [Rule has been deleted.]

        Reporting obligations of auditors

        2.15.1.5 Where, in the performance of his or their duties, the General Clearing Member's auditor or auditors becomes or become aware:—
        a. of any matter which in his or their opinion adversely affects or may adversely affect the financial position of the General Clearing Member to a material extent,
        b. of any matter which in his or their opinion constitutes or may constitute a contravention of any provision of the SFA or this Rules, or an offence involving fraud or dishonesty,
        c. of any irregularity that has or may have a material effect upon the accounts, including irregularities that jeopardise the moneys or other assets of any customer of the General Clearing Member, or
        d. that the accounting system, internal accounting control and procedures for safeguarding moneys or other assets are inadequate and the inadequacies have a material effect on the accounts,
        the auditor or auditors shall immediately report the matter to the Clearing House.

        Amended on 27 March 2006, 10 August 2007 and 22 April 2019.

      • 2.15.1A Audit Report for Direct Clearing Members

        Without prejudice to such audit and/or reporting requirements as may be imposed by the Clearing House from time to time, a Direct Clearing Member shall furnish to the Clearing House within five (5) months of the end of its financial year or within such longer period as may be permitted in writing by the Clearing House, the relevant forms which a Direct Clearing Member is required to lodge in the prescribed format under Rule 2.26, the annual accounts duly audited by, and the certificate of, its auditor or auditors who shall be a public accountant or a firm of public accountants acceptable to the Clearing House. The certificate shall pertain to the audit conducted by such auditor or auditors in respect of the financial year aforesaid and shall be in such form prescribed by the Relevant Regulatory Authority.

        2.15.1A.1 [Rule has been deleted.]
        2.15.1A.2 [Rule has been deleted.]
        2.15.1A.3 [Rule has been deleted.]
        2.15.1A.4 [Rule has been deleted.]

        Reporting obligations of auditors

        2.15.1A.5 Where, in the performance of his or their duties, the Direct Clearing Member's auditor or auditors becomes or become aware:—
        a. of any matter which in his or their opinion adversely affects or may adversely affect the financial position of the Direct Clearing Member to a material extent,
        b. of any matter which in his or their opinion constitutes or may constitute a contravention of any provision of this Rules or an offence involving fraud or dishonesty, or
        c. of any irregularity that has or may have a material effect upon the accounts,
        the auditor or auditors shall immediately report the matter to the Clearing House.

        Added on 27 March 2006 and amended on 10 August 2007 and 22 April 2019.

      • 2.15.1B Audit Report for Bank Clearing Members

        Without prejudice to such audit and/or reporting requirements as may be imposed by the Clearing House from time to time, a Bank Clearing Member shall furnish to the Clearing House within five (5) months of the end of its financial year or within such longer period as may be permitted in writing by the Clearing House, the annual accounts duly audited by, and the certificate of its auditor or auditors. The certificate shall pertain to the audit conducted by such auditor or auditors in respect of the financial year aforesaid and shall be in such form prescribed by the Relevant Regulatory Authority.

        2.15.1B.1 [Rule has been deleted.]
        2.15.1B.2 [Rule has been deleted.]
        2.15.1B.3 [Rule has been deleted.]
        2.15.1B.4 [Rule has been deleted.]

        Reporting obligations of auditors

        2.15.1B.5 Where, in the performance of his or their duties, the Bank Clearing Member's auditor or auditors becomes or become aware:—
        a. of any matter which in his or their opinion adversely affects or may adversely affect the financial position of the Bank Clearing Member to a material extent,
        b. of any matter which in his or their opinion constitutes or may constitute a contravention of any applicable provision of the SFA or this Rules or an offence involving fraud or dishonesty,
        c. of any irregularity in the Bank Clearing Member's business governed by this Rules, that has or may have a material effect upon the accounts, including irregularities that jeopardise the moneys or other assets of any customer of the Bank Clearing Member, or
        d. that the accounting system, internal accounting control and procedures for safeguarding moneys or other assets are inadequate and the inadequacies have a material effect on the accounts,
        the auditor or auditors shall immediately report the matter to the Clearing House.

        Added on 10 August 2007 and amended on 22 April 2019.

      • 2.15.1C Audit Reports for Remote Clearing Members

        Without prejudice to such audit and/or reporting requirements as may be imposed by the Clearing House from time to time, a Remote Clearing Member shall furnish to the Clearing House:

        2.15.1C.1 within five (5) months of the end of its financial year or within such longer period as may be permitted in writing by the Clearing House, the management report and the annual accounts duly audited in accordance with the usual accounting standards of the Remote Clearing Member by, and the certificate of, its auditor or auditors who shall be a public accountant or a firm of public accountants acceptable to the Clearing House. The auditor's certificate shall be in such form prescribed by the Relevant Regulatory Authority.
        a. [Rule has been deleted.]
        b. [Rule has been deleted.]
        c. [Rule has been deleted.]
        d. [Rule has been deleted.]

        Reporting obligations of auditors

        e. where, in the performance of his or their duties, the Remote Clearing Member's auditor or auditors becomes or become aware:
        i. of any matter which in his or their opinion adversely affects or may adversely affect the financial position of the Remote Clearing Member to a material extent;
        ii. of any matter which in his or their opinion constitutes or may constitute a contravention of any provision of this Rules, the SFA and/or any applicable laws or an offence involving fraud or dishonesty;
        iii. of any irregularity that has or may have a material effect upon the accounts, including irregularities that jeopardize the moneys or other assets of any customer of the Remote Clearing Member; or
        iv. that the accounting system, internal accounting control and procedures for safeguarding moneys or other assets are inadequate and the inadequacies have a material effect on the accounts,
        the auditor or auditors shall immediately report the matter to the Clearing House; and
        2.15.1C.2 [Rule has been deleted.]

        Added on 31 December 2013 and amended on 22 April 2019.

      • 2.15.2 Internal Audit Report

        A General Clearing Member, Remote Clearing Member or Bank Clearing Member shall cause its internal auditors to conduct an internal audit of its operations annually or at such times and within such scope as prescribed by the Clearing House and to submit a report of each internal audit conducted and the follow-up actions taken to the Clearing House by such time as may be prescribed by the Clearing House. Without prejudice to the foregoing, where the internal audit is conducted for a Bank Clearing Member, it shall be limited to the Bank Clearing Member's operations governed by this Rules.

        Amended on 27 March 2006, 10 August 2007 and 31 December 2013.

    • 2.16 [Rule has been deleted.]

      Deleted on 27 March 2006.

    • 2.17 Limit on Lending to Directors, Officers or Employees of General Clearing Members

      2.17.1.1 A General Clearing Member or Remote Clearing Member must not grant, whether directly or indirectly, any unsecured advance, unsecured loan or unsecured credit facility as defined in the SFR (Licensing and Conduct of Business) to any of its directors (other than a director who is also its employee) or to a person who to its knowledge, is a connected person as defined in the SFA of such director.
      2.17.1.2 Subject to Rule 2.17.1.1 and section 162 of the Act, a General Clearing Member or Remote Clearing Member must not grant, whether directly or indirectly, any unsecured advance, unsecured loan or unsecured credit facility to its officers (other than a director who is not its employee) or its employees (a "relevant person") which in the aggregate and outstanding at any one time exceeds one year's emoluments of such relevant person.
      2.17.1.3 For the purpose of Rule 2.17.1.2, any unsecured advance, unsecured loan or unsecured credit facility granted by a General Clearing Member or Remote Clearing Member to any person to purchase, subscribe for or trade in any capital markets product for:—
      a. the account of a relevant person of the General Clearing Member or Remote Clearing Member;
      b. an account in which a relevant person of the General Clearing Member or Remote Clearing Member has an interest;
      c. an account of any person who acts jointly with, under the control of, or in accordance with, the direction of a relevant person of the General Clearing Member or Remote Clearing Member; or
      d. an account of any connected person (as defined in the SFA) of a relevant person of the General Clearing Member or Remote Clearing Member, where the connected person is not himself a relevant person of the General Clearing Member or Remote Clearing Member,
      shall be deemed to be an unsecured advance, unsecured loan or unsecured credit facility granted by the General Clearing Member or Remote Clearing Member to that relevant person.

      Amended on 27 March 2006, 10 August 2007 and 31 December 2013.

      • 2.17.2 [Rule has been deleted.]

        Deleted on 27 March 2006.

    • 2.18 Segregation of Customer's Money, Securities and Property

      • 2.18.1 General

        2.18.1.1 A General Clearing Member or Bank Clearing Member shall ensure that it shall at all times inform and keep the Clearing House informed of such information as would be required for the Clearing House to enable it to discharge its segregation obligations under the SFA and/or to enable the Clearing House to issue to the Authority the verification of margin funds statement placed with the Clearing House as required under the SFA.

        Amended on 27 March 2006 and 10 August 2007.

      • 2.18.2 [Rule has been deleted.]

        Deleted on 26 April 2013.

      • 2.18.3 Miscellaneous

        Nothing in this Rules shall be regarded, treated, or otherwise interpreted as obliging or requiring the Clearing House to recognise any right or entitlement of any Third Party including a Customer unless required to do so by the provisions of the SFA. Any attempt on the part of a Clearing Member to fix the Clearing House with notice of any fact or claim otherwise would be a violation of this Rule.

        Violation of this Rule shall be a major offence.

    • 2.19 Omnibus Account

      • 2.19.1 Clearing Requirements

        A Clearing Member carrying Omnibus Accounts must maintain with the Clearing House a complete list of all such accounts, and shall notify the Clearing House in writing within three (3) Business Days from the time such an account is either opened or closed. Information for each Omnibus Account must include the account holder's name, account number and the account holder's address, and such other information as the Clearing House may require, and classification of the account as either "Customer" or "House".

      • 2.19.2 Restrictions

        The Clearing House is empowered to place restrictions or limitations on each Clearing Member which carries Omnibus Accounts. In making these determinations, the Clearing House may consider:—

        2.19.2.1 the number of Omnibus Accounts carried and volume of business of the Clearing Member;
        2.19.2.2 the financial condition of the Clearing Member and the Omnibus Account Holder in light of requirements or standards determined by the Clearing House; and
        2.19.2.3 the Clearing Member's clearing facilities and capacity.

        Amended on 27 March 2006.

      • 2.19.3 Responsibility

        A Clearing Member that maintains an Omnibus Account shall be responsible to the Clearing House to ensure that the Omnibus Account is operated at all times in accordance with all relevant provisions of this Rules including the relevant rules on position limits and shall, without prejudice to any other liability it may have, indemnify the Clearing House for any loss or damage or prejudice that the Clearing House may suffer referable to a violation of this Rule (including such loss, damage or costs the Clearing House incurs in taking such measures as it deems in good faith necessary to preserve the integrity of the Clearing House and/or the Exchange in relation to any claim referable to such violation).

        Amended on 27 March 2006.

      • 2.19.4 Disclosure

        An Omnibus Account Holder shall at all times disclose to the Clearing Member carrying that account the gross long and short positions held by that Omnibus Account in each Commodity. Such Clearing Member shall immediately notify the Clearing House and shall promptly comply with all orders of the Clearing House if the Omnibus Account Holder fails to make such disclosure.

        An Omnibus Account Holder shall, prior to the first delivery day in a Delivery Month or as otherwise required by the Clearing House, provide the Clearing Member carrying that account with a complete list of the purchase and sale dates of all open positions for that Delivery Month. Such list shall be kept up to date throughout the Delivery Month in order that the delivery procedure of the Clearing House not be impaired.

        A Clearing Member that maintains an Omnibus Account shall ensure that its Omnibus Account Holders are aware of this Rule 2.19.

        Amended on 22 September 2006.

    • 2.20 Limits of Positions

      • 2.20.1

        The Clearing House may from time to time establish limits on the positions owned or controlled by any person or persons acting in concert with respect to any Contracts including the Designated Futures Contracts.

      • 2.20.2

        Any person may request for an increase in initial position limit or previously approved position limit by making an application to the Clearing House on forms provided by Clearing House through its Clearing Member carrying the relevant positions for its account on the books of the Clearing Member.

      • 2.20.3

        In conjunction with the foregoing, a Clearing Member shall ensure at all times that:—

        2.20.3.1 each of its Customers and their respective related corporations for whom such Clearing Member also maintains accounts as Customers of the Clearing Member (each such Customer and its related corporations to be hereafter referred to as the "Collective Customer"); and
        2.20.3.2 each House Account carried on its books (collectively the "Collective House Accounts"),

        shall comply with the respective position limits as may be applicable to them individually or collectively as may be prescribed by the Clearing House from time to time.

      • 2.20.4

        In the event that the aggregate maintenance margins required to be deposited by a Collective Customer and/or the Collective House Accounts with a Clearing Member exceeds such relevant amount(s) (whether the amount(s) are stated as a sum or sums of money and/or calculated in accordance with a formula or formulae) as may be prescribed by the Clearing House from time to time, the Clearing Member shall, unless the Clearing House otherwise decides, forthwith procure:—

        2.20.4.1 from the chief executive officer of the Clearing Member, a letter of awareness;
        2.20.4.2 from such related corporation of the Clearing Member as the Clearing House may require a letter of awareness; or
        2.20.4.3 from such related corporation of the Clearing Member as the Clearing House may require a letter of guarantee;
        and in addition, where relevant, to forthwith procure
        2.20.4.4 from such related corporation of the Collective Customer as the Clearing House may require a letter of awareness;

        as may be required by the Clearing House, in each case, in such form and content as may be prescribed or otherwise acceptable to the Clearing House.

        Amended on 10 August 2007.

    • 2.20A Accumulation of Positions

      • 2.20A.1

        The positions of all accounts directly or indirectly owned or controlled by a person or persons, and the positions of all accounts of a person or persons acting pursuant to an express or implied agreement or understanding, and the positions of all accounts in which a person or persons have a proprietary or beneficial interest, shall be cumulated and deemed to be positions of each such persons as if each owned or controlled all cumulated positions individually.

        Added on 27 March 2006.

    • 2.20B Withholding of Profits from Overtrading

      • 2.20B.1

        The Clearing Member shall upon being notified by the Clearing House, withhold:

        a. any profits due or owing to its Collective Customer or its Collective House Account from any transaction traded on any Relevant Market and cleared through the Clearing House, that resulted in the Collective Customer trading beyond the limits set by the Clearing Member, Relevant Market, the Clearing House or MAS (such conduct referred to hereafter as "overtrading"); and
        b. such monies due or owing to its Collective Customer or its Collective House Account as directed by the Clearing House,

        and shall not release any such profits or monies until such time as determined by the Clearing House.

        Added on 1 October 2009 and amended on 31 December 2013.

      • 2.20B.2

        Without prejudice to the foregoing, the Clearing House may withhold any profits due or owing to any Clearing Member from the transaction that resulted in overtrading, or such monies due or owing to such Clearing Member, until such time as determined by the Clearing House.

        Added on 1 October 2009.

    • 2.21 Covenant

      • 2.21.1

        Each Clearing Member shall ensure that its Memorandum and Articles of Association or its constitution shall at all times conform to this Rules so as to enable it to observe and perform fully the covenants, terms, stipulations, conditions and other provisions of this Rules and, in so far as may be necessary, each Clearing Member shall amend its Memorandum and Articles of Association or constitution accordingly.

        Amended on 27 March 2006.

    • 2.22 Change or Intended Change

      • 2.22.1

        Without prejudice to any other provisions of this Rules, every Clearing Member shall forthwith notify the Clearing House upon, or where practicable, pre-notify the Clearing House of, the happening of all or any of the following events:—

        2.22.1.1 except for a Bank Clearing Member, any change in the legal or beneficial ownership of 20% or more of such Clearing Member's share capital and any subsequent increase of 5% or more of such Clearing Member's share capital;
        2.22.1.1A in the case of a Bank Clearing Member:
        (a) any change in the legal or beneficial ownership of that Bank Clearing Member's share capital ; and
        (b) any subsequent increase of that Bank Clearing Member's share capital
        above any thresholds imposed by any law or regulation to which that Bank Clearing Member is subject.
        2.22.1.2 any change in any circumstances which will have or may have the effect of altering the control of itself;
        2.22.1.3 any change in the composition of its board of directors or of any director, or in the case of a Bank Clearing Member, any change in the composition of its board of directors or of any director, who are/is resident in Singapore and/or responsible for its business governed by this Rules, due to the appointment, removal or resignation of any of its directors. For the purpose of this Rule 2.22.1.3, a change of director includes a change in the director's appointment from a non-executive director to an executive director;
        2.22.1.4 any change in its name;
        2.22.1.5 any change or amendment to its Memorandum or Articles of Association or constitutive documents, notice of which should be given at least seven (7) days prior to the change or amendment being effected, except in the case of a Bank Clearing Member, notification will be furnished to the Clearing House by such times that a Bank Clearing Member has to notify MAS under the Banking Act, or any regulation or directive issued thereunder;
        2.22.1.6 any death or bankruptcy of any of its directors or in the case of a Bank Clearing Member, its directors who are resident in Singapore and/or responsible for its business governed by this Rules;
        2.22.1.7 the engagement or involvement or proposed engagement or involvement in any new business or any change in any of its business(es) or in the case of a Bank Clearing Member, its business governed by this Rules. For the purpose of this Rule 2.22.1.7, examples of such new business or change in business include, without limitation, market making and product financing activities;
        2.22.1.8 any change in its senior management, or in the case of a Bank Clearing Member, its senior management responsible for the Bank Clearing Member's business governed by this Rules; and
        2.22.1.9 any application is contemplated or proposed to be made by the Clearing Member for registration as an FCM with the CFTC.

        Amended on 27 March 2006, 25 August 2009, 3 November 2010, 31 December 2013 and 8 October 2018.

      • 2.22.2

        Such notice or pre-notification shall be in writing and shall be supplied with full particulars of the relevant event together with such further information as the Clearing House may require.

      • 2.22.3

        The Clearing House may upon the happening of any of the events described in the preceding Rules 2.22.1.1 to 2.22.1.3 require such Clearing Member to submit itself within five (5) days of the date of its notice (or within such longer period as may be permitted in writing by the Exchange) for re-election as though applying for Clearing Membership for the first time.

        Amended on 27 March 2006.

    • 2.23 Notification of Reduction in Capital and Under-Segregation

      • 2.23.1

        Every Clearing Member shall:—

        2.23.1.1 except in the case of a Bank Clearing Member or a Remote Clearing Member, report to the Clearing House within 48 hours of occurrence of any reduction in excess of 20% in its financial resources or adjusted net head office funds, as the case may be, from the previously submitted financial statement; or
        2.23.1.2 except in the case of a Direct Clearing Member, immediately report to the Clearing House of any under-segregation of money, assets or properties margins as required under this Rules, the SFA and/or any applicable laws; or
        2.23.1.3 in the case of a Bank Clearing Member or a Remote Clearing Member, report to the Clearing House within 48 hours of occurrence of any reduction in excess of 20% in its regulatory capital from the previously submitted financial statement.

        Amended on 27 March 2006, 10 August 2007, 31 December 2013 and 22 April 2019.

    • 2.24 Appointment of Chief Executive Officer, Deputy Chief Executive Officer

      • 2.24.1

        No General Clearing Member, Remote Clearing Member or Direct Clearing Member may appoint a chief executive officer or deputy chief executive officer unless prior written approval of the Clearing House is obtained.

        Amended on 10 August 2007 and 31 December 2013.

      • 2.24.2 [Rule has been deleted.]

        Deleted on 10 August 2007.

      • 2.24.2A

        A Bank Clearing Member must notify the Clearing House in writing at least seven (7) days prior to the appointment of any chief executive officer or deputy chief executive officer.

        Added on 10 August 2007 and amended on 25 August 2009.

      • 2.24.3 [Rule has been deleted.]

        Deleted on 10 August 2007.

    • 2.25 Appointment of Auditors

      • 2.25.1

        A Clearing Member, except for a Bank Clearing Member, shall, unless exempted in writing by the Clearing House, at least thirty (30) days prior to any general meeting whereat new auditors are to be appointed notify the Clearing House in writing of such meeting and shall consult the Clearing House on such appointment.

        Amended on 10 August 2007.

      • 2.25.2

        A Bank Clearing Member shall inform the Clearing House of the appointment of any new auditors within seven (7) days of such appointment.

        Added on 10 August 2007.

    • 2.26 Special Call for Financial Statements

      • 2.26.1

        The Clearing House may at any time require any Clearing Member to submit to the Clearing House, as the case may be, financial statements in such form and pertaining to such matters and within such time as may be stipulated by the Clearing House promptly. The Clearing Member shall thereafter comply with such directions as the Clearing House may in its sole discretion issue. Failure to comply with such requirement shall be a major offence.

        Amended on 27 March 2006.

      • 2.26.2

        Each Clearing Member must make and keep as a record formal computations of its capital and financial requirements pursuant to:—

        a. in the case of a General Clearing Member, Rules 2.07, 2.07A, 2.07B, 2.07C, 2.08, 2.08A, 2.08B, 2.08C, 2.09 and 2.10;
        b. in the case of a Direct Clearing Member, Rules 2.07, 2.07A, 2.07B, 2.07C, 2.08, 2.08A, 2.08B and 2.08C;
        c. in the case of a Bank Clearing Member, Rules 2.07, 2.07B, 2.08 and 2.08B; or
        d. in the case of a Remote Clearing Member, Rules 2.08 and 2.08B,

        as of the close of business each month, or in the case of capital adequacy report of Bank Clearing Members, quarterly. The computations must be in such form as the Clearing House may prescribe and submitted to the Clearing House within fourteen (14) calendar days after the end of each month, or such time frame as the Clearing House may prescribe.

        Amended on 27 March 2006, 10 August 2007, 31 December 2013 and 22 April 2019.

      • 2.26.3 [Rule has been deleted.]

        Added on 27 March 2006 and deleted on 10 August 2007.

    • 2.27 Request for Information

      • 2.27.1

        Each Clearing Member except in the case of a Bank Clearing Member or a Remote Clearing Member, shall immediately notify the Clearing House when any Customer Account and any House Account is under-margined by an amount which exceeds its aggregate resources, except that no notification is required for the Clearing Member's own proprietary House Accounts.

        Amended on 27 March 2006, 10 August 2007 and 22 April 2019.

      • 2.27.1A

        Each Bank Clearing Member or Remote Clearing Member shall immediately notify the Clearing House when required to do so by the Clearing House when any Customer Account and any House Account is under-margined by such amount as may be determined by the Clearing House.

        Added on 27 March 2006 and amended on 10 August 2007 and 22 April 2019.

      • 2.27.2

        For the purpose of this Rule 2.27, the full amount of qualifying letters of credit deposited pursuant to Rule 2.07 or 2.08C above shall be taken into account for the calculation of aggregate resources.

        Amended on 10 August 2007.

      • 2.27.3

        Failure to comply with such requirement shall be a major offence.

    • 2.28 Voluntary Suspension and Resignation

      • 2.28.1

        A Clearing Member may at any time request the Clearing House to suspend its Clearing Membership. The Clearing House may give effect thereto upon such terms and conditions as the Clearing House may decide.

      • 2.28.2

        Any Clearing Member may resign upon giving notice in writing thereof to the Clearing House. Such resignation shall be effective upon the Clearing Member closing out its positions in all Contracts, subject to a minimum period of 30 days from the Clearing House's receipt of its notice of resignation (such period of 30 days being hereafter referred to as the "Minimum Notice Period"). Notwithstanding the foregoing, the Clearing House shall have the discretion to vary the effective date of resignation in the case of a defaulted or suspended Clearing Member.

        Amended on 7 August 2012.

      • 2.28.2A

        In respect of all defaults declared by the Clearing House, which occurrence takes place at or after such time that the Clearing House receives a Clearing Member's notice of resignation and before its effective date of resignation (such period being hereafter referred to as the "Notice Period"), the following shall apply:

        2.28.2A.1 the Clearing House shall apply the resigning Clearing Member's Clearing Fund Deposit and Further Assessment Amount in accordance with Rule 7A.01A.2, except that the aggregate amount applied in respect of all such defaults shall be subject always to a limit of no more than two (2) times of the resigning Clearing Member's Clearing Fund Deposit requirement and Further Assessment Amount as at the time the Clearing House receives its notice of resignation.
        2.28.2A.2 [This rule has been deleted]

        This Rule 2.28.2A shall apply provided always that the Clearing Member complies with Rule 2.28.2B.

        Added on 7 August 2012 and amended on 29 July 2013, 30 June 2014 and 12 November 2018.

      • 2.28.2B

        Unless otherwise permitted by the Clearing House or required under this Rules, a resigning Clearing Member shall not undertake any transactions which have the effect of increasing its positions in any Contract during its Notice Period.

        Added on 7 August 2012.

      • 2.28.2C

        If a resigning Clearing Member breaches Rule 2.28.2B at any time during the Notice Period, Rule 2.28.2A.1 shall not apply to such Clearing Member in their entirety and instead the following shall apply:

        2.28.2C.1 such Clearing Member shall have all the obligations under this Rules of a non-resigning Clearing Member in respect of all events of default under Rule 7A.01A.1 occurring during the Notice Period; and
        2.28.2C.2 if, due to the operation of Rule 2.28.2A.1, any amount of such Clearing Member's:
        a. Clearing Fund Deposit requirement; or
        b. Further Assessment Amount; or
        c. both,
        has not been used and applied by the Clearing House in accordance with Rule 7A.01A.2, the Clearing House shall have the authority to call for and apply such amount as if the assessment had been utilised in the first instance in accordance with Rule 7A.01A.2.

        Added on 7 August 2012 and amended on 29 July 2013, 30 June 2014 and 12 November 2018.

      • 2.28.2D

        Notwithstanding Rule 2.28.2A, a resigning Clearing Member shall have no obligations in relation to any event of default, other than its own, occurring at or after such time that the following conditions have been met:

        2.28.2D.1 the Minimum Notice Period has lapsed; and
        2.28.2D.2 the resigning Clearing Member has no open positions in any Contract other than positions acquired in relation to an event of default occurring during the Notice Period, by way of:
        a. an auction pursuant to Rule 7A.02.1.5.b.
        b. [This rule has been deleted]

        Added on 7 August 2012 and amended on 30 June 2014.

      • 2.28.3

        Subject to Rule 2.28.2A and Rule 2.28.2D, a resignation shall not in any way affect the rights and liabilities of the Clearing Member to the Clearing House and other Clearing Members and all such rights and liabilities shall subsist until satisfied or discharged.

        Amended on 7 August 2012.

      • 2.28.4

        Where proceedings have been commenced against any Clearing Member which resigns, such proceedings may with the consent of the Clearing House be stayed or terminated.

        Amended on 7 August 2012.

    • 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.

    • 2.28B Fictitious Transactions Without Change in Ownership

      Added on 19 September 2016.

      • 2.28B.1

        A Clearing Member shall ensure that it does not clear any trade where the beneficial interest in both sides of the trade belongs to the same person. The Clearing Member's record keeping and audit trails must show that it has taken reasonable measures to establish that both sides of the trade belong to different beneficial owners.

        This Rule does not apply in the following circumstances:

        a. the trade originates from a fund manager whose instructions are to switch the contract from one sub-account to another for legitimate commercial reasons;
        b. each side of the trade will be booked out finally to different beneficial owners;
        c. if the Clearing Member establishes to the Clearing House that the creation of a false market was not a purpose of the trade.

        Added on 19 September 2016.

    • 2.29 [Rule has been deleted.]

      Deleted on 22 September 2006.

    • 2.30 [Rule has been deleted.]

      Deleted on 7 August 2012.

      • 2.30.1 [Rule has been deleted.]

        Deleted on 7 August 2012.

      • 2.30.1A [Rule has been deleted.]

        Deleted on 7 August 2012.

      • 2.30.2 [Rule has been deleted.]

        Deleted on 7 August 2012.

    • 2.31 [Rule has been deleted.]

      Deleted on 7 August 2012.

      • 2.31.1 [Rule has been deleted.]

        Deleted on 7 August 2012.

      • 2.31.2 [Rule has been deleted.]

        Deleted on 7 August 2012.

    • 2.32 [Rule has been deleted.]

      Deleted on 7 August 2012.

      • 2.32.1 [Rule has been deleted.]

        Deleted on 7 August 2012.

    • 2.33 [Rule has been deleted.]

      Deleted on 7 August 2012.

      • 2.33.1 [Rule has been deleted.]

        Deleted on 7 August 2012.

      • 2.33.2 [Rule has been deleted.]

        Deleted on 7 August 2012.

    • 2.34 Market Disorders, Impossibility of Performance, Emergency Situations and Powers

      Amended on 15 September 2017.

      • 2.34.1

        Without prejudice to Rule 1.01.2, if the Clearing House determines that one (1) of the following conditions is satisfied, namely:—

        (a) a state of war or emergency exists or is imminent or threatened and is likely to affect or has affected the normal course of business, including, but not limited to, performance under any open contract;
        (b) the government of any nation, state or territory or any institution or agency thereof has proclaimed or given notice of its intention to exercise, vary or revoke controls which appear likely to affect the normal course of business, including, but not limited to, performance under any open contract;
        (c) any international organisation, or any institution or agency thereof, has introduced, varied, terminated or allowed to lapse any provision so as to be likely to affect the normal course of business, including, but not limited to, performance under the open contract; or has given notice of its intention to do so or appears to be about to do so;
        (d) it is necessary or desirable for ensuring a fair and orderly market or for ensuring a safe and efficient clearing facility, or for ensuring the integrity of the market or for proper management of systemic risk in the market,

        then:—

        2.34.1.1 the Clearing House shall be entitled to close out a contract at a price determined by the Clearing House or to require such Clearing Members to comply with any directions issued by the Clearing House regarding the performance of, or any other direction in respect of, the open contract;
        2.34.1.2 accounts shall be made up by the Clearing House for each Clearing Member who is a party to the open contract to be closed out as aforesaid. Settlement of such accounts shall be due immediately and settlement thereof shall be made forthwith in discharge of the open contract closed out notwithstanding any further change of circumstances; and
        2.34.1.3 the Clearing House shall be entitled to take such other action or require one or more Clearing Members to take such action as it deems necessary or desirable.

        Amended on 27 March 2006 and 26 April 2013.

      • 2.34.1A

        If a Clearing Member has been found guilty of a rule violation or is found to have a record of frequent rule violations and inadequate management, which in the opinion of the Clearing House, places or may place the Clearing House at risk or the financial condition of such Clearing Member is such that it jeopardizes or may jeopardize the integrity of the Clearing House, the Clearing House may carry out one (1) or more of the following against the Clearing Member:—

        2.34.1A.1 order it to cease and desist from conduct found to be in violation of this Rules;
        2.34.1A.2 prescribe such additional capital requirements as the Clearing House deems necessary;
        2.34.1A.3 prescribe such position limits as the Clearing House deems necessary;
        2.34.1A.4 impose a fine against it, not exceeding S$250,000;
        2.34.1A.5 order the Clearing Member to liquidate all or any portion of the open contracts cleared by it which are open contracts under its House Accounts and/or open contracts of its Customers as the Clearing House deems necessary for ensuring a fair and orderly market or for ensuring the integrity of, and proper management of systemic risk in the organised market and/or transfer all or any portion of the open contracts clearing by such Clearing Member to one (1) or more Clearing Members; and
        2.34.1A.6 reprimand, suspend, expel or impose such other sanction or penalty or take such other actions it deems fit against such Clearing Member.

        Added on 27 March 2006 and amended on 8 October 2018.

      • 2.34.1B

        If the Clearing House determines that an emergency exists which threatens the financial integrity of the Clearing House or any of the Clearing Members, it may take any of the actions referred to at Rules 2.34.1A.1 to 2.34.1A.6 and/or order special or advance margins or funds to be deposited with the Clearing House from all or any Clearing Member(s) or from Clearing Members having cleared particular long, and/or short contracts which remain open.

        As soon as practicable, the Authority shall be notified of such actions. Nothing in this Rule 2.34 shall in any way limit the authority of the Clearing House, SGX RegCo or any other committee or person or entity referred to under Rule 1.01.8 to act in an emergency situation in accordance with this Rules.

        Amended on 15 September 2017 and 3 June 2019.

      • 2.34.2

        If the Clearing House determines in accordance with this Rules that an excessive position or unwarranted speculation or any other undesirable situation or practice is developing or has developed which is affecting or capable of affecting a market in a Commodity or any Contract, the Clearing House:

        (a) may take such action in respect of one (1) or more open contracts for such Commodity or such Contract in a Clearing Member's name as may be provided by this Rules, or as may be agreed between the Relevant Market in respect of such Commodity or such Contract and the Clearing House; and
        (b) shall be entitled to take such other action or require one or more Clearing Members to take such action as it deems necessary or desirable.

        Amended on 26 April 2013.

      • 2.34.3

        Without prejudice to the generality of Chapter 1, the Clearing House, its related corporations, SGX RegCo, any person or entity referred to under Rule 1.01.8, and their respective directors, officers, employees, representatives and agents shall not be liable to any Clearing Member or any Third Party in respect of any damage, loss, cost or expense of whatsoever nature (whether direct, indirect, special or consequential, including without limitation any loss of business, revenue, goodwill, bargain or profit), suffered or incurred by such Clearing Member or Third Party, arising out of or in connection with, or arising out of or in connection with any thing done or not done as a direct or indirect consequence of, the exercise or non-exercise of powers under Rule 2.34 or the determination of the satisfaction or non-satisfaction of any condition for the exercise of such powers.

        Added on 26 April 2013 and amended on 15 September 2017 and 3 June 2019.

    • 2.35 Force Majeure

      • 2.35.1

        Without prejudice to Rule 1.01.2, none of the Clearing House, its related corporations, SGX RegCo, any person or entity referred to under Rule 1.01.8, and their respective directors, officers, employees, representatives or agents ("Relevant Persons") shall be liable for, or for any thing done or not done as a direct or indirect consequence of, any failure, hindrance or delay in performance in whole or in part of the Clearing House's obligations under the terms of this Rules or of any Contract if such failure, hindrance or delay arises out of events or circumstances beyond the Relevant Person's control. Such events or circumstances may include, but are not limited to, acts of God or the public enemy, acts of a civil or military authority other than the acts referred in Rule 2.34 above, embargoes, fire, flood, labour dispute, unavailability or restriction of computer or data processing facilities, energy supplies, or of bank transfer systems or wires, and any other causes beyond the Relevant Person's reasonable control.

        Amended on 27 March 2006, 15 September 2017 and 3 June 2019.

      • 2.35.2

        On the happening of any one (1) or more of the events or circumstances referred to in Rule 2.35.1 above, the Clearing House and any party affected shall immediately notify the same to the relevant party or parties.

        Amended on 27 March 2006.

      • 2.35.3

        In respect of affected Contracts, the Clearing House shall be entitled at any time after the receipt of such notice by the Clearing House or any relevant Clearing Member or Third Party, to close out some or all Contracts in the relevant Clearing Member's name at a price determined by the Clearing House, or to take such other action as it deems necessary or desirable in respect of some or all of the affected Contracts in the relevant Clearing Member's name or require the relevant Clearing Member to take such action as the Clearing House may direct in respect of the same.

      • 2.35.4

        Without prejudice to the generality of the foregoing, the Relevant Persons shall not be liable for, or for any thing done or not done as a direct or indirect consequence of, any failure, hindrance or delay in the performance (in whole or in part) of any of the Clearing House's obligations to Clearing Members with regard to any securities or instruments accepted as margin where such failure, hindrance or delay arises from causes beyond the Clearing House's control, such as but not limited to the failure whether partial or total, interruption or suspension of any depository or custodian or other service ("depository", which expression shall include banks or financial institutions with which cash, securities or instruments are placed with) the Clearing House is using, the termination or suspension of the Clearing House's membership or use of the depository or any variation of the depository's operational timetable, whether or not occasioned by action of the depository operator or other party, or any embargo, unavailability or restriction of bank transfer systems or wires, malfunction or overload of the depository or other emergency.

        Amended on 15 September 2017 and 3 June 2019.

    • 2.35A [Rule has been deleted.]

      Deleted on 7 August 2012.

      • 2.35A.1 [Rule has been deleted.]

        Deleted on 7 August 2012.

      • 2.35A.2 [Rule has been deleted.]

        Deleted on 7 August 2012.

      • 2.35A.3 [Rule has been deleted.]

        Deleted on 7 August 2012.

      • 2.35A.4 [Rule has been deleted.]

        Deleted on 7 August 2012.

      • 2.35A.5 [Rule has been deleted.]

        Deleted on 7 August 2012.

      • 2.35A.6 [Rule has been deleted.]

        Deleted on 7 August 2012.

      • 2.35A.7 [Rule has been deleted.]

        Deleted on 7 August 2012.

      • 2.35A.8 [Rule has been deleted.]

        Deleted on 7 August 2012.

    • 2.36 Fees, Levies and Charges

      • 2.36.1

        The Clearing House may from time to time for the purposes of meeting the expenses of the Clearing House or otherwise, impose fees, levies and charges to be paid by Clearing Members in such respects and on such terms as the Clearing House may prescribe. The Clearing House shall give notice of such fees, levies and charges by means of Directives or other means as the Clearing House in its sole discretion shall deem fit.

        A Clearing Member who fails to pay any fee, levy or charge within thirty (30) days of it becoming payable shall be notified in writing by the Clearing House of such arrears. If the arrears are not paid in by the Clearing Member within ten (10) days of the date of despatch of such notice, the Clearing Member shall be subject to disciplinary proceedings in accordance with this Rules.

    • 2.37 Contract Clause

      • 2.37.1

        All Contracts including Designated Futures Contracts shall be made subject to this Rules, the SFA, SFR and any other applicable laws and all Clearing Members shall ensure that in their agreements with any Third Party to provide its clearing services that it be so provided and agreed.

        Amended on 27 March 2006, 12 October 2005 and 31 December 2013.

    • 2.38 The Authority

      • 2.38.1

        The responsibility for the conduct and supervision of the Clearing House shall rest with the Board but the Clearing House shall be subject to the supervision of the Authority and any Other Regulator. The Clearing House may enter into arrangements with the Authority as in the opinion of the Board may be conducive to the objectives of the Clearing House and for the supervision of the Clearing House, and the Clearing House may give to the Authority or (subject to the confidentiality provisions of the SFA, SFR, this Rules and/or any applicable laws) any Other Regulator any information or document relating to transactions in the Clearing House or relating to any Clearing Member or any other person who shall be subject to this Rules.

        Amended on 31 December 2013.

    • 2.39 Information and Reports

      • 2.39.1

        The Clearing House may from time to time make available to a Relevant Market (or its clearing house) all information and documents:

        (a) relating to the transactions in respect of any Contract traded on such Relevant Market; or
        (b) relating to any Clearing Member in respect of such Contract traded on such Relevant Market.

        Without prejudice to the generality of the foregoing the Clearing House may from time to time provide a Relevant Market (or its clearing house) with reports on the large positions as determined by the Clearing House from time to time) in any Contract traded on the Relevant Market on the books of any of its Clearing Members. For the avoidance of doubt, this Rule shall apply to the provision of information or documents to a Participating Market, in relation to transactions in respect of Designated Futures Contracts.

        The Clearing House may from time to time provide any information in relation to any Clearing Member or its account(s) to the Exchange.

        Amended on 1 October 2009.

    • 2.40 [Rule has been deleted.]

      Deleted on 27 March 2006.

    • 2.41 [Rule has been deleted.]

      Deleted on 27 March 2006.

    • 2.42 [Rule has been deleted.]

      Deleted on 27 March 2006.

    • 2.43 Notice to Clearing Members

      • 2.43.1

        Except as otherwise specifically provided by this Rules, any notice to any Clearing Member shall be effected by way of letter or facsimile or any electronic means (as the Clearing House shall in its sole discretion deem fit) and, in the case of delivery by letter or facsimile, respectively posted or delivered personally to the last known address or sent to the facsimile number of the Clearing Member as notified to the Clearing House.

      • 2.43.2

        Such notice to the Clearing Member shall be deemed to have been duly served, if delivered personally, immediately upon delivery, or if transmitted by facsimile, upon the generation of a successful transmission report from the facsimile machine, or if sent by prepaid post, two (2) days (for local mail) and seven (7) days (for overseas airmail) after posting and in proving the same it shall be sufficient to show that such notice, demand or communication was (in the case of delivery) duly addressed, or (in the case of sending by prepaid post) contained in an envelope which was duly addressed, stamped and posted, or (in the case of facsimile transmission) was duly transmitted from the despatching facsimile machine, as evidenced by a successful transmission report generated by such machine.