Rule 5 — Financial/Capital Requirements

Rule Violation Whether composition may be offered Composition Amount which may be Offered by CDP, where CDP has Determined the Clearing Member to be Liable Mandatory minimum penalty imposable by the DC
Rule Chapter/Number Brief Description of Rule 1st Violation 2nd Violation 3rd Violation
Rule 5 — Financial/Capital Requirements
5.1 Minimum Capital and Financial Requirements of Clearing Members Incorporated in Singapore
5.1.1(1) General Clearing Member to maintain base capital requirement Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.1.1(2) General Clearing Member to meet financial resources requirement Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.1.1(3) General Clearing Member to meet aggregate indebtedness requirement Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.1.1(4) General Clearing Member to comply with other financial and operational requirements prescribed by CDP Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.1.1A(1) Bank Clearing Member to maintain base capital requirement Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.1.1A(2) Bank Clearing Member to comply with RRA Financial Requirement Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.1.1A(3) Bank Clearing Member to comply with other financial and operational requirements prescribed by CDP Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.1.1B(3) Clearing Member to immediately notify CDP of failure, or impending failure, to comply with minimum capital and financial requirements Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.1.1C Clearing Member to comply with CDP's directions where Clearing Member has failed to comply with the minimum capital and financial requirements Not Compoundable Not Compoundable $10,000
5.1A Early Warning Financial Requirements of Clearing Members Incorporated in Singapore
5.1A.1 General Clearing Member to immediately notify CDP where financial resources have fallen below 120% of its total risk requirement, or where its aggregate indebtedness has exceeded 600% of its aggregate resources Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.1A.2 General Clearing Member to comply with CDP's directions where financial resources have fallen below 120% of its total risk requirement Not Compoundable Not Compoundable $10,000
5.1A.3 General Clearing Member to comply with CDP's directions where aggregate indebtedness has exceeded 600% of aggregate resources Not Compoundable Not Compoundable $10,000
5.1B Notification Requirements of Clearing Members Incorporated in Singapore
5.1B.1 Clearing Member to immediately notify CDP where financial resources have fallen below 150% of total risk requirement or of any reportable event in relation to its regulatory capital and liquidity ratios Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.1B.2 Clearing Member to comply with other notification requirements and conditions prescribed by CDP Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.1B.3 Clearing Member to comply with CDP's directions where 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 Not Compoundable Not Compoundable $10,000
5.1D Minimum Capital and Financial Requirements of Clearing Members Incorporated Outside Singapore
5.1D.1(1) General Clearing Member to maintain base capital requirements Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.1D.1(2) General Clearing Member to meet adjusted net head office funds requirement Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.1D.1(3) General Clearing Member to meet aggregate indebtedness requirement Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.1D.1(4) General Clearing Member to comply with other financial and operational requirements prescribed by CDP Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.1D.2(1) Bank Clearing Member to maintain base capital requirement Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.1D.2(2) Bank Clearing Member to comply with RRA Financial Requirements Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.1D.2(3) Bank Clearing Member to meet other financial and operational requirements prescribed by CDP Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.1D.3 Clearing Member to immediately notify CDP of failure, or impending failure, to meet minimum capital and financial requirements Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.1D.4 Clearing Member to comply with CDP's directions where Clearing Member has failed to meet minimum capital and financial requirements Not Compoundable Not Compoundable $10,000
5.1DA Bank Clearing Member to comply with Liquidity Resource Requirement Not Compoundable Not Compoundable $10,000
5.1E Early Warning Financial Requirements of Clearing Members Incorporated Outside Singapore
5.1E.1 General Clearing Member to immediately notify CDP where adjusted net head office funds or cash and/or acceptable government securities deposited with CDP have fallen below 120% of total risk requirement, or where its aggregate indebtedness has exceeded 600% of aggregate resources Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.1E.2 General Clearing Member to comply with CDP's directions where adjusted net head office funds have fallen below 120% of total risk requirement Not Compoundable Not Compoundable $10,000
5.1E.3 General Clearing Member to comply with CDP's directions where aggregate indebtedness has exceeded 600% of aggregate resources Not Compoundable Not Compoundable $10,000
5.1F Notification Requirements of Clearing Members Incorporated Outside Singapore
5.1F.1 Clearing Member to immediately notify CDP where Clearing Member's adjusted net head office funds have fallen below 150% of total risk requirement or of any reportable event in relation to its regulatory capital and liquidity ratios Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.1F.2 Clearing Member to comply with other notification requirements prescribed by CDP Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.1F.3 Clearing Member to comply with CDP's directions where adjusted net head office funds have fallen below 150% of total risk requirement or that a reportable event in relation to its regulatory capital and liquidity ratios has occurred Not Compoundable Not Compoundable $10,000
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5.5 Reserve Fund Requirement
5.5.1 General Clearing Member to maintain reserve fund based on its audited net profits of each year Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.5.2 Reserve fund not to be made available for declaration of dividends without the prior approval of CDP Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.6 Exposure to Single Customer
5.6.1 General Clearing Member to immediately notify CDP of excess exposure to a single customer Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.7 Exposure to Single Security
5.7.1 General Clearing Member to immediately notify CDP of excess exposure to a single security Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.7.8 General Clearing Member not to permit exposure to suspended security to increase in monetary value above the level subsisting on 30th consecutive day of suspension until suspension lifted Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.8 Monthly Returns
5.8.1 Clearing Member to submit monthly returns to CDP by by time frame and in format specified by CDP Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.9 Appointment of Auditors and Audit Requirements
5.9.1 Clearing Member to seek the approval of CDP prior to any appointment of new auditors Compoundable $500 $1,000 $2,000 N.A.
5.9.1A Bank Clearing Member to inform CDP of the appointment of new auditors within 7 days of the appointment Compoundable $500 $1,000 $2,000 N.A.
5.9.2 Failure by General Clearing Member to furnish relevant forms required under the SFR, annual accounts and auditors' certificate to CDP within 5 months of the end of the General Clearing Member's financial year Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.9.5 Bank Clearing Members to furnish annual accounts and auditors' certificate within 5 months of the end of the Bank Clearing Members' financial year Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.11 Other Financial Requirements
5.11.1 General Clearing Member not to reduce paid-up ordinary share capital without prior written approval of CDP Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.11.2(1) General Clearing Member to notify CDP prior to the issue of preference shares Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.11.2(2) General Clearing Member to comply with conditions for redeeming redeemable preference shares that are computed as part of its financial resources Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.11.3(1) General Clearing Member to obtain the prior approval of CDP if it enters into a subordinated loan agreement other than the format prescribed by CDP Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.11.3(2) General Clearing Member to immediately notify CDP when it draws down a qualifying subordinate loan Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.11.3(3) General Clearing Member not to repay a subordinated loan principal in contravention of the requirements and conditions Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.11.4 General Clearing Member not to make any unsecured loan or advance, pay any dividend or Director's fees or increase in Director's remuneration without prior written approval of CDP Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.11.5 General Clearing Member to submit to CDP a report on all its credit facilities, or any changes to its credit facilities Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
5.12 Register of Connected Persons
5.12 General Clearing Member to maintain register of directors and their connected persons Compoundable $500 $1,000 $2,000 N.A.

Added on 16 May 201116 May 2011 and amended on 29 December 201429 December 2014 and 22 April 201922 April 2019.