Past version: Effective from 26 Apr 2013 to 21 Apr 2019
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 (Chapter 19) ;
(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 appoint at least one (1) Approved Executive Director 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 market or contracts 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) where it is incorporated 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; or
(10) where it is incorporated outside Singapore,
(a) it has deposited, as security for its obligations to CDP, cash and/or acceptable government securities of not less than S$5,000,000 with CDP; or
(b) in the case of an applicant admitted as a clearing member of CDP and SGX-DC, it has deposited, as security for its obligations to CDP, cash and/or acceptable government securities of not less than S$8,000,000 with CDP;
or such other amount as may be prescribed by CDP hereafter and from time to time, PROVIDED ALWAYS THAT:—
or such other amount as may be prescribed by CDP hereafter and from time to time, PROVIDED ALWAYS THAT:—
(i) if the Bank Clearing Member has deposited S$8,000,000 with SGX-DC or such other amount as prescribed, pursuant to the corresponding provision relating to the prescribed minimum capital and financial requirements, in the SGX-DC Clearing Rules, it need not deposit a further S$8,000,000 with CDP or such other amount as may be prescribed by CDP; and
(ii) CDP shall have the discretion to utilize or apportion in any manner, the S$8,000,000 or such other amount as may be prescribed by CDP and/or SGX-DC, to satisfy the Bank Clearing Member's obligations to CDP and/or SGX-DC under this Clearing Rules and the SGX-DC Clearing Rules respectively. 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 Bank Clearing Member to CDP and SGX-DC respectively; or
c) it has net head office funds of not less than S$5,000,000 or in the case of an applicant admitted as a clearing member of CDP and SGX-DC, it has net head office funds of not less than S$8,000,000, or such other amount as may be prescribed by CDP hereafter and from time to time, PROVIDED ALWAYS THAT CDP has the discretion to decide if an applicant may seek to rely on its net head office funds pursuant to this Rule 3.1.3(10)(c) instead of depositing cash and/or acceptable government securities pursuant to Rule 3.1.3(10)(a) or (b).
Added on 1 July 20081 July 2008. Amended on 26 April 201326 April 2013.