1.1.1
These Clearing Rules apply to all Exchange Trades that are cleared or settled through CDP. The Clearing Rules operate as a binding contract between CDP and each Clearing Member, and between a Clearing Member and any other Clearing Member.
Amended on 3 April 20083 April 2008, 8 October 20188 October 2018 and 3 June 20193 June 2019.
1.1.3
Except where CDP, SGX RegCo, or any person or entity referred to under Rule 1.1.7 otherwise expressly agrees with or expressly commit to any party, the benefit of any performance of obligations under these Clearing Rules and/or Clearing Directives is restricted only to Clearing Members. None of CDP, its related corporations, SGX RegCo, any person or entity referred to under Rule 1.1.7, or their respective directors, officers, employees, representatives or agents (the "Relevant Persons") shall be liable to any other party (including Trading Members). In particular, the Relevant Persons shall have no liability to any party affected or aggrieved by any alleged action or omission.
Amended on 23 January 200923 January 2009, 15 September 201715 September 2017 and 3 June 20193 June 2019.
1.1.4
All Clearing Members are to note the foregoing and ensure that they are taking on membership, and/or carrying on business, as Clearing Members, and that they transact and will transact by reference to CDP or upon information or action referable to CDP, only on the foregoing basis, and will also ensure that they will not open or allow the continued operation of any account for any person with respect to any transaction unless such person has been notified of the foregoing provisions and has satisfied itself that the same is acceptable and accepts the same.
1.1.5
CDP may waive the application of a rule (or part of a rule) to suit the circumstances of a particular case, unless the rule specifies that CDP shall not waive it. CDP may grant a waiver subject to such conditions as it considers appropriate. A waiver is only effective if the conditions are satisfied.
CDP shall notify all Clearing Members of such waivers as soon as practicable.
1.1.6
The Clearing Rules may be amended or repealed by the Board in accordance with the SFA.
Amended on 3 June 20193 June 2019.
1.1.7
CDP may delegate, assign or grant authority to exercise any of its rights, powers, authorities and discretions under these Rules, including any right to enforce these Rules, to such person or entity as it may determine in its sole discretion, without consent from any Clearing Member.
Where these Rules provide that any power, authority or discretion is to be exercised by the Board, the Board may delegate, assign or grant authority to exercise such power, authority or discretion to any person or entity. The Board may authorise a delegate to sub-delegate.
Added on 15 September 201715 September 2017.
1.1.8
SGX RegCo shall have the authority to exercise any rights, powers, authorities and discretions under these Rules, including the right to enforce these Rules. In the exercise of any such rights, powers, authorities and discretions under these Rules, SGX RegCo shall be bound to the same extent as CDP in respect of any obligations arising from the exercise of such rights, powers, authorities and discretions.
Added on 15 September 201715 September 2017.
1.2.1
In these Clearing Rules, unless the context otherwise requires:—
Where a provision of these Clearing Rules refers to or has effect for the purposes of a particular provision of the SFA or the Companies Act — the word or expression has in that provision of these Clearing Rules the same meaning as it has in that provision of the SFA or the Companies Act; in any other case, the word or expression has the same meaning in these Clearing Rules as it has in the SFA or the Companies Act.
Unless the context requires otherwise, where the terms defined below are defined in relation to a holder of a Capital Markets Services Licence, such definitions shall, with the necessary modifications, apply to a Clearing Member as those definitions apply to a holder of a Capital Markets Services Licence whether or not that Clearing Member holds a Capital Markets Services Licence.
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Term | Meaning |
A | |
"acceptable government securities" | means securities issued by a government with a Moody's Investors Service sovereign rating of at least Aaa, Standard & Poor's Corporation sovereign rating of at least AAA, Fitch, Inc sovereign rating of at least AAA or such other rating or such other government security, as may otherwise be prescribed by and acceptable to CDP from time to time |
“Adjusted Amount” | has the meaning ascribed to it in Rule 7.10.6. |
"adjusted net head office funds" | has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements). |
"aggregate indebtedness" | has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements). |
"aggregate resources" | when used in reference to:— (1) a Clearing Member incorporated in Singapore, means its financial resources and qualifying letters of credit referred to in Rule 5.1C less its total risk requirement; and (2) a Clearing Member incorporated outside Singapore, means its adjusted net head office funds and qualifying letters of credit referred to in Rule 5.1G less its total risk requirement. |
"Appeals Committee" | means the committee appointed by the SGX RegCo Board to exercise the powers set out in Rule 11. |
"[Deleted]" | "[Deleted]" |
"Authority" | means the Monetary Authority of Singapore or such other body that shall be responsible for the administration of the SFA. |
"Average Aggregate Resources" | means the average of the aggregate resources on the last day of each of the 3 months preceding the previous month. |
B | |
"Bank Clearing Member" | means a Clearing Member who has such rights and obligations as set out in Chapter 3. For the avoidance of doubt, a reference to a Bank Clearing Member incorporated outside Singapore shall refer to the branch located in Singapore, of a parent bank incorporated outside Singapore. |
"base capital" | when used in reference to:— (a) a General Clearing Member, has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements); and (b) a Bank Clearing Member, means its paid-up ordinary share capital and unappropriated profit or loss. |
"Board" | means the Board of Directors for the time being of CDP or such of them as have authority to act for the Board. |
"business governed by this Clearing Rules" or "operations governed by this Clearing Rules" | when used in reference to:— (1) a Bank Clearing Member incorporated in Singapore or a Bank Clearing Member incorporated outside Singapore which has satisfied Rule 3.1.3(10)(c), means its business or operations (whichever is applicable) involving all securities and derivatives contracts traded on any exchange and OTC Contracts novated to any clearing facility; and (2) a Bank Clearing Member incorporated outside Singapore which has satisfied Rule 3.1.3(10)(a) or (b), means its business or operations (whichever is applicable) involving securities and derivatives contracts traded on the Exchange and SGX-DT and OTC Contracts novated to CDP and SGX-DC. |
"buying-in market" | means the market operated by SGX-ST for the sale and purchase of securities to be bought-in by CDP pursuant to these Clearing Rules. |
C | |
"Capital Markets Services Licence" | has the meaning ascribed to it in the SFA. |
“cash settle” | in relation to an obligation to deliver securities or a right to receive securities means the replacing of that obligation or right with an obligation to pay or a right to receive a Cash Settlement Amount. |
“Cash Settlement Amount” | means the monetary sum, as set out in Practice Note 6.5.1B(2), 6.6.2, 6.7.11 and 8.2.2(3E), to be paid or received pursuant to a cash settlement under these Clearing Rules. |
"CDP" | means The Central Depository (Pte) Limited. |
“CDP First Contribution” | has the meaning ascribed to it in Rule 7.4.1(1). |
“CDP Second Contribution” | has the meaning ascribed to it in Rule 7.4.1(2). |
“CDP Settlement Facility” | means the settlement facility operated by CDP for settlement pursuant to the CDP Settlement Rules. |
“CDP Settlement Rules” | means the Settlement Rules of CDP as the same may be amended, modified, supplemented or replaced from time to time. |
“Chief Executive Officer” | has the meaning ascribed to it in the SFA. |
[Deleted] | [Deleted] |
"Circular" | means a binding notice issued by CDP regarding regulatory and non-regulatory matters pertaining to Clearing Members. |
"Clearing Account" | means, in relation to a Clearing Member, the Securities Account maintained by it for settlement purposes. |
"Clearing Directives" | means any Directives, Regulatory Notices, Circulars, and terms and conditions governing the operations, facilities and services provided by CDP. |
"Clearing Fund" | means the fund referred to in Rule 7. |
"Clearing House Examiner" | means the person appointed as such under Rule 11.1.5. |
"Clearing House Inspector" | means the person appointed as such under Rule 11.2.1. |
"Clearing Member" | means the corporation granted or admitted to be a member of CDP for clearing, pursuant to these Clearing Rules and shall include a General Clearing Member and a Bank Clearing Member. |
"Clearing Member Maintenance Margins" | means that component of the Clearing Member Required Margins, as determined by CDP, deposited by the Clearing Member with CDP for or in relation to all Novated Contracts carried in its books. |
"Clearing Member Required Margins" | means the sum of Clearing Member Maintenance Margins and Clearing Member Variation Margins. |
"Clearing Member Variation Margins" | means that component of Clearing Member Required Margins comprising the mark-to-market gains and losses, in relation to the price at which the Novated Contract was bought and sold, arising from CDP's daily valuation of positions. A net loss increases the Clearing Member Required Margins amount, and a net profit decreases the Clearing Member Required Margins amount. |
"Clearing Membership" | means membership of CDP pursuant to this Clearing Rules. |
"Clearing Rules" | means the CDP Clearing Rules, including the Directives, Regulatory Notices and Circulars, as the same may be amended, modified, supplemented or replaced from time to time. |
"Collateral" | means all or any of the monies and assets deposited with, or otherwise provided to, CDP by or for a Clearing Member as margin, credit support and/or security as may be required under these Clearing Rules or as otherwise directed by CDP and shall not include the monies and assets of the Clearing Fund. |
“Collateralised Contribution” | has the meaning ascribed to it in Rule 7.2.1A(2). |
"Common Banking Day" | in relation to settlement in a foreign currency means a day on which CDP is open for business and both the central bank in Singapore and the central bank for that foreign currency are open for settlement. |
"Companies Act" | means the Companies Act 1967, or any statutory modification, amendment or re-enactment thereof for the time being in force, or any and every other act which may replace it, and unless the context otherwise requires, includes any subsidiary legislation or regulations made pursuant thereto. |
"Confirmation" | has the meaning ascribed to it in Rule 6C.2.3. |
“Contingent Contribution” | has the meaning ascribed to it in Rule 7.2.1A(3). |
"Contract Specifications" | means the commercial and technical terms of a Marginable Futures Contract, including the contract size, contract month, underlying security, Last Trading Day and settlement basis. Unless otherwise stated, Contract Specifications are not subject to the rule amendment procedures specified under the SFA. |
"CPF Trade Settlement" | means an Exchange Trade which is settled using the customer's CPF account as maintained by the CPF Agent Banks. |
"Customer", | with respect to a Clearing Member, means:— (1) any person from whom, or on whose behalf, a Clearing Member has received or acquired or held moneys or securities for the account of such person and includes directors of the Clearing Member, their connected persons (as defined in section 2 of the SFA) and any other person with whom the Clearing Member has entered into a contract to sell or purchase securities or Futures Contracts; and (2) the Trading Members which are qualified by the Clearing Member but excludes:— (a) a person whose account is carried on the books of a Trading Member (where such person is not the Trading Member itself); (b) the Central Depository (Pte) Limited; and (c) [Deleted] (d) any other person approved by the Authority and which is established for the purpose of providing clearing and settlement facilities in respect of any dealing in securities or trade in Futures Contracts. |
"Customer Account" | means, unless otherwise specified in these Clearing Rules, a trading account carried on the books of a Clearing Member for a Customer except where such Customer is:— (1) a director, officer, employee or representative of the Clearing Member; or (2) a related corporation of the Clearing Member with respect to accepted instructions to deal for an account belonging to, and maintained wholly for the benefit of, that related corporation. For the avoidance of doubt, a Clearing Member's own proprietary account is not a Customer Account. |
"Customer Asset Value" | means the market value of the moneys and assets in a customer's account subject to such hair-cut as specified by CDP. |
"Customer Maintenance Margins" | means that component of Customer Required Margins, as determined by CDP, which must be maintained in a customer's account subsequent to the deposit of Initial Margins for that customer's positions in Marginable Futures Contracts. |
"Customer Required Margins" | means the sum of Customer Maintenance Margins and Customer Variation Margins. |
"Customer Variation Margins" | means that component of Customer Required Margins arising from CDP's daily valuation of positions. It comprises the mark-to-market gains and losses, in relation to the price at which the Marginable Futures Contract was bought or sold. A net loss increases the Customer Variation Margins and Customer Required Margins amount, and a net profit decreases the Customer Variation Margins and Customer Required Margins amount. |
D | |
"Defaulting Clearing Member" | has the meaning ascribed to it in Rule 8.1.2. |
"Depository Agent" | has the meaning ascribed to it in the SFA. |
"Directive" | means a binding notice directing Clearing Members to take corrective or other actions including actions in the interests of a safe and efficient clearing facility or in light of investor protection concerns. |
"Disciplinary Committee" | means the committee appointed by the SGX RegCo Board to exercise the powers set out in Rule 11. |
E | |
"Effective Date" | means 1 December 2003. |
"Event of Default" | means an event relating to a Clearing Member as referred to in Rule 8.1. |
"Excess Margin" | means the amount of Customer Asset Value or deposited collateral value that is in excess of the sum of the Initial Margins and Customer Variation Margins. |
"Exchange" | means SGX-ST or any other organised market or organisation (whether an exchange, association, body corporate or unincorporate or otherwise) the trades on which are cleared by, or novated to CDP. |
"Exchange Trade" | means:— (1) a trade transacted on or through the Trading System pursuant to the SGX-ST Rules; or (2) a trade reported to SGX-ST pursuant to the SGX-ST Rules, including but not limited to Direct Business (as defined in the SGX-ST Rules); or (3) a trade reported by a Clearing Member to CDP, which CDP accepts for clearing; or (4) a trade transacted on such Exchange (other than SGX-ST) with which CDP may have direct or indirect clearing arrangements from time to time, or in relation to which trade CDP has clearing arrangements in place; with the exception of such trades as CDP may from time to time stipulate as not being "Exchange Trades" falling under these Clearing Rules. |
"Exempt Person" | has the meaning ascribed to it in the SFA. |
F | |
"Final Settlement Balance" | has the meaning ascribed to it in Rule 6.3.2. |
"financial resources" | has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements). |
[Deleted] | [Deleted] |
"futures contract" | has the meaning ascribed to it in the SFA. |
G | |
"General Clearing Member" | means a Clearing Member who has such rights and obligations as set out in Chapter 3. |
H | |
"House Account" | means, unless otherwise specified in these Clearing Rules, a trading account carried on the books of a Clearing Member which is not a Customer Account. |
I | |
"Initial Margin" | means that minimum amount, as determined by CDP, required to be deposited for positions in Marginable Futures Contracts. This minimum amount is distinct from and in addition to Customer Variation Margins. |
“Intended Settlement Day” | means, in relation to any Novated Contract, the day on which the Exchange Trade from which the Novated Contract arises is due for settlement, as provided in the SGX-ST Rules or the applicable rules or regulations of the relevant Exchange (as the case may be). |
[Deleted] | [Deleted] |
"Irredeemable and Non-Cumulative Preference Share Capital" | has the meaning ascribed to it in Regulations 2 of the SFR (Financial and Margin Requirements). |
L | |
"Last Trading Day" | means the last day on which a Marginable Futures Contract may be traded prior to its expiration. |
M | |
"Marginable Futures Contract" | means such futures contract, as CDP may prescribe, approved for listing on SGX-ST and which is subject to margin requirements. |
"Market Day" | means in respect of any security or Futures Contract, a day on which the relevant Exchange is open for trading in the security or Futures Contract. |
N | |
"net head office funds" | has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements). |
[Deleted] | [Deleted] |
"New Purchase Contract" | [Deleted] |
"New Sale Contract" | [Deleted] |
"Novated Contract" | means a contract between CDP and a Clearing Member arising as a result of the novation of an Exchange Trade referred to in Rule 6.2.1. |
O | |
"On-Line Transmission" | means the on-line transmission referred to in Rule 6.3.3. |
"Operational Risk Requirement" | has the meaning ascribed to it in the Notice on Risk Based Capital Adequacy Requirements for Holders of Capital Markets Services Licences. |
"organised market" | has the meaning ascribed to it in the SFA. |
"OTC Contracts" | means contracts that are not listed or quoted for trading on any exchange, market or organisation (whether an exchange, association, corporation or otherwise) responsible for administering an organised market. |
"Other Payment Method" | means any payment method other than Settlement Bank Payment. |
P | |
"Payment Instruction" | has the meaning ascribed to it in Rule 6C.2.2. |
"Position Account" | means an account maintained by a Clearing Member with CDP in CDP's post-trade system, for carrying positions of trades to be cleared with CDP. |
"Practice Note" | means a non-binding guideline that seeks to explain the application and interpretation of a Rule. |
“Prescribed Contributions” | means the aggregate of a Clearing Member’s Collateralised Contribution and Contingent Contribution as determined by CDP pursuant to Rules 7.2.1A(2) and 7.2.1A(3) respectively. |
Q | |
"Qualifying Letter of Credit" | has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements). |
"Qualifying Subordinated Loan" | has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements). |
R | |
"Recognised Group A Securities Exchange" | means an overseas securities exchange regulated by a financial services regulatory authority of a country or territory specified in Table 4 of Fourth Schedule of the SFR (Financial and Margin Requirements). |
“Regulatory Notice” | means a binding notice issued by CDP on regulatory matters regarding the clearing facility operated by CDP, as the same may be amended, modified, supplemented or replaced from time to time. |
"Relevant Period" | means a period of 1 year commencing from a specified day of a specified month (as determined by CDP) of any calendar year. |
"Relevant Regulatory Authority" | means: (a) the authority(ies) or regulatory body(ies) that regulate(s) a Clearing Member's activities in the country where it is carrying on such activities and from which it has applied for Clearing Membership; and (b) where the Clearing Member are carrying on regulated activities in Singapore, the MAS. |
"related corporation" | has the meaning ascribed to it in the SFA. |
"Resignation Notice" | means the resignation notice referred to in Rule 3.10.1. |
"RRA Financial Requirement" | means all applicable financial requirements (whether relating to capital, liquidity, risk or otherwise) imposed on a Clearing Member by its Relevant Regulatory Authority. |
S | |
"securities" | means:— (1) shares, units in a business trust, or any instrument conferring or representing a legal or beneficial ownership interest in a corporation, partnership, or limited liability partnership; (2) debentures; (3) units in a collective investment scheme; (4) derivative contracts (as defined in the SFA) that are not futures contracts and of which the underlying instrument or any of the underlying instruments are any of the instruments set out in (1), (2) or (3) or an index on any of those instruments; or (5) any other product or class of products as SGX-ST or CDP may prescribe; (a) bills of exchange; (b) certificates of deposit issued by a bank or finance company, whether situated in Singapore or elsewhere; or (c) any product or class of products as SGX-ST or CDP may prescribe. For the avoidance of doubt, "securities" include (but are not limited to) warrants, transferrable subscription rights, options to subscribe for stocks or shares, convertibles, depository receipts and exchange traded funds. |
"Securities Account" | means, in relation to any person, an account maintained directly with CDP or through a Depository Agent or the CPF Board for holding securities for or on behalf of that person. |
"Security Deed" | means the deed, in such form as prescribed by CDP, setting out the terms under which a Clearing Member's Collateral is provided to, and held by CDP. |
"Security Interest" | means any mortgage, charge, assignment by way of security, pledge, encumbrance, lien, right of set-off, right of consolidation of accounts, retention of title, trust or flawed asset arrangement for the purpose of, or which has the effect of, granting security or credit support or other interests of any kind whatsoever over or in respect of Collateral. |
"Settlement Bank" | means a bank approved by CDP to carry out Settlement Bank Payment. |
"Settlement Bank Payment" | has the meaning ascribed to it in Rule 6C.2.1. |
"Settlement Day" | means a day on which settlement occurs in CDP. |
"SFA" | means the Securities and Futures Act 2001, or any statutory modification, amendment or re-enactment thereof for the time being in force, or every and any other act which may replace it, and unless the context otherwise requires, includes any subsidiary legislation or regulations made pursuant thereto. |
"[Deleted]" | "[Deleted]" |
"SFR (Financial and Margin Requirements)" | means the Securities and Futures (Financial and Margin Requirements for Holders of Capital Markets Services Licences) Regulations or any statutory modification, amendment or re-enactment thereof for the time being in force, or any regulations that replace the SFR (Financial and Margin Requirements), and any reference to any provision of the SFR (Financial and Margin Requirements) is to that provision as so modified, amended or re-enacted (or as contained in any replacement regulations). |
"SFR (Licensing and Conduct of Business)" | means the Securities and Futures (Licensing and Conduct of Business) Regulations or any statutory modification, amendment or re-enactment thereof for the time being in force, or any regulations that may replace the SFR (Licensing and Conduct of Business), and any reference to any provision of the SFR (Licensing and Conduct of Business) is to that provision as so modified, amended or re-enacted (or as contained in any replacement regulations). |
"SGX" | means Singapore Exchange Limited. |
"SGX-DC" | means the Singapore Exchange Derivatives Clearing Limited. |
"SGX-DT" | means the Singapore Exchange Derivatives Trading Limited. |
"SGX RegCo" | means Singapore Exchange Regulation Pte. Ltd. |
"SGX RegCo Board" | means the board of directors for the time being of SGX RegCo or such number of them as have authority to act for the SGX RegCo Board. |
"SGX-ST" | means the Singapore Exchange Securities Trading Limited, an approved exchange under the SFA. |
"SGX-ST Directives" | means the Directives of SGX-ST as the same may be varied, amended or supplemented from time to time. |
"SGX-ST Trading Member" | refers to a "Trading Member" as defined in the SGX-ST Rules. |
"SGX-ST Rules" | means the Rules of SGX-ST as the same may be varied, amended or supplemented from time to time. |
"Stock Account" | means, in relation to a Clearing Member, the Securities Account maintained by it to house its proprietary securities. |
"$" | means Singapore Dollar. |
T | |
"Third Party" | means any party other than CDP and a Clearing Member. |
"total risk requirement" | has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements). |
"Total Turnover" | means at any time the aggregate of the Turnover of all Clearing Members at that time. |
"Trading Member" or "TM" | means a person who is not a Clearing Member and whose Exchange Trades that has been qualified by a Clearing Member in accordance with Rule 3.10. |
"Trading System" | means any electronic trading system for the automatic matching of orders designated and approved by SGX-ST for transactions on SGX-ST. |
"Turnover" | means at any time and in respect of a Clearing Member, the volume of Exchange Trades cleared by such Clearing Member multiplied by the prices of the respective Exchange Trades for the immediately preceding 12 months and if such Clearing Member has traded for less than 12 months, the turnover of Exchange Trades cleared by such Clearing Member for its immediately preceding trading period calculated as aforesaid (adjusted to a 12-month period). |
V | |
"Valuation Price" | means the official price of Novated Contracts determined by CDP for the purpose of determining Customer Variation Margins or Clearing Member Variation Margins. |
Amended on 12 October 200512 October 2005, 3 April 20083 April 2008, 23 January 200923 January 2009, 3 May 20113 May 2011, 21 January 201321 January 2013, 22 April 201322 April 2013, 26 April 201326 April 2013, 29 December 201429 December 2014, 1 July 20161 July 2016, 15 September 201715 September 2017, 8 October 20188 October 2018, 10 December 201810 December 2018, 22 April 201922 April 2019 and 3 June 20193 June 2019, 6 September 2021, 18 January 2022, 26 May 2023 and 31 October 2024.
1.3.1
Unless expressly provided to the contrary, all questions concerning the interpretation or application of or any other matter in connection with these Clearing Rules (including, without limitation, CDP Directives) shall be determined by CDP, whose decision shall be final and binding on all parties.
1.3.2
In the interpretation of any provision of the Clearing Rules, a construction that would promote the purpose or object underlying the Clearing Rules (whether the purpose is expressly stated in the Clearing Rules or not) is to be preferred to a construction that would not promote that purpose or object.
1.4.1
Any word signifying any gender shall include all genders and the singular shall include the plural and vice versa.
1.4.2
Any reference to a particular rule in these Clearing Rules shall include the subsections of that rule.
1.4.3
A reference to any legislation or legislative provision includes any subordinate provisions made thereunder and any statutory modification, amendment or re-enactment thereof for the time being in force.
1.4.4
References to a person shall, where the context permits, include references to an individual, partnership, corporate entity, unincorporated association and/or statutory or governmental authority or division.
1.5.1
Headings, titles and sub-titles are provided for ease of reference only and shall not affect the interpretation or construction of the provisions of these Clearing Rules.
1.6.1
If these Clearing Rules include an example of the operation of a rule:—
1.7.1
If there is any conflict between any Clearing Rule and the Clearing Directives, unless specifically provided otherwise in the Clearing Directives, the Clearing Rules shall prevail.
1.8.1
CDP may from time to time issue Clearing Directives which operate as a binding contract between CDP and each Clearing Member, and between a Clearing Member and any other Clearing Member.
1.8.2
CDP may, from time to time, issue Practice Notes (or amend existing Practice Notes) to provide guidance on the interpretation and application of any rule. A Practice Note does not bind CDP in the application of a rule.
1.9.1
CDP may, from time to time, publish transitional arrangement in relation to any amended or new rule.
1.10.1
The order of precedence of the following instruments applicable to the CDP and Clearing Members shall be (in descending order of precedence):
Amended on 26 April 201326 April 2013 and 10 December 201810 December 2018.
1.10.2
Subject to Rule 1.7.1, in the event of any conflict between the provisions of the aforesaid instruments, the provisions in an instrument with a higher level of precedence shall prevail over the provisions in an instrument with a lower level of precedence.
Added on 26 April 201326 April 2013
2.1.1
CDP shall maintain the following registers:—
Amended on 3 June 20193 June 2019.
3.1.1
Clearing Membership in CDP shall comprise such classes of membership(s) as may from time to time be provided in this Clearing Rules. All memberships to CDP are granted pursuant, and subject, to this Clearing Rules and such other terms and conditions as may be prescribed at CDP's discretion.
Added on 1 July 20081 July 2008 and 10 December 201810 December 2018.
3.1.2 Eligibility Criteria for General Clearing Member
Unless otherwise prescribed by CDP, to be eligible for Clearing Membership as a General Clearing Member, an applicant must satisfy CDP that:—
Amended on 3 April 20083 April 2008, 1 July 20081 July 2008, 8 October 20188 October 2018, 10 December 201810 December 2018 and 3 June 20193 June 2019.
3.1.3 Eligibility Criteria for Bank Clearing Members
Unless otherwise prescribed by CDP, to be eligible for Clearing Membership as a Bank Clearing Member, an applicant must satisfy CDP that:—
Added on 1 July 20081 July 2008. Amended on 26 April 201326 April 2013, 22 April 2019 and 18 January 2022.
3.1.3A
Upon admission as a Bank Clearing Member, if there is any downgrade in the rating of the Bank Clearing Member or its parent bank such that it falls below the minimum prescribed rating, CDP may, at its absolute discretion, impose additional conditions as it deems fit, for permitting the Bank Clearing Member to continue to clear contracts through CDP.
Added on 1 July 20081 July 2008.
3.2.2
CDP may, in its absolute discretion, approve or reject an application for clearing membership. CDP is not obliged to give any reasons.
3.2.3
Without derogating from Rule 3.2.2, CDP may reject an application for clearing membership if:—
Amended on 12 October 200512 October 2005.
3.3.1
If CDP rejects an application to be a Clearing Member, the applicant may, within 14 days after it is notified of CDP's decision, appeal in writing to the SGX RegCo Board whose decision shall be final.
Amended on 15 September 201715 September 2017.
3.4.1 Clearing Right
A Clearing Member shall have the right to clear and settle its own Exchange Trades transacted by it or its own customers or the Exchange Trades of 1 or more Trading Members qualified by it subject to the Clearing Rules and the Clearing Directives.
3.4.2 No Distributive Right to Assets
A Clearing Member shall have no right to participate in the assets or profits of CDP.
3.4.3 No Voting Right
A Clearing Member shall have no right to receive notice of any general meeting of CDP or to attend and vote thereat.
3.4.4 Transferability
A Clearing Member may not assign, transfer or otherwise dispose of any of its membership rights or other rights conferred under the Clearing Rules and the Clearing Directives.
3.5.1
Each Clearing Member undertakes and agrees to:—
Amended on 1 July 20081 July 2008, 1 July 20161 July 2016 and 10 December 201810 December 2018.
3.5.2 Provision of Information
Amended on 1 July 20081 July 2008.
3.5.3
A Clearing Member must:—
Amended on 1 July 20081 July 2008.
3.5.4 Business Continuity Requirements
Refer to Practice Note 3.5.4.
Added on 22 January 200922 January 2009
3.5.5 Records of Customer Monies and Assets in Relation to Trades Cleared or Settled through CDP
In relation to monies and assets received from its Customers, a Clearing Member must:
Amended on 22 April 201322 April 2013 and 10 December 201810 December 2018.
3.6 Clearing Members to Act as Principals
Each Clearing Member shall be responsible and liable to CDP as principal and not as agent in respect of the clearing and settlement of any Exchange Trade and in respect of its obligations to CDP under these Clearing Rules.
3.7.1
Notwithstanding anything to the contrary in the SGX-ST Rules or the Clearing Rules, a Clearing Member shall be responsible and liable to CDP as a principal and not merely as a guarantor for the clearing and settlement of all Exchange Trades transacted by a Trading Member qualified by it. Trading Members shall have no right to clear and settle their Exchange Trades through CDP.
3.7.2
Notwithstanding any notice to the contrary, CDP shall be entitled to deem and treat the Exchange Trades transacted by a Trading Member qualified by a Clearing Member as the Exchange Trades of the qualifying Clearing Member for all purposes, including the purposes of these Clearing Rules and the Clearing Directives.
3.7.3
In these Clearing Rules, unless the context otherwise requires, a reference to the Exchange Trade of a Clearing Member shall include a reference to the Exchange Trade of any Trading Member qualified by the Clearing Member.
3.7A.1 Settlement Timelines
Unless the Trading Member has in place arrangements to settle Exchange Trades with its Clearing Member on a delivery-versus-payment basis through the CDP Settlement Facility, the Clearing Member must make payment (whether of sale proceeds, Cash Settlement Amounts, corporate action entitlements or compensation for corporate action entitlements) or deliver securities to a Trading Member in respect of any Exchange Trade, by such time as to enable payment or delivery by the Trading Member to the Trading Member's customers within any timelines specified in the SGX-ST Rules, save that a Clearing Member may:
Added on 10 December 201810 December 2018.
3.7A.2 Force Sale
Subject to Rules 3.7A.3 and 3.7A.4, if a buying Trading Member fails to meet any of the timelines set out in the SGX-ST Rules for payment to its Clearing Member, the Clearing Member shall force-sell the securities of the buying Trading Member on the following Market Day.
Added on 10 December 201810 December 2018.
3.7A.3
Rule 3.7A.2 does not apply if the Clearing Member has allowed the buying Trading Member to effect a corresponding sale position after the purchase but not later than the Intended Settlement Day of the Exchange Trade for such purchase.
Added on 10 December 201810 December 2018.
3.7A.4
If the Clearing Member reasonably expects full payment from the buying Trading Member, the Clearing Member may defer force-sale for up to two Market Days.
Added on 10 December 201810 December 2018.
3.7A.5
A Clearing Member exercising its discretion under Rule 3.7A.4 must not engage in imprudent credit practices.
Added on 10 December 201810 December 2018.
3.7A.6
The following rules apply to all force-sales by a Clearing Member:
Added on 10 December 201810 December 2018.
3.7A.7
A Clearing Member shall, if informed by CDP that a right to receive securities pursuant to an Exchange Trade is to be cash settled, immediately inform the relevant buying Trading Member.
Added on 10 December 201810 December 2018.
3.8 Reporting Requirements
A Clearing Member shall notify CDP in writing upon or where practicable, pre-notify CDP of, the happening of all or any of the following events and supply full particulars thereof together with such further information as CDP may require:—
Amended on 3 April 20083 April 2008, 1 July 20081 July 2008, 10 December 201810 December 2018 and 3 June 20193 June 2019.
3.9.1 Qualification Procedures
In order to qualify a Trading Member, a Clearing Member shall:—
Amended on 18 September 201218 September 2012.
3.9.2 Procedures to Cease Qualifying a Trading Member
If a Clearing Member wishes to cease qualifying its Trading Member, it shall:—
Amended on 11 January 201111 January 2011
3.9.2A Procedures to Suspend Qualification of a Trading Member
Added on 11 January 201111 January 2011
3.9.3
Notwithstanding the cessation or suspension of the qualification, the Clearing Member shall clear and settle all the Exchange Trades of the Trading Member which are done right up to the point when the Trading Member has been disabled from entering Exchange Trades to be qualified by the Clearing Member.
Amended on 11 January 201111 January 2011
3.10.1 Procedure
A Clearing Member who wishes to resign shall give CDP at least 30 days’ written notice (inclusive of the day that notice is given) of its intention to resign and the effective date of resignation. CDP may vary or waive the requirement to give such resignation notice. The Clearing Rules, and any Clearing Directives as may be imposed by CDP, shall continue to apply, and the Clearing Member shall be required to comply with them, until the effective date of resignation.
- [Rule has been deleted.]
- [Rule has been deleted.]
Amended on 31 October 2024.
3.10.2 Acceptance of Resignation by CDP
CDP need not accept the resignation of a Clearing Member if it is:—
- conducting an investigation under this Clearing Rules, investigating a complaint, or has initiated disciplinary proceedings against the Clearing Member; or
- not satisfied that the Clearing Member has fulfilled or is able to fulfil:—
- its obligations to CDP and such obligations to Trading Members, as CDP may specify; and
- its obligation to its customers, or in the case of a Bank Clearing Member, its customers in relation to its business governed by this Clearing Rules, as CDP may specify.
Amended on 1 July 2008 and 31 October 2024.
3.10.3 Deletion from Register
If CDP accepts a Clearing Member's resignation, the Clearing Member's name shall be deleted from the Register of Clearing Members upon the effective date of resignation.
3.10.4 Notification of Resignation
3.10.5 Cessation of Clearing Rights
Amended on 1 July 20081 July 2008.
4.1.1
Amended on 1 July 20081 July 2008 and 3 June 20193 June 2019.
4.1.2
Upon registration, a Chief Executive Officer is deemed to have agreed to be bound by this Clearing Rules, or any Clearing Directives (where applicable).
Amended on 1 July 20081 July 2008 and 3 June 20193 June 2019.
4.2.1 Compliance
A Chief Executive Officer shall comply with the Clearing Rules, and any Clearing Directives CDP prescribes.
Amended on 3 June 20193 June 2019.
4.2.2 Payment of Fees
A Chief Executive Officer shall pay CDP all fees, levies and charges as CDP prescribes. CDP may reduce or waive any fee, levy or charge.
Amended on 3 June 20193 June 2019.
4.2.3 Other Businesses
Amended on 1 July 20081 July 2008, 15 September 201715 September 2017 and 3 June 20193 June 2019.
4.3 Automatic De-Registration
A Chief Executive Officer shall automatically cease to be registered as a Chief Executive Officer, and the Clearing Member shall immediately notify CDP, if he or she:—
Amended on 1 July 20081 July 2008 and 3 June 20193 June 2019.
4.4 Deletion from Register
A Chief Executive Officer who ceases to hold office shall have his or her name deleted from the Register of Chief Executive Officers upon the effective date of cessation.
Amended on 3 June 20193 June 2019.
4.6 Obligations of a Former Chief Executive Officer
A former Chief Executive Officer remains liable to CDP for any liabilities incurred under the Clearing Rules or Clearing Directives during the period of his or her registration. The former Chief Executive Officer also remains subject to disciplinary actions for any offence committed during the period of his or her registration.
Amended on 3 June 20193 June 2019.
5.1.1
Each General Clearing Member incorporated in Singapore shall at all times:—
Amended on 1 July 20081 July 2008.
5.1.1A
Each Bank Clearing Member incorporated in Singapore shall at all times:—
comply with all applicable RRA Financial Requirements; and
comply with the accounting, reporting, book-keeping and any other financial and operational requirements prescribed by CDP in relation to the Bank Clearing Member's business governed by this Clearing Rules.
Added on 1 July 20081 July 2008. and amended on 22 April 201922 April 2019.
5.1.1B
A Clearing Member shall immediately notify CDP if it fails to comply with the minimum capital and financial requirements prescribed in the preceding paragraphs or becomes aware that it will fail to comply with such requirements.
Added on 1 July 20081 July 2008.
5.1.1C
If CDP is notified by a Clearing Member under Rule 5.1.1B or becomes aware (whether or not there has been any notification by the Clearing Member under Rule 5.1.1B) that such Clearing Member has failed to comply with the minimum capital and financial requirements prescribed in the preceding paragraphs, CDP may direct the Clearing Member to do one (1) or more of the following actions:—
5.1A.1
Each General Clearing Member incorporated in Singapore shall immediately notify CDP:—
Added on 1 July 20081 July 2008 and amended on 22 April 201922 April 2019.
5.1A.2
If CDP is notified by a Clearing Member under Rule 5.1A.1(1) or becomes aware (whether or not there has been any notification by the Clearing Member under Rule 5.1A.1(1)) that such Clearing Member's financial resources have fallen below 120% of its total risk requirement, CDP may direct such Clearing Member to comply with one (1) or more of the directions prescribed under Regulation 7(3) of the SFR (Financial and Margin Requirements).
Added on 1 July 20081 July 2008 and amended on 22 April 201922 April 2019.
5.1A.3
If CDP is notified by a Clearing Member under Rule 5.1A.1(2) or becomes aware (whether or not there has been any notification by such Clearing Member under Rule 5.1A.1(2)) that such Clearing Member's aggregate indebtedness has exceeded 600% of its aggregate resources, CDP may direct such Clearing Member to comply with one (1) or more of the directions prescribed under Regulation 17(2) of the SFR (Financial and Margin Requirements).
Added on 1 July 20081 July 2008 and amended on 22 April 201922 April 2019.
5.1B.1
Each Clearing Member incorporated in Singapore shall:
Added on 1 July 20081 July 2008 and amended on 22 April 201922 April 2019.
5.1B.2
CDP may from time to time prescribe other notification requirements and conditions for exemptions or exceptions therefrom on all or any of the Clearing Members.
Added on 1 July 20081 July 2008.
5.1B.3
If CDP is notified by a Clearing Member under Rule 5.1B.1 or becomes aware (whether or not there has been any notification by the Clearing Member under Rule 5.1B.1) that such Clearing Member's 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, CDP may direct such Clearing Member to do one (1) or more of the following actions:—
Added on 1 July 20081 July 2008 and amended on 22 April 201922 April 2019.
5.1C.1
For the purpose of Rules 5.1 and 5.1A, a Clearing Member may include one (1) or more Qualifying Letter(s) of Credit deposited with CDP or SGX-DC in its calculation of aggregate resources, subject to the total amount payable under the Qualifying Letter(s) of Credit or 50% of its total risk requirement, whichever is lower. In the case of a Clearing Member admitted as a clearing member of CDP and SGX-DC, and which has deposited such Qualifying Letter(s) of Credit with SGX-DC, pursuant to the corresponding provision in the SGX-DC Clearing Rules, it need not deposit another Qualifying Letter(s) of Credit with CDP.
Added on 1 July 20081 July 2008 and amended on 25 August 200925 August 2009 and 29 December 201429 December 2014.
5.1C.2
For the purpose of Rule 5.1C.1, a qualifying letter of credit is a legally enforceable and irrevocable letter of credit that:—
Added on 1 July 20081 July 2008.
5.1C.3
CDP reserves the right to call on any of the qualifying letters of credit furnished pursuant to this Clearing Rules and apply the proceeds thereof in respect of the Clearing Member's default to CDP. In the case of a Clearing Member admitted as a clearing member of CDP and SGX-DC, CDP shall have the discretion to apportion in any manner, the use of the proceeds between CDP and SGX-DC. In deciding on the apportionment, CDP may, in consultation with SGX-DC, take into account factors, including but not limited to, the amount owed by the Clearing Member to CDP and SGX-DC respectively.
Added on 1 July 20081 July 2008.
5.1D.1
Each General Clearing Member incorporated outside Singapore shall at all times:—
not cause or permit its adjusted net head office funds to fall below its total risk requirement;
not cause or permit its aggregate indebtedness to exceed 1,200% of its aggregate resources; and
comply with the accounting, reporting, book-keeping and any other financial and operational requirements prescribed by CDP.
Added on 1 July 20081 July 2008.
5.1D.2
Each Bank Clearing Member incorporated outside Singapore shall at all times:—
comply with all applicable RRA Financial Requirements; and
comply with the accounting, reporting, book-keeping and any other financial and operational requirements prescribed by CDP in relation to the Bank Clearing Member's business governed by this Clearing Rules.
Added on 1 July 20081 July 2008 and amended on 25 August 200925 August 2009 and 22 April 201922 April 2019.
5.1D.3
A Clearing Member shall immediately notify CDP if it fails to meet the minimum capital and financial requirements prescribed in the preceding paragraphs or becomes aware that it will fail to comply with such requirements.
Added on 1 July 20081 July 2008.
5.1D.4
If CDP is notified by a Clearing Member under Rule 5.1D.3 or becomes aware (whether or not there has been any notification by the Clearing Member under Rule 5.1D.3) that such Clearing Member has failed to comply with the minimum capital and financial requirements prescribed in the preceding paragraphs, CDP may direct the Clearing Member to do one (1) or more of the following actions:—
Added on 1 July 20081 July 2008.
5.1DA Liquidity Resource Requirement
Each Bank Clearing Member incorporated outside Singapore shall deposit liquidity resources with CDP upon CDP's request, if CDP determines that any conditions exist which may threaten the ability of the Bank Clearing Member to satisfy its obligations to CDP and/or SGX-DC under this Clearing Rules and the SGX-DC Clearing Rules respectively. Such liquidity resources shall be an amount up to S$5,000,000, or S$8,000,000 in the case of a Bank Clearing Member who is also a clearing member of SGX-DC, and shall be paid in cash and/or acceptable government securities within such time as determined by CDP.
Added on 22 April 201922 April 2019.
5.1E.1
Each General Clearing Member incorporated outside Singapore shall immediately notify CDP:—
Added on 1 July 20081 July 2008 and amended on 25 August 200925 August 2009 and 22 April 201922 April 2019.
5.1E.2
If CDP is notified by a Clearing Member under Rule 5.1E.1(1) or becomes aware (whether or not there has been any notification by the Clearing Member under Rule 5.1E.1(1)) that such Clearing Member's adjusted net head office funds have fallen below 120% of its total risk requirement, CDP may direct such Clearing Member to comply with one (1) or more of the directions prescribed under Regulation 7(3) of the SFR (Financial and Margin Requirements).
Added on 1 July 20081 July 2008 and amended on 25 August 200925 August 2009 and 22 April 201922 April 2019.
5.1E.3
If CDP is notified by a Clearing Member under Rule 5.1E.1(2) or becomes aware (whether or not there has been any notification by such Clearing Member under Rule 5.1E.1(2)) that such Clearing Member's aggregate indebtedness has exceeded 600% of its aggregate resources, CDP may direct such Clearing Member to comply with one (1) or more of the directions prescribed under Regulation 17(2) of the SFR (Financial and Margin Requirements).
Added on 1 July 20081 July 2008 and amended on 22 April 201922 April 2019.
5.1F.1
Each Clearing Member incorporated outside Singapore shall:
Added on 1 July 20081 July 2008 and amended on 25 August 200925 August 2009 and 22 April 201922 April 2019.
5.1F.2
CDP may from time to time prescribe other notification requirements and conditions for exemptions or exceptions therefrom on all or any of the Clearing Members.
Added on 1 July 20081 July 2008.
5.1F.3
If CDP is notified by a Clearing Member under Rule 5.1F.1 or becomes aware (whether or not there has been any notification by the Clearing Member under Rule 5.1F.1) that such Clearing Member's adjusted net head office funds 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, CDP may direct such Clearing Member to do one (1) or more of the following actions:—
Added on 1 July 20081 July 2008 and amended on 25 August 200925 August 2009 and 22 April 201922 April 2019.
5.1G.1
For the purpose of Rules 5.1D and 5.1E, a Clearing Member may include one (1) or more Qualifying Letter(s) of Credit deposited with CDP or SGX-DC in its calculation of aggregate resources subject to the total amount payable under the Qualifying Letter(s) of Credit or 50% of its total risk requirement, whichever is lower. In the case of a Clearing Member admitted as a clearing member of CDP and SGX-DC, and which has deposited such Qualifying Letter(s) of Credit with SGX-DC, pursuant to the corresponding provision in the SGX-DC Clearing Rules, it need not deposit another Qualifying Letter(s) of Credit with CDP.
Amended on 1 July 20081 July 2008, 25 August 200925 August 2009 and 29 December 201429 December 2014.
5.1G.2
For the purpose of Rule 5.1G.1, a qualifying letter of credit is a legally enforceable and irrevocable letter of credit that:—
Amended on 1 July 20081 July 2008.
5.1G.3
CDP reserves the right to call on any of the Qualifying Letter of Credit furnished pursuant to this Clearing Rules and apply the proceeds thereof in respect of the Clearing Member's default to CDP. In the case of a Clearing Member admitted as a clearing member of CDP and SGX-DC, CDP shall have the discretion to apportion in any manner, the use of the proceeds between CDP and SGX-DC. In deciding on the apportionment, CDP may, in consultation with SGX-DC, take into account factors, including but not limited to, the amount owed by the Clearing Member to CDP and SGX-DC respectively.
Amended on 1 July 20081 July 2008 and 29 December 201429 December 2014.
5.1I.1
Amended on 3 April 20083 April 2008, 1 July 20081 July 2008, 23 January 200923 January 2009 and 29 December 201429 December 2014.
5.1J
Every Clearing Member shall:—
Added on 22 April 201922 April 2019.
5.2 [Rule has been deleted.]
Amended on 3 April 20083 April 2008 and deleted on 1 July 20081 July 2008.
5.4.1
If CDP is notified by the Clearing Member or becomes aware that the Clearing Member has failed to comply with the minimum capital and financial requirements prescribed in these Rules, CDP may exercise any of the powers described in Rules 6A.9A and 6.10.
Added on 23 January 200923 January 2009 and amended on 21 January 201321 January 2013.
5.4.2
CDP may prescribe for 1 or more Clearing Members, capital, financial and other requirements in excess of the minimum prescribed under Rule 5 herein on the basis of volume, risk exposure of positions carried, risk concentration, margin policies, nature of business conducted or to be conducted or its membership in any exchange or market and such other criteria as deemed necessary by CDP.
Amended on 23 January 200923 January 2009.
5.5.1
A General Clearing Member shall maintain a reserve fund to which a sum of not less than 30% of the audited net profits of each year shall be transferred out of its net profits after due provision has been made for taxation, so long as:—
Amended on 1 July 20081 July 2008.
5.5.2
The reserve fund shall not be available for declaration of dividends without the prior approval of CDP.
5.6.1
A General Clearing Member shall immediately notify CDP if the General Clearing Member's exposure to a single customer exceeds 20% of its average aggregate resources. To reduce the General Clearing Member's risk exposure to a single customer, CDP shall have the right to impose on the General Clearing Member such risk management measures as it deems necessary.
Amended on 1 July 20081 July 2008.
5.6.2
For the purpose of Rule 5.6.1, the full amount of the letter(s) of credit or any part thereof deposited pursuant to Rules 5.1C or 5.1G may be taken into account for the calculation of aggregate resources.
Amended on 1 July 20081 July 2008.
5.6.3
In Rule 5.6.1, "exposure to a single customer" means:—
Amended on 3 April 20083 April 2008, 1 July 20081 July 2008, 23 January 200923 January 2009, 20 November 200920 November 2009 and 1 July 20161 July 2016.
5.6.4
For the purposes of Rule 5.6.3, a security or futures contract is deemed to be carried in a customer's account (other than a margin financing account) carried on the books of the General Clearing Member on the contract date specified in the contract note in respect of the transaction in that security or futures contract or on the exercise date specified in the exercise notice in respect of an option in that security which has been exercised.
Amended on 1 July 20081 July 2008, 23 January 200923 January 2009 and 1 July 20161 July 2016.
5.6.5
In Rule 5.6, "single customer" means, in relation to a customer who is:—
but shall not include the General Clearing Member itself.
Provided always that a single customer of a General Clearing Member shall not include the end customers of any Trading Member who is qualified by the General Clearing Member.
Amended on 1 July 20081 July 2008.
5.7.1
A General Clearing Member shall immediately notify CDP if the General Clearing Member's exposure to a single security (including in respect of any Exchange Trade of any Trading Member qualified by the General Clearing Member) exceeds:—
Amended on 1 July 20081 July 2008.
5.7.2
To reduce the General Clearing Member's risk exposure to a single security, CDP shall have the right to impose on the General Clearing Member such risk management measures as it deems necessary.
Amended on 1 July 20081 July 2008.
5.7.3
For the purpose of Rule 5.7.1, the full amount of the letter(s) of credit or any part thereof deposited pursuant to Rules 5.1C or 5.1G may be taken into account for the calculation of aggregate resources.
Amended on 1 July 20081 July 2008.
5.7.4
For the purpose of Rule 5.7.1, "exposure to a single security" means:—
Amended on 1 July 20081 July 2008, 23 January 200923 January 2009, 1 July 20161 July 2016 and 8 October 20188 October 2018.
5.7.5
For the purpose of Rule 5.7.4, a security is deemed to be carried in a customer's cash account or a General Clearing Member's own account (such account being an account carried on the books of the General Clearing Member) on the contract date specified in the contract note in respect of the transaction in that security or on the exercise date specified in the exercise notice in respect of an option in that security which has been exercised.
Amended on 1 July 20081 July 2008 and 1 July 20161 July 2016.
5.7.6
For the purposes of Rule 5.7, in calculating exposure in any particular security, all outstanding options exercisable into that security shall be included in such computation.
5.7.6A
For the purposes of Rule 5.7.4(2) and Rule 5.7.4(4), in calculating exposure in any particular security, all futures contracts listed on any exchange with that security as an underlying shall be included in such computation.
Added on 3 April 20083 April 2008.
5.7.7
Rule 5.7 shall not apply to:—
Amended on 1 July 20081 July 2008.
5.7.8
For the purpose of Rule 5.7, where a security quoted on SGX-ST or any recognised group A securities exchange has been suspended for more than thirty (30) consecutive days, a General Clearing Member shall not permit its exposure to the security to increase in monetary value above the level subsisting on the 30th consecutive day of suspension until such time that the suspension has been lifted.
Amended on 1 July 20081 July 2008.
5.7.9
In Rule 5.7, "single security" includes ordinary and preference shares, loan stocks, company warrants, structured warrants, transferable subscription rights, bonds, debentures, depository receipts, options and any other debt instruments or equity securities.
Amended on 3 April 20083 April 2008.
5.8.1
Each Clearing Member must make and keep as a record formal computations of its capital and financial requirements pursuant to:—
as of the close of business each month, or in the case of capital adequacy report of Bank Clearing Members, quarterly. The computations must be in such form as CDP may prescribe and submitted to CDP within fourteen (14) calendar days after the end of each month, or such time frame as CDP may prescribe.
Amended on 1 July 20081 July 2008 and 29 December 201429 December 2014 and 22 April 201922 April 2019.
5.8.2
Where the Clearing Member fails to submit the statements required in Rule 5.8.1 within the prescribed time, there shall be imposed upon the Clearing Member a late fee of $100 for each day that the statements are not submitted in the prescribed time, unless an extension of time has been granted.
5.8.3
Requests for extension of time shall be submitted to CDP at least 3 Market Days prior to the due date for submission of the statements.
5.8.4
The Clearing Member shall be required to resubmit the statements and documents prescribed under Rule 5.8.1 and take such other steps as CDP may require upon CDP's notification that the statements and documents are inaccurate or incomplete.
5.9.1
A Clearing Member, except for a Bank Clearing Member, shall seek the approval of CDP prior to any appointment of new auditors.
Amended on 1 July 20081 July 2008.
5.9.1A
A Bank Clearing Member shall inform CDP of the appointment of any new auditors within seven (7) days of such appointment.
Added on 1 July 20081 July 2008.
5.9.2 Statutory Audit Report For General Clearing Members
Without prejudice to such audit and/or reporting requirements as may be imposed by CDP from time to time, a General Clearing Member shall furnish to CDP, within five (5) months of the end of its financial year or within such longer period as may be permitted in writing by CDP, the relevant forms which a General Clearing Member is required to lodge in the prescribed format under Regulation 27(9) of the SFR (Financial and Margin Requirements), the annual accounts duly audited by, and the certificate of, its auditor or auditors who shall be a public accountant or a firm of public accountants approved by CDP. The certificate shall pertain to the audit conducted by such auditor or auditors in respect of the financial year aforesaid and shall be in such form prescribed by the Relevant Regulatory Authority.
Amended on 12 October 200512 October 2005 and 1 July 20081 July 2008 and 22 April 201922 April 2019.
5.9.3
Where, in the performance of his or their duties, the General Clearing Member's auditor or auditors becomes or become aware:—
the auditor or auditors shall immediately report the matter to CDP.
Amended on 1 July 20081 July 2008.
5.9.4
5.9.5 Audit Report For Bank Clearing Members
Without prejudice to such audit and/or reporting requirements as may be imposed by CDP from time to time, a Bank Clearing Member shall furnish to CDP within five (5) months of the end of its financial year or within such longer period as may be permitted in writing by CDP, the annual accounts duly audited by, and the certificate of its auditor or auditors. The certificate shall pertain to the audit conducted by such auditor or auditors in respect of the financial year aforesaid and shall be in such form prescribed by the Relevant Regulatory Authority.
Added on 1 July 20081 July 2008 and amended on 22 April 201922 April 2019.
5.9.6
Where, in the performance of his or their duties, the Bank Clearing Member's auditor or auditors becomes or become aware:—
the auditor or auditors shall immediately report the matter to CDP.
Added on 1 July 20081 July 2008.
5.11.1 Reduction in Paid-Up Ordinary Share Capital or Paid-Up Irredeemable and Non-Cumulative Preference Share Capital
Each General Clearing Member incorporated in Singapore shall not reduce its paid-up ordinary share capital or paid-up irredeemable and non-cumulative preference share capital without the prior written approval of CDP.
Amended on 1 July 20081 July 2008 and 29 December 201429 December 2014.
5.11.2 Preference Shares
Amended on 1 July 20081 July 2008 and 29 December 201429 December 2014.
5.11.3 Qualifying Subordinated Loan
Amended on 1 July 20081 July 2008, 29 December 201429 December 2014 and 22 April 201922 April 2019.
5.11.4 Making of Unsecured Loan or Advance, Payment of Dividend or Director's Fees or Increase in Director's Remuneration by General Clearing Member
Each General Clearing Member shall not, without the prior written approval of CDP, make any unsecured loan or advance, pay any dividend or director's fees or increase any director's remuneration if:—
Amended on 1 July 20081 July 2008 and 29 December 201429 December 2014.
5.11.5 Credit Facilities
Each Clearing Member shall submit to CDP, in the manner as prescribed from time to time:
Added on 23 January 200923 January 2009.
5.12 Register of Connected Persons
Each Clearing Member shall keep a register of its directors and their connected persons.
For the purpose of this Rule, a "connected person" has the meaning ascribed to it in Section 2 of the SFA.
5.13 Exemption for SGXlink Pte Ltd
Subject to the conditions specified in writing by the Authority, Rule 5 shall not apply to SGXLink Pte Ltd.
5A.1.1
A Clearing Member must maintain separate Position Accounts for each Customer or each group of joint Customers whose account is carried on the books of the Clearing Member.
Added on 1 July 20161 July 2016.
5A.1.2
Each Position Account must be identified and designated, by the full name of the Customer(s) whose account is carried on the books of the Clearing Member and by a unique account code.
Added on 1 July 20161 July 2016.
5A.2.1
Each Clearing Member shall report to CDP such information as CDP may require for each Position Account opened with CDP as soon as practicable, and in any event, no later than such time as may be required for timely and orderly settlement of the first trade cleared by the Clearing Member for the holder of such Position Account into the intended Securities Account.
Refer to Practice Note 5A.2.1, 5A.2.2.
Added on 1 July 20161 July 2016.
5A.2.2
Each Clearing Member shall report to CDP any change in information previously reported to CDP for any Position Account as soon as practicable.
Refer to Practice Note 5A.2.1, 5A.2.2.
Added on 1 July 20161 July 2016.
5A.3.1
Each Clearing Member shall allocate the position of each trade cleared by the Clearing Member for a Customer to that Customer's Position Account or in accordance with that Customer's instructions, as soon as practicable, and in any event no later than such time as may be required for timely and orderly settlement of such trade into the intended Securities Account.
Refer to Practice Note 5A.3.1, 5A.3.4.
Added on 1 July 20161 July 2016.
5A.3.2
A Customer's Position Account must only be used for that Customer's positions. However, a Clearing Member may sub-allocate a position carried in a Customer's Position Account (the "originating Position Account") to another Position Account (the "destination Position Account"), provided that:
Added on 1 July 20161 July 2016.
5A.3.3
A Position Account may be used to hold positions for different Customers, provided that such positions are allocated out in accordance with the requirements provided in Rules 5A.3.1 and 5A.3.2.
Added on 1 July 20161 July 2016.
5A.3.4
For cases in which an SGX-ST Trading Member is warehousing its customer's trades, the Clearing Member shall ensure that no trades are warehoused for more than one Market Day, unless under exceptional circumstances. In such cases, the Clearing Member must document the reasons for the extension of time.
Refer to Practice Note 5A.3.1, 5A.3.4
Amended on 1 July 20161 July 2016 and 10 December 201810 December 2018.
5A.4 — Authorisation of SGX-ST Trading Member to Maintain Position Accounts
Amended on 10 December 201810 December 2018.
5A.4.1
For third-party clearing arrangements, a Clearing Member may authorise an SGX-ST Trading Member it qualifies (referred to in this Rule 5A.4. as the "Authorised Trading Member") to:
the SGX-ST Trading Member and/or the SGX-ST Trading Member's customers (such Position Accounts referred to in this Rule 5A.4 as the "Authorised Accounts"), in accordance with such procedures as CDP may require.
Amended on 1 July 20161 July 2016 and 10 December 201810 December 2018.
5A.4.2
Where a Clearing Member authorises an Authorised Trading Member to open and maintain Authorised Accounts under Rule 5A.4.1(a), Rules 5A.1and 5A.2 shall, with the necessary modifications, apply to an Authorised Trading Member in respect of each Authorised Account, as those provisions apply to a Clearing Member. The Clearing Member who authorises the Authorised Trading Member under Rule 5A.4.1(a) shall ensure that the Authorised Trading Member performs the obligations under Rules 5A.1 and 5A.2, as they apply to the Authorised Trading Member in respect of each Authorised Account.
Refer to Practice Note 5A.4.2, 5A.4.3.
Amended on 1 July 20161 July 2016 and 10 December 201810 December 2018.
5A.4.3
Where a Clearing Member authorises an Authorised Trading Member to open, maintain and allocate positions to the Authorised Accounts under Rule 5A.4.1(b), Rules 5A.1, 5A.2, 5A.3 and 5A.6 shall, with the necessary modifications, apply to an Authorised Trading Member in respect of each Authorised Account, as those provisions apply to a Clearing Member. The Clearing Member who authorises the Authorised Trading Member under Rule 5A.4.1(b) shall ensure that the Authorised Trading Member performs the obligations under Rules 5A.1, 5A.2, 5A.3 and 5A.6, as they apply to the Authorised Trading Member in respect of each Authorised Account.
Refer to Practice Note 5A.4.2, 5A.4.3.
Amended on 1 July 20161 July 2016 and 10 December 201810 December 2018.
5A.4.4
If a Clearing Member wishes to cease authorising an Authorised Trading Member, it shall:-
Added on 1 July 20161 July 2016 and amended on 10 December 201810 December 2018.
5A.5.1
Subject to Rule 5A.5.2, a Clearing Member shall identify the beneficial owner(s) and/or controlling party(ies) of any Position Account to CDP upon request by CDP within such time as CDP may require.
Amended on 1 July 20161 July 2016 and 10 December 201810 December 2018.
5A.5.2
If the Position Account holder does not want the identity of any underlying beneficial owner and/or any controlling party of such account to be disclosed to its carrying Clearing Member, the Position Account holder may apply to the CDP, through its carrying Clearing Member, to provide such information as CDP may require directly to CDP.
Added on 1 July 20161 July 2016.
5A.6.1
Each Clearing Member shall ensure that positions in each Position Account maintained with CDP are accurate. If any discrepancy between CDP's and the Clearing Member's records is noted, the Clearing Member must inform CDP and if required rectify the discrepancy immediately.
Amended on 1 July 20161 July 2016 and 10 December 201810 December 2018.
5A.7.1
Each Clearing Member irrevocably authorises CDP to disclose the contents of any information reported to CDP under this Rule 5A to any Exchange in so far as such information relates to trades executed on that Exchange or to any Position Account carrying such trades.
Added on 1 July 20161 July 2016 and amended 10 December 201810 December 2018.
Rule 6 — Clearing and Settlement between Clearing Members and CDP
Amended on 10 December 201810 December 2018.
6.1.1
All Exchange Trades shall be cleared and settled with CDP in accordance with these Clearing Rules.
Amended on 23 January 200923 January 2009 and 10 December 201810 December 2018.
6.1.2
Only Clearing Members shall be permitted to clear and settle Exchange Trades with CDP.
Amended on 10 December 201810 December 2018.
6.2.1
Subject to Rule 6.2.1A, when a transaction between 2 SGX-ST Trading Members is matched on the Trading System, or is reported to SGX-ST pursuant to the SGX-ST Rules on "Direct Business", or is otherwise accepted for clearing by the CDP, the following occurs:—
A, a Trading only Member, contracts to buy 1,000 shares and the trade is matched on the Trading System with B, a Trading only Member. The Clearing Member who has qualified A is C. The Clearing Member who has qualified B is D. Immediately upon the matching of the trade on the Trading System, the following occurs:—
Amended on 3 April 20083 April 2008, 23 January 200923 January 2009 and 10 December 201810 December 2018 .
6.2.1A
For transactions in Marginable Futures Contracts between 2 SGX-ST Trading Members which are reported to SGX-ST pursuant to the SGX-ST Rules on "Direct Business", novation under Rules 6.2.1(1)–(3) shall take place only upon:
Added on 23 January 200923 January 2009. Amended on 26 April 201326 April 2013.
6.2.2
Upon novation of an Exchange Trade to CDP:—
6.2.3
The obligations and rights in respect of the Novated Contracts:—
are owed by and to the parties as principals to each other notwithstanding that the buying and selling Clearing Members may have acted as agents for their respective customers in executing or clearing and settling the relevant Exchange Trade.
Amended on 23 January 200923 January 2009 and 10 December 201810 December 2018.
6.2.4
Subject as otherwise provided in these Clearing Rules the terms of the Novated Contracts shall be on the same terms as the relevant Exchange Trade replaced by such Novated Contracts.
Amended on 23 January 200923 January 2009.
6.2A.1
Save as provided in these Clearing Rules, the obligations in respect of a Novated Contract are due for settlement as follows:
Refer to Regulatory Notice 6.5.
Added on 10 December 2018 and Amended on 6 September 2021.
6.3 Set-Off of Payment Obligations in respect of Novated Contracts and Determination of Payment Obligations between CDP and Clearing Members
Amended on 10 December 201810 December 2018.
6.3.1
A Clearing Member's obligation to make payment to and right to receive payment from CDP in respect of Novated Contracts (including any obligation or right to pay or receive a Cash Settlement Amount or to make or receive compensation of corporate action entitlements as provided in these Clearing Rules) shall be settled by net payment in accordance with these Clearing Rules.
Amended on 23 January 200923 January 2009 and 10 December 201810 December 2018.
6.3.2
A Clearing Member's obligation to make payment and its entitlement to receive payment in respect of Novated Contracts on any Settlement Day shall be set off for each settlement currency.
The resultant net amount shall be known as the "Final Settlement Balance" for that Settlement Day and currency.
Amended on 23 January 200923 January 2009, 25 February 201125 February 2011, 26 April 201326 April 2013 and 10 December 201810 December 2018.
6.3.2A
(1) On each Settlement Day, CDP shall make available to each Clearing Member, a record of the Novated Contracts and the rights and obligations in respect of those Novated Contracts to be settled with CDP (including any obligation or right to pay or receive a Cash Settlement Amount or to make or receive compensation for corporate action entitlements as provided in these Clearing Rules), the Clearing Member's Final Settlement Balance(s), and the status of settlement.
(2) Save for manifest error, the record shall be binding and conclusive on the Clearing Member as to the Novated Contracts to be settled between the Clearing Member and CDP, the details and rights and obligations in respect of such Novated Contracts, the Clearing Member's Final Settlement Balance(s) and the status of settlement.
(3) Notwithstanding any manifest error in the record or any dispute as to the contents stated in the record, payment of each Final Settlement Balance shall be made by or to a Clearing Member in accordance with Rule 6.4. Any moneys to be refunded or deducted shall be refunded or deducted free of interest as soon as practicable after the dispute is resolved.
Added on 10 December 2018 and Amended on 6 September 2021.
6.4.1
(1) Unless otherwise notified by CDP to the Clearing Members, settlement of the Final Settlement Balance for each Settlement Day between a Clearing Member and CDP shall, subject to (2), be effected and final upon the execution of all settlement instructions submitted by CDP under the CDP Settlement Rules for settlement between CDP and that Clearing Member in respect of Novated Contracts, in that settlement currency, and which are due to settle on that Settlement Day.
(2) A settlement instruction, if not executed only by reason of there being insufficient securities available, shall not be taken into account for the purposes of (1).
(3) Failure by a Clearing Member to settle a Final Settlement Balance for a Settlement Day, on that Settlement Day, shall constitute a breach by the Clearing Member of these Clearing Rules.
Amended on 25 February 201125 February 2011, 26 April 201326 April 2013 and 10 December 201810 December 2018.
6.4.4
CDP shall be entitled to charge interest on any amount owing to CDP which is not settled when due, at such rate as may be determined by CDP.
Amended on 25 February 201125 February 2011 and 10 December 201810 December 2018.
6.4.5
Settlement of transactions between Clearing Members and CDP shall be in the currency as determined by CDP.
Added on 10 December 201810 December 2018.
6.5 Settlement of Securities in respect of Novated Contracts
Amended on 10 December 201810 December 2018.
6.5.1
Settlement of a Clearing Member's right on any Settlement Day to receive securities in respect of Novated Contracts (including any right to receive securities as compensation for corporate action entitlements as provided in these Clearing Rules) shall be effected and final upon CDP crediting such securities into the Clearing Member's Clearing Account.
Amended on 3 April 20083 April 2008, 1 July 20081 July 2008, 23 January 200923 January 2009, 26 April 201326 April 2013 and 10 December 201810 December 2018.
6.5.1B
On any Settlement Day, if and to the extent that the securities available to CDP are insufficient for CDP to settle its delivery obligations in respect of Novated Contracts that are due for settlement on that Settlement Day, CDP may:
Refer to Practice Note 6.5.1B(2), 6.6.2, 6.7.11 and 8.2.2(3E) and Practice Note 6.5.1B(2).
Added on 10 December 2018 and Amended on 6 September 2021.
6.5.2
(1) Settlement of a Clearing Member's obligation on any Settlement Day to deliver securities in respect of Novated Contracts (including any obligation to deliver securities as compensation for corporate action entitlements as provided in these Clearing Rules) shall be effected and final upon CDP debiting such securities from the Clearing Member's Clearing Account.
(2) Failure by a Clearing Member to deliver securities when due shall subject the Clearing Member to Rule 6.7A.
Amended on 3 April 20083 April 2008, 23 January 200923 January 2009, 20 November 200920 November 2009,26 April 201326 April 2013 and 10 December 201810 December 2018.
6.5.2A
A Clearing Member shall ensure that the securities required to meet its delivery obligation in respect of Novated Contracts are made available in such manner and by such time as provided in the CDP Settlement Rules to enable the delivery of those securities on the Settlement Day that the obligation is due. Failure by a Clearing Member to comply with this Rule 6.5.2A shall subject the Clearing Member to Rule 6.7.
Added on 20 November 200920 November 2009 and amended on 26 April 201326 April 2013 and 10 December 201810 December 2018.
6.5.4
Subject to Rule 6.5.5:
Added on 10 December 201810 December 2018.
6.5.5
Rule 6.5.4 applies only to such types of corporate action entitlements that CDP shall from time to time notify.
Refer to Regulatory Notice 6.5.
Added on 10 December 201810 December 2018.
6.5.6
Refer to Regulatory Notice 6.5.
Added on 10 December 201810 December 2018.
6.6.1
If and to the extent that the funds or assets available to CDP are insufficient, either in aggregate or in respect of in any settlement currency, to meet CDP's obligations to Clearing Members in respect of Novated Contracts, CDP may upon notice to the relevant Clearing Members defer any of those obligations, in whole or in part, for settlement at such later time as CDP may determine.
Amended on 23 January 200923 January 2009, 22 April 201322 April 2013 and 10 December 201810 December 2018.
6.6.2
Without prejudice to Rule 6.5.1B, if and to the extent that CDP determines that it is not or may not be possible or reasonably practicable to deliver securities in respect of a Novated Contract, CDP may cash settle its obligation to deliver securities, in whole or in part.
Refer to Practice Note 6.5.1B(2), 6.6.2, 6.7.11 and 8.2.2(3E).
Amended on 23 January 2009, 22 April 2013, 10 December 2018 and 6 September 2021.
6.6.3
Without prejudice to Rule 8, CDP will be under no obligation to deliver securities to a Clearing Member in respect of any Novated Contract if the Clearing Member fails to settle any Final Settlement Balance in full, save that where partial payment of the Final Settlement Balance is made, CDP may, but is not obliged to, deliver some of the securities that it would otherwise have been obliged to deliver but for the Clearing Member's failure.
Added on 22 April 201322 April 2013 and amended on 10 December 201810 December 2018.
6.6.4
Where CDP deems it necessary or desirable for ensuring a fair and orderly market or for ensuring a safe and efficient clearing and/or settlement facility, or for ensuring the integrity of the market or for proper management of systemic risk in the market, CDP may replace an obligation to pay a Final Settlement Balance for a currency with an obligation to pay the Final Settlement Balance in a different currency, at such rate as CDP may determine.
Added on 10 December 201810 December 2018.
6.7 Buying-In, Procurement and Cash Settlement
Amended on 20 November 200920 November 2009 and 10 December 201810 December 2018.
6.7.1 Terminology
For clarity under Rules 6.7 and 6.7A:—
"short Clearing Member" refers to the Clearing Member who fails to comply with the obligation set out in Rule 6.5.2A; and
"selling Clearing Member" refers to the Clearing Member who has sold securities in the buying-in market.
Amended on 3 April 20083 April 2008, 20 November 200920 November 2009 and 10 December 201810 December 2018.
6.7.2 Buying in
Amended on 3 April 20083 April 2008, 20 November 200920 November 2009 and 10 December 201810 December 2018.
6.7.3 Notification of Buying-in
Amended on 27 March 200727 March 2007; 20 November 200920 November 2009 and 10 December 201810 December 2018.
6.7.4 Buying-In Procedures
See Practice Note 6.7.2(1A), 6.7.4(8), 6.7.7A and 6.7.11.
Amended on 27 March 200727 March 2007, 3 April 20083 April 2008, 20 November 200920 November 2009, 15 June 201115 June 2011, 22 April 201322 April 2013 and 10 December 201810 December 2018.
6.7.6 Suspension of Buying-In
Amended on 22 April 201322 April 2013.
6.7.7 Commission for Buying-In Trades
Buying-in commission, at a rate to be advised by CDP from time to time, shall be charged and borne by the short Clearing Member.
Amended on 10 December 201810 December 2018.
6.7.7A Procurement
Subject to Rule 6.7.12(1), if securities to be bought-in are not bought-in by the second day scheduled for buying-in, the short Clearing Member shall procure the securities, whether by transacting on the ready market or otherwise, to discharge its delivery obligation.
See Practice Note 6.7.2(1A), 6.7.4(8), 6.7.7A and 6.7.11.
Added on 10 December 201810 December 2018.
6.7.8
CDP shall have the discretion to require a short Clearing Member to furnish reports and confirmations that the delivery requirements have been complied with in respect of all sale contracts.
6.7.9
CDP reserves the right to institute buying-in against or require procurement in respect of open sale positions although the net delivery position of the short Clearing Member with CDP is not a short position.
Amended on 10 December 201810 December 2018.
6.7.11 Cash Settlement
If a Clearing Member's obligation to deliver securities in respect of a Novated Contract remains outstanding on the fifth (5th) Settlement Day (or such other number of Settlement Days as CDP may specify) after the Intended Settlement Day of the Novated Contract, CDP shall, on the next Settlement Day, cash settle the Clearing Member's delivery obligation.
Refer to Practice Note 6.5.1B(2), 6.6.2, 6.7.11 and 8.2.2(3E) and Practice Note 6.7.2(1A), 6.7.4(8), 6.7.7A and 6.7.11.
Added on 10 December 2018 and Amended on 6 September 2021.
6.7.12
CDP reserves the right to:
Added on 10 December 201810 December 2018.
6.7A Penalties and Disciplinary Action for the Non-Delivery of Securities
Amended on 10 December 201810 December 2018.
6.7A.1
Added on 20 November 200920 November 2009 and amended on 15 September 201715 September 2017 and 10 December 201810 December 2018.
6.7A.2
If a Clearing Member's obligation to deliver securities in respect of a Novated Contract remains outstanding on the fifth (5th) Settlement Day after delivery is due, CDP may impose a further penalty of $5,000.
Added on 20 November 200920 November 2009 and amended on 10 December 201810 December 2018.
6.7A.3
CDP may refer a Clearing Member to the Disciplinary Committee where CDP is satisfied that the Clearing Member has frequently failed to deliver securities when due.
Added on 20 November 200920 November 2009 and amended on 10 December 201810 December 2018.
6.7A.4
Added on 20 November 200920 November 2009 and amended on 21 January 201321 January 2013 and 10 December 201810 December 2018.
6.10.1
In relation to Novated Contracts, where CDP deems it necessary or desirable for ensuring a fair and orderly market or for ensuring a safe and efficient clearing facility, or for ensuring the integrity of the market or for proper management of systemic risk in the market, CDP may, whether in relation to 1 or more Clearing Members or otherwise:
Added on 23 January 200923 January 2009 and amended on 10 December 201810 December 2018 and 3 June 20193 June 2019.
6.10.2
CDP shall, as soon as practicable, notify the Authority of any action taken by CDP pursuant to Rule 6.10.1.
Added on 23 January 200923 January 2009.
6.10.3
Without prejudice to the generality of Rule 1 or Rule 10, CDP shall not be liable to any Clearing Member or any Third Party in respect of any damage, loss, cost or expense of whatsoever nature (whether direct, indirect, special or consequential, including without limitation any loss of business, revenue, goodwill, bargain or profit), suffered or incurred by such Clearing Member or Third Party, arising out of or in connection with the exercise or non-exercise by CDP of its powers under Rule 6.10.1 or the determination by CDP of the satisfaction or non-satisfaction of any condition for the exercise of such powers.
Added on 26 April 201326 April 2013.
6.11.1
Without prejudice to Rule 1.1.3, if CDP determines that any one of the following conditions is satisfied, namely:—
CDP shall be entitled to exercise the powers under Rules 6A.9A and 6.10.
Added on 23 January 2009 and amended on 21 January 2013, 26 April 2013 and 6 September 2021.
6A.1.1
This Chapter shall be applicable to the margin requirements imposed by CDP for Novated Contracts, the conduct of accounts and other related matters.
Added on 23 January 200923 January 2009.
6A.2 Clearing Member to Procure Customer Margins for Marginable Futures Contract
Amended on 21 January 201321 January 2013.
6A.2.1
A Clearing Member must procure Initial Margins from its customers and must require that its customers meet the Customer Required Margins for the purpose of meeting margin requirements of Marginable Futures Contracts.
Added on 23 January 200923 January 2009.
6A.2.2
A Clearing Member must comply with such requirements on the computation and monitoring of a customer's margins as CDP may prescribe.
Added on 23 January 200923 January 2009.
6A.2.3
A Clearing Member may allow Excess Margins to be withdrawn provided such withdrawal will not cause the deposited collateral to be less than zero.
Added on 23 January 200923 January 2009.
6A.2.4
Except in respect of Marginable Futures Contracts, nothing in this Clearing Rules shall be construed as requiring a Clearing Member to procure margins from its customers for any other Novated Contract.
Added on 21 January 201321 January 2013.
6A.3 Margin Management for Clearing Members In Respect of Margins from Customers for Marginable Futures Contracts
Amended on 21 January 201321 January 2013.
6A.3.1
Except for trades which reduce Customer Required Margins, a Clearing Member must not accept new orders or new trades in Marginable Futures Contracts for clearing from any customer unless:—
Added on 23 January 200923 January 2009 and amended on 21 January 201321 January 2013.
6A.3.2
If the Customer Asset Value falls below the Customer Required Margins, the Clearing Member must call for additional margins from the customer to bring the Customer Asset Value to no less than the sum of Initial Margins and Customer Variation Margins within two Market Days from the date the Customer Asset Value falls below the Customer Required Margins.
Added on 23 January 200923 January 2009.
6A.3.6
In respect of Marginable Futures Contracts, Clearing Members must not set margin requirements that are less stringent than those prescribed by CDP.
Added on 23 January 200923 January 2009 and amended on 21 January 201321 January 2013.
6A.4 Acceptable Collateral for Clearing Members In Respect of Margins from Customers for Marginable Futures Contract
Amended on 21 January 201321 January 2013.
6A.4.1
Initial Margins and Customer Required Margins collected by the Clearing Member pursuant to Rule 6A.2.1 must be met in the form of collateral as prescribed by CDP from time to time. Such collateral must be in the form of cash, government securities, selected common stocks, bank certificates of deposit, gold bars, gold certificates or such other instruments as CDP permits. Valuation of such collateral must be in accordance with the hair-cut rates specified by CDP.
Added on 23 January 200923 January 2009 and amended on 21 January 201321 January 2013.
6A.4.2
Currency and financial instruments denominated in currencies which are subject to exchange controls such that they are illegal tender outside the currency's home country, or are restricted by any form of capital controls are not acceptable forms of collateral for the purpose of meeting margin requirements of Marginable Futures Contracts.
Added on 23 January 200923 January 2009.
6A.4A.1
Where a Clearing Member collects margins from customer in connection with any Exchange Trade, regardless of whether it is required to under the Clearing Rules, the following shall apply:
Added on 21 January 201321 January 2013.
6A.5.1
Clearing Member Required Margins may be determined by CDP from time to time. A Clearing Member shall deposit such margins with CDP by such time as CDP prescribes.
Added on 23 January 200923 January 2009 and amended on 21 January 201321 January 2013.
6A.5.1A
If CDP is of the opinion that it is unable to inform Clearing Members, at the prescribed time, of the margins that they are required to deposit with CDP, CDP shall inform Clearing Members accordingly. CDP shall provide adequate time for Clearing Members to deposit such margins.
Added on 21 January 201321 January 2013.
6A.5.2
The amount of Clearing Member Required Margins which must be deposited by any Clearing Member with CDP shall be calculated and determined in accordance with procedures prescribed by CDP.
Added on 23 January 200923 January 2009 and amended on 21 January 201321 January 2013.
6A.5.3
All margins deposited with or provided to CDP by a Clearing Member shall be retained by CDP in whole or in part, as CDP may deem necessary but, subject to these Clearing Rules and in particular Rule 6A.8, Rule 6B.3, and Rule 8.6B and the Security Deed, may be returned to the Clearing Member when the obligations in respect of the Novated Contracts for which such margins have been deposited or provided have been met.
Added on 23 January 200923 January 2009 and amended on 21 January 201321 January 2013 and 10 December 201810 December 2018.
6A.5.4
A Clearing Member shall not deposit with or provide to CDP, monies and assets of its customer for the purpose of meeting Clearing Member Required Margins for Novated Contracts other than Marginable Futures Contracts. For the purpose of this Rule 6A.5.4, "customer" means a Customer, except where such Customer is:
Added on 21 January 201321 January 2013.
6A.6.1
Forms of monies and assets acceptable by CDP as margins are:
all of which must be and remain unencumbered unless otherwise permitted or contemplated under these Clearing Rules, the Security Deed or the SFA.
Added on 23 January 200923 January 2009 and amended on 21 January 201321 January 2013.
6A.6.4
The Clearing Member shall notify CDP as to whether such Collateral is to be maintained as margin solely for Customer Accounts or otherwise. Such Collateral will be held by CDP accordingly.
Added on 23 January 200923 January 2009 and amended on 21 January 201321 January 2013.
6A.7.1
Without prejudice to the generality of Rule 6A.6, Rule 6B.4 and Rule 6B.6, the aggregate amount of Collateral deposited with or provided to CDP in respect of the aggregate Customer Required Margins and the aggregate amount of collateral deposited with CDP in respect of all other margin requirements must each separately comply with the following:
Added on 23 January 200923 January 2009 and amended on 21 January 201321 January 2013.
6A.8.1
Mark-to-market gains may be utilised by the Clearing Member or CDP as follows:
Added on 23 January 200923 January 2009 amended on 21 January 201321 January 2013.
6A.9.1
For the computation of Customer Variation Margins and Clearing Member Variation Margins, the Valuation Price of a Novated Contract shall be determined in accordance with the relevant formula and procedures applicable to each Novated Contract, as determined by CDP. In arriving at such formula, CDP may, in consultation with SGX-ST, take into account factors, including but not limited to:
Added on 23 January 200923 January 2009 and amended on 21 January 201321 January 2013 and 3 June 20193 June 2019.
6A.9.2
Notwithstanding the foregoing, CDP shall reserve the right to amend the Valuation Price of any Novated Contract under these Rules as it deems fit.
Added on 23 January 200923 January 2009 and amended on 21 January 201321 January 2013.
6A.9A.2
Where CDP calls for additional margins from a Clearing Member in accordance with Rule 6A.9A.1, the Clearing Member shall deposit such margins with CDP by such time as CDP shall specify and in such forms as CDP prescribes.
Added on 21 January 201321 January 2013.
6A.9A.1
Notwithstanding anything to the contrary in the Clearing Rules, in relation to Novated Contracts, CDP may call for additional margins from one or more Clearing Members in the following situations:
Added on 21 January 201321 January 2013 and amended on 8 October 20188 October 2018.
6A.9B CDP's Records
Save for manifest error, CDP's records shall be conclusive and binding on a Clearing Member as to its margin requirements. Notwithstanding any manifest error in CDP's records, or any dispute in relation to such records, a Clearing Member shall deposit or provide, in accordance with these Clearing Rules, such margins as required by CDP, and any rectification shall be done as soon as practicable after the dispute is resolved.
Added on 10 December 201810 December 2018.
6A.10.1 General
Added on 23 January 200923 January 2009.
6A.11.1
Every Clearing Member shall immediately report to CDP of any under-segregation of moneys or assets as required under these Rules and/or the SFA.
Added on 23 January 200923 January 2009.
6A.14.1
Each Clearing Member shall immediately notify CDP when any account does not comply with the Customer Required Margins by an amount which exceeds its aggregate resources, except that no notification is required for the Clearing Member's own proprietary House Account.
Added on 23 January 200923 January 2009.
6A.14.2
CDP may require the Clearing Member to submit to CDP information pertaining to any matter in such form and within such time as may be stipulated by CDP.
Added on 23 January 200923 January 2009.
6B.1.2
CDP shall have the right to commingle any or all Collateral held by it or otherwise provided to it by Clearing Members, except where such Collateral is held by or otherwise provided to CDP solely in respect of Customer Accounts, in the same bank account or custodian account.
Added on 21 January 201321 January 2013 and amended on 10 December 201810 December 2018.
6B.1.3
CDP shall have the right to commingle any or all Collateral held by it or otherwise provided to it by Clearing Members solely in respect of Customer Accounts in the same bank account or custodian account.
Added on 21 January 201321 January 2013 and amended on 10 December 201810 December 2018.
6B.1.1
Subject to all rights and remedies of CDP against or in respect of Collateral under these Clearing Rules, the Security Deed and the SFA, Collateral held by or otherwise provided to CDP shall be held on trust by CDP for the benefit of:
Added on 21 January 201321 January 2013.
6B.2.1
Prior to CDP commencing any clearing activities in respect of any Clearing Member, the Clearing Member shall execute and deliver a Security Deed in the form and on terms prescribed by CDP, setting out the terms under which its Collateral are provided to, and held by, CDP.
Added on 21 January 201321 January 2013.
6B.3.2
Without prejudice to the generality of the foregoing, in addition to any Security Interest or other right or remedy which CDP may have under these Clearing Rules, contract, law or equity, and subject to any applicable restrictions pursuant to the provisions of the SFA and/or imposed by the Authority, CDP may at any time consolidate any or all accounts, notwithstanding that any relevant positions remain open, of the Clearing Member and set-off and/or transfer and/or apply any Collateral in such accounts towards satisfaction of any liabilities of the Clearing Member to CDP, whether or not:
Added on 21 January 201321 January 2013.
6B.3.1
Without prejudice and in addition to any Security Interest or other right or remedy which CDP may have under these Clearing Rules, contract, law or equity, and subject to any applicable restrictions pursuant to the provisions of the SFA and/or imposed by the Authority, CDP shall have a lien on all Collateral deposited with or provided to CDP and on any other monies and/or assets of the Clearing Member which may be or become available to CDP.
Added on 21 January 201321 January 2013.
6B.4.1
A Clearing Member shall deposit or otherwise provide to CDP such Collateral, in such acceptable form and denomination as may be prescribed by CDP from time to time, subject to such terms and conditions prescribed by CDP from time to time.
Added on 21 January 201321 January 2013.
6B.5.1
Where any obligation under these Clearing Rules, the Security Deed, or as may otherwise be owing to CDP remains outstanding on the part of a Clearing Member, such Clearing Member shall have no right to withdraw any Collateral or request for the repayment of any credit balance held with or subject to the control of CDP without CDP's prior consent.
Added on 21 January 201321 January 2013.
6B.5.2
Any withdrawal of Collateral consented to by CDP under these Clearing Rules shall not be deemed to be a release of the existing or future Security Interest over any remaining Collateral held with or subject to the control of CDP, other than the withdrawn Collateral.
Added on 21 January 201321 January 2013.
6B.5.3
A request for withdrawal of Collateral may only be made by a Clearing Member subject to Rule 6B.5.1. A Third Party may not withdraw or request for the withdrawal of any Collateral held with or subject to the control of the CDP, other than through the Third Party's Clearing Member. All Collateral permitted by the CDP to be withdrawn shall be returned only to the Clearing Member.
Added on 21 January 201321 January 2013.
6B.6.1
CDP shall value Collateral deposited with or provided to CDP as it deems appropriate. CDP shall, at its sole discretion, determine
Added on 21 January 201321 January 2013.
6B.6.2
If any Collateral deposited or provided by any Clearing Member is found in any way to be unacceptable by CDP, CDP shall have the right to immediately give a zero value to such Collateral for the purposes of satisfying such Clearing Member's obligations under these Clearing Rules or as may otherwise be owing to CDP, pursuant to which such Collateral was deposited or provided.
Added on 21 January 201321 January 2013.
6B.6.3
Following revaluation of any Collateral deposited with or provided to CDP, where such Collateral is found to be insufficient to meet any obligation of the Clearing Member under these Clearing Rules or as may otherwise be owing to CDP, pursuant to which such Collateral was deposited or provided, the Clearing Member shall deposit with or provide to CDP such additional Collateral as may be required to meet such obligation, within such time as CDP may require.
Added on 21 January 201321 January 2013.
6B.6.4
In the event of any dispute as to any matters covered under this Rule, CDP's decision shall be final and binding.
Added on 21 January 201321 January 2013.
6B.7.1
CDP may invest, manage and use Collateral in such manner as it shall deem fit provided that:
Added on 21 January 201321 January 2013.
6B.7.1A
Each Clearing Member shall secure contractual waivers in favour of the Clearing Member from its customers waiving their respective rights to all interest and investment earnings from the Collateral held with or otherwise provided to CDP solely in respect of Customer Accounts, in the form and manner as may be prescribed by the CDP, as may be necessary to give effect to CDP's rights in relation to interest and fees under Rule 6B.8.
Added on 22 April 201322 April 2013.
6B.7.2
All Collateral deposited or provided by each Clearing Member to CDP shall be subject to these Clearing Rules, the Security Deed and the SFA (each as amended or supplemented from time to time). Each Clearing Member shall ensure that all Collateral deposited or provided to CDP are deposited or provided only on the foregoing basis and shall also ensure that, prior to depositing or providing any Collateral to CDP for the account or for the contracts of any person, such person has been notified of and has accepted the foregoing.
Added on 21 January 201321 January 2013.
6B.8.1
The Clearing Member shall pay CDP such administrative fees as may be prescribed by CDP and notified to the Clearing Member from time to time for the investment and management of the Collateral. Administrative fees may be deducted from the interest on the Collateral payable to the Clearing Member by CDP pursuant to this Rule 6B.8 or paid directly to CDP as determined by CDP.
Added on 21 January 201321 January 2013.
6B.8.2
Unless otherwise provided for in these Clearing Rules, CDP shall pay the Clearing Member interest on the Collateral at such rate and in such manner as prescribed by CDP and notified to a Clearing Member.
Added on 21 January 201321 January 2013.
6B.8.3
Except as set forth in this Rule, CDP shall have no obligation to make payment of any other fees, interest and investment earnings arising from or in connection with the Collateral to any person.
Added on 21 January 201321 January 2013.
6B.9.1
Any Collateral accepted by CDP shall be, where necessary, deposited with the appropriate custodian(s) designated by CDP for safekeeping in a CDP account designated for House Accounts or in a CDP account designated for Customer Accounts, as the case may be, and CDP shall retain control over such Collateral.
Added on 21 January 201321 January 2013.
6B.9.2
CDP shall not have any obligation or responsibility to preserve, protect, collect or realise, and under no circumstances shall CDP be liable for any loss or diminution in value or depreciation in or in connection with, the Collateral maintained pursuant to this Rule.
Added on 21 January 201321 January 2013.
6B.9.3
A Clearing Member who maintains Collateral with CDP shall indemnify and hold CDP harmless from any loss, damage, costs, charges and/or expenses of whatsoever nature and howsoever arising ("Loss") suffered or incurred by CDP to any designated custodian which may result from or arise with respect to:
PROVIDED THAT this indemnity shall not cover any Loss and/or liability of CDP attributable or referable to the gross negligence or wilful misconduct of CDP or any of CDP's officers, agents and/or employees.
Added on 21 January 201321 January 2013.
6B.9.4
If any loss of Collateral occurs, or any Collateral becomes unavailable to CDP such that any obligation of the Clearing Member under these Clearing Rules or as may otherwise be owing to CDP, pursuant to which such Collateral was deposited or provided, cannot be fully met as determined by CDP, the Clearing Member shall deposit with or provide to CDP such additional Collateral as may be required to meet such obligation within such time as CDP may require.
Added on 21 January 201321 January 2013.
6B.10.1
Clearing Members shall provide CDP with any information necessary in relation to such Collateral deposited with or provided to CDP to enable CDP to meet its reporting obligations to the Authority and/or other relevant governmental or regulatory authorities or for any other regulatory purposes including but not limited to withholding tax purposes.
Added on 21 January 201321 January 2013.
Rule 6C — Payments
This Rule 6C shall not apply to any payment of a Final Settlement Balance. Payment of a Final Settlement Balance shall be made in accordance with Rule 6.4.
Amended on 10 December 201810 December 2018.
6C.1.1
Any nomination of an account for the purpose of receiving any funds or other assets to be paid or deposited under these Clearing Rules shall, in the case of nomination by a Clearing Member, be in writing to CDP, and in the case of nomination by CDP, be by way of circular or otherwise.
Added on 26 April 201326 April 2013 and amended on 10 December 201810 December 2018.
6C.2.1
The payment method that is set out in this Rule 6C.2 shall be referred to in these Clearing Rules as "Settlement Bank Payment".
Added on 26 April 201326 April 2013.
6C.2.2
A "Payment Instruction" means an instruction given by CDP to a Settlement Bank to:
The means by which a Payment Instruction may be communicated by CDP to a Settlement Bank shall be as agreed between CDP and the Settlement Bank.
Added on 26 April 201326 April 2013.
6C.2.3
A "Confirmation" in relation to a Payment Instruction means a confirmation by a Settlement Bank to CDP that it will carry out that Payment Instruction.
The means by which a Confirmation shall be made or deemed to have been made and communicated by a Settlement Bank to CDP shall be as agreed between CDP and the Settlement Bank.
Added on 26 April 201326 April 2013.
6C.2.4
A Payment Instruction may be given by CDP in respect of any obligation to pay a sum of money pursuant to or in connection with these Clearing Rules. A Payment Instruction shall be irrevocable upon the Confirmation of that Payment Instruction by the relevant Settlement Bank.
Added on 26 April 201326 April 2013.
6C.2.5
Unless stated otherwise, where any sum of money is paid pursuant to or in connection with these Clearing Rules through Settlement Bank Payment:
Added on 26 April 201326 April 2013 and amended on 10 December 201810 December 2018.
6C.3.1
Where any sum of money is to be paid pursuant to or in connection with these Clearing Rules, CDP may stipulate the payment method through which such payment is to be made and Clearing Members shall comply with such stipulation.
Added on 26 April 201326 April 2013.
6C.3.2
Where any sum of money is paid pursuant to or in connection with these Clearing Rules through an Other Payment Method, such payment shall not be considered to have been made to the intended recipient until the payment sum is irrevocably and unconditionally received, in immediately available funds, in such account of the intended recipient as is nominated by the intended recipient.
Added on 26 April 201326 April 2013.
6C.4.1
Any deposit or return of government securities pursuant to or in connection with these Clearing Rules shall not be considered to have been made until such government securities are received in such account of the intended recipient as is nominated by the intended recipient.
Added on 26 April 201326 April 2013.
6C.5.1
Any deposit of book-entry securities by a Clearing Member with CDP pursuant to or in connection with these Clearing Rules shall not be considered to have been made until the charge over such securities becomes effective in accordance with section 81SS of the SFA.
Added on 26 April 201326 April 2013 and amended on 3 June 20193 June 2019.
6C.5.2
Any return of book-entry securities by CDP to a Clearing Member pursuant to or in connection with these Clearing Rules shall not be considered to have been made until the charge over such securities is discharged in accordance with section 81SS of the SFA.
Added on 26 April 201326 April 2013 and amended on 3 June 20193 June 2019.
7.1.1
CDP shall establish and maintain a fund to be called the Clearing Fund, which size shall be determined by CDP.
Amended on 26 May 2023 .
7.1.2
The assets of the Clearing Fund shall be vested in CDP but shall be segregated from CDP's other property and shall be held by CDP on trust for the purposes set out in these Clearing Rules.
7.1.3
The Clearing Fund shall comprise:—
Amended on 3 May 20113 May 2011 and 26 May 2023.
7.2.1
Except as otherwise provided in this Clearing Rules or as determined by CDP, each Clearing Member shall pay to CDP contributions to the Clearing Fund in such amounts as may be determined under this Clearing Rules or by CDP in its absolute discretion. Each Clearing Member shall pay to CDP its contributions to the Clearing Fund (or any part thereof) when called upon and by such time as stipulated by CDP.
Amended on 1 July 20081 July 2008, 3 May 20113 May 2011 and 26 May 2023.
7.2.1A
A Clearing Member is required to make the following contributions to the Clearing Fund:
Added on 3 May 20113 May 2011 and amended on 26 May 2023.
7.2.2 [Rule has been deleted.]
Amended on 1 January 20101 January 2010, 3 May 20113 May 2011 and deleted on 26 May 2023.
7.2.3 [Rule has been deleted.]
Amended on 3 May 20113 May 2011 and 21 January 201321 January 2013 and deleted on 26 May 2023.
7.2.4 [Rule has been deleted.]
Amended on 1 January 20101 January 2010 and 3 May 20113 May 2011 and deleted on 26 May 2023.
7.2.5
CDP shall notify each Clearing Member in writing of the Collateralised Contribution and the Contingent Contribution that the Clearing Member is required to pay under these Rules.
Added on 3 May 20113 May 2011 and amended on 26 May 2023.
7.3.1
Each Clearing Member shall provide its contribution to the Clearing Fund in cash, government securities or in such other forms and subject to such conditions as may be prescribed by CDP from time to time. Such contribution shall form part of the assets of the Clearing Fund.
Amended on 1 July 20081 July 2008, 3 May 20113 May 2011 and 26 May 2023.
7.3.2
Where a Clearing Member provides its contribution to the Clearing Fund (or any part thereof) in the form of cash, CDP shall place the entire cash amount in an interest-bearing account with its bankers. CDP shall not be obliged to segregate the cash contributions and may commingle cash contributions for ease of administration.
Amended on 26 May 2023
7.3.4
CDP shall have the absolute discretion to decide upon the bank or banks with which the cash contributions are to be placed on deposit and the terms of deposit, provided that any such bank shall be a licensed bank in Singapore within the meaning of the Banking Act 1970.
Amended on 26 May 2023
7.3.5
Save for manifest error, CDP's records shall be conclusive and binding on a Clearing Member as to its contributions to the Clearing Fund. Notwithstanding any manifest error in CDP's records, or any dispute in relation to such records, a Clearing Member shall provide, in accordance with these Clearing Rules, such contributions as required by CDP, and any rectification shall be done as soon as practicable after the dispute is resolved.
Added on 10 December 201810 December 2018 and amended on 26 May 2023.
7.4.1
Contributions by CDP to the Clearing Fund shall be in an amount determined by CDP and not less than 25% of the Clearing Fund size. The contributions shall consist of:
Amended on 1 January 20101 January 2010, 3 May 20113 May 2011 and 26 May 2023.
7.4.2
Contributions by CDP to the Clearing Fund shall be in the form of cash or in such other form and subject to such conditions as may be determined by CDP. If any contributions by CDP (or any part thereof) is in the form of cash, such cash amount shall be placed in an interest bearing account with CDP's bankers and the entire interest earned on such contributions (or such part thereof) shall be paid to CDP.
Amended on 3 May 20113 May 2011 and 26 May 2023.
7.4.4
CDP shall have the absolute discretion to decide upon the bank or banks with which the cash portion of contributions by CDP is to be placed on deposit and the terms of deposit, provided that any such bank shall be a licensed bank in Singapore within the meaning of the Banking Act 1970.
Amended on 3 May 20113 May 2011 and 26 May 2023.
7.7.1
CDP may invest the assets and resources of the Clearing Fund in such manner as it shall deem fit.
7.7.3
CDP may appoint such persons as it may deem suitably qualified to invest the assets and resources of the Clearing Fund.
7.7.4
CDP, if acting in good faith and in the absence of fraud or wilful misconduct on its part, shall not be liable for any losses in the investment of the assets or resources of the Clearing Fund.
7.7A.1
Each Clearing Member shall pay CDP such administrative fees as may be prescribed by CDP and notified to the Clearing Member from time to time for the investment and management of the assets of the Clearing Fund and any excess monies or assets placed with CDP in respect of the Clearing Fund. Administrative fees may be deducted from the interest on the assets of the Clearing Fund, and on any excess monies or assets placed with CDP in respect of the Clearing Fund, payable to the Clearing Member by CDP pursuant to this Rule 7.7A or paid directly to CDP as determined by CDP.
Added on 21 January 201321 January 2013.
7.7A.2
Interest and any other sums accruing to the assets of the Clearing Fund shall not form part of the assets of the Clearing Fund.
Added on 21 January 201321 January 2013.
7.7A.3
CDP shall pay the Clearing Member interest on their respective contributions to the Clearing Fund and on any excess monies or assets placed with CDP in respect of the Clearing Fund at such rate and in such manner as prescribed by CDP and notified to the Clearing Member.
Added on 21 January 201321 January 2013 and amended on 26 May 2023.
7.7A.4
Except as set forth in this Rule, CDP shall have no obligation to make payment of any other fees, interest and investment earnings arising from or in connection with the assets of the Clearing Fund, and any excess monies or assets placed with CDP in respect of the Clearing Fund, to any person.
Added on 21 January 201321 January 2013.
7.8.1
Subject to Rule 7.8.2 and unless otherwise provided in the Clearing Rules or as determined by CDP, the Clearing Fund may be applied in the manner set out in Rule 7.9, to meet any losses, costs or expenses incurred by CDP arising from or in connection with an Event of Default, whether such losses, costs or expenses are incurred before or after the Event of Default has been declared.
Amended on 23 January 200923 January 2009, 21 January 201321 January 2013, 6 September 2021 and 26 May 2023.
7.8.2
CDP shall apply the Clearing Fund in respect of an Event of Default only after the Defaulting Clearing Member's Collateral deposited with or provided to CDP has been fully applied, in accordance with Rule 8.6B, to satisfy the obligations of the Clearing Member to CDP.
Added on 21 January 201321 January 2013. and amended on 26 May 2023.
7.9.1
The Clearing Fund shall be applied in the following order:—
Amended on 3 May 20113 May 2011, 26 May 2023 and 31 October 2024.
7.9.2
Following the application of the Clearing Fund for the first Event of Default in a Relevant Period, any subsequent application of the Clearing Fund for subsequent Events of Default in the same Relevant Period shall continue from the remaining funds in the source of contribution with the highest order of application that has not been exhausted by the previous Event of Default.
Amended on 3 May 20113 May 2011 and 26 May 2023.
7.9.3
Once all the sources of contribution to the Clearing Fund have been exhausted, any further application of the Clearing Fund (as topped up in accordance with Rule 7.10) shall, irrespective of the number of times it has been topped up, and subject to Rules 7.10.4, 7.10.5 and 7.10.6, begin again at the start of and flow in the sequence of the priority set out in Rule 7.9.1.
Amended on 3 May 20113 May 2011, 26 May 2023 and 31 October 2024.
7.9.4
Upon the commencement of a new Relevant Period, regardless of the last source of contribution applied in the previous Relevant Period, any application of the Clearing Fund in the new Relevant Period shall begin at the start of the sequence of priority set out in Rule 7.9.1.
Amended on 3 May 20113 May 2011 and 26 May 2023.
7.9.5
Notwithstanding Rule 7.9.1, CDP shall be entitled to draw upon its available lines of credit or other such liquidity resources available to CDP at any time for the purposes set out in Rule 7.8 in the event that any of the assets comprising the Clearing Fund are not immediately available for application in accordance with Rule 7.9.1, such unavailability arising for example, where the cash deposits of the Clearing Fund are placed in fixed deposit accounts and penalty charges may be incurred for the premature termination of the fixed deposit accounts, or where there is delay in the realisation or disposal of the resources and assets of the Clearing Fund, or where there is delay in obtaining payment from the guarantees or other facilities of the Clearing Fund, or where CDP, in its absolute discretion, deems it advisable to draw upon its available lines of credit or other such liquidity resources available to CDP first.
Amended on 3 May 20113 May 2011 and 26 May 2023.
7.9.6
Where CDP, in lieu of applying any source of contribution, draws down on any lines of credit or other such liquidity resources available to CDP pursuant to Rule 7.9.5, CDP shall be entitled to be reimbursed from that source of contribution for the amount drawn down and all costs in relation to the draw down.
Amended on 3 May 20113 May 2011 and 26 May 2023.
7.10 Top-Up of Clearing Member's Contributions in an Event of Default
Amended on 3 May 20113 May 2011
7.10.1
CDP shall notify a Clearing Member in writing whenever its contributions to the Clearing Fund (or any part thereof) are applied in accordance with Rule 7.9.
Amended on 26 May 2023.
7.10.2
A Defaulting Clearing Member shall reimburse the Clearing Fund for any amount (except the amount it contributed to the Clearing Fund) which was applied out of the Clearing Fund as a result of or in connection with its default. Such reimbursement shall be made by such time as determined by CDP.
Amended on 26 May 2023.
7.10.3
If any amount is paid out of a Clearing Member's Collateralised Contributions or Contingent Contributions, the Clearing Member shall, upon demand by CDP, top-up the deficiency in its contributions arising from the said payment within such time as determined by CDP. CDP shall notify each Clearing Member in writing of the amount to be topped up and the time within which such top-up is required to be made under this Rule.
Amended on 1 July 20081 July 2008, 3 May 20113 May 2011, 26 May 2023 and 31 October 2024.
7.10.4
Notwithstanding any top-up pursuant to Rule 7.10.3, the application of a non-Defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution for each Event of Default shall not exceed an amount equal to its required Collateralised Contribution and Contingent Contribution amounts as set out in Rule 7.2.1A(2) and (3).
Added on 26 May 2023 and amended on 31 October 2024.
7.10.5
Notwithstanding Rule 7.9 and subject to Rule 7.10.6, the aggregate amount of a non-Defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution that can be applied in respect of all Events of Default occurring within a period of 30 calendar days shall not exceed an amount equal to three times of that Clearing Member's Prescribed Contributions as at the start of that 30-day period.
Added on 31 October 2024.
7.10.6
Where an Event of Default occurs, the amount of a non-Defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution that is available for application in respect of that Event of Default is the lower of:
- an amount equal to three times of the Clearing Member’s Prescribed Contributions as at the start of the 30-day period that ends on the day of the Event of Default less the aggregate amount of that Clearing Member’s Collateralised Contribution and Contingent Contribution that has already been utilised for all other preceding Events of Default that had occurred in that 30-day period; or
- where the Clearing Member’s Collateralised Contribution was adjusted during the aforementioned 30-day period, an amount (“Adjusted Amount”) equal to three times of the consequently adjusted Prescribed Contributions less the aggregate amount of the Clearing Member’s Collateralised Contribution and Contingent Contribution that has already been utilised for Events of Default that occurred after the day of that adjustment but before the Event of Default.
In the event the Clearing Member’s Collateralised Contribution is adjusted multiple times during the 30-day period, a separate Adjusted Amount shall be calculated for each adjustment and the lowest Adjusted Amount shall apply for the purpose of this Rule 7.10.6(2).
Refer to Practice Note 7.10.5, 7.10.6.
Added on 31 October 2024.
7.12.1
Amended on 3 May 20113 May 2011 and 26 May 2023.
7.12.1A
Any amount that is attributed back to non-Defaulting Clearing Members’ Collateralised Contributions or Contingent Contributions shall be allocated among the Clearing Members on a pro-rata basis, based on the amount that was paid out from each Clearing Member’s contribution relative to the aggregate amount that was paid out from all non-Defaulting Clearing Members’ contributions.
Added on 26 May 2023.
7.12.1B
The amount of Collateralised Contributions or Contingent Contributions that is attributed back to a Clearing Member pursuant to Rule 7.12.1C shall be paid out to the Clearing Member, save where the Clearing Member has not met its top-up obligations pursuant to Rule 7.10.3, in which event the amount will be paid into the Clearing Fund to make good the Clearing Member’s obligations before the remainder is paid out to the Clearing Member.
Added on 26 May 2023.
7.12.1C
Any amount to be paid back to the CDP First Contribution or the CDP Second Contribution shall be paid back to the Clearing Fund (and not to CDP) only to the extent that the source of contribution has not been fully topped up by CDP. Any amount in excess shall be paid back to CDP.
Added on 26 May 2023.
7.13.1
Within 6 months of a Clearing Member’s effective date of resignation, CDP shall return to the Clearing Member the unapplied portion of its Clearing Fund contributions, net of any outstanding liabilities, whether actual or contingent, that the Clearing Member may owe to CDP before the effective date of resignation.
Amended on 26 May 2023 and 31 October 2024.
8.1.1
In the event that:—
CDP shall be entitled, at its absolute discretion, then or at any time thereafter, whether or not such event is, in the opinion of CDP, continuing, to declare that an Event of Default has occurred and to give notice thereof to all Clearing Members.
Amended on 1 July 20081 July 2008, 21 January 201321 January 2013, 22 April 201322 April 2013 and 18 January 2022.
8.1.2
Immediately upon CDP declaring that an Event of Default has occurred in respect of any Clearing Member, such Clearing Member (the "Defaulting Clearing Member") shall be deemed:—
and to the extent permitted by law, Rules 8.2 to 8.9 herein shall apply.
Added on 23 January 200923 January 2009 and 22 April 201322 April 2013.
8.1.3
Without prejudice to the generality of Rule 1 or Rule 10, CDP shall not be liable to any Clearing Member or any Third Party in respect of any damage, loss, cost or expense of whatsoever nature (whether direct, indirect, special or consequential, including without limitation any loss of business, revenue, goodwill, bargain or profit), suffered or incurred by such Clearing Member or Third Party, arising out of or in connection with the declaration or non-declaration of an event of default by CDP.
Added on 26 April 201326 April 2013.
8.1A.1
For the purpose of these Clearing Rules, a Clearing Member becomes insolvent or shall be deemed to be insolvent on the occurrence of any of the following events:—
Added on 22 April 201322 April 2013.
8.2 Effect of Default on Novated Contracts other than in respect of Marginable Futures Contracts
Amended on 10 December 201810 December 2018.
8.2.1
Except for Rules 8.6A, 8.6AA, 8.6B, 8.6E and 8.7, Rules 8.2 to 8.9 shall apply to Novated Contracts other than in respect of Marginable Futures Contracts.
Amended on 23 January 200923 January 2009, 22 April 201322 April 2013 and 10 December 201810 December 2018.
8.2.2
Immediately upon such breach under Rule 8.1.2:—
Amended on 23 January 200923 January 2009, 22 April 201322 April 2013, 10 December 201810 December 2018, 17 July 201917 July 2019 and 6 September 2021.
8.2.2A
Upon such breach under Rule 8.1.2, CDP shall be entitled to take such administrative or operational action as is necessary to manage the default, including to transfer securities from the Defaulting Clearing Member’s Clearing Account to a different Securities Account in the name of the Defaulting Clearing Member.
Added on 22 April 201322 April 2013 and amended on 10 December 201810 December 2018 and 6 September 2021.
8.2.4
For the purposes of Rule 8.2:
Amended on 22 April 201322 April 2013, 10 December 201810 December 2018 and 6 September 2021.
8.6A Effect of Default on Novated Contracts in respect of Marginable Futures Contracts
Amended on 10 December 201810 December 2018.
8.6A.1
This Rule shall apply only to Novated Contracts in respect of Marginable Futures Contracts (hereafter "novated Marginable Futures Contracts").
Added on 23 January 200923 January 2009.
8.6A.2
For positions in novated Marginable Futures Contracts, immediately upon such breach under Rule 8.1.2, CDP may:—
Added on 23 January 200923 January 2009 and amended on 21 January 201321 January 2013, 22 April 201322 April 2013 and 6 September 2021.
8.6A.3
All costs and expenses sustained by CDP in connection with any steps which are or may be taken by CDP pursuant to Rule 8.6A.2, including losses incurred from authorised hedging transactions and the unwinding of such hedging transactions, shall be charged to the account of the Defaulting Clearing Member.
Added on 23 January 200923 January 2009 and amended on 21 January 201321 January 2013.
8.6AA.1
Unless otherwise determined by CDP, any money that has been paid to CDP by a Defaulting Clearing Member pursuant to the CDP Settlement Rules shall be held by CDP as Collateral deposited by the Defaulting Clearing Member other than in relation to a Customer Account and applied in accordance with these Clearing Rules and the Security Deed.
Added on 10 December 201810 December 2018.
8.6B.1
Without prejudice and subject to the other provisions of these Clearing Rules, in particular Rule 7.9.1:
Added on 23 January 200923 January 2009 and amended on 21 January 201321 January 2013 and 26 May 2023.
8.6B.1A
In exercising its powers under Rule 8.6B.1, CDP may liquidate any non-cash Collateral deposited with it by a Clearing Member. Such Clearing Member shall be liable to CDP for any costs and expenses incurred in connection with the liquidation. CDP shall not be liable for any losses to any person arising from such liquidation.
8.6B.2
The Clearing Member shall not take any action or do anything that will directly or indirectly interfere with, prohibit, restrict or inhibit the ability of CDP to so apply such contributions to the Clearing Fund, margins or other Collateral and CDP shall, except where it has acted in bad faith, be under no liability to the Clearing Member or any other person whatsoever in so applying such contributions to the Clearing Fund, margins or other Collateral and the Clearing Member shall fully indemnify and keep indemnified CDP and hold CDP harmless against any such liability.
Added on 23 January 200923 January 2009 and amended on 21 January 201321 January 2013 and 26 May 2023.
8.6B.3
Where the Clearing Member has failed to settle its financial obligations to SGX-DC, CDP shall be entitled to retain any Collateral deposited or provided by the Clearing Member which have not been utilised pursuant to this Rule 8.6B, except where such Collateral were deposited with or provided to CDP solely in relation to Customer Accounts.
Added on 21 January 201321 January 2013 and amended on 22 April 201322 April 2013.
8.6E.1
Without prejudice to the generality of Rule 1 or Rule 10, CDP shall not be liable to any customer in respect of any damage, loss, cost or expense of whatsoever nature (whether direct, indirect, special or consequential, including without limitation any loss of business, revenue, goodwill, bargain or profit), suffered or incurred by such customer, arising out of or in connection with any act or omission of CDP in the performance of CDP's obligations in Rule 8 or the exercise or non-exercise of its powers under Rule 8.
Added on 26 April 201326 April 2013 and Amended on 6 September 2021.
8.7.1
Upon CDP declaring that an Event of Default has occurred, CDP shall as soon as reasonably practicable certify the net sum payable by the Defaulting Clearing Member in respect of its rights and obligations arising under these Clearing Rules. The Defaulting Clearing Member shall pay any net amount so payable by it to CDP forthwith.
8.9.1
To facilitate the operation of a safe and efficient clearing facility, the Defaulting Clearing Member shall:
Added on 22 April 201322 April 2013 and Amended on 6 September 2021.
9.1.1
CDP may suspend or restrict the membership of any Clearing Member, or the clearing and settlement of Exchange Trades in general or in particular, or the clearing and settlement of the Exchange Trades of, or the execution of transactions (including those in respect of depository activities) by, any Clearing Member for such duration as it sees fit if in the opinion of CDP:—
Amended on 6 September 2021.
9.1.2
Without prejudice to Rule 9.1.1, CDP may also take such other action as it may deem necessary or appropriate in the interests of CDP and/or its Clearing Members, or for the protection of CDP with respect to the Novated Contracts to which a Defaulting Clearing Member is a party, at the Defaulting Clearing Member's expense and if appropriate, in its name.
Amended on 23 January 200923 January 2009.
9.1.3
CDP may also request SGX-ST to suspend the Clearing Member from further trading on SGX-ST and/or notify any other Exchange of any action or proceedings taken against the Clearing Member.
9.1.4
If any Clearing Member shall be ordered to wind up, or proceedings for the voluntary or involuntary liquidation of the affairs of the Clearing Member be commenced, or a composition with the creditors of the Clearing Member under the provisions of any law or regulation relating to bankruptcy or insolvency be entered into under the laws of any jurisdiction, or if the Clearing Member, not being an Exempt Person, ceases to hold a valid Capital Markets Services Licence under the SFA, or ceases to be authorized to conduct banking business in Singapore pursuant to section 4 of the Banking Act 1970, the Clearing Member shall be deemed to have been automatically suspended.
Amended on 1 July 20081 July 2008 and 18 January 2022.
9.2.1
CDP shall suspend or restrict the clearing and settlement of Exchange Trades in general or in particular, or the clearing and settlement of the Exchange Trades of, or the execution of transactions (including those in respect of depository activities) by, any Clearing Member, if advised by SGX-ST or any other Exchange or pursuant to any requirement of SGX-ST or any other Exchange, and if it is in the interest of CDP to do so.
Amended on 6 September 2021.
9.3.1
CDP shall notify the Clearing Member concerned and the other Clearing Members as soon as practicable upon any automatic suspension or any decision to suspend or restrict the clearing and settlement of Exchange Trades of a Clearing Member pursuant to Rule 9. Pending such decision, the Clearing Member concerned may resign from CDP subject to the Clearing Rules.
9.3.2
A Clearing Member against whom suspension, restriction or other action is imposed by CDP pursuant to Rule 9 may, within 7 Settlement Days, appeal to the Disciplinary Committee against the said suspension, restriction or other action. Notwithstanding such appeal, the suspension, restriction or other action imposed on the Clearing Member by CDP shall continue in effect until such time as it is revoked or lifted by CDP or the Disciplinary Committee.
9.3.3
A Clearing Member suspended or deemed suspended for whatsoever reasons (including on a voluntary basis) shall not have any of the privileges of a Clearing Member during the period of its suspension. A suspended Clearing Member may be reinstated upon such conditions as CDP may impose.
9.3.4
Unless otherwise decided by CDP, a Clearing Member who is suspended or whose clearing, settlement, depository or other activities are restricted by CDP is still liable to CDP to clear and settle any and all Exchange Trades that are entered by the Clearing Member right up to the time the suspension or restriction takes effect. Thereafter, the Clearing Member must not clear or settle any Exchange Trade or execute any transaction (including those in respect of depository activities) without approval of CDP.
Amended on 6 September 2021.
9.4 Positions Carried in Any Account on the Books of Clearing Members Who are Suspended or Restricted in Clearing Activities
9.4.1
When a Clearing Member is suspended or is restricted in its clearing activities by CDP, other than for default, CDP may designate 1 or more Clearing Members to deal with any positions carried in any account on the books of the suspended or restricted Clearing Member in accordance with CDP's direction.
Added on 23 January 200923 January 2009.
10.1 No Liability to Clearing Members and Others in Absence of Fraud Etc
Amended on 15 September 201715 September 2017.
10.1.1
Without prejudice to the generality of Rule 1.1.3, except as otherwise expressly provided in these Clearing Rules, none of CDP, its related corporations, SGX RegCo, any person or entity referred to under Rule 1.1.7, or their respective directors, officers, employees, representatives or agents ("Relevant Persons"), if acting in good faith and in the absence of fraud or negligence on their parts shall be liable to any Clearing Member or any Third Party in contract, tort or under any other cause of action with respect to, or with respect to any thing done or not done as a direct or indirect consequence of, any action or omission by any Relevant Person in connection with the clearing and settlement of Exchange Trades, and all other matters as contemplated in these Clearing Rules.
Amended on 15 September 201715 September 2017 and 3 June 20193 June 2019.
10.1.2
Without prejudice to the generality of Rule 1.1.3, the Relevant Persons shall have no obligation or liability of any kind to a Clearing Member or Third Party, or to any of the Clearing Member's customers in respect of any loss or damage (including consequential loss or damage) which may be suffered or incurred or which may arise directly or indirectly in respect of, or in respect of any thing done or not done as a direct or indirect consequence of, the exercise of any discretion or decision making power under the Clearing Rules or Clearing Directives.
Amended on 15 September 201715 September 2017 and 3 June 20193 June 2019.
10.2.1
No Relevant Person shall be liable for, or for any thing done or not done as a direct or indirect consequence of, any action or omission or any failure, hindrance, suspension, restriction or delay in the provision of services and facilities to clear and settle any Exchange Trade or the performance in whole or in part of CDP's obligations under these Clearing Rules or Clearing Directives if such action, omission, failure, hindrance, suspension, restrictions or delay arises out of causes beyond the Relevant Person's reasonable control.
Amended on 15 September 201715 September 2017 and 3 June 20193 June 2019.
10.2.2
Such causes may include, but shall not be limited to, acts of God, war, civil disturbances, riots, acts of a civil or military authority, embargoes, fires, floods, explosions, accidents, labour disputes, mechanical breakdowns, computer or system failures or other failures of equipment, failures of or defects in computer or system software, unavailability of or restrictions on any on-line communications system or communication media or facilities, interruptions (whether in whole or in part) of power supplies or other utility or service, any suspension, restriction or closure of any market, any market emergency, failure, interruption or suspension of any depository or custodian, bank or financial institution, any law, decree, regulation or order or directive of any government, competent authority or any court or tribunal, and any other causes beyond the Relevant Person's reasonable control.
Amended on 15 September 201715 September 2017.
10.2.3
On the happening of any 1 or more of the events or circumstances referred to in Rule 10.2.1 above, CDP and any party affected shall immediately notify the same to the relevant party or parties.
Added on 23 January 200923 January 2009.
10.2.4
In respect of affected Clearing Members, CDP shall be entitled, at any time after the receipt of such notice by CDP or any relevant party or parties, to exercise the powers under Rules 6A.9A and 6.10.
Added on 23 January 200923 January 2009 and amended on 21 January 201321 January 2013.
10.2.5
Without prejudice to the generality of the foregoing, the Relevant Persons shall not be liable for any failure, hindrance or delay in the performance (in whole or in part) of any of CDP's obligations to Clearing Members with regard to any Collateral where such failure, hindrance or delay arises from causes beyond CDP's control, such as but not limited to the failure whether partial or total, interruption or suspension of any depository or custodian or other service ("depository", which expression shall include banks or financial institutions with which such Collateral is placed with) CDP is using, the termination or suspension of CDP's membership or use of the depository or any variation of the depository's operational timetable, whether or not occasioned by action of the depository operator or other party, or any embargo, unavailability or restriction of bank transfer systems or wires, malfunction or overload of the depository or other emergency.
Added on 23 January 200923 January 2009 and amended on 21 January 201321 January 2013 and 15 September 201715 September 2017.
10.3 No Liability for Acts or Omissions of Clearing Members
Amended on 15 September 201715 September 2017.
10.3.1
The Relevant Persons shall have no liability for:—
Amended on 15 September 201715 September 2017.
10.4.1
The Relevant Persons shall not be liable for any special, indirect or consequential losses or damages or for the loss of business, revenue, goodwill, bargain or loss of profit suffered by any Clearing Member, even if the Relevant Persons had been notified of the possibility of these damages being incurred.
Amended on 15 September 201715 September 2017.
10.5.1
Except for CDP's liability to make payment of the Final Settlement Balance owing to a Clearing Member, under no circumstances shall CDP's liability and the amount of damages owing to a Clearing Member exceed 100% of the aggregate amount of the fees, charges, fines or default interest paid by the Clearing Member in the calendar year the incident giving rise to the claim(s) in question occurs.
10.6.1
Each Clearing Member indemnifies each of CDP, its related corporations, SGX RegCo, any person or entity referred to under Rule 1.1.7, and their respective directors, officers, employees, representatives and agents ("Indemnified Persons") against any loss or liability reasonably incurred or suffered by the Indemnified Persons where such loss or liability arose out of or in connection with:—
Amended on 26 April 201326 April 2013, 15 September 201715 September 2017 and 3 June 20193 June 2019.
10.6.2
Without prejudice to the generality of Rule 10.6.1, in the event that any legal, arbitration or other proceedings are brought to impose any liability on all or any of the Indemnified Persons for an alleged failure on the part of any Indemnified Person to prevent or to require action by a Clearing Member or any of its directors, officers, employees, representatives or agents, the Clearing Member shall reimburse the relevant Indemnified Person for:—
The Clearing Member shall render such co-operation as the Indemnified Person reasonably requires in respect of such proceedings including without limitation the production of any document or records.
Amended on 26 April 201326 April 2013 and 15 September 201715 September 2017.
10.6.3
Without prejudice to Rule 10.6.2, the Clearing Member shall pay to an Indemnified Person, if the Indemnified Person so requires, the costs incurred by or on behalf of the Indemnified Person of producing or obtaining, pursuant to a court order or other legal process, records relating to the business or affairs of a Clearing Member or any of its directors, officers, representatives, employees or agents, regardless of the party requiring such production or obtainment.
Amended on 15 September 201715 September 2017.
11.1.1
CDP may conduct an investigation if:—
Amended on 3 June 20193 June 2019.
11.1.3
CDP may require a Clearing Member, any of its directors, officers, employees or agents to:—
11.1.4
A Clearing Member, directors, officer, employee or agent shall not wilfully make, furnish or permit the making or furnishing of any false or misleading information, statement or report to CDP.
11.1.5
CDP may appoint any person or persons to assist in its investigation (the "Clearing House Examiners").
11.1.6
CDP may delegate all or any of its powers under this Rule to the Clearing House Examiner. The Clearing House Examiner shall report the results of the investigation to CDP.
11.2.1
CDP may appoint any person or persons to conduct inspections of Clearing Members (the "Clearing House Inspectors").
11.2.3
A Clearing Member, director, officer, employee or agent shall give the Clearing House Inspector access to all information, books and records as requested. For the avoidance of doubt, reference to "information, books and records" in relation to a Bank Clearing Member shall refer to information, books and records falling within the Bank Clearing Member's business governed by this Clearing Rules.
Amended on 1 July 20081 July 2008.
11.2.5
CDP may charge a fee for the inspection. The fee is payable immediately by the Clearing Member concerned.
11.3.1
If an investigation or inspection reveals that a Clearing Member, any of its directors, employees or agents has breached any Clearing Rule or Directive, CDP may take any of the following forms of disciplinary action, namely:
Amended on 16 May 201116 May 2011.
11.3.2
If the Clearing Member does not accept the offer of composition or comply with the terms of the composition within the stipulated time as prescribed by CDP, CDP may refer the said Clearing Member to the Disciplinary Committee.
Added on 16 May 201116 May 2011.
11.3.3
Where CDP becomes aware of any incident of overtrading as described in Rule 10.11.1 of the SGX-ST Rules, CDP may, in its sole discretion, withhold any profits from the transaction that resulted in overtrading, or any other moneys, that are due or owing to the Clearing Member which qualified that trade, and may not release such profits or moneys until all disciplinary proceedings (including any appeal) in respect of that incident of overtrading have been concluded.
Added on 23 January 200923 January 2009 and amended on 16 May 201116 May 2011 and 3 June 20193 June 2019.
11.3A.1
CDP may make an offer of composition to a Clearing Member who has breached any Clearing Rule. The terms of the offer of composition include payment of a specified sum to CDP and may include the fulfillment of any accompanying terms that CDP may prescribe.
Added on 16 May 201116 May 2011.
11.3A.2
Upon payment of the specified sum and fulfillment of the accompanying terms within the stipulated time, no further proceedings shall be taken against that Clearing Member for that Rule violation.
Added on 16 May 201116 May 2011.
11.3A.3
Acceptance of the offer of composition by the Clearing Member amounts to an admission of liability and the Clearing Member will be deemed to have committed the conduct described in the charge.
Added on 16 May 201116 May 2011.
11.3A.4
In respect of Rule violations which CDP may offer composition, guidelines on the range of composition which CDP may offer to a Clearing Member who has committed a Rule violation are indicated in Schedule A.
Added on 16 May 201116 May 2011.
11.3A.5
CDP retains the discretion to offer composition to a Clearing Member of an amount which is lower or higher than the guidelines, except that the amount of composition that CDP may offer shall not exceed S$10,000 for each Rule violation.
Added on 16 May 201116 May 2011.
11.3A.6
Notwithstanding that a Rule violation is indicated as being compoundable or may be compoundable under Schedule A, CDP retains the discretion not to make an offer of composition to the Clearing Member and instead, to charge the said Clearing Member before the Disciplinary Committee.
Added on 16 May 201116 May 2011.
11.3A.7
If CDP has made an offer of composition, it will not commence disciplinary proceedings against a Clearing Member until after the stipulated period for the offer lapses.
Added on 16 May 201116 May 2011.
11.3A.8
For the purposes of determining whether a Rule violation is classified as a first, second, third or subsequent offence under Schedule A, only previous violations under the same Rule will be taken into consideration.
Added on 16 May 201116 May 2011.
11.4.1
The Disciplinary Committee shall comprise persons appointed by the SGX RegCo Board and shall not have a member who is, or who within three years of the proposed appointment date was, a director, officer or employee of:
Amended on 15 September 201715 September 2017 and 3 June 20193 June 2019.
11.4.2
The SGX RegCo Board shall appoint the chairman and deputy chairman of the Disciplinary Committee. In the absence of the chairman, the deputy chairman shall have all the authority of the chairman.
Amended on 15 September 201715 September 2017 and 3 June 20193 June 2019.
11.4.7
Procedures may be issued in relation to Disciplinary Committee proceedings. The procedures are binding on all the parties to the proceedings and may be varied by the Disciplinary Committee as provided in the procedures or these Clearing Rules. Where any matter is not dealt with by the procedures or these Clearing Rules, the Disciplinary Committee may establish its own procedures.
Refer to the [Disciplinary Committee and Appeals Committee Handbook].
Amended on 3 June 20193 June 2019.
11.5.1
CDP may initiate disciplinary proceedings and charge a Clearing Member before the Disciplinary Committee if CDP is of the opinion that the Clearing Member has committed any of the following:—
Amended on 3 June 20193 June 2019.
11.5.1A
The Disciplinary Committee shall, as a tribunal of first instance, hear and determine charges brought by CDP against a Clearing Member pursuant to Rule 11.5.1. The Disciplinary Committee may exercise its powers against a Clearing Member if it is satisfied, on a balance of probabilities, that the Clearing Member has committed any of the matters set out in Rule 11.5.1.
Added on 3 June 20193 June 2019.
11.5.2
The Disciplinary Committee may exercise its powers against a Clearing Member if a director, officer, employee or agent breaches, or causes the Clearing Member to breach, the Clearing Rules or any Clearing Directives.
11.5.3
A former Clearing Member is bound by these Clearing Rules in respect of acts occurring before the registration ended or before expulsion. CDP and the Disciplinary Committee retain their respective jurisdiction, notwithstanding the ending of registration or expulsion.
11.5.4
The powers of the Disciplinary Committee include:—
Amended on 1 July 20081 July 2008 and 3 June 20193 June 2019.
11.5.6
A failure to comply with any sanction imposed by the Disciplinary Committee constitutes a breach of these Rules.
Added on 3 June 20193 June 2019.
11.5.5
Mandatory Minimum Penalties to be Imposed by Disciplinary Committee for certain Rule violations.
Where a mandatory minimum penalty has been stipulated for a particular Rule violation in the seventh column of Schedule A, the Disciplinary Committee:
Added on 16 May 201116 May 2011 and amended on 3 June 20193 June 2019.
11.5.6
A failure to comply with any sanction imposed by the Disciplinary Committee constitutes a breach of these Rules.
Added on 3 June 20193 June 2019.
11.6.7 Decision of Disciplinary Committee
The Disciplinary Committee shall provide written grounds of its decision, which shall include any sanctions imposed against the Clearing Member, within a reasonable period after the conclusion of the hearing..
Amended on 3 June 20193 June 2019.
11.6.8 Notification of Decision
Amended on 3 June 20193 June 2019.
11.7.1
The Appeals Committee shall comprise persons appointed by the SGX RegCo Board and approved by the Authority provided that:—
Amended on 30 November 200530 November 2005, 15 September 201715 September 2017 and 3 June 20193 June 2019.
11.7.1A
The SGX RegCo Board shall appoint the chairman and the deputy chairman of the Appeals Committee. In the absence of the chairman, the deputy chairman will have all the powers of the chairman.
Added on 3 June 20193 June 2019.
11.7.2
The powers of the Appeals Committee include:—
Amended on 15 September 201715 September 2017 and 3 June 20193 June 2019.
11.7.2A
A failure to comply with any sanction imposed by the Appeals Committee constitutes a breach of these Rules.
Added on 3 June 20193 June 2019.
11.7.8
Procedures may be issued in relation to Appeals Committee proceedings. The procedures are binding on all the parties to the proceedings and may be varied by the Appeals Committee as provided in the procedures or these Clearing Rules. Where any matter is not dealt with by the procedures or these Clearing Rules, the Appeals Committee may establish its own procedures.
Refer to the [Disciplinary Committee and Appeals Committee Handbook].
Amended on 3 June 20193 June 2019.
11.8.2
A decision of the Appeals Committee is final and binding.
Amended on 12 October 200512 October 2005.
11.9.3 Appeals by Rehearing
The Appeals Committee shall determine the appeal by way of rehearing. It shall only rehear that part of the decision of the Disciplinary Committee appealed against.
Amended on 3 June 20193 June 2019.
11.9.8 Decision of Appeals Committee
Amended on 3 June 20193 June 2019.
11.10.1
The Disciplinary Committee or Appeals Committee may require the Clearing Member charged to pay all or part of the costs of the investigation, inspection or hearing.
11.10.3
Where an order for costs of the proceedings has been imposed against a Clearing Member and the Clearing Member does not make payment within the specified period, the outstanding sum shall be a debt payable to CDP. CDP may commence legal action to recover that debt, subject to any subsequent payments made by the Clearing Member. CDP shall be entitled to claim reasonable interest, a month after the payment is due, based on the sum outstanding.
Added on 3 June 20193 June 2019.
11.11A.1
No liability (whether in contract, tort or otherwise) shall be incurred by the Disciplinary Committee, Appeals Committee, CDP, or a manager appointed under Rule 11.12.2(4) for anything done or omitted to be done with reasonable care and in good faith in the course of or in connection with:
Added on 3 June 20193 June 2019.
11.11.1
A fine shall be paid within 14 days from the date of notice, or such longer time as the Chairman of the Disciplinary Committee or the Appeals Committee (as applicable), or his nominee, permits.
11.11.2
If a fine remains unpaid 7 days after the deadline, the Clearing Member's clearing rights is suspended. The suspension ends upon full payment of the fine.
11.11.3
Where a fine has been imposed against a Clearing Member and the Clearing Member does not make payment within the specified period, the outstanding sum shall be a debt payable to CDP. CDP may commence legal action to recover that debt, subject to any subsequent payments made by the Clearing Member. CDP shall be entitled to claim reasonable interest, a month after the payment is due, based on the sum outstanding.
Added on 3 June 20193 June 2019.
11.12.1
Without prejudice to the rights and powers of CDP or any other body or person under the Clearing Rules,
Amended on 3 June 20193 June 2019.
11.12.2
If CDP is of the opinion that:—
CDP may do any or all of the following:—
Amended on 1 July 20081 July 2008.
11.12.3
Subject to Rule 11.12.4, CDP shall notify the Clearing Member in writing before it exercises any of its powers under this Rule.
11.12.4
If, in CDP's opinion, it is necessary to protect the financial integrity, reputation or interests of CDP, other Clearing Members or the investing public, it may exercise its powers under this Rule without prior notice to the Clearing Member. CDP shall notify the Clearing Member in writing after it has exercised the powers.
11.12.5
CDP shall refer the matter (together with an account of its exercise of the interim powers) to the Disciplinary Committee for a decision within 14 days of CDP's notification of its actions under this Rule. The Disciplinary Committee proceedings in Rule 11.6 apply. The Disciplinary Committee may expedite the proceedings if it thinks fit. CDP's notification shall serve as the written notice under Rule 11.6.1.
12.1.1
In addition to and without prejudice to the generality of the other provisions of these Clearing Rules, Rule 12 shall apply to an Exchange Trade transacted on such Foreign Exchange with which CDP may have direct or indirect clearing arrangements from time to time, or in relation to which trade CDP has clearing arrangements in place (such Exchange Trade is hereinafter referred to as a "Foreign Market Links Exchange Trade").
12.2.1
For the purposes of Rule 12, unless the context otherwise requires:—
Term | Meaning |
"Foreign Exchange" | means an Exchange other than SGX-ST. |
"Foreign Market Links Exchange Trade" | shall have the meaning as defined in Rule 12.1.1. |
"Foreign Market Links System" | means the electronic order book facility system maintained by the SGX-ST for the automatic placing of orders and notification of Foreign Market Links Exchange Trade. |
12.3.1
A transaction of the Foreign Market Links Exchange Trade done through the Foreign Market Links System shall be novated to CDP only upon receipt by CDP of the confirmation by the Foreign Market Links System that the Foreign Market Links Exchange Trade has been done.
12.3.2
Upon such novation, the provisions of Rule 6 shall apply subject to:—
12.3.3
The modifications, amendments or variations, or such other rules as referred to in Rule 12.3.2 shall be set out in the Clearing Directives from time to time. Such modifications, amendments or variations, or such other rules shall become effective on such date as may be specified in the written notice to be given to the Clearing Member. The Clearing Member shall be deemed, by continuing to enter into the Foreign Market Links Exchange Trade at the time the modifications, amendments or variations, or such other rules take effect, to consent to and agree to be bound by the same.
12.4.1
Notwithstanding Rule 12.3, CDP shall have the flexibility of facilitating and/or clearing transactions of the Foreign Market Links Exchange Trade not done through the Foreign Market Links System without the novation of such transactions. CDP has the right to set out the rules applicable to such Foreign Market Links Exchange Trade in the Clearing Directives, which may be amended from time to time.
13.1.1
CDP reserves the right in its absolute discretion to amend these Clearing Rules and the Clearing Directives at any time. Such amendment shall become effective on such date as may be specified in the written notice to be given to the Clearing Member. The Clearing Member shall be deemed, by continuing to enter into Exchange Trades at the time the amendment takes effect, to consent to and agree to be bound by the Clearing Rules as amended.
13.1.2
The Clearing Member will be bound by any amendment to these Clearing Rules with respect to any transaction occurring at or subsequent to the time such amendment takes effect as fully as though such amendment were now a part of these Clearing Rules.
13.1A.1
CDP will take all reasonable measures to protect information provided to it by or on behalf of a Clearing Member or a Chief Executive Officer under these Clearing Rules from unauthorised use or disclosure.
Added on 17 July 201917 July 2019.
13.1A.2
Disclosure of information by CDP is authorised use or disclosure if it:
Added on 17 July 201917 July 2019.
13.2.1
The Clearing Member will pay to CDP such fees and charges for the clearing and settlement of Exchange Trades based on CDP's fee schedules from time to time, and such fines and default interest as may be imposed by CDP from time to time.
13.2.2
The Clearing Member will pay to CDP such out-of-pocket expenses incurred by CDP caused directly or indirectly by such Clearing Member's actions or omissions including without limitation the cost of producing records pursuant to a court order or other legal process in any litigation or other legal proceeding to which such Clearing Member or its customer is a party or in which such records relating to the Clearing Member or its customer are so required to be produced; whether such production is required at the instance of the Clearing Member or its customer or at the instance of any other party.
13.3.1
Any certification, advice, statement or report provided by CDP shall, in the absence of manifest error, be final and conclusive. Except as otherwise agreed by CDP, the failure of any Clearing Member to inform CDP of any error or omission in any certification, advice, statement or report promptly (in any event within the next Settlement Day) shall constitute a waiver in favour of CDP by such Clearing Member of any right to require rectification.
13.4.1
The Clearing Rules may from time to time be altered or supplemented or repealed for the administration of CDP, for the admission and regulation of Clearing Members, for the creation and regulation of any class of membership and the rights and obligations attaching thereto, for the access to and regulation of business in CDP, for the resolution of disputes and for such other purpose as may be thought fit by CDP.
13.4.2
Failure or delay by CDP to enforce any of these Clearing Rules or the Clearing Directives will not be construed as a waiver of its rights.
13.4.3
CDP has the right at its absolute discretion to waive compliance with any provision of these Clearing Rules or the Clearing Directives.
13.4.4
The invalidity, illegality or unenforceability in whole or in part of any of the provisions of these Clearing Rules or the Clearing Directives shall not affect the validity, legality and enforceability of the remaining part or provisions of the rest of these Clearing Rules and the Clearing Directives.
13.4.5
These Clearing Rules and the Clearing Directives shall be governed by and construed in accordance with the laws of Singapore. Each of the Clearing Member and its Chief Executive Officer irrevocably submit to the exclusive jurisdiction of the Singapore courts.
Amended on 3 June 20193 June 2019.
14.1.1 Applicability
This Rule establishes the transitional provisions relating to Rules 1.2, 5.1C.1, 5.1G.1, 5.1I, 5.11.1, 5.11.2, 5.11.3, 5.11.4 of the CDP Clearing Rules that was amended on and in force from 29 December 2014.
Added on 29 December 201429 December 2014.
14.1.2 Transitional Arrangements
Rules 1.2, 5.1C.1, 5.1G.1, 5.1I, 5.11.1, 5.11.2, 5.11.3, 5.11.4 (as amended on and in force from 29 December 2014), except for the definition of Base Capital, shall not apply to a Transitional Clearing Member during the Transitional Period, and the aforesaid Rules as in force immediately before 29 December 2014 shall continue to apply to a Transitional Clearing Member during the Transitional Period. A reference to any provision of the SFR (Financial and Margin Requirements) in the aforesaid Rules as in force immediately before 29 December 2014 is to that provision in the SFR (Financial and Margin Requirements) as in force immediately before 3 April 2013. For avoidance of doubt, the definition of Base Capital applicable to a Transitional Clearing Member has the same meaning ascribed in the SFR(Financial and Margin Requirements) as in force on 3 April 2013.
Added on 29 December 201429 December 2014.
14.1.3 Transitional Period
For the purposes of Rule 14.1.2, "Transitional Period" means the period commencing on 3 April 2013 and:—
whichever is the earlier.
Added on 29 December 201429 December 2014.
14.1.4 Notification by Writing
For the purpose of Rule 14.1.3(2), the Transitional Clearing Member shall notify CDP in writing at least 14 days before the intended date to adopt the requirements.
Added on 29 December 201429 December 2014.
14.1.5 Transitional Clearing Member
"Transitional Clearing Member" means
Added on 29 December 201429 December 2014.
Regulatory Notice 6.5—Compensation for corporate action entitlements
Added on 10 December 201810 December 2018.
Appendix A to Regulatory Notice 6.5
No. | Corporate Action | Action required of Clearing Member to effect compensation | Form and value of compensation | Due date of compensation |
1. | Cash dividend | None | Cash in the currency and amount that the buying Customer would have received but for the failed delivery | Dividend payment date |
2. | Renounceable entitlement (e.g., bonus issue / renounceable rights issue/ dividend in specie) in security that is custodised with CDP | None | The security in the quantity that the buying Customer would have received but for the failed delivery | Credit date of the entitlement |
3. | (a) Non- renounceable entitlement (e.g., non-renounceable rights issue) in security that is custodised with CDP (b) Renounceable or non-renounceable entitlement in security that is not custodised with CDP | None | Cash in a currency and in such amount as determined by CDP based on the closing price of the underlying security as of the closing day of the entitlement exercise period minus the subscription price of the entitlement | One Market Day after CDP determines the compensation amount. |
4. | Conversion | None | The security into which the conversion has been made and in the quantity that the buying Customer would have received but for the failed delivery | Effective date of conversion, i.e. one Market Day after book closure date (BCD+1) |
5. | Bond redemption | Clearing Members to submit settlement instructions for the offsetting trades for settlement with their Customers one Market Day after bond maturity | Cash in a currency and in such amount as determined by CDP based on the cash-settlement methodology described in paragraph 4 of Appendix 2— Determination of Cash Settlement Amount. | Two Market Days after bond maturity date |
6. | Scrip / cash election dividend | Buying Clearing Member shall obtain its Customer's election instruction and submit the same to CDP one Market Day before election closure date (ECD-1). Selling Clearing Member shall inform its Customer of the elected form of compensation upon being notified by CDP of the assignment of elections. | (a) Scrip dividend elected: The security, in the quantity that the buying Customer would have received but for the failed delivery. (b) Cash dividend elected: Cash in the currency and amount that the buying Customer would have received but for the failed delivery. | Dividend payment date |
7. | Currency election dividend | Buying Clearing Member shall obtain its Customer's election instruction and submit the same to CDP one Market Day before election closure date (ECD-1). Selling Clearing Member shall inform its Customer of the elected form of compensation upon being notified by CDP of the assignment of elections. | Cash in the currency elected and in the amount that the buying Customer would have received but for the failed delivery | Dividend payment date |
8. | Partial Offer | Buying Clearing Member shall obtain its Customer's election instruction (as to whether to accept the offer) and submit the same to CDP one Market Day before election closure date (ECD-1). | (a) If the offer consideration is in the form of cash: Cash in the currency and in the amount that the buying Customer would have received but for the failed delivery (b) If the offer consideration is in the form of a securities listed on SGX-ST: The security in the quantity that the buying Customer would have received but for the failed delivery. (c) If the offer consideration is in the form of a security that is non-transferable or not listed on SGX-ST: Cash in a currency as determined by CDP and in the amount that CDP determines is a fair representation of the market value of the security that the buying Customer would have received but for the failed delivery. | Payment date of the partial offer |
9. | Takeover Offer | Buying Clearing Member shall obtain its Customer's instruction (as to whether to accept the offer) and submit the same to CDP within 3 Market Days from election closure date (by ECD+3). | (a) If the offer consideration is in the form of cash: Cash in the currency and in the amount that the buying Customer would have received but for the failed delivery. (b) If the offer consideration is in the form of a security listed on SGX-ST: The security in the quantity that the buying Customer would have received but for the failed delivery. (c) If the offer consideration is in the form of a security that is non-transferable or not listed on SGX-ST: Cash in a currency as determined by CDP and in the amount that CDP determines is a fair representation of the market value of the security that the buying Customer would have received but for the failed delivery. | 6 Market Days from election closure date (ECD+6) |
Added on 10 December 201810 December 2018.
Practice Note 1.2 Marginable Futures Contracts
Issue Date | Cross Reference | Enquiries |
Added on 21 January 201321 January 2013. | Rule 1.2 — Definition of Marginable Futures Contract | Please contact Clearing Risk: Facsimile No : 6532 0297 |
1 Introduction
2 Marginable Futures Contracts
Practice Note 3.5.4 — Business Continuity Requirements
Issue Date | Cross Reference | Enquiries |
Added on 22 January 200922 January 2009. | Rule 3.5.4 | Please contact Member Supervision: Facsimile No : 6538 8273 E-Mail Address: membersup@sgx.com |
1. Introduction
2. Business Continuity Plan
* Critical functions refer to business functions whose failure or disruption may incapacitate the firm.
^ Key service providers refer to third-parties who are performing functions that are not normally carried out by Clearing Members internally, but are critical to the Clearing Member's ability to carry on business operations. For example, IT system hardware/software vendors.
# Outsourcing service providers refer to third parties who are performing functions that would normally be performed by Clearing Members internally. For example, Operations and Technology.
3. Emergency Contact Persons
Refer to Appendix A of Practice Note 3.5.4.
Practice Note 3.9.1(3) — Pre-Execution Checks
Issue Date | Cross Reference | Enquiries |
Added on 18 September 201218 September 2012 and amended on 15 March 201315 March 2013. | Rule 3.9.1(3) | Please contact Member Supervision: Facsimile No : 6538 8273 E-Mail Address: membersup@sgx.com |
1. Introduction
2. Pre-Execution Checks
Added on 18 September 201218 September 2012 and amended on 15 March 201315 March 2013.
Practice Note 3.9.1(6) — Conflicts of Interest
Issue Date | Cross Reference | Enquiries |
Added on 18 September 201218 September 2012. | Rule 3.9.1(6) | Please contact Member Supervision: Facsimile No : 6538 8273 E-Mail Address: membersup@sgx.com |
1. Introduction
2. Separation of Key Functions
Added on 18 September 201218 September 2012.
Practice Note 3.9.2A, 3.9.3 Procedures to Suspend Qualification of a Trading Member
Issue Date | Cross Reference | Enquiries |
Added on 11 January 201111 January 2011. | Rule 3.9.2A Rule 3.9.3 | Please contact: Member Supervision Facsimile No : 6538 8273 E-Mail Address: membersup@sgx.com Market Control Hotline : 6236 8820 |
1 Introduction
2 Procedures for Suspending A Trading Member
Designated Officers
Notification of Suspension of Trading Member
Final Traded Position
Added on 11 January 201111 January 2011 and amended on 15 September 201715 September 2017 and 3 June 20193 June 2019.
Practice Note 5A.2.1, 5A.2.2 — Position Account Reporting
Issue Date | Cross Reference | Enquiries |
Added on 1 July 20161 July 2016 and amended on 3 June 20193 June 2019. | Rules 5A.2.1, 5A.2.2. | Please contact Member Supervision: Facsimile No : 6538 8273 Please contact Risk Management: Facsimile No : 6532 0297 E-Mail Address: rm-securities@sgx.com |
1. Introduction
2. Type of Information
Description of origin | Criteria |
Customer | The origin of a Position Account shall be reported as "Customer" if the Position Account holder is a customer, as defined in Part III of the Securities and Futures (Licensing and Conduct of Business) Regulations. |
House | The origin of a Position Account shall be reported as "House" if the Position Account holder is neither a customer, as defined in Part III of the Securities and Futures (Licensing and Conduct of Business) Regulations, nor a Remisier, as defined in the SGX-ST Rules. |
Remisier of the Member | The origin of a Position Account shall be reported as "Remisier" if the Position Account holder is a Remisier of the member, as defined in SGX-ST Rules. |
Description of origin | Criteria |
SGX Member | The ownership type of the account shall be reported as "SGX Member" if the account holder is the Clearing Member itself. |
Individual Person | The ownership type of the account shall be reported as "Individual Person" if the account holder is an individual, except where such individual is an officer, employee, non-executive director or Trading Representative of the Clearing Member. This value shall be used for joint accounts of two or more individuals, except where any party to the account is an officer, employee, non-executive director or Trading Representative of the Clearing Member. |
Officers and employees of the Member (excluding Trading Representatives) | The ownership type of the account shall be reported as "Officers and employees of Member (excluding Trading Representatives)" if the account holder is (a) a Chief Executive Officer of the Clearing Member (regardless of whether such approved executive director is a Trading Representative); or (b) an officer or employee of the Clearing Member, but not a Trading Representative of the Clearing Member. |
Non-executive Director of Member | The ownership type of the account shall be reported as “Non-executive Director of Member” if the account holder is a non-executive director of the Clearing Member. |
Trading Representative of Member – Remisier | The ownership type of the account shall be reported as "Trading Representative of Member – Remisier" if the account holder is a Remisier of the Clearing Member. |
Trading Representative of Member – non-Remisier | The ownership type of the account shall be reported as "Trading Representative of Member – non-Remisier" if the account holder is a Trading Representative of the Clearing Member and not a Remisier of the Clearing Member. |
Related Entity | The ownership type of the account shall be reported as "Related Entity" if the account holder is a related entity of the Clearing Member. "Entity" here includes corporates, unincorporated societies/associations, trusts, partnerships and limited liability partnerships, but excludes statutory boards and government bodies. |
Non-Related Entity | The ownership type of the account shall be reported as "Non-Related Entity" if the account holder is an entity that is not a Related Entity. "Entity" here includes corporates, unincorporated societies/associations, trusts, partnerships and limited liability partnerships, but excludes statutory boards and government bodies. |
Statutory Board/ Government Body | The ownership type of the account shall be reported as "Statutory Board/Government Body" if the account holder is a statutory board or government body, including those of a foreign jurisdiction. |
3. Manner of reporting to CDP
4. Timelines for Position Account reporting
Practice Note 5A.3.1, 5A.3.4 — Position Account Allocation
Issue Date | Cross Reference | Enquiries |
Added on 1 July 20161 July 2016 and amended on 10 December 201810 December 2018. | Rules 5A.3.1, 5A.3.4. | Please contact Member Supervision: Facsimile No: 6538 8273 |
1. Rule 5A.3.1 requires each Clearing Member to allocate the position of each trade cleared by the Clearing Member for a Customer to that Customer's Position Account or in accordance with that Customer's instructions, as soon as practicable, and in any event no later than such time as may be required for timely and orderly settlement of the relevant trade into the intended Securities Account. This Practice Note provides guidance on the timelines within which such allocation is to be completed by in various circumstances.
2. With the exception of warehoused trades, each Clearing Member shall allocate the position of each trade cleared by the Clearing Member for a Customer to that Customer's Position Account or in accordance with that Customer's instructions immediately upon the trade being cleared, or at the latest by the end of the next Market Day immediately following the trade date.
3. For warehoused trades under Rule 5A.3.4, each Clearing Member shall ensure that no trades are warehoused for more than one Market Day, unless under exceptional circumstances. Each Clearing Member shall allocate the position of each trade to the relevant Customer's Position Account or in accordance with that Customer's instructions, immediately after the order is completed, or at the latest by the end of the Market Day on which the order is completed.
Practice Note 5A.4.2, 5A.4.3 — Requirement for Clearing Member to Ensure Compliance of Position Account Rules by Authorized Trading Member
Issue Date | Cross Reference | Enquiries |
Added on 1 July 20161 July 2016. | Rules 5A.4.2., 5A.4.3. | Please contact Member Supervision: Facsimile No: 6538 8273 |
1. Rules 5A.4.2 and 5A.4.3 requires a Clearing Member who authorizes an Authorized Trading Member to open and maintain Authorized Accounts, or to open, maintain and allocate positions to Authorized Accounts, to ensure that the Authorized Trading Member performs the relevant obligations in relation to the Authorized Accounts.
2. There may be circumstances where a Clearing Member is unable to directly ensure that its Authorized Trading Member performs the relevant obligations in relation to the Authorized Accounts in compliance with Rules 5A.1 and 5A.2 or with Rules 5A.1, 5A.2, 5A.3 and 5A.6 (as may be applicable). This Practice Note clarifies the expectations on the Clearing Member in such circumstances.
3. Where a Clearing Member is unable to directly ensure that its Authorized Trading Member complies with the above-mentioned rules, the Clearing Member is to implement reasonable measures to ensure that the Authorized Trading Member complies with the relevant rules. The following are non-exhaustive examples of the steps which the Clearing Member should take:
Practice Note 6.5.1B(2), 6.6.2, 6.7.11 and 8.2.2(3E) — Determination of Cash Settlement Amount
Issue Date | Cross Reference | Enquiries |
Added on 10 December 201810 December 2018. | Rules Rule 6.5.1B(2), 6.6.2, 6.7.11, 8.4.1A, 8.5.2A, 8.6F.2. | Please contact Clearing Ops: E-Mail Address: securitiesclearing@sgx.com |
Cash settlement under Rules 6.5.1B(2), 6.7.11 and 8.2.2(3E)
Cash settlement under Rule 6.6.2
Amended on 6 September 2021.
Practice Note 6.5.1B(2) — Priority Considerations when Selecting Buy Trades to Cash Settle
Issue Date | Cross Reference | Enquiries |
Added on 10 December 201810 December 2018. | Rule 6.5.1B(2). | Please contact Clearing Ops: E-Mail Address: securitiesclearing@sgx.com |
Appendix A to Practice Note 6.6A.1 [Rule has been deleted.]
Deleted on 21 January 201321 January 2013.
Practice Note 6.7.2(1A), 6.7.4(8), 6.7.7A and 6.7.11 — Buying-in, Procurement and Cash Settlement if Intended Settlement Day is Day with Half Day Trading
Issue Date | Cross Reference | Enquiries |
Added on 10 December 201810 December 2018. | Rule 6.7.2(1A), Rule 6.7.4(8), Rule 6.7.7A and Rule 6.7.11. | Please contact Clearing Ops: E-Mail Address: securitiesclearing@sgx.com |
Practice Note 6A.5.2 Calculation of Amount of Clearing Member Required Margins
Issue Date | Cross Reference | Enquiries |
Added on 21 January 201321 January 2013 and amended on 14 September 201714 September 2017, 10 December 201810 December 2018 and 21 October 201921 October 2019. | Rule 6A.5.2 | Please contact Clearing Risk: Facsimile No : 6532 0297 E-Mail Address: margins@sgx.com |
1 Introduction
2 Composition of Clearing Member Required Margins
3 Calculation of Clearing Member Required Margins for Novated Contracts other than Marginable Futures Contracts
Calculation of Clearing Member Maintenance Margins for Novated Contracts other than Marginable Futures Contracts
Calculation of Clearing Member Variation Margins for Novated Contracts other than Marginable Futures Contracts
Clearing Member Variation Margins = Sum of (Valuation Price − Traded Price) × (buy quantity − sell quantity) of securities in each Novated Contract across all unsettled Novated Contracts of the Clearing Member
Positive results are Clearing Member Variation Margin gains. Negative results are Clearing Member Variation Margin losses.
Calculation of Clearing Member Required Margins for Novated Contracts other than Marginable Futures Contracts
Examples
Clearing Member Maintenance Margins for Novated Contracts other than Marginable Futures Contracts

Clearing Member Variation Margins for Novated Contracts other than Marginable Futures Contracts

Clearing Member Required Margins for Novated Contracts other than Marginable Futures Contracts

4 Calculation of Clearing Member Required Margins for Marginable Futures Contracts
Calculation of Clearing Member Required Margins for Marginable Futures Contracts
Calculation of Clearing Member Maintenance Margin for Marginable Futures Contracts
Calculation of Clearing Member Maintenance Margin in respect of a single account
Calculation of Clearing Member Variation Margin in respect of a single account
Clearing Member Variation Margins for each account = Sum of (Valuation Price − Traded Price) × (buy quantity − sell quantity) of securities in each unsettled Marginable Futures Contract across all unsettled Marginable Futures Contracts in the account
Calculation of Clearing Member Required Margin
Clearing Member Required Margin = Maximum of (Clearing Member Maintenance Margin − Clearing Member Variation Margin, 0)
Clearing Member Required Margin for Customer Accounts = Sum of Account Required Margin across all Accounts of the Clearing Member
Clearing Member Required Margin for House Accounts = Sum of Account Required Margin across all House Accounts of the Clearing Member
Amended on 18 January 2022.
Practice Note 6A.6 Forms of Collateral Acceptable by CDP as Margins
Issue Date | Cross Reference | Enquiries |
Added on 21 January 201321 January 2013 and amended on 29 July 201329 July 2013. | Rule 6A.6 | Please contact Clearing Risk: Facsimile No : 6532 0297 E-Mail Address: margins@sgx.com |
1 Introduction
2 Forms of Monies and Assets Acceptable by CDP as Margins
Cash
Singapore and US government securities, and selected common stocks
3 Collateral is subject to appropriate hair-cuts
http://www.sgx.com/wps/portal/sgxweb/home/clearing/securities/acceptable_collaterals.
Practice Note 6A.9A — Additional Margins
Issue Date | Cross Reference | Enquiries |
Added on 21 January 201321 January 2013 and amended on 8 August 20168 August 2016 and 15 September 201715 September 2017. | Rule 6A.9A | Please contact Risk Management: rm-securities@sgx.com |
1 Introduction
2 Concentration risk add-on
3 Default Fund risk add-on
4 Credit risk add-on
5 Specific security add-on
ILLUSTRATION ON THE CALCULATION OF THE DEFAULT FUND RISK ADD-ON
Assumptions:
Loss exceeds threshold | Potential add-on | ||||
Loss | Threshold 1 | Threshold 2 | Threshold 1 | Threshold 2 | |
X + Weak 1 + Weak 2 | 85 | No | |||
X | 80 | Yes | 80-70=10 | ||
Weak 1 | 5 | No | |||
Weak 2 | 0 | No |
Loss exceeds threshold | Potential add-on | ||||
Loss | Threshold 1 | Threshold 2 | Threshold 1 | Threshold 2 | |
X + Weak 1 + Weak 2 | 95 | Yes | 95-90=5 | ||
X | 65 | No | |||
Weak 1 | 15 | No | |||
Weak 2 | 15 | No |
1 Principles for Financial Market Infrastructures issued by the Committee on Payments and Market Infrastructure (CPMI) and the Technical Committee of the International Organization of Securities Commissions (IOSCO).
2 Threshold 1 and 2 is currently defined as 70% and 90% respectively, but may be revised from time to time.
3 The threshold is currently defined as 15%, but may be revised from time to time.
Practice Note 7.10.5, 7.10.6 — Limit on Non-Defaulting Clearing Members’ Liability for Multiple Events of Default
- Introduction
- Rule 7.10.5 states that the aggregate amount of a non-Defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution that can be applied for all Events of Default occurring within a period of 30 calendar days shall not exceed an amount equal to three times of that Clearing Member's Prescribed Contributions as at the start of that 30-day period.
- Rule 7.10.6 states that where an Event of Default occurs, the amount of a non-Defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution that is available for application in respect of that Event of Default is the lower of:
- an amount equal to three times of the Clearing Member’s Prescribed Contributions as at the start of the 30-day period that ends on the day of the Event of Default less the aggregate amount of that Clearing Member’s Collateralised Contribution and Contingent Contribution that has already been utilised for all other preceding Events of Default that had occurred in that 30-day period; or
- where the Clearing Member’s Collateralised Contribution was adjusted during the aforementioned 30-day period, an Adjusted Amount equal to three times of the consequently adjusted Prescribed Contributions less the aggregate amount of the Clearing Member’s Collateralised Contribution and Contingent Contribution that has already been utilised for Events of Default that occurred after the day of that adjustment but before the Event of Default.
In the event the Clearing Member’s Collateral Contribution is adjusted multiple times during the 30-day period, a separate Adjusted Amount shall be calculated for each adjustment and the lowest Adjusted Amount shall apply for the purpose of Rule 7.10.6(2).
- This Practice Note illustrates the operation of Rules 7.10.5 and 7.10.6. The scenarios set out are meant only to illustrate the calculation of the usage limits applicable under the Rules in various hypothetical scenarios, and are not representative of how Events of Defaults are managed by CDP nor the actions that CDP can and may take to maintain a fair, orderly, safe and efficient market.
- Operation of Rule 7.10.5
Scenario 1
- Scenario 1: On Day 1, the non-Defaulting Clearing Member’s Prescribed Contributions is $100. On Day 2, the Clearing Member’s Prescribed Contributions is increased to $200. This scenario illustrates how the aggregate amount of a non-Defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution that can be applied in respect of all Events of Default occurring within a 30-day period shall not exceed an amount equal to three times of the Clearing Member’s Prescribed Contributions as at the start of the 30-day period.
- In accordance with Rule 7.10.5, the aggregate amount of the Clearing Member’s Collateralised Contribution and Contingent Contribution that can be applied in respect of all Events of Default occurring within Day 1 to Day 30 shall not exceed an amount equal to three times of that Clearing Member's Prescribed Contributions on Day 1. Therefore, even though the Clearing Member’s Prescribed Contributions were increased to $200 on Day 2, the aggregate amount of the Clearing Member’s Collateralised Contribution and Contingent Contribution which can be applied to meet default losses occurring within Day 1 to Day 30 will not exceed $300 (i.e. 3 x $100).
- Operation of Rule 7.10.6
- The following scenarios (Scenarios 2 to 5) illustrate how the amount of a non-Defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution that can be used to meet losses is capped in the event of multiple defaults within a 30-day period.
Scenario 2
- Scenario 2: On Day 1, the non-Defaulting Clearing Member’s Prescribed Contributions is $100. On Day 26, the Clearing Member’s Prescribed Contributions is reduced to $90. Subsequently, an Event of Default occurred on Day 30. This scenario illustrates the amount of a non-Defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution that is available for application in respect of the Event of Default that occurred on Day 30.
- Pursuant to Rule 7.10.6, the amount of a non-Defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution that is available in respect of the Event of Default on Day 30 is the lower of:(a) an amount equal to three times of the Clearing Member’s Prescribed Contributions as at the start of the 30-day period that ends on the day of the Event of default (i.e. Day 1) less the aggregate amount utilised for all preceding events of default (i.e. from Day 1 up until the current Event of Default); or
3 x Prescribed Contributions on Day 1 = 3 x $100
= $300Aggregate amount utilised for all preceding Events of Default from Day 1 until the current Event of Default on Day 30 = $0 Amount that results under limb (a) = $300 - $0
=$300(b) where the Clearing Member’s Collateralised Contribution was adjusted during the 30-day period, an Adjusted Amount equal to three times of the consequently adjusted Prescribed Contributions (i.e. the Prescribed Contributions on Day 26) less the aggregate amount of the Clearing Member’s Collateralised Contribution and Contingent Contribution that has already been utilised in respect of Events of Default that occur after the day of that adjustment but before the Event of Default (i.e. from Day 26 up until the current Event of Default).3 x adjusted Prescribed Contributions on Day 26 = 3 x $90
= $270Aggregate amount utilised for all Events of Default from Day 26 until the current Event of Default on Day 30 = $0 Adjusted Amount that results under limb (b) = $270 - $0
= $270 - Under this scenario, the amount that results under limb (b) is lower than the amount that results under limb (a). Therefore, the amount of the non-Defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution that is available for the Event of Default that occurred on Day 30 is the amount that results under limb (b), which is $270.
Scenario 3
- Scenario 3: Continuing from Scenario 2, $90 of the Clearing Member’s Collateralised Contribution and Contingent Contribution was used for the Event of Default on Day 30. On Day 33, the Clearing Member’s Prescribed Contributions is increased to $75. A second default occurs on Day 35. This scenario illustrates the amount of the non-Defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution that is available for application in respect of the second Event of Default that occurred on Day 35.
- Pursuant to Rule 7.10.6, the amount of a non-defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution that is available for application in respect of the Event of Default on Day 35 is the lower of:(a) an amount equal to three times of the Clearing Member’s Prescribed Contributions as at the start of the 30-day period that ends on the day of the Event of Default (i.e. Day 35 – 29 days = Day 6) less the aggregate amount utilised for all preceding Events of Default (i.e. from Day 6 up until the current Event of Default); or
3 x Prescribed Contributions on Day 6 = 3 x $100
= $300Aggregate amount utilised for all preceding events of default from Day 6 until the current Event of Default on Day 35 = $90* * From the default on Day 30 Amount that results under limb (a) = $300 - $90
=$210(b) where the Clearing Member’s Collateralised Contribution was adjusted during the 30-day period, an Adjusted Amount equal to three times of the consequently adjusted Prescribed Contributions less the aggregate amount of the Clearing Member’s Collateralised Contribution and Contingent Contribution that has already been utilised in respect of Events of Default that occurred after the day of that adjustment but before the Event of Default.Rule 7.10.6 also states that in the event the Clearing Member’s Collateralised Contribution is adjusted multiple times during the 30-day period, a separate Adjusted Amount shall be calculated for each adjustment and the lowest Adjusted Amount shall apply for the purpose of Rule 7.10.6(2). In this case, the Clearing Member’s Collateralised Contribution was adjusted twice resulting in two adjusted Prescribed Contributions within the relevant 30-day period. Therefore two separate Adjusted Amounts will be calculated. Adjusted Amount A: 3 x adjusted Prescribed Contributions on Day 26 = 3 x $90
= $270Aggregate amount utilised for Events of Default from Day 26 until the current Event of Default on Day 30 = $90* * From the default on Day 30 Adjusted Amount A = $270 - $90
=$180Adjusted Amount B: 3 x adjusted Prescribed Contributions on Day 33 = 3 x $95
= $285Aggregate amount utilised for Events of Default from Day 33 until the current Event of Default on Day 35 = $0 Adjusted Amount B = $285 - $0
=$285Adjusted Amount A ($180) is lower than Adjusted Amount B ($285), therefore Adjusted Amount A applies for the purpose of Rule 7.10.6(2) and the amount that results under limb (b) is $180. - In this scenario, the amount of the non-Defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution that is available for the second Event of Default that occurred on Day 35 is the lowest Adjusted Amount calculated pursuant to limb (b), which is $180.
Scenario 4
- Scenario 4: Continuing from Scenario 3, $90 of the Clearing Member’s Collateralised Contribution and Contingent Contribution was used in respect of the second default on Day 35. A third default occurred on Day 37. This scenario illustrates the amount of the non-Defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution that is available for the default that occurred on Day 37.
- Pursuant to Rule 7.10.6, the amount of a non-Defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution that is available for utilisation in respect of the Event of Default on Day 37 is the lower of:(a) an amount equal to three times of the Clearing Member’s Prescribed Contributions as at the start of the 30-day period that ends on the day of the Event of Default (i.e. Day 37 – 29 days = Day 8) less the aggregate amount utilised for all preceding Events of Default (i.e. from Day 8 up until the current Event of Default); or
3 x Prescribed Contributions on Day 8 = 3 x $100
= $300Aggregate amount utilised for all preceding Events of Default from Day 8 until the current Event of Default on Day 37 = $90*+ 90**
= $180* From the default on Day 30 ** From the default on Day 35 Amount that results under limb (a) = $300 - $180
= $120(b) where the Clearing Member’s Collateralised Contribution was adjusted during the 30-day period, an Adjusted Amount equal to three times of the consequently adjusted Prescribed Contributions less the aggregate amount of the Clearing Member’s Collateralised Contribution and Contingent Contribution that has already been utilised in respect of Events of Default that occurred after the day of that adjustment but before the Event of Default.Rule 7.10.6 states that in the event the Clearing Member’s Collateralised Contribution is adjusted multiple times during the 30-day period, a separate Adjusted Amount shall be calculated for each adjustment and the lowest Adjusted Amount shall apply for the purpose of Rule 7.10.6(2). In Scenario 3 from which this scenario continues, the Clearing Member’s Collateralised Contribution was adjusted twice resulting in two adjusted Prescribed Contributions within the relevant 30-day period. Therefore two separate Adjusted Amounts will be calculated. Adjusted Amount A: 3 x adjusted Prescribed Contributions on Day 26 = 3 x $90
= $270Aggregate amount utilised for Events of Default from Day 26 until the current Event of Default on Day 37 = $90*+$90**
=$180* From the default on Day 30 ** From the default on Day 35 Adjusted Amount A = $270 - $180
=$90Adjusted Amount B: 3 x adjusted Prescribed Contributions on Day 33 = 3 x $95
= $285Aggregate amount utilised for Events of Default from Day 33 until the current Event of Default on Day 37 = $90** ** From the default on Day 35 Adjusted Amount B = $285 - $90
=$195Adjusted Amount A ($90) is lower than Adjusted Amount B ($195), therefore Adjusted Amount A applies for the purpose of Rule 7.10.6(2) and the amount that results under limb (b) is $90. - The amount of the non-defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution that is available for the third Event of Default that occurred on Day 37 is the lowest Adjusted Amount calculated pursuant to limb (b), which is $90.
Scenario 5
- Scenario 5: Continuing from Scenario 4, $90 of the Clearing Member’s Collateralised Contribution and Contingent Contribution was used to meet losses suffered by the Clearing House arising from the third default on Day 37. A fourth default occurred on Day 45. This scenario illustrates the amount of the non-defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution that is available to meet losses suffered by the Clearing House arising from or in connection with the default that occurred on Day 45.
- Pursuant to Rule 7.10.6, the amount of a non-defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution that is available for use in respect of the Event of Default on Day 45 is the lower of:(a) an amount equal to three times of the Clearing Member’s Prescribed Contributions as at the start of the 30-day period that ends on the day of the Event of Default (i.e. Day 45 – 29 days = Day 16) less the aggregate amount used to meet default losses from all preceding events of default (i.e. from Day 16 up until the current Event of Default); or
3 x Prescribed Contributions on Day 16 = 3 x $100
= $300Aggregate amount utilised for all preceding Events of Default from Day 16 until the current Event of Default on Day 45 = $90* + $90** + $90^
= $270* From the default on Day 30 ** From the default on Day 35 ^ From the default on Day 37 Amount that results under limb (a) = $300 - $270
= $30(b) where the Clearing Member’s Collateralised Contribution was adjusted during the 30-day period, an Adjusted Amount equal to 3 times of the consequently adjusted Prescribed Contributions less the aggregate amount of the Clearing Member’s Collateralised Contribution and Contingent Contribution that has already been utilised in respect of Events of Default that occurred after the day of that adjustment but before the Event of Default.Rule 7.10.6(2) states that in the event the Clearing Member’s Collateralised Contribution is adjusted multiple times during the 30-day period, a separate Adjusted Amount shall be calculated for each adjustment and the lowest Adjusted Amount shall apply for the purpose of Rule 7.10.6(2). In Scenario 3 from which this scenario continues, the Clearing Member’s Collateralised Contribution had been adjusted twice resulting in two adjusted Prescribed Contributions within the relevant 30-day period. Therefore two separate Adjusted Amounts will be calculated. Adjusted Amount A: 3 x adjusted Prescribed Contributions on Day 26 = 3 x $90
= $270Aggregate amount utilised for Events of Default from Day 26 until the current Event of Default on Day 45 = $90* + $90** + $90^
= $270* From the default on Day 30 ** From the default on Day 35 ^ From the default on Day 37 Adjusted Amount A = $270 - $270
=$0Adjusted Amount B: 3 x adjusted Prescribed Contributions on Day 33 = 3 x $95
= $285Aggregate amount utilised for Events of Default from Day 26 until the current Event of Default on Day 45 = $90** + $90^
= $180** From the default on Day 35 ^ From the default on Day 37 Adjusted Amount B = $285 - $180
=$105Adjusted Amount A ($0) is lower than Adjusted Amount B ($105), therefore Adjusted Amount A applies for the purpose of Rule 7.10.6(2) and the amount that results under limb (b) is $0. - In this case, the non-Defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution cannot be utilised for the fourth Event of Default that occurred on Day 45 as the lowest Adjusted Amount calculated pursuant to limb (b) is $0.
Added on 31 October 2024.
Rule 3 — Membership
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 3 — Membership | ||||||
3.5 | General Obligations of a Clearing Member | |||||
3.5.1(1) | Clearing Member to comply with the applicable eligibility criteria | [Unless otherwise specified in this Schedule] | ||||
Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. | ||
3.5.1(2) | Clearing Member to in this Schedule] clear and settle Exchange Trade transacted by it in accordance with Clearing Rules and Clearing Directives | [Unless otherwise specified in this Schedule] | ||||
Not Compoundable | Not Compoundable | $10,000 | ||||
3.5.1(3) | Clearing Member to clear and settle Exchange Trade transacted by a Trading Member qualified by it as a principal obligor and not merely as guarantor through CDP in accordance with Clearing Rules and Clearing Directives | [Unless otherwise specified in this Schedule] | ||||
Not Compoundable | Not Compoundable | $10,000 | ||||
3.5.1(4) | Clearing Member to in this Schedule] comply with the Clearing Rules and Clearing Directives | [Unless otherwise specified in this Schedule] | ||||
Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. | ||
3.5.1(5) | Failure to grant CDP all rights and remedies as set forth in Clearing Rules and the Clearing Directives | [Unless otherwise specified in this Schedule] | ||||
Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. | ||
3.5.1(6) | Failure to pay all fees, charges, costs, compensation and other sums as provided in Clearing Rules and Clearing Directives | [Unless otherwise specified in this Schedule] | ||||
Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. | ||
3.5.1(7) | Failure to make contributions or payments to the Clearing Fund as required in Clearing Rules | Not Compoundable | Not Compoundable | $10,000 | ||
3.5.1(8) | Failure to take or refrain from taking such action as may be required in relation to the Clearing Fund | [Unless otherwise specified in this Schedule] | ||||
Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. | ||
3.5.1(9)(a) | Clearing Member to have proper procedures and systems for its business to prevent any violations by its directors and officers | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.5.1(9)(b) | Clearing Member to have in place sufficient resources and maintain adequate internal controls and risk management systems for its business | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.5.1(9)(c) | Clearing Member's employees or agents to reasonably discharge their duties and obligations in enforcing procedures and systems for business | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.5.1(10) | Clearing Member to comply with the clearing limits as CDP may prescribe from time to time | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.5.1(11) | Clearing Member to maintain bank accounts in the currencies as necessary, and with banks acceptable to CDP, to facilitate payments and/or settlement as may be required under these Clearing Rules. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.5.1(12) | Clearing Member to ensure its Memorandum and Articles of Association or its constitution shall at all times conform to Clearing Rules and Clearing Directives | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.5.1(13) | Clearing Member to take such steps, including without limitation procedural steps (whether of a technical or non-technical nature or otherwise), as CDP may require to ensure the orderly clearing and settlement of Exchange Trades qualified by the Clearing Member. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.5.2(1) | Clearing Member to promptly submit to CDP and/or such party as directed by CDP such information, electronic records, returns or documents as and when such information, electronic records, returns or documents are required by CDP. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.5.3(1) | Clearing Member to maintain complete and accurate records, or in the case of a Bank Clearing Member, records in relation to the Bank Clearing Member's business governed by this Clearing Rules, in accordance with the SFA and/or Regulations | Not Compoundable | Not Compoundable | $10,000 | ||
Clearing Member to maintain complete and accurate records, or in the case of a Bank Clearing Member, records in relation to the Bank Clearing Member's business governed by this Clearing Rules, in accordance with the Clearing Rules and Clearing Directives | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. | |
3.5.3(2) | Making or causing to be made false or misleading entry in books, records, reports etc | Not Compoundable | Not Compoundable | $10,000 | ||
3.5.3(3) | Omitting to make material entry in any books, records, reports etc | Not Compoundable | Not Compoundable | $10,000 | ||
3.5.3(4) | Altering or destroying any books, records, reports etc without a valid reason | Not Compoundable | Not Compoundable | $10,000 | ||
3.5.4 | Business Continuity Requirements | |||||
3.5.4(1) | Clearing Member to assess business and operational risks and maintain adequate business continuity arrangements | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.5.4(2) | Clearing Member to document its business continuity requirements in a business continuity plan | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.5.4(3) | Clearing Member to demonstrate sufficient awareness of the risks, mitigating measures and state of readiness by way of an attestation to the Board of Directors | Compoundable | $500 | $1,000 | $2,000 | N.A. |
3.5.4(4) | Clearing Member to review and test its business continuity plan regularly | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.5.4(5) | Clearing Member to appoint emergency contact person | Compoundable | $500 | $1,000 | $2,000 | N.A. |
Clearing Member's emergency contact persons to be contactable at all times | Compoundable | $500 | $1,000 | $2,000 | N.A. | |
Clearing Member to immediately notify CDP in the event of an emergency | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. | |
3.7A | Relationship Between Clearing Member and Trading Member | |||||
3.7A.1 | Where relevant, Clearing Member to make payment or deliver securities to a Trading member in respect of any Exchange Trade, within prescribed timelines. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.7A.2 | Subject to Rules 3.7A.3 and 3.7A.4, if a buying Trading Member fails to meet any of the timelines set out in the SGX-ST Rules for payment to its Clearing Member, Clearing Member to force-sell securities of the buying Trading Member within prescribed timelines. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.7A.5 | Clearing Member not to engage in imprudent credit practices when exercising discretion with regards to deferment of force-sale. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.7A.7 | Clearing Member, if informed by CDP that a right to receive securities pursuant to an Exchange Trade is to be cash settled, to immediately inform the relevant buying Trading Member. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.8 | Reporting Requirements | |||||
3.8(1) | Clearing Member to notify CDP of violations of laws and regulations or conduct which is detrimental to the financial integrity, reputation or interests of CDP | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.8(2) | Clearing Member to notify CDP if any of its directors, employees or agents is investigated, arrested, charged, convicted suspended or pleads guilty to any criminal offence involving fraud or dishonesty | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.8(3) | Clearing Member to notify CDP if any of its directors, employees or agents is the subject of any written complaint of any offence involving fraud or dishonesty, which may have a material impact on the financial position on the Clearing Member | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.8(4) | Clearing Member to notify CDP when any of tis directors, employees or agents is the subject of any investigation, disciplinary proceeding or action taken by the Clearing Member in respect of the specified matters | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.8(4A) | Clearing Member to notify CDP if any of its directors, employees or agents engages in conduct which circumvents the SFA, SFR, this Clearing Rules or Clearing Directives, or which is inconsistent with the principles of good business practice | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.8(4B) | Clearing Member to notify CDP if it is insolvent or is engaged in bankruptcy or winding up proceedings | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.8(4C) | Clearing Member to notify CDP if the Clearing Member is experiencing an emergency or potentially debilitating situation that threatens its operations. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.8(5) | Clearing Member to notify CDP of changes to its name | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.8(6) | Clearing Member to notify CDP of changes which may have the effect of altering control in the Clearing Member | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.8(7) | Clearing Member to notify CDP of any transactions resulting in the change of ownership of the specified proportion of the Clearing Member's share capital, or an increase of the specified proportion of the Clearing Member's share capital. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.8(8) | Clearing Member to notify CDP of any change in the composition of its board of directors or of any director | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.8(9) | Clearing Member to notify CDP of any change or amendment to its constitutive documents | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.8(10) | Clearing Member to notify CDP of any death or bankruptcy of any of its directors | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.8(11) | Clearing Member to notify CDP of any engagement or involvement in any new business or any change in the Clearing Member's business | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.8(12) | Clearing Member to notify CDP of any change in the Clearing Member's senior management | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.8(13) | Clearing Member to notify CDP of any breach of director's duties | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.9 | Qualification of Trading Members | |||||
3.9.1(1) | Clearing Member to inform CDP of the qualification of a Trading Member | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
Clearing Member to provide such details as requested by CDP | Not Compoundable | Not Compoundable | $10,000 | |||
3.9.1(2) | Clearing Member to pay such administrative fees as CDP may levy | Compoundable | $500 | $1,000 | $2,000 | N.A. |
3.9.1(3) | Clearing Member to have in place adequate internal control measures and risk management systems to monitor the Trading Member's Exchange Trades | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.9.1(4) | Clearing Member to enter into a written agreement with the Trading Member setting out the terms and conditions governing their relationship | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.9.1(5) | Clearing Member to inform CDP if it believes that a Trading Member qualified by it has defaulted or may default | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.9.1(6) | Clearing Member to have proper separation of front and back office functions | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.9.2(1) | Clearing Member to give not less than the time period specified by CDP of its intention to cease qualifying a Trading Member | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.9.2(2) | Clearing Member to satisfy CDP that it has taken proper steps to disable the Trading Member from entering into Exchange Trades | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.9.2(3) | Clearing Member to satisfy CDP that it has taken proper steps for the orderly clearing and settlement of the Trading Member's Exchange Trades | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.9.2(4) | Clearing Member to comply with the directions of CDP in relation to the orderly cessation of the qualification of the Trading Member's Exchange Trades | Not Compoundable | Not Compoundable | $10,000 | ||
3.9.2(5) | Clearing Member to take steps as CDP may deem appropriate to ensure that none of the Trading Member's Exchange Trade will be cleared and settled through the Clearing Member by the proposed date of cessation | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.9.2A(1)(a) | Clearing Member to notify CDP of its decision to suspend its qualification of a Trading Member | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.9.2A(1)(b) | Clearing Member to comply with any reasonable direction of CDP in relation to the suspension of the qualification of a Trading Member | Not Compoundable | Not Compoundable | $10,000 | ||
3.9.2A(2) | Clearing Member to notify CDP in writing within the specified period, of its intention to resume or cease qualification of a Trading Member | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.10 | Resignation by Clearing Member | |||||
3.10.1 | Failure to comply with procedures for resignation as a Clearing Member | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
3.10.5(1) | Clearing Member shall not transact or accept for clearing and settlement, Exchange Trades that are due for settlement after the tenth Settlement Day from the date of the resignation notice. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
Added on 16 May 201116 May 2011 and amended on 18 September 201218 September 2012, 1 July 20161 July 2016 and 10 December 201810 December 2018.
Rule 4 — Chief Executive Officers
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 4 — Chief Executive Officers | ||||||
4.1 | Appointment of Chief Executive Officers | |||||
4.1.1(1) | Clearing Member to appoint one (1) person as a Chief Executive Officer | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
4.1.1(4) | Clearing Member to notify CDP at least seven (7) days prior to the appointment of a Chief Executive Officer | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
4.2 | Obligations | |||||
4.2.1 | Failure to comply with Clearing Rules or Directives. | [Unless otherwise specified in this Schedule] | ||||
Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. | ||
4.2.2 | Chief Executive Officer to pay CDP all fees, levies and charges as CDP prescribes | Compoundable | $500 | $1,000 | $2,000 | N.A. |
4.2.3(1) | Chief Executive Officer to inform CDP within 14 days before engaging in, or holding any substantial shareholding in, any other business that might potentially conflict with being an Chief Executive Officer | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
4.2.3(3) | Chief Executive Officer to supply CDP with information it requires regarding the engagement or acquisition of shareholding | Not Compoundable | Not Compoundable | $10,000 | ||
4.2.3(4) | Chief Executive Officer not to proceed with engagement or acquisition of shareholding contrary to CDP's objection | Not Compoundable | Not Compoundable | $10,000 | ||
4.2.3(5) | Chief Executive Officer to end engagement or shareholding if required by CDP | Not Compoundable | Not Compoundable | $10,000 | ||
4.3 | Automatic De-Registration | |||||
4.3 | Clearing Member to notify CDP immediately upon trigger of CEO de-registration condition | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
4.5 | Resignation of Approved Executive Director | |||||
4.5 | [deleted] | [deleted] | [deleted] | [deleted] | [deleted] | [deleted] |
Added on 16 May 201116 May 2011 and amended on 3 June 20193 June 2019.
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 | ||
[deleted] | [deleted] | |||||
[deleted] | [deleted] | [deleted] | [deleted] | [deleted] | [deleted] | [deleted] |
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.
Rule 5A — Position Accounts
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 5A — Position Accounts | ||||||
5A.1 | Separate Position Accounts and Position Account Designation | |||||
5A.1.1 | Clearing Member to maintain separate Position Accounts for each Customer or each group of joint Customers whose account is carried on the books of the Clearing Member. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
5A.1.2 | Clearing Member to identify and designate each Position Account by the full name of the Customer(s) whose account is carried on the books of the Clearing Member and by a unique account code. | Compoundable | $500 | $1,000 | $2,000 | N.A. |
5A.2 | Reporting Requirements for Position Account | |||||
5A.2.1 | Clearing Member to report to CDP such information as CDP may require for each Position Account as soon as practicable. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
5A.2.2 | Clearing Member to report to CDP any change in information previously reported to CDP for any Position Account as soon as practicable. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
5A.3 | Allocation of trades to Position Accounts | |||||
5A.3.1 | Clearing member to allocate positions of each trade cleared by the Clearing Member for a Customer to that Customer's Position Account or in accordance with that Customer's instructions as soon as practicable. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
5A.3.2 | Clearing Member to ensure conditions set out in Rules 5A.3.2(a) or (b) are satisfied in the case of any sub-allocation of positions from a Customer's Position Account to another Position Account. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
5A.3.4 | Clearing Member to ensure that no trades are warehoused for more than 1 Market Day, unless under exceptional circumstances, where the Clearing Member must document the reasons for the extension of time. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
5A.4 | Authorisation of SGX-ST Trading Member to Maintain Position Accounts | |||||
5A.4.2 | Clearing Member who authorises the Authorised Trading Member under Rule 5A.4.1(a) shall ensure that the Authorised Trading Member performs the obligations under Rules 5A.1 and 5A.2, as they apply to the Authorised Trading Member in respect of each Authorised Account. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
5A.4.3 | The Clearing Member who authorises the Authorised Trading Member under Rule 5A.4.1(b) shall ensure that the Authorised Trading Member performs the obligations under Rules 5A.1, 5A.2, 5A.3 and 5A.6, as they apply to the Authorised Trading Member in respect of each Authorised Account. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
5A.4.4(a) | Clearing Member to give not less than 30 days' written notice to CDP of its intention to cease authorizing that Authorised Trading Member and the proposed date of cessation. | Compoundable | $500 | $1,000 | $2,000 | N.A. |
5A.4.4(b) | Clearing Member to satisfy CDP that it has taken, or will take, proper steps for the orderly clearing and settlement of the Authorised Trading Member's Exchange Trades. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
5A.4.4(c) | Clearing member to comply with any reasonable direction of CDP in relation to the orderly cessation of the authorization of the Authorised Trading Member. | Not compoundable | N.A. | N.A. | N.A. | $10,000 |
5A.5 | Position Accounts carrying positions for more than one beneficial owner | |||||
5A.5.1 | Clearing Member is to identify the beneficial owner(s) and/or controlling party(ies) of any Position Account to CDP upon request by CDP within such time as CDP may require. | Not compoundable | N.A. | N.A. | N.A. | $10,000 |
5A.6 | Position Reconciliation | |||||
5A.6.1 | Clearing Member to ensure that positions in each Position Account maintained with CDP are accurate, and inform CDP and if required rectify any discrepancy immediately. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
Added on 1 July 20161 July 2016 and amended on 10 December 201810 December 2018.
Rule 6 — Clearing and Settlement
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 6 — Clearing and Settlement | ||||||
6.4 | Settlement of Payment Obligations | |||||
6.4.1 | Clearing Member to pay CDP the Final Settlement Balance during prescribed time | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
6.6A | [deleted] | |||||
[deleted] | [deleted] | [deleted] | [deleted] | [deleted] | [deleted] | [deleted] |
6.8 | [deleted] | |||||
6.8.2.2 | [deleted] | [deleted] | [deleted] | [deleted] | [deleted] | [deleted] |
6.8.3 | [deleted] | [deleted] | [deleted] | [deleted] | [deleted] | [deleted] |
Added on 16 May 201116 May 2011 and amended on 21 January 201321 January 2013 and 29 July 201329 July 2013.
Rule 6A — Margin Requirements In Respect of Margins from Customers for Marginable Futures
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 6A — Margin Requirements | ||||||
6A.2 | Clearing Member to Procure Customer Margins for Marginable Futures Contract | |||||
6A.2.1 | Clearing Member to procure Initial Margins and require customers to meet Customer Required Margins for Marginable Futures Contract | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
6A.2.2 | Clearing Member to comply with requirements on the computation and monitoring of customer's margins | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
6A.2.3 | Clearing Member not to allow Excess Margins to be withdrawn unless withdrawal does not cause the deposited collateral to be less than zero. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
6A.3 | Margin Management for Clearing Members in Respect of Margins from Customers for Marginable Futures Contracts | |||||
6A.3.1 | Clearing Member not to accept new orders or trades in Marginable Futures Contracts for clearing from any customer unless the specified conditions are met | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
6A.3.2 | Clearing Member to call for additional margins from its customer if the Customer Asset Value falls below the Customer Required Margins | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
6A.3.6 | In respect of Marginable Futures Contracts, Clearing Member not to set margin requirements that are less stringent than those prescribed by CDP | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
6A.4A | Margin Management for Clearing Members In Respect of Any Margins from Cu | |||||
6A.4A.1(3) | Clearing Member to comply with CDP's directions to take such action to offset all or part of the positions to rectify a margin deficiency | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
6A.5 | Clearing Members to Deposit Margins with CDP | |||||
6A.5.1 | Clearing Member to deposit Clearing Member Required Margins with CDP | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
6A.5.4 | Clearing Member not to deposit with CDP, monies and assets for its customer for the purpose of meeting Clearing Member Required Margin for Novated Contracts other than Marginable Futures Contracts | Not Compoundable | Not Compoundable | $10,000 | ||
6A.6 | Monies and Assets Acceptable by CDP as Margins | |||||
6A.6.4 | Clearing Member to notify CDP as to whether Collateral is to be maintained solely as margin for Customer Accounts or otherwise. | Not Compoundable | Not Compoundable | $10,000 | ||
6A.9A | Additional Margins | |||||
6A.9A.2 | Clearing Member to deposit additional margins with CDP by such time as CDP shall specify and in such form as CDP prescribes | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
6A.10 | Segregation of Customer's Money and Assets | |||||
6A.10.1(1) | Clearing Member to comply with the customer segregation requirements under the Rules and the SFA | Not Compoundable | Not Compoundable | $10,000 | ||
6A.10.1(2) | Clearing Member to ensure that CDP is at all times provided with such information as it requires to discharge its segregation obligations under the SFA and/or enable CDP to issue the Authority with the verification of margin funds statement placed with CDP as required under the SFA | Not Compoundable | Not Compoundable | $10,000 | ||
6A.11 | Notification of Under Segregation | |||||
6A.11.1 | Every Clearing Member shall immediately report to CDP of any under-segregation of moneys or assets as required under the Rules of the SFA | Not Compoundable | Not Compoundable | $10,000 | ||
6A.12 | [deleted] | |||||
[deleted] | [deleted] | [deleted] | [deleted] | [deleted] | [deleted] | [deleted] |
[deleted] | [deleted] | [deleted] | [deleted] | [deleted] | [deleted] | |
6A.14 | Under-Margined Accounts | |||||
6A.14.1 | Clearing Member to immediately notify CDP when any account does not comply with the Customer Required Margins by an amount which exceeds its aggregate resources | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
6A.15 | [deleted] | |||||
[deleted] | [deleted] | [deleted] | [deleted] | [deleted] | [deleted] | [deleted] |
Added on 16 May 201116 May 2011 and amended on 21 January 201321 January 2013 and 29 July 201329 July 2013.
Rule 6B — Collateral
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 6B — Collateral | ||||||
6B.4 | Collateral Deposit | |||||
6B.4.1 | Clearing Member to deposit with CDP such Collateral, in such form and denomination as may be prescribed by CDP | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
6B.6 | Valuation of Collateral | |||||
6B.6.3 | Following revaluation of any Collateral, where such Collateral is found to be insufficient to meet any obligation of the Clearing Member, Clearing Member to deposit with CDP such additional Collateral as may be required to meet such obligation, within such tme as CDP may require | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
6B.7 | Investment and Use of Collateral | |||||
6B.7.1A | Clearing Member to secure contractual waivers in favour of the Clearing Member from its customers, waiving their rights to interest and investment earnings from Collateral held with CDP. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
6B.7.2 | Clearing Member to ensure that all Collateral deposited with CDP are deposited on the basis that such Collateral shall be subject to the Clearing Rules, the Security Deed and the SFA, and that prior to depositing Collateral with CDP for the account or for the contracts of any person, such person has been notified of and has accepted that the Collateral is subject to the Clearing Rules, the Security Deed and the SFA. | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
6B.8 | Interest and Fees | |||||
6B.8.1 | Clearing Member to pay CDP such administrative fees as may be prescribed by CDP for the investment and management of the Collateral | Compoundable | $500 | $1,000 | $2,000 | N.A. |
6B.9 | Safekeeping Indemnity | |||||
6B.9.4 | If any loss of Collateral occurs, or any Collateral becomes unavailable to CDP such that any obligation of the Clearing Member cannot be fully met, Clearing Member to deposit with CDP such additional Collateral as may be required within such time as CDP may require | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
6B.10 | Regulatory Information | |||||
6B.10.1 | Clearing Member to provide CDP with information in relation to Collateral deposited with CDP for regulatory purposes | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
Added on 21 January 201321 January 2013 and amended on 22 April 201322 April 2013.
Rule 7 — Clearing Fund
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 7 — Clearing Fund | ||||||
7.2 | Top up of Clearing Member’s Contributions in an Event of Default | |||||
7.2.1 | Clearing Member to pay the required contributions to the Clearing Fund within time stipulated by CDP | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
7.10 | Top Up of Clearing Member’s Contributions | |||||
7.10.3 | Clearing Member to top up deficiency in Clearing Fund contributions within time determined by CDP | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
7.7A | Interest and Fees | |||||
7.7A.1 | Clearing Member to pay CDP such administrative fees as may be prescribed by CDP for the investment and management of the assets of the Clearing Fund and any excess monies and assets placed with CDP in respect of the Clearing Fund. | Compoundable | $500 | $1,000 | $2,000 | N.A. |
Added on 16 May 201116 May 2011, amended on 21 January 201321 January 2013, and amended on 10 May 2023.
Rule 8 — Default Rules
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 8 — Default Rules | ||||||
8.6B | Application of Margins and Collateral | |||||
8.6B.2 | Clearing Member not to take any action or do anything that will interfere with CDP's ability to apply Contributions, margins or Collateral | Not Compoundable | Not Compoundable | $10,000 | ||
8.7 | Certification of Net Sum Due | |||||
8.7.1 | Clearing Member to make payment of net amount payable to CDP in respect of Clearing Member's rights and obligations under these Clearing Rules | Not Compoundable | Not Compoundable | $10,000 | ||
8.9 | Clearing Members to Render Assistance | |||||
8.9.1 | Defaulting Clearing Member to render all assistance and information, and to comply with all other requirements. | Not Compoundable | N.A. | N.A. | N.A. | $10,000 |
Added on 16 May 201116 May 2011 and amended on 21 January 201321 January 2013, 22 April 201322 April 2013 and 6 September 2021.
Rule 10 — Liabilities
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 10 — Liabilities | ||||||
10.2 | Force Majeure | |||||
10.2.3 | Clearing Member to notify CDP and any other relevant party upon the occurrence of any event of Force Majeure | Not Compoundable | Not Compoundable | $10,000 | ||
10.6 | Indemnity | |||||
10.6.2 | Clearing Member to reimburse the relevant Indemnified Person for the specified payments | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
Clearing Member to render cooperation to the relevant Indemnified Person in respect of any legal, arbitration or other regulatory proceedings. | Not Compoundable | Not Compoundable | $10,000 |
Added on 16 May 201116 May 2011 and amended on 15 September 201715 September 2017.
Rule 11 — Supervisory Rules
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 11 — Supervisory Rules | ||||||
11.1 | Clearing House Investigations | |||||
11.1.3 | Clearing Member to cooperate with investigations conducted by CDP | Not Compoundable | Not Compoundable | $10,000 | ||
11.1.4 | Clearing Member, director, officer, employee or agent not to wilfully make, furnish or permit the making or furnishing of any false or misleading information, statement or report to CDP | Not Compoundable | Not Compoundable | $10,000 | ||
11.2 | Clearing House Inspections | |||||
11.2.3 | Clearing Member to give Clearing House Inspector access to all information, books and records as requested | Not Compoundable | Not Compoundable | $10,000 | ||
11.2.5 | Clearing Member to immediately pay fees for inspection by CDP | Compoundable | $500 | $1,000 | $2,000 | N.A. |
11.6 | Disiplinary Committee Proceedings | |||||
11.6.4 | Evidence | |||||
11.6.4(3) | Clearing Member not to breach its undertaking not to disclose information received from CDP in relation to the charge to any person, except to the legal representative of the person charged for the purposes of the hearing | Not Compoundable | Not Compoundable | $10,000 | ||
11.9 | Appeal Proceedings | |||||
11.9.5(2) | Clearing Member not to breach its undertaking not to disclose information received from CDP in relation to the charge to any person, except to the legal representative of the person charged for the purposes of any appeal | Not Compoundable | Not Compoundable | $10,000 |
Added on 16 May 201116 May 2011.
Rule 13 — General
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 13 — General | ||||||
13.2 | Fees Payable | |||||
13.2.1 | Failure to pay CDP such fees and charges for the clearing and settlement of Exchange Trades based on CDP's fee schedules from time to time and such fines and default interest as may be imposed by CDP from time to time | Compoundable | $500 | $1,000 | $2,000 | N.A. |
13.2.2 | Failure to pay CDP such fees and charges for the clearing and settlement of Exchange Trades based on CDP's fee schedules from time to time and such fines and default interest as may be imposed by CDP from time to time | Compoundable | $500 | $1,000 | $2,000 | N.A. |
Added on 16 May 201116 May 2011.