Whole Section

  • Rule 9 — Suspension or Restriction

    • 9.1 CDP May Suspend or Restrict Clearing, Settlement and Depository Activities

      • 9.1.1

        CDP may suspend or restrict the membership of any Clearing Member, or the clearing and settlement of Exchange Trades in general or in particular, or the clearing and settlement of the Exchange Trades of, or the execution of transactions (including those in respect of depository activities) by, any Clearing Member for such duration as it sees fit if in the opinion of CDP:—

        (1) the functioning of CDP is or is likely to be impaired by any event or circumstance;
        (2) such action is in the general interest of CDP and/or its Clearing Members; or
        (3) in respect of a Clearing Member, an Event of Default has occurred in respect of that Clearing Member.

        Amended on 6 September 2021.

      • 9.1.2

        Without prejudice to Rule 9.1.1, CDP may also take such other action as it may deem necessary or appropriate in the interests of CDP and/or its Clearing Members, or for the protection of CDP with respect to the Novated Contracts to which a Defaulting Clearing Member is a party, at the Defaulting Clearing Member's expense and if appropriate, in its name.

        Amended on 23 January 200923 January 2009.

      • 9.1.3

        CDP may also request SGX-ST to suspend the Clearing Member from further trading on SGX-ST and/or notify any other Exchange of any action or proceedings taken against the Clearing Member.

      • 9.1.4

        If any Clearing Member shall be ordered to wind up, or proceedings for the voluntary or involuntary liquidation of the affairs of the Clearing Member be commenced, or a composition with the creditors of the Clearing Member under the provisions of any law or regulation relating to bankruptcy or insolvency be entered into under the laws of any jurisdiction, or if the Clearing Member, not being an Exempt Person, ceases to hold a valid Capital Markets Services Licence under the SFA, or ceases to be authorized to conduct banking business in Singapore pursuant to section 4 of the Banking Act 1970, the Clearing Member shall be deemed to have been automatically suspended.

        Amended on 1 July 20081 July 2008 and 18 January 2022.

    • 9.2 SGX-ST Requirement

      • 9.2.1

        CDP shall suspend or restrict the clearing and settlement of Exchange Trades in general or in particular, or the clearing and settlement of the Exchange Trades of, or the execution of transactions (including those in respect of depository activities) by, any Clearing Member, if advised by SGX-ST or any other Exchange or pursuant to any requirement of SGX-ST or any other Exchange, and if it is in the interest of CDP to do so.

        Amended on 6 September 2021.

    • 9.3 Notification of Suspension

      • 9.3.1

        CDP shall notify the Clearing Member concerned and the other Clearing Members as soon as practicable upon any automatic suspension or any decision to suspend or restrict the clearing and settlement of Exchange Trades of a Clearing Member pursuant to Rule 9. Pending such decision, the Clearing Member concerned may resign from CDP subject to the Clearing Rules.

      • 9.3.2

        A Clearing Member against whom suspension, restriction or other action is imposed by CDP pursuant to Rule 9 may, within 7 Settlement Days, appeal to the Disciplinary Committee against the said suspension, restriction or other action. Notwithstanding such appeal, the suspension, restriction or other action imposed on the Clearing Member by CDP shall continue in effect until such time as it is revoked or lifted by CDP or the Disciplinary Committee.

      • 9.3.3

        A Clearing Member suspended or deemed suspended for whatsoever reasons (including on a voluntary basis) shall not have any of the privileges of a Clearing Member during the period of its suspension. A suspended Clearing Member may be reinstated upon such conditions as CDP may impose.

      • 9.3.4

        Unless otherwise decided by CDP, a Clearing Member who is suspended or whose clearing, settlement, depository or other activities are restricted by CDP is still liable to CDP to clear and settle any and all Exchange Trades that are entered by the Clearing Member right up to the time the suspension or restriction takes effect. Thereafter, the Clearing Member must not clear or settle any Exchange Trade or execute any transaction (including those in respect of depository activities) without approval of CDP.

        Amended on 6 September 2021.

    • 9.4 Positions Carried in Any Account on the Books of Clearing Members Who are Suspended or Restricted in Clearing Activities

      • 9.4.1

        When a Clearing Member is suspended or is restricted in its clearing activities by CDP, other than for default, CDP may designate 1 or more Clearing Members to deal with any positions carried in any account on the books of the suspended or restricted Clearing Member in accordance with CDP's direction.

        Added on 23 January 200923 January 2009.