Whole Section

  • 8.1 Events of Default

    • 8.1.1

      In the event that:—

      (1) a Clearing Member fails duly to perform or is, in the opinion of CDP, in breach of any provision of these Clearing Rules or Clearing Directives or of any agreement, understanding or arrangement which the Clearing Member has from time to time with CDP;
      (2) a Clearing Member, not being an Exempt Person, ceases to hold a valid Capital Markets Services Licence under the SFA or ceases to be authorised to conduct banking business in Singapore pursuant to section 4 of the Banking Act 1970;
      (3) a Clearing Member is insolvent or is deemed insolvent pursuant to Rule 8.1A.;
      (4) in view of the Clearing Member's financial or operating conditions, CDP, in its absolute discretion, considers it necessary or desirable to protect its own interests, the interests of other Clearing Members and/or the interests of the customers of the Clearing Member; or
      (5) conversion, theft, breach of trust, embezzlement, or any other similar cause, caused or suffered by or in connection with a Clearing Member,

      CDP shall be entitled, at its absolute discretion, then or at any time thereafter, whether or not such event is, in the opinion of CDP, continuing, to declare that an Event of Default has occurred and to give notice thereof to all Clearing Members.

      Amended on 1 July 20081 July 2008, 21 January 201321 January 2013, 22 April 201322 April 2013 and 18 January 2022.

    • 8.1.2

      Immediately upon CDP declaring that an Event of Default has occurred in respect of any Clearing Member, such Clearing Member (the "Defaulting Clearing Member") shall be deemed:—

      (1) to be in breach of its obligations to CDP under its Novated Contracts; and
      (2) to be unable to meet its obligations to CDP

      and to the extent permitted by law, Rules 8.2 to 8.9 herein shall apply.

      Added on 23 January 200923 January 2009 and 22 April 201322 April 2013.

    • 8.1.3

      Without prejudice to the generality of Rule 1 or Rule 10, CDP 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 the declaration or non-declaration of an event of default by CDP.

      Added on 26 April 201326 April 2013.