11.3.11 Qualifying Letter of Credit
(1) For the purpose of Rule 11.3, a Trading Member may include 1 or more qualifying letter(s) of credit in its calculation of financial resources, or adjusted net head office funds, as the case may be, subject to the total amount payable under the qualifying letter(s) of credit or 50% of the Trading Member's total risk requirement, whichever is lower.
(2) For the purpose of Rule 11.3.11(1), a qualifying letter of credit is a legally enforceable and irrevocable letter of credit that is made:—
(a) in the case of a Trading Member, in favour of SGX-ST;
(b) in the case of a Clearing Member, in favour of CDP; and
(c) issued by a bank approved by, and in a form acceptable to SGX-ST or CDP, as the case may be; and
(d) does not include any letters of credit provided by the Clearing Member to satisfy Rule 7 of the Clearing Rules of CDP or any other requirement imposed by CDP.
(3) SGX-ST shall reserve the right to call on any of the letter(s) of credit made in favour of SGX-ST pursuant to Rule 11.3.11 and apply the proceeds thereof in respect of the Trading Member's default to SGX-ST.