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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 200627 March 2006, 10 August 200710 August 2007 and 29 December 201429 December 2014.