Past version: Effective from 01 Jul 2016 to 07 Oct 2018
For the purpose of Rule 5.7.1, "exposure to a single security" means:—
(1) the amount of the single security underwritten or sub-underwritten by or placed with the General Clearing Member, after deducting the amount which the General Clearing Member has sub-underwritten or placed with:—
(a) a bank licensed under the Banking Act (Chapter 19);
(b) a merchant bank approved as a financial institution under the Monetary Authority of Singapore Act (Chapter 186);
(c) a finance company licensed under the Finance Companies Act (Chapter 108);
(d) a company or society registered under the Insurance Act (Chapter 142) to carry on insurance business as an insurer;
(e) the holder of a Capital Markets Services Licence under the SFA to deal in securities, or trade in futures contracts or for fund management;
(f) a financial institution outside Singapore which is licensed or regulated by a financial services regulatory authority in the country in which it is domiciled, and has a long-term credit rating of investment grade; and
(g) any other person, provided that:—
(i) full payment has been received by the General Clearing Member for the sub-underwritten, placed, sold or allotted amount; or
(ii) the sub-underwritten, placed, sold or allotted amount can be offset against collateral received by the General Clearing Member under a netting agreement.
(2) the book value of the single security carried long or the market value of the single security carried short in the General Clearing Member's own account carried on its books;
(3) for outstanding options in the single security carried in the General Clearing Member's own options trading account carried on its books:—
(a) the book value of options bought for the account;
(b) the excess of the market value of the underlying security over the exercise price of uncovered call options written for the account; and
(c) the excess of the exercise price of put options written for the account over the market value of the underlying security;
(4) in relation to the single security carried in a customer's cash accounts carried on the books of the General Clearing Member, the contract value of the single security to the extent that such amounts have not been paid for, or the market value of the single security to the extent that such securities have not been delivered, whichever is the higher;
(5) for outstanding options in the single security carried in the customer's options trading accounts carried on the books of the General Clearing Member:—
(a) the contract value of the options bought by the customer to the extent that such amounts have not been paid for;
(b) the excess of the market value of the underlying security over the exercise price of uncovered call options written by the customer; and
(c) the excess of the exercise price of put options written by the customer over the market value of the underlying security;
(6) the net amount of the single security borrowed or lent, as the case may be, by the General Clearing Member;
(7) in relation to a single security bought or carried, or deposited as collateral in the margin financing accounts carried on the books of the General Clearing Member, the margin exposure of the General Clearing Member to the single security as determined in accordance with the margin financing requirements prescribed by SGX-ST;
(8) the amount of interest receivable secured by the single security;
(9) the amount of loans and advances secured by the single security; and
(10) the amount under subscription by the General Clearing Member for its own account carried on its books in relation to a single security which is approved for quotation on SGX-ST or any recognised group A securities exchange but has not, as yet, been so quoted.
Amended on 1 July 20081 July 2008, 23 January 200923 January 2009 and 1 July 20161 July 2016.