SGX Rulebooks
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The framework should require that there be a determination of the suitability and valuation of the margin collateral in a margin financing account and require that the following factors be taken into account for that purpose:

  1. type and quality of margin collateral;
  2. price volatility of margin collateral;
  3. where the margin collateral is listed or traded in a foreign jurisdiction or is cash in a foreign currency, matters such as:
    1. exchange rate volatility,
    2. ease of liquidating collateral in the foreign jurisdiction, and
    3. differences in legal and regulatory framework between such foreign jurisdiction and Singapore; and
  4. where the margin collateral is custodised in a foreign jurisdiction, matters such as:
    1. risks arising from differences in custody arrangements in such foreign jurisdiction; and
    2. treatment of, or legal protection afforded to, customer collateral in the foreign jurisdiction, e.g. prohibition of title transfer for retail customer collateral.
 

Added on 1 April 2025.