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3.3.1

This Rule applies only to Trading Members that hold a Capital Markets Services Licence.

Added on 3 June 20193 June 2019.

3.3.2

A Trading Member shall not cause or permit:

(a) where it is incorporated in Singapore, its financial resources; or
(b) where it is incorporated outside Singapore, its adjusted net head office funds,

to fall below its total risk requirement.

Added on 3 June 20193 June 2019.

3.3.3

In the Rules, financial resources, adjusted net head office funds and total risk requirement shall be computed in the same manner as prescribed in the SFR (Financial and Margin Requirements), read together with the RBC Notice.

Added on 3 June 20193 June 2019.

3.3.4

It shall be a breach of the Rules by the Trading Member if its financial resources, or as the case may be, adjusted net head office funds falls below its total risk requirement, whether or not the Trading Member makes or has made the notification specified in Rule 3.3.5.

Added on 3 June 20193 June 2019.

3.3.5

Notification of Failure to Comply with Rule 3.3

If a Trading Member fails to comply or becomes aware that it will fail to comply with the financial resources requirement prescribed under this Rule 3.3, or such other financial resources requirement as SGX-ST may impose, it shall immediately notify SGX-ST.

Added on 3 June 20193 June 2019.

3.3.6

First warning of impending failure to comply with Rule 3.3

A Trading Member shall immediately notify SGX-ST if:

(a) in the case where the Trading Member is incorporated in Singapore, its financial resources; or
(b) in the case where the Trading Member is incorporated outside Singapore, its adjusted net head office funds,

fall below 150% of its total risk requirement or such other percentage as SGX-ST may impose.

Added on 3 June 20193 June 2019.

3.3.7

If SGX-ST is notified by a Trading Member under Rule 3.3.6 or becomes aware (whether or not there has been any notification by the Trading Member under Rule 3.3.6) that the Trading Member's financial resources or adjusted net head office funds, as the case may be, have fallen or will fall below 150% of its total risk requirement, or such other percentage as SGX-ST may impose, SGX-ST shall be entitled to require the Trading Member to:

(a) submit the statements of assets and liabilities, financial resources, total risk requirement, aggregate indebtedness, and such other statements as required by SGX-ST at such interval and for such time frame as determined by SGX-ST; and
(b) operate its business in such manner and on such conditions as SGX-ST may impose.

Added on 3 June 20193 June 2019.

3.3.8

Second Warning of Impending Failure to Comply with Rule 3.3

A Trading Member shall immediately notify SGX-ST if:

(a) in the case where the Trading Member is incorporated in Singapore, its financial resources; or
(b) in the case where the Trading Member is incorporated outside Singapore, its adjusted net head office funds,

fall below 120% of its total risk requirement or such other percentage as SGX-ST may impose.

Added on 3 June 20193 June 2019.

3.3.9

If SGX-ST is notified by a Trading Member under Rule 3.3.8 or becomes aware (whether or not there has been any notification by the Trading Member under Rule 3.3.8) that the Trading Member's financial resources or adjusted net head office funds, as the case may be, have fallen or will fall below 120% of its total risk requirement, or such other percentage as SGX-ST may impose, SGX-ST shall be entitled to require the Trading Member to comply with any or all of the directions prescribed under Regulation 7(3) of the SFR (Financial and Margin Requirements).

Added on 3 June 20193 June 2019.