Rule 3 — Membership

3.1 Clearing Member

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 2008 1 July 2008 and 10 December 2018 10 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:—

(1) it is a corporation with the requisite financial and business standing and repute and is or will upon admission be carrying on the business in Singapore;

(a) it has a base capital of not less than S$5,000,000; or

(b) in the case of an applicant admitted as a clearing member of CDP and SGX-DC, it has a base capital of not less than S$8,000,000;

or such other amount as may be prescribed by CDP hereafter and from time to time;

(2) upon admission, it shall register one (1) person as a Chief Executive Officer pursuant to Rule 4;

(3) unless exempt under the SFA, it holds a Capital Markets Services Licence to engage in the relevant regulated activities;

(4) it has, and upon admission, will maintain, minimum capital and financial requirements pursuant to Rules 5.1.1 or 5.1D.1 (whichever is applicable) and 5.4;

(4A) it has, and upon admission will maintain, a special reserve fund pursuant to Rule 5.5;

(5) its managerial or executive staff have a high standard of integrity and a level of knowledge (as may be deemed acceptable by CDP) on the nature, risks and obligations in respect of the organised market or trades that it wishes to clear;

(6) it must have in place sufficient resources and establish and maintain adequate systems for preserving a sound liquidity and financial position at all times including the maintaining of adequate staff and facilities for monitoring its cashflow and funding requirements and maintaining sufficient liquidity for its day to day operations;

(7) it must maintain segregated and adequate back-office functions; and

(8) it satisfies any and all other requirements and criteria for such Clearing Membership, which CDP may from time to time hereafter prescribe.

Amended on 3 April 2008 3 April 2008, 1 July 2008 1 July 2008, 8 October 2018 8 October 2018, 10 December 2018 10 December 2018 and 3 June 2019 3 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:—

(1) it is authorized to conduct banking business in Singapore pursuant to section 4 of the Banking Act 1970;

(2) it or its parent bank has obtained a credit rating that indicates, at least, adequate intrinsic safety and soundness, excluding external credit support, and a limited ability to withstand adverse business or economic conditions from any rating agency registered with an appropriate authority;

(3) upon admission, it shall register one (1) person as a Chief Executive Officer pursuant to Rule 4;

(4) it has, and upon admission will maintain, minimum capital and financial requirements pursuant to Rules 5.1.1A or 5.1D.2 (whichever is applicable) and 5.4;

(5) its managerial or executive staff have a high standard of integrity and a level of knowledge (as may be deemed acceptable by CDP) on the nature, risks and obligations in respect of the organised market or trades that it wishes to clear;

(6) it must have in place sufficient resources and establish and maintain adequate systems for preserving a sound liquidity and financial position at all times including the maintaining of adequate staff and facilities for monitoring its cashflow and funding requirements and maintaining sufficient liquidity for its day to day operations governed by this Clearing Rules;

(7) it must maintain segregated and adequate back-office functions in respect of its operations governed by this Clearing Rules;

(8) it satisfies any and all other requirements and criteria for such Clearing Membership, which CDP may from time to time hereafter prescribe; and

(9) [deleted]

(10) [deleted]

Added on 1 July 2008 1 July 2008. Amended on 26 April 2013 26 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 2008 1 July 2008.

3.2 The Application

3.2.1

To become a Clearing Member, an applicant shall apply to CDP in the form CDP prescribes.

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:—

(1) the applicant does not provide CDP with information relating to the application as CDP requires;

(1A) any information or document that is furnished by the applicant to CDP is false or misleading;

(2) the applicant, its substantial shareholder or head office is in the course of being wound up, or a resolution to do so is passed by the shareholders, or a court order is made, to wind it up, whether in or out of Singapore;

(3) execution against the applicant, its substantial shareholder or head office in respect of a judgment debt has been returned unsatisfied in whole or in part, whether in or out of Singapore;

(4) the applicant, its substantial shareholder or head office has entered into an arrangement or composition with its creditors that is still in operation, whether in or out of Singapore;

(5) a receiver, a receiver and manager, judicial manager or such other person having similar powers and duties, has been appointed, whether in or out of Singapore, in relation to any property of the applicant, its substantial shareholders or head office;

(6) CDP is not satisfied with the financial standing of the applicant, its substantial shareholders or head office;

(7) CDP is not satisfied with the manner in which the applicant's business is to be conducted;

(8) the applicant, any of its officers, substantial shareholders or head office breaches any provision involving fraud or dishonesty, whether in or out of Singapore;

(9) the applicant, any of its officers, substantial shareholders or head office has been convicted of an offence under the SFA;

(10) the applicant, any of its officers, substantial shareholders or head office is the subject of an investigation involving an allegation of fraud or dishonesty, whether in or out of Singapore;

(11) CDP is not satisfied as to the educational or other qualification or experience of the officers of the applicant;

(12) CDP is not satisfied with the applicant's record of past performance;

(13) CDP is not satisfied that the applicant, any of its officers, substantial shareholders or head office is a fit and proper person;

(14) CDP has reason to believe that the applicant or any of its officers or employees may not perform the functions efficiently, honestly and fairly;

(15) CDP has reason to believe that the applicant may not act in the best interests of its customers; or

(16) In CDP's opinion, it would be contrary to the interests of the public to admit the applicant as a Clearing Member.

Amended on 12 October 2005 12 October 2005.

3.3 Appeals

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 2017 15 September 2017.

3.4 Clearing Member's Rights

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 General Obligations of a Clearing Member

3.5.1

Each Clearing Member undertakes and agrees to:—

(1) comply at all times with the applicable eligibility criteria set out in this Chapter 3;

(2) clear and settle any Exchange Trade transacted by it through CDP in accordance with this Clearing Rules and the Clearing Directives (where applicable);

(3) clear and settle any Exchange Trade transacted by a Trading Member qualified by it as a principal obligor and not merely as a guarantor through CDP in accordance with this Clearing Rules and the Clearing Directives (where applicable);

(4) comply with this Clearing Rules and the Clearing Directives (where applicable);

(5) grant CDP all rights and remedies as set forth in this Clearing Rules and the Clearing Directives (where applicable);

(6) pay CDP all fees, charges, costs, compensation and other sums as provided in this Clearing Rules and the Clearing Directives (where applicable);

(7) make such contributions or payments to the Clearing Fund as may be required in this Clearing Rules;

(8) generally take or refrain from taking such action as may be required in relation to the Clearing Fund;

(9) exercise reasonable supervision over its employees and agents with a view to preventing any violation of SFA (where applicable), this Clearing Rules and Clearing Directives (where applicable). For this purpose, a Clearing Member shall be deemed to have complied with this Rule 3.5.1(9) if:—

(a) it has established and maintained proper procedures and systems for its business, and in the case of a Bank Clearing Member, its business governed by this Clearing Rules, to prevent any such violations by its directors, officers, employees and agents;

(b) it has in place sufficient resources and established and maintained adequate internal control and risk management systems for its business, and in the case of a Bank Clearing Member, its business governed by this Clearing Rules; and

(c) the Clearing Member's employees or agents, have reasonably discharged their duties and obligations in enforcing the procedures and systems for its business, and in the case of a Bank Clearing Member, its business governed by this Clearing Rules;

(10) comply with the clearing limits as CDP may prescribe from time to time;

(11) 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;

(12) ensure that its Memorandum and Articles of Association or its constitution shall at all times conform to this Clearing Rules and the Clearing Directives (where applicable) so as to enable it to observe and perform fully the covenants, terms, stipulations, conditions and other provisions of this Clearing Rules and the Clearing Directives (where applicable); and

(13) 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.

Amended on 1 July 2008 1 July 2008, 1 July 2016 1 July 2016 and 10 December 2018 10 December 2018.

3.5.2 Provision of Information

(1) A Clearing Member shall 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, provided that any information, electronic records, returns or documents shall be deemed not to have been duly submitted if it contains materially untrue statements or omits material statements or is otherwise misleading. Where any information, electronic records, returns or documents are deemed not to have been duly submitted, the Clearing Member shall promptly resubmit the same upon notice from CDP. For the avoidance of doubt, reference to "information, electronic records, returns or documents" in relation to a Bank Clearing Member, shall refer to such information, electronic records, returns or documents falling within the Bank Clearing Member's business governed by this Clearing Rules.

(2) CDP may impose such fine on the Clearing Member as prescribed from time to time in the Clearing Directives for late submission of any information, electronic records, returns or documents that are required by CDP pursuant to Rule 3.5.2(1).

Amended on 1 July 2008 1 July 2008.

3.5.3

A Clearing Member must:—

(1) 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, SFR, this Clearing Rules and the Clearing Directives (where applicable);

(2) not make, or cause to be made, a false or misleading entry, in hardcopy or electronic form, in any books, records, reports, slips, documents, statements relating to the business, affairs, transactions, conditions, assets or accounts ("the Documents") of a Clearing Member's business, or in the case of a Bank Clearing Member, its business governed by this Clearing Rules;

(3) make all material entries in any of the Documents; and

(4) not alter or destroy any of the Documents without a valid reason.

Amended on 1 July 2008 1 July 2008.

3.5.4 Business Continuity Requirements

(1) a Clearing Member must assess its business and operational risks and maintain adequate business continuity arrangements.

(2) a Clearing Member must document its business continuity arrangements in a business continuity plan.

(3) a Clearing Member's senior management shall be responsible for the Clearing Member's business continuity plan. Sufficient awareness of the risks, mitigating measures and state of readiness must be demonstrated by way of an attestation to the Clearing Member's Board of Directors.

(4) a Clearing Member must review and test its business continuity plan regularly.

(5) a Clearing Member must appoint emergency contact persons, and furnish the contact information of such persons to CDP. The Clearing Member's emergency contact persons must be contactable at all times, and must immediately notify CDP in the event of emergencies.

Refer to Practice Note 3.5.4.

Added on 22 January 2009 22 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:

(1) maintain complete and accurate records, which enable it to identify at all times, specific amounts of such monies and assets deposited with it by each Customer in connection with such Customer's trades which are, or are to be, cleared or settled through CDP; and

(2) provide the records referred to in Rule 3.5.5(1) to CDP by such time as CDP may require.

Amended on 22 April 2013 22 April 2013 and 10 December 2018 10 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 Responsibility of Clearing Members for the Exchange Trades of Trading Members

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 Relationship Between Clearing Member and Trading 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:

(1) withhold payment of sale proceeds to a selling Trading Member until the selling Trading Member has made delivery of securities; and

(2) withhold delivery of securities or the payment of any Cash Settlement Amount, corporate action entitlements or compensation for corporate action entitlements to a buying Trading Member until payment by the buying Trading Member has been received.

Added on 10 December 2018 10 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 2018 10 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 2018 10 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 2018 10 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 2018 10 December 2018.

3.7A.6

The following rules apply to all force-sales by a Clearing Member:

(1) The Clearing Member has discretion as to the price and volume put up for sale, at any time;

(2) The Clearing Member need not give notice of the force-sale to the Trading Member;

(3) The Clearing Member is not liable to the Trading Member for any loss or damage arising out of the exercise of its discretion; and

(4) The Clearing Member may recover the losses and expenses incurred in the force-sale from the Trading Member.

Added on 10 December 2018 10 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 2018 10 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:—

(1) when the Clearing Member, any of its directors, Chief Executive Officer, officers, employees or agents has violated any provision of the SFA, the SFR, this Clearing Rules, Clearing Directives (where applicable) or relevant law or regulation which governs that Clearing Member's other business activities, or the rules of any exchange or clearing house of which the Clearing Member is a participant or member or otherwise engaged in conduct which is detrimental to the financial integrity, reputation or interests of CDP, or clearing facilities established or operated by CDP;

(2) when the Clearing Member, or any of its directors, Chief Executive Officer, officers, employees or agents is investigated, arrested, charged, convicted, suspended or pleads guilty to any criminal offence involving fraud or dishonesty, whether in or out of Singapore;

(3) when the Clearing Member, any of its directors, Chief Executive Officer, officers, employees or agents, is the subject of any written complaint involving an allegation of theft or misappropriation, or of forgery, or of any offence involving fraud or dishonesty, whether in or out of Singapore, and such complaint or allegation may have an impact, or in the case of a Bank Clearing Member, material impact, on the financial position on such Clearing Member or of the other Clearing Members;

(4) when any of its directors, Chief Executive Officer, officers, employees or agents is the subject of any investigations, disciplinary proceeding or action taken by the Clearing Member involving suspension, termination, withholding of commissions, fines or any other significant limitation of activities;

(4A) when the Clearing Member, or any of its directors, Chief Executive Officer, officers, employees or agents engages in conduct, that has the effect of circumventing the SFA, SFR, this Clearing Rules or Clearing Directives (where applicable), or which is inconsistent with the principles of good business practice;

(4B) when the Clearing Member is insolvent, or is engaged in bankruptcy or winding up proceedings;

(4C) when the Clearing Member is experiencing an emergency or potentially debilitating situation that threatens its operations (e.g. a cyber threat or terrorist attack);

(5) when there are any changes to its corporate or business name as registered with CDP;

(6) when there is any change that may have the effect of altering control in the Clearing Member;

(7) for any transaction that will result in a change in the legal or beneficial ownership of 20% or more of the Clearing Member's share capital, and any subsequent increase of 5% or more of the Clearing Member's share capital;

(8) when there is any change in the composition of its board of directors or of any director, or in the case of a Bank Clearing Member, any change in the composition of its board of directors or of any director, who are/is resident in Singapore and/or responsible for its business governed by this Clearing Rules, due to the appointment, removal or resignation of any of its directors. For the purpose of this Rule 3.8(8), a change of director includes a change in the director's appointment from a non-executive director to an executive director;

(9) when there is any change or amendment to its Memorandum or Articles of Association or constitutive documents except in the case of a Bank Clearing Member, notification will be furnished to CDP by such times that a Bank Clearing Member has to notify MAS under the Banking Act, or any regulation or directive issued thereunder;

(10) when there is any death or bankruptcy of any of its directors or in the case of a Bank Clearing Member, its directors who are resident in Singapore and/or responsible for its business governed by this Clearing Rules;

(11) when there is any engagement or involvement or proposed engagement or involvement in any new business or any change in any of the Clearing Member's business(es) or in the case of a Bank Clearing Member, its business governed by this Clearing Rules. For the purpose of this Rule 3.8(11), examples of such new business or change in business include, without limitation, market making and securities financing activities;

(12) when there is any change in the Clearing Member's senior management, or in the case of a Bank Clearing Member, its senior management responsible for the Bank Clearing Member's business governed by this Clearing Rules; and

(13) when there is any breach of directors' duties.

Amended on 3 April 2008 3 April 2008, 1 July 2008 1 July 2008, 10 December 2018 10 December 2018 and 3 June 2019 3 June 2019.

3.9 Qualification of Trading Members

3.9.1 Qualification Procedures

In order to qualify a Trading Member, a Clearing Member shall:—

(1) inform CDP of such qualification of the Trading Member, and if CDP requests, such details of the Trading Member as CDP may from time to time specify;

(2) pay such administrative fee as CDP may from time to time levy for the processing of such applications;

(3) satisfy CDP that it has in place adequate internal control measures and risk management systems, including automated pre-execution credit control checks, to monitor the Trading Member's Exchange Trades and manage its risk exposure to such Exchange Trades;

(4) enter into a written agreement with the Trading Member setting out the terms and conditions governing their relationship, which shall include without limitation, risk management provisions such as the right to impose trading limits on the Trading Member; and

(5) undertake to inform CDP if it has knowledge or has reasons to believe that a Trading Member qualified by it has defaulted or may default in any of its obligations under the Exchange Trades transacted by the Trading Member; and

(6) have processes in place to minimise and manage any conflicts of interest, including but not limited to separating its front office and back office functions.

Amended on 18 September 2012 18 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:—

(1) give not less than 30 days' written notice (or such shorter period as CDP may from time to time deem acceptable) to CDP of its intention to cease qualifying that Trading Member and the proposed date of cessation, provided always that CDP may waive such notice requirement at any time with respect to any Clearing Member;

(2) satisfy CDP that it has taken before the proposed date of cessation proper steps to disable the Trading Member from entering into Exchange Trades to be qualified by the Clearing Member;

(3) satisfy CDP that it has taken, or will take, proper steps for the orderly clearing and settlement of the Trading Member's Exchange Trades;

(4) comply with any reasonable direction of CDP in relation to the orderly cessation of the qualification of the Trading Member's Exchange Trades; and

(5) take such steps including without limitation, procedural steps (whether of a technical or non-technical nature or otherwise) 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.

Amended on 11 January 2011 11 January 2011

3.9.2A Procedures to Suspend Qualification of a Trading Member

(1) If a Clearing Member wishes to suspend its qualification of a Trading Member, it shall:—

(a) notify CDP of its decision to suspend its qualification of that Trading Member; and

(b) comply with any reasonable direction of CDP in relation to the suspension of the qualification of the Trading Member's Exchange Trades.

(2) A Clearing Member may suspend its qualification of a Trading Member for not more than 30 days. Before the end of the 30-day period, the Clearing Member must notify CDP in writing of its intention to either resume qualification or cease qualification of the Trading Member. Where the Clearing Member intends to cease qualification of the Trading Member, Rule 3.9.2 shall apply.

Added on 11 January 2011 11 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 2011 11 January 2011

3.10 Resignation by Clearing Member

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:—
1. its obligations to CDP and such obligations to Trading Members, as CDP may specify; and
2. 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

(1) CDP shall, upon confirmation of the resignation date, notify all Clearing Members of the Clearing Member's resignation and the effective date.

(2) Notwithstanding the resignation, the Clearing Member shall remain liable for all outstanding liabilities incurred under the Clearing Rules and Clearing Directives as at the effective date of resignation. CDP shall have the right to exercise any of its powers (including without limitation, its powers under Rule 11) under these Clearing Rules at any time before or after such date of resignation in respect of any act or omission by the Clearing Member before such date of resignation.

3.10.5 Cessation of Clearing Rights

(1) A Clearing Member's right to clear and settle its Exchange Trades (including Exchange Trades of any Trading Member qualified by the Clearing Member) shall cease on the tenth Settlement Day (or such other Settlement Day as CDP may from time to time prescribe, either generally or in any particular case) from the date of the resignation notice. The Clearing Member shall therefore not transact nor accept for clearing and settlement from the Trading Members qualified by it, any Exchange Trade that is due for settlement after the tenth Settlement Day from the date of the resignation notice.

(2) Notwithstanding the aforesaid, CDP may, prior to the date of cessation of the Clearing Member's right to clear and settle its Exchange Trades, impose such restrictions on the clearing rights and other rights of the Clearing Member, or in the case of a Bank Clearing Member, the clearing rights and other rights conferred under this Clearing Rules, as CDP may, in its absolute discretion, deem fit.

Amended on 1 July 2008 1 July 2008.