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Past version: Effective from 19 May 2014 to 28 Dec 2014

This Rule 11.3 shall apply to a Trading Member that holds a capital markets services licence.

Amended on 19 May 201419 May 2014.

11.3.1

A Trading Member shall not cause or permit:—

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

to fall below its total risk requirement.

Amended on 29 December 201429 December 2014.

11.3.2

Financial resources and adjusted net head office funds shall be calculated in the same manner as prescribed in Regulation 2 of the SFR (Financial and Margin Requirements).

Amended on 29 December 201429 December 2014.

11.3.3

Total risk requirement shall be calculated in the same manner as prescribed in the Notice on Risk Based Capital Adequacy Requirements for Holders of Capital Markets Services Licences.

Amended on 29 December 201429 December 2014.

11.3.4 [Rule has been deleted.]

Deleted on 29 December 201429 December 2014.

11.3.5

If a Trading Member fails to comply or becomes aware that it will fail to comply with the financial resources requirement prescribed under Rule 11.3, or such higher financial resources requirement as SGX-ST may have imposed under Rule 11.5, it shall immediately notify SGX-ST.

11.3.6

Regardless whether or not there has been any notification by a Trading Member under Rule 11.3.5, if the financial resources or adjusted net head office funds of the Trading Member, as the case may be, are below the total risk requirement prescribed under Rule 11.3 or such higher percentage of the total risk requirement as SGX-ST may have imposed under Rule 11.5, it shall be deemed a breach of a provision of the SGX-ST Rules by the Trading Member. SGX-ST may refer the matter to the Disciplinary Committee, and may take such interim control measures, including but not limited to do all or any of the following, as SGX-ST deems fit and appropriate:—

(1) require the Trading Member to operate its business subject to such restrictions or conditions as SGX-ST decides;
(2) suspend the Trading Member for a period SGX-ST decides. The suspension may be announced to all Trading Members. During the suspension, the Trading Member:—
(a) must not enter into a new transaction without the approval of SGX-ST;
(b) remains liable to complete all contracts outstanding at the time of suspension. However, it must not deliver any securities or settle any transaction without the approval of SGX-ST.
(3) require a Director to step down from day-to-day conduct of the business affairs of the Trading Member; and
(4) appoint a person or persons (which may include a firm of auditors) as Manager to manage the business of the Trading Member. SGX-ST will fix the remuneration of the Manager, which must be paid by the Trading Member. The Trading Member is solely responsible for the Manager's acts and defaults. The Manager must carry out directions given by SGX-ST in relation to the business of the Trading Member, including carrying on the business of the Trading Member in accordance with instructions.

11.3.7 Early Warning Requirement on Financial Resources

A Trading Member shall immediately notify SGX-ST if:—

(1) in the case where the Trading Member is incorporated in Singapore, its financial resources; or
(2) 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.

11.3.8

If SGX-ST is notified by a Trading Member under Rule 11.3.7 or becomes aware (whether or not there has been any notification by the Trading Member under Rule 11.3.7) 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 higher percentage as SGX-ST may have imposed under Rule 11.5, 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).

11.3.9 Notification Requirement on Financial Resources

A Trading Member shall immediately notify SGX-ST if:—

(1) in the case where the Trading Member is incorporated in Singapore, its financial resources; or
(2) 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.

11.3.10

If SGX-ST is notified by a Trading Member under Rule 11.3.9 or becomes aware (whether or not there has been any notification by the Trading Member under Rule 11.3.9) 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 higher percentage as SGX-ST may have imposed under Rule 11.5, SGX-ST shall be entitled to require the Trading Member to:—

(1) 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
(2) operate its business in such manner and on such conditions as SGX-ST may impose.

11.3.11 [Rule has been deleted.]

Deleted on 29 December 201429 December 2014.