Past version: Effective up to 20 Jan 2013
| 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 | |||||
| 6A.2.1 | Clearing Member to procure Initial Margins and require customers to meet Customer Required Margins | 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| 6A.2.3 | Clearing Member not to allow Excess Margins to be withdrawn unless withdrawal does not cause the deposited collateral to be less than zero.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 | |||||
| 6A.3.1 | Clearing Member not to accept new orders or trades 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 | 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.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.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 | Safekeeping Indemnity | |||||
| 6A.12.4 | Clearing Member to pay all fees, expenses, charges and costs incurred by CDP | Compoundable | $500 | $1,000 | $2,000 | N.A. |
| Clearing Member to deposit such margins as required by CDP by reason of any depreciation in the market value of any collateral | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. | |
| 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 | Regulatory Information | |||||
| 6A.15.1 | Clearing Member to provide CDP with information in relation to collateral deposited with CDP as margin for regulatory purposes | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
Added on 16 May 201116 May 2011.