2.02C Eligibility Criteria for Remote Clearing Members

SGX-DC Clearing Rules

2.02C Eligibility Criteria for Remote Clearing Members

2.02C.1

Unless otherwise prescribed by the Clearing House, to be eligible for Clearing Membership as a Remote Clearing Member that clears Non-Relevant Market Contracts, an applicant must satisfy the Clearing House that:

2.02C.1.1 it is licensed and regulated for the provision of clearing services by a recognised regulator of the jurisdiction for which it provides the remote clearing services, which shall be a jurisdiction outside of Singapore and acceptable to the Clearing House, and is governed by the laws of such jurisdiction;

2.02C.1.2 it is not incorporated in Singapore, has no business presence in Singapore related to the provision of financial services (including clearing services) and does not serve Singapore domiciled customers in respect of such business;

2.02C.1.3 it has a base capital of at least S$50,000,000 and complies with such other capital and financial requirements as may be prescribed by the Clearing House from time to time;

2.02C.1.4 it has in place the appropriate procedures and capabilities to participate in the default management activities contemplated under Chapter 7A;

2.02C.1.5 it has, and upon admission will maintain, minimum capital and financial requirements pursuant to Rule 2.08;

2.02C.1.6 its managerial or executive staff have a high standard of integrity and a level of knowledge (as may be deemed acceptable by the Clearing House) on the nature, risks and obligations in respect of the market or contracts that it wishes to clear;

2.02C.1.7 it has in place sufficient resources and establishes and maintains 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;

2.02C.1.8 it maintains segregated and adequate back-office functions;

2.02C.1.9 it has the ability to conduct its clearing activities, including the maintenance of adequate contactable staff, during the Clearing House's business hours; and

2.02C.1.10 it satisfies any and all other requirements and criteria for such Clearing Membership, which the Clearing House may from time to time hereafter prescribe.

Added on 31 December 2013 31 December 2013 and amended on 17 July 2019 17 July 2019.

2.02C.2

Unless otherwise prescribed by the Clearing House, to be eligible for Clearing Membership as a Remote Clearing Member that clears Non-Relevant Market Contracts, an applicant must, in addition to the eligibility criteria prescribed under Rule 2.02C.1, satisfy the Clearing House that:

2.02C.2.1 it or its holding company:

a. is licensed and regulated by a financial authority; and

b. has a long term rating that indicates, at least, a strong overall creditworthiness supporting the fulfilment of its financial obligations from any rating agency registered with an appropriate authority;

2.02C.2.2 it has obtained a guarantee in a form acceptable to the Clearing House from a bank or its holding company, provided that such bank or holding company:

a. is licensed and/or regulated as such by a financial authority; and

b. has obtained:

i. a long term rating from any registered rating agency that indicates, at least, a strong overall creditworthiness supporting the fulfilment of its financial obligations; and

ii. in the case of a bank, a 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.

Added on 31 December 2013 31 December 2013 and amended on 17 July 2019 17 July 2019.

2.02C.3 [Rule has been deleted.]

Deleted on 17 July 2019 17 July 2019.

2.02C.4

If, at any time, the rating of a Remote Clearing Member or its holding company falls below the rating prescribed by and acceptable to the Clearing House, the Clearing House may in its absolute discretion impose additional conditions in permitting the Remote Clearing Member to continue its clearing activities.

Added on 31 December 2013 31 December 2013.