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Chapter 2 — Clearing Membership

Rule Violation Whether composition may be offered Composition Amount which may be Offered by the Clearing House, where the Clearing House 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
Chapter 2 — Clearing Membership
2.06.1 Clearing Member to comply with the Rules and the criteria and requirements for Clearing Membership [Unless otherwise specified in this Schedule]
Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
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2.06.1 r/w 2.02.1.5 General Clearing Member's managerial or executive staff to have a high standard of integrity and level of knowledge Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.06.1 r/w 2.02.1.6 General Clearing Member to have sufficient resources and adequate systems for preserving sound liquidity and financial position. Not Compoundable Not Compoundable $10,000
2.06.1 r/w 2.02.1.7 General Clearing Member to maintain segregated and adequate back office functions Not Compoundable Not Compoundable $10,000
2.06.1 r/w 2.02.1.8 General Clearing Member to satisfy requirements and criteria for Clearing Membership which the Clearing House may prescribe from time to time Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
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2.06.1 r/w 2.02A.1.1 & 2.02.1.5 Direct Clearing Member's managerial or executive staff to have a high standard of integrity and level of knowledge Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.06.1 r/w 2.02A.1.1 & 2.02.1.6 Direct Clearing Member to have sufficient resources and adequate systems for preserving sound liquidity and financial position. Not Compoundable Not Compoundable $10,000
2.06.1 r/w 2.02A.1.1 & 2.02.1.7 Direct Clearing Member to maintain segregated and adequate back office functions Not Compoundable Not Compoundable $10,000
2.06.1 r/w 2.02B.1.4 Bank Clearing Member or its parent bank to have base capital or net head office funds of at least S$50,000,000 Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.06.1 r/w 2.02B.1.6 Bank Clearing Member's managerial or executive staff to have a high standard of integrity and level of knowledge Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.06.1 r/w 2.02B.1.7 Bank Clearing Member to have sufficient resources and adequate systems for preserving sound liquidity and financial position. Not Compoundable Not Compoundable $10,000
2.06.1 r/w 2.02B.1.8 Bank Clearing Member to maintain segregated and adequate back office functions Not Compoundable Not Compoundable $10,000
2.06.1 r/w 2.02B.1.9 Bank Clearing Member to satisfy requirements and criteria for such Clearing Membership as the Clearing House may prescribe from time to time Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.06.2 Compliance with SFA Not Compoundable Not Compoundable $10,000
2.06A Clearing Member to inform Clearing House immediately of the stipulated events Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.07.1 General Clearing Member incorporated in Singapore to comply with the minimum base capital, Financial, Aggregate Indebtedness Requirement Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.07.1A Direct Clearing Member incorporated in Singapoe to comply with the minimum base capital, Financial, Aggregate Indebtedness Requirement Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.07.1B Bank Clearing Member incorporated in Singapore to comply with the minimum base capital and RRA Financial Requirement Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.07.5 Clearing Member incporporated in Singapore to immediately notify the Clearing House if it fails or becomes aware that it will fail to comply with the minimum capital and financial requirements as prescribed Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.07.6 Clearing Member incorporated in Singapore to comply with the directions of the Clearing House where it has failed to comply with the minimum capital and financial requirements Not Compoundable Not Compoundable $10,000
2.07A.1 Clearing Member incoporated in Singapore to immediately notify the Clearing House of the stipulated failures to meet its financial requirements Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.07A.2 Clearing Member incorporated in Singapore to comply with the directions of the Clearing House where its financial resources have fallen below the specified threshold Not Compoundable Not Compoundable $10,000
2.07A.3 General Clearing Member and Direct Clearing Member incorporated in Singapore to comply with the direction of the Clearing House where its aggregate indebtedness have exceeded the specified threshold Not Compoundable Not Compoundable $10,000
2.07B.1 Clearing Member incorporated in Singapore to notify the Clearing House if financial resources fall below the specified threshold or of any reportable event in relation to its regulatory capital and liquidity ratios Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.07B.3 Clearing Member incorporated in Singapore to comply with the directions of the Clearing House where its financial resources have fallen below the specified threshold or that a reportable event in relation to its regulatory capital and liquidity ratios has occurred Not Compoundable Not Compoundable $10,000
2.08.1 General Clearing Member incorporated outside Singapore to comply with minimum base capital, Financial, Aggregate Indebtedness Requirement Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.08.1A Direct Clearing Member incorporated outside Singapore to comply with minimum base capital, Financial, Aggregate Indebtedness Requirement Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.08.1B Bank Clearing Member incorporated outside Singapore to comply with the minimum base capital and RRA Financial Requirement Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.08.1BA Bank Clearing Member incorporated outside Singapore to comply with Liquidity Resource Requirement Not Compoundable Not Compoundable $10,000
2.08.5 Clearing Member incorporated outside Singapore to immediately notify the Clearing House if it fails or becomes aware that it will fail to meet the minimum capital and financial requirements as prescribed Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.08.6 Clearing Member incorporated outside Singapore to comply with the directions of the Clearing House where a Clearing Member has failed to comply with the minimum capital and financial requirements Not Compoundable Not Compoundable $10,000
2.08A.1 Clearing Member incorporated outside Singapore to immediately notify the Clearing House of the stipulated failures to meet its financial requirements Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.08A.2 Clearing Member incorporated outside Singapore to comply with the directions of the Clearing House where its adjusted net head office funds have fallen below the specified threshold Not Compoundable Not Compoundable $10,000
2.08A.3 Clearing Member incorporated outside Singapore to comply with the directions of the Clearing House where its aggregate indebtedness has exceeded the specified threshold Not Compoundable Not Compoundable $10,000
2.08B.1 Clearing Member incorporated outside Singapore to immediately notify the Clearing House if its financial resources have fallen below the specified threshold or of any reportable event in relation to its regulatory capital and liquidity ratios Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.08B.3 Clearing Member incorporated outside Singapore to comply with the directions of the Clearing House where its adjusted net head office funds or cash and/or acceptable government securities deposited with the Clearing House or CDP have fallen below the specified threshold or that a reportable event in relation to regulatory capital and liquidity ratios has occurred Not Compoundable Not Compoundable $10,000
2.09.1 General Clearing Member incorporated in Singapore to maintain the stipulated special reserve fund Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.09.2 Special reserve fund not to be available for the declaration of dividends without the approval of the Clearing House Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.10.1 General Clearing Member incorporated outside Singapore to maintain the stipulated special reserve fund Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.10.2 Special reserve fund not to be available for the declaration of dividends without the approval of the Clearing House Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.11.1.1 Clearing Member incorporated in Singapore, except in the case of Bank Clearing Member, not to reduce paid-up capital without prior approval of the Clearing House Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.11.2.1 Clearing Member incorporated in Singapore, except in the case of a Bank Clearing Member, to immediately notify the Clearing House prior to the date of issue of any preference share Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.11.2.2 Clearing Member incorporated in Singapore, except in the case of Bank Clearing Member, not to redeem any redeemable preference share unless the Clearing Member complies with conditions set out Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.11.3.1 Clearing Member incorporated in Singapore to immediately notify the Clearing House when it draws down a qualifying subordinated loan no later than the date of draw down Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.11.3.2 Clearing Member incorporated in Singapore not to repay, whether in part or in full any subordinated loan principal before the maturity date without the prior approval of the Clearing House or any subordinated loan principal that has matured subject to conditions set out Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.11.4.1 Clearing Member, except for a Bank Clearing Member or a Remote Member not to make any unsecured loan or advance, pay any dividend or director's fees or increase any director's remuneration without the prior approval of the Clearing House, unless the stipulated conditions are met. Remote Clearing Member to notify the Clearing House immediately of any action taken that has or may have a financial or capital impact and is required to be reported to the Relevant Regulatory Authority, or in relation to the events set out in Rule 2.11.4.1. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.11.5.1 [deleted] [deleted] [deleted] [deleted] [deleted] [deleted]
2.13.1.1 Clearing Member to maintain bank accounts in the currencies that may incur settlement and with banks acceptable to the Clearing House Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.13.1.2 Clearing Member to clear Non-Relevant Market Contracts and/or Contracts made on any Relevant Market by such members of the Relevant Market with whom it has agreed to clear Not Compoundable Not Compoundable $10,000
2.13.1.3 Clearing Member not to carry any account or clear any Contract for the benefit of an employee or officer of another Clearing Member without prior approval of the other Clearing Member Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.13.1.4 Clearing Member not to provide funds, credit or finance any other Clearing Member or member of a Relevant Market without the prior approval of the Clearing House Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.13.1.5 Clearing Member to provide and maintain Clearing Fund Deposit in addition to any security deposit requirement that may be required Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.13.1.7 Clearing Member to clear Contracts made on any Relevant Market by any person through any approved electronic trading terminal or facilities provided to it or to such members of the Relevant Market to whom it shall have agreed to provide clearing services Not Compoundable Not Compoundable $10,000
2.13.1.8 Clearing Member to have in place sufficient resources and establish and maintain adequate internal control and risk management system for its businesses Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.13.1.9 Clearing Member to comply with such other requirements as may be prescribed by the Clearing House from time to time Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.13A.1 Clearing Member to assess business and operational risk and maintain adequate business continuity arrangements Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.13A.2 Clearing Member to document its business continuity arrangements in a business continuity plan Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.13A.3 Clearing Member to demonstrate awareness of risks, mitigating measures and state of readiness by way of attestation to the Board of Directors Compoundable $500 $1,000 $2,000 N.A.
2.13A.4 Clearing Member to review and test its business continuity plan regularly Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.13A.5 Clearing Member to appoint emergency contact persons and furnish the contact information to the Clearing House Compoundable $500 $1,000 $2,000 N.A.
Clearing Member's emergency contact persons to be contactable at all times Compoundable $500 $1,000 $2,000 N.A.
Clearing Member to notify Clearing House in the event of emergencies Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.14.1 Clearing Member to prepare, maintain and keep current books and records required by this Rules and SFA, where they shall be open to inspection and promptly provided to the Clearing House upon request Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.14.2 Clearing Member to file any information requested by the Clearing House within the time period specified in the request Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.14.3 Clearing Member to maintain the ability to provide, in an acceptable form, a complete set of equity system reports to the Clearing House upon the Clearing House's request Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.14.3A Clearing Member to submit to the Clearing House a report on all its credit facilities with its financial institutions, any change to its credit facilities immediately upon such change, and the identities of the owners or controlling parties for any House Account or Customer Account Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.14.4 Clearing Member to notify Clearing House when it fails to make or keep current the books and records required by the Clearing House and shall thereafter comply with all orders of the Clearing House Not Compoundable Not Compoundable $10,000
2.15.1 General Clearing Member to furnish the required statutory audit report in accordance with the specified timelines Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.15.1A Direct Clearing Member to furnish thre required audit report in accordance with the specified timelines Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.15.1B Bank Clearing Member to furnish the required audit report in accordance with the specified timelines Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.15.2 General Clearing Member or Bank Clearing Member to cause its internal auditors to conduct the required internal audit and submit a report Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.17.1.1 General Clearing Member not to grant any unsecured advance, loan or credit facility to any of its directors or their connected persons Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.17.1.2 General Clearing Member not to grant any unsecured advance, loan or credit facility to its officers or its employees which exceeds one year's emoluments of the person Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.18.1.1 General Clearing Member or Bank Clearing Member to inform the Clearing House of such information as the Clearing House requires to discharge its segregation obligations under the SFA or enable it to issue the verification of margin funds statement to the Authority Not Compoundable Not Compoundable $10,000
2.18.3 Clearing Member not to fix the Clearing House with a notice of fact or claim in respect of any Third Party Not Compoundable Not Compoundable $10,000
2.19.1 Clearing Member to provide Clearing House with the required information in relation to Ominibus Accounts Compoundable $500 $1,000 $2,000 N.A.
2.19.3 Clearing Member to ensure that the Omnibus Account is operated at all times in accordance with the Rules [Unless otherwise specified in this Schedule]
Compoundable $500 $1,000 $2,000 N.A.
2.19.4 Clearing Member to notify Clearing House of any failure by the Omnibus Account Holder to disclose its gross long and short positions Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
Clearing Member to comply with the orders of the Clearing House if the Omnibus Account Holder fails to make the required disclosure Not Compoundable Not Compoundable $10,000
Clearing Member to ensure that Omnibus Account Holder is aware of this Rule. Compoundable $500 $1,000 $2,000 N.A.
2.20.3 Clearing Member to ensure compliance with respective position limits prescribed by Clearing House Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.20.4 Clearing Member to furnish such documents as the Clearing House may require where the aggregate maintenance margins exceed such relevant amount as may be prescribed by the Clearing House Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.20A.2 Clearing Member to comply with enforcement instructions upon notification by Clearing House Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.20B Clearing Member to withold profits from overtrading upon notification by the Clearing House Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.20C.1 Clearing Member to provide information as and when requested by Clearing House Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.21.1 Clearing Member to ensure that its Memorandum and Articles of Association conform to this Rules Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.22.1.1 Clearing Member to notify the Clearing House of any change in ownership Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.22.1.2 Clearing Member to notify the Clearing House of any change in circumstances which may alter the control of itself Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.22.1.3 Clearing Member to notify the Clearing House of any change in director Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.22.1.4 Clearing Member to notify the Clearing House of any change in name Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.22.1.5 Clearing Member to notify the Clearing House of change to constitutive documents Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.22.1.6 Clearing Member to notify the Clearing House of the death or bankruptcy of a director Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.22.1.7 Clearing Member to notify the Clearing House of the engagement or involvement in any new business or change in business Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.22.1.8 Clearing Member to notify Clearing House of any change in senior management Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.23.1.1 Clearing Member to notify the Cleairng House of the stipulated reduction in capital within the timelines Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.23.1.2 Clearing Member to immediately notify the Clearing House of any under-segregation Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.23.1.3 Clearing Member to notify the Clearing House of the stipulated reduction in capital within the timelines Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.24 General Clearing Member or Direct Clearing Member not to appoint CEO, Deputy CEO unless the prior written approval of the Clearing House is obtained Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.25 Clearing Member to inform and consult the Clearing House at least 30 days prior to any general meeting where new auditors are to be appointed Compoundable $500 $1,000 $2,000 N.A.
2.26.1 Clearing Member to submit to the Clearing House such financial statements and in accordance with such timelines as required by the Clearing House Not Compoundable Not Compoundable $10,000
2.26.2 Clearing Member to keep records of formal computations of capital and financial requirements Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.27 Clearing Member to notify the Clearing House of undermargined Customer Accounts and House Accounts Not Compoundable Not Compoundable $10,000
2.28.2 [deleted] [deleted] [deleted] [deleted] [deleted] [deleted]
2.28.2B Clearing Member not to increase its positions in any Contract during its Notice Period unless permitted by the Clearing House or under this Rules Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.28A.1.1 Clearing Member to inform the Clearing House of the clearing arrangement with a Trading Member Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
Clearing Member to provide such details as requested by the Clearing House Not Compoundable Not Compoundable $10,000
2.28A.1.2 Clearing Member to pay such administrative fees as the Clearing House may levy Compoundable $500 $1,000 $2,000 N.A.
2.28A.1.3 Clearing Member to have in place adequate internal control measures and risk management systems to monitor the Trading Member's trades Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.28A.1.4 Clearing Member to enter into a written agreement with the Trading Member setting out the terms and conditions governing their relationship Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.28A.1.5 Clearing Member to inform the Clearing House if it believes that a Trading Member whom it has a clearing arrangement with has defaulted or may default Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.28A.1.6 Clearing Member to have proper separation of front and back office functions Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
2.28B Clearing Member not to clear any transactions where both sides of the trade belong to the same person. Not Compoundable Not Compoundable $10,000
2.30.1A [deleted] [deleted] [deleted] [deleted] [deleted] [deleted]
2.31.1.1 [deleted] [deleted] [deleted] [deleted]
2.33.2 [deleted] [deleted] [deleted] [deleted]
2.35.2 Clearing Member to notify relevant parties in an event of Force Majeure Not Compoundable Not Compoundable $10,000
2.35A.5 [deleted] [deleted] [deleted] [deleted]
2.37.1 Clearing Member to ensure that agreements with Third Parties provide that all Contracts are subject to the Rules, SFA and SFR and that this is agreed upon. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.

Added on 16 May 201116 May 2011, amended on 7 August 20127 August 2012, 8 November 20128 November 2012, 15 March 201315 March 2013, 19 September 201619 September 2016, 12 November 201812 November 2018, 22 April 201922 April 2019, 17 July 201917 July 2019 and 3 August 2020.