3.1 Clearing Member

CDP Clearing Rules

Clearing Membership in CDP shall comprise such classes of membership(s) as may from time to time be provided in this Clearing Rules. All memberships to CDP are granted pursuant, and subject, to this Clearing Rules and such other terms and conditions as may be prescribed at CDP's discretion.

Added on 1 July 2008 1 July 2008 and 10 December 2018 10 December 2018.

3.1.2 Eligibility Criteria for General Clearing Member

Unless otherwise prescribed by CDP, to be eligible for Clearing Membership as a General Clearing Member, an applicant must satisfy CDP that:—

(1) it is a corporation with the requisite financial and business standing and repute and is or will upon admission be carrying on the business 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;

(2) upon admission, it shall register one (1) person as a Chief Executive Officer pursuant to Rule 4;

(3) unless exempt under the SFA, it holds a Capital Markets Services Licence to engage in the relevant regulated activities;

(4) it has, and upon admission, will maintain, minimum capital and financial requirements pursuant to Rules 5.1.1 or 5.1D.1 (whichever is applicable) and 5.4;

(4A) it has, and upon admission will maintain, a special reserve fund pursuant to Rule 5.5;

(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 organised market or trades 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;

(7) it must maintain segregated and adequate back-office functions; and

(8) it satisfies any and all other requirements and criteria for such Clearing Membership, which CDP may from time to time hereafter prescribe.

Amended on 3 April 2008 3 April 2008, 1 July 2008 1 July 2008, 8 October 2018 8 October 2018, 10 December 2018 10 December 2018 and 3 June 2019 3 June 2019.

3.1.3 Eligibility Criteria for Bank Clearing Members

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 1970;

(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 register one (1) person as a Chief Executive Officer 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 organised market or trades 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) [deleted]

(10) [deleted]

Added on 1 July 2008 1 July 2008. Amended on 26 April 2013 26 April 2013, 22 April 2019 and 18 January 2022.

3.1.3A

Upon admission as a Bank Clearing Member, if there is any downgrade in the rating of the Bank Clearing Member or its parent bank such that it falls below the minimum prescribed rating, CDP may, at its absolute discretion, impose additional conditions as it deems fit, for permitting the Bank Clearing Member to continue to clear contracts through CDP.

Added on 1 July 2008 1 July 2008.