Past version: Effective from 29 Dec 2014 to 30 Jun 2016
- Up to 02 May 2011
- 03 May 2011 to 20 Jan 2013
- 21 Jan 2013 to 21 Apr 2013
- 22 Apr 2013 to 25 Apr 2013
- 26 Apr 2013 to 28 Dec 2014
- 29 Dec 2014 to 30 Jun 2016
- 01 Jul 2016 to 14 Sep 2017
- 15 Sep 2017 to 07 Oct 2018
- 08 Oct 2018 to 09 Dec 2018
- 10 Dec 2018 to 21 Apr 2019
- 22 Apr 2019 to 02 Jun 2019
- 03 Jun 2019 to 05 Sep 2021
- 06 Sep 2021 to 17 Jan 2022
- 18 Jan 2022 to 25 May 2023
- 26 May 2023 to 30 Oct 2024
- 31 Oct 2024 onwards
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 (Cap. 50) or any subsidiary legislation promulgated under it ("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 net head office funds" | when used in reference to:— (1) a General Clearing Member incorporated outside Singapore, has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements); and (2) a Bank Clearing Member incorporated outside Singapore which has satisfied Rule 3.1.3(10)(c), has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements), less the capital requirements for its banking business. |
| "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; (2) a General Clearing Member incorporated outside Singapore or a Bank Clearing Member incorporated outside Singapore which has satisfied Rule 3.1.3(10)(c), means its adjusted net head office funds and qualifying letters of credit referred to in Rule 5.1G less its total risk requirement; and (3) a Bank Clearing Member incorporated outside Singapore which has satisfied Rule 3.1.3(10)(a) or (b), means its cash and/or acceptable government securities deposited with CDP pursuant to Rule 5.1D.2(1) less its total risk requirement. |
| "Approved Executive Director" | when used in reference to:— (1) a General Clearing Member, means any person appointed and registered as an Approved Executive Director pursuant to Rule 4; and (2) a Bank Clearing Member, means any person, by whatever name described, who is in the direct employment of, or acting for or by arrangement with, the Bank Clearing Member and is principally responsible for the management and conduct of the business of the Bank Clearing Member and is appointed and registered as an Approved Executive Director pursuant to Rule 4. |
| "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" | has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements). |
| "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. |
| C | |
| "Capital Markets Services Licence" | has the meaning ascribed to it in the SFA. |
| "CDP" | means The Central Depository (Pte) Limited. |
| "Circular" | means a binding notice issued by the Clearing House 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, 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 corporation granted or admitted to be a member of CDP pursuant to this 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" or "this Clearing Rules" | means the rules of CDP as set out herein and as amended or supplemented from time to time by CDP. |
| "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. |
| "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. |
| "Confirmation" | has the meaning ascribed to it in Rule 6C.2.3. |
| "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. |
| "Contribution" | means the contribution made or required to be made by a Clearing Member to the Clearing Fund pursuant to Rule 7. |
| "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; (c) the Options Clearing Company (Pte) Limited; and (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 | |
| "Daily Settlement of Account with CDP" | has the meaning ascribed to it in Rule 6.3.2. |
| "Default Amount" | has the meaning ascribed to it in Rule 7.10.2. |
| "Defaulting Clearing Member" | has the meaning ascribed to it in Rule 8.1.2. |
| "Depository Agent" | has the meaning ascribed to it by Section 130A of the Companies Act (Cap 50). |
| "Directive" | means a binding notice directing Clearing Members to take corrective or other 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 Board to exercise the powers set out in Rule 11. |
| "DVP Rules" | means the rules (as the same may be varied, amended or supple-mented from time to time) governing DVP Settlement. |
| "DVP Settlement" | means the system and process of settlement of affirmed transactions whereby CDP ensures that payment is made against the transfer of securities, details of which are given in CDP's Depository Agent circular No. 89 of 1997 and the DVP Rules, including any modifications or updates thereto which may be issued by CDP from time to time. |
| 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 market or organisation (whether an exchange, association, body corporate or unincorporate or otherwise) responsible for administering a market in securities or Futures Contracts, commodities, options, derivatives or any other financial instrument whose contracts 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; or (3) a trade reported by a Clearing Member to CDP, which CDP accepts for clearing in Inter-Broker Settlement; or (4) a trade (including without limitation in securities, commodities, options, derivatives or other financial instruments) 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 6.3.3. |
| "financial resources" | when used in reference to:— (1) a General Clearing Member incorporated in Singapore, has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements); and (2) a Bank Clearing Member incorporated in Singapore, has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements), less the capital requirements for its banking business. |
| "FOP Transaction Settlement" | means an Exchange Trade which is settled based on free of payment instructions between Clearing Members and Depository Agents that are received via SGX Prime. |
| "Futures Contract" | means a futures contract, as defined under the SFA, which is approved for listing on SGX-ST. |
| 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. |
| "Inter-Broker Settlement" | means the system and process of settlement of Exchange Trades between the Clearing Members and CDP. |
| "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" | means with respect to a corporation incorporated or established outside Singapore, the net liability of the Singapore branch to its head office and any other branches outside of Singapore. In the case of a Bank Clearing Member, its net liability shall include, without limitation, the liability of its Asian Currency Unit. |
| "Net Inter-Broker Settlement Balance" | has the meaning ascribed to it in Rule 6.3.2. |
| "New Purchase Contract" | has the meaning ascribed to it in Rule 8.2.2(1). |
| "New Sale Contract" | has the meaning ascribed to it in Rule 8.2.2(2). |
| "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. |
| "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 a futures, options or stock 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. |
| "Practice Note" | means a non-binding guideline that seeks to explain the application and interpretation of a Rule. |
| "Proportion" | means at any time and in respect of a Clearing Member, the proportion of such Clearing Member's Turnover to the Total Turnover. |
| 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). |
| "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. |
| "related corporation" | has the meaning ascribed to it in the SFA. |
| "Resignation Notice" | means the resignation notice referred to in Rule 3.10.1. |
| S | |
| [deleted] | [deleted] |
| "security" | includes structured warrants, certificates and any other structured products listed under Chapter 5 of the SGX-ST Listing Manual whether or not they are classified as futures contracts under the SFA. |
| "Securities Account" | means a securities account maintained with CDP. |
| "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 of an Exchange Trade occurs, as stipulated by the SGX-ST Rules or the applicable rules or regulations of the relevant Exchange (as the case may be). |
| "SFA" | means the Securities and Futures Act (Cap. 289) or any subsidiary legislation promulgated under it or any statutory modification, amendment or re-enactment thereof for the time being in force, or any act or subsidiary legislation which may replace the SFA, and any reference to any provision of the SFA is to that provision as so modified, amended or re-enacted (or as contained in any subsequent act or legislation which may replace the SFA). |
| "SFR" | means any regulation promulgated under the SFA or any statutory modification, amendment or re-enactment of such regulation for the time being in force, and any reference to any provision of the SFR is to that provision as so modified, amended or re-enacted (or as contained in any subsequent regulation which may replace the SFR). |
| "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 which may 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 subsequent regulations which may replace the SFR (Financial and Margin Requirements)). |
| "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 regulation which 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 subsequent regulation which may replace the SFR (Licensing and Conduct of Business). |
| "SGX-DC" | means the Singapore Exchange Derivatives Clearing Limited. |
| "SGX-DT" | means the Singapore Exchange Derivatives Trading Limited. |
| "SGX Prime" | means an open access infrastructure developed and maintained by CDP to enable connectivity between market participants' back office systems and CDP post trade systems. |
| "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" | when used in reference to:— (1) a General Clearing Member, has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements); (2) a Bank Clearing Member incorporated in Singapore or a Bank Clearing Member incorporated outside Singapore which has satisfied Rule 3.1.3(10)(c), has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements), except that such Bank Clearing Member shall only compute the total risk requirement for all Customers' and proprietary positions in securities and derivatives contracts traded on any exchange, and OTC Contracts novated to any clearing facility; and (3) a Bank Clearing Member incorporated outside Singapore which has satisfied Rule 3.1.3(10)(a) or (b), has the meaning ascribed to it in Regulation 2 of the SFR (Financial and Margin Requirements), except that such Bank Clearing Member shall only compute the total risk requirement for all Customers' and proprietary positions in securities and derivatives contracts traded on SGX-ST and SGX-DT, and OTC Contracts novated to CDP and SGX-DC. |
| "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 and 29 December 201429 December 2014.