SGX Rulebooks
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Rule ViolationWhether composition may be offeredComposition Amount which may be Offered by the Clearing House, where the Clearing House has Determined the Clearing Member to be LiableMandatory minimum penalty imposable by the DC
Rule Chapter/NumberBrief Description of Rule1st Violation2nd Violation3rd Violation
Chapter 2 — Clearing Membership
2.06.1Clearing 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 – $10,000N.A.
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2.06.1 r/w 2.02.1.5General Clearing Member's managerial or executive staff to have a high standard of integrity and level of knowledgeCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.06.1 r/w 2.02.1.6General Clearing Member to have sufficient resources and adequate systems for preserving sound liquidity and financial position.Not CompoundableNot Compoundable$10,000
2.06.1 r/w 2.02.1.7General Clearing Member to maintain segregated and adequate back office functionsNot CompoundableNot Compoundable$10,000
2.06.1 r/w 2.02.1.8General Clearing Member to satisfy requirements and criteria for Clearing Membership which the Clearing House may prescribe from time to timeCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
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2.06.1 r/w 2.02A.1.1 & 2.02.1.5Direct Clearing Member's managerial or executive staff to have a high standard of integrity and level of knowledgeCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.06.1 r/w 2.02A.1.1 & 2.02.1.6Direct Clearing Member to have sufficient resources and adequate systems for preserving sound liquidity and financial position.Not CompoundableNot Compoundable$10,000
2.06.1 r/w 2.02A.1.1 & 2.02.1.7Direct Clearing Member to maintain segregated and adequate back office functionsNot CompoundableNot Compoundable$10,000
2.06.1 r/w 2.02B.1.4Bank Clearing Member or its parent bank to have base capital or net head office funds of at least S$50,000,000Compoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.06.1 r/w 2.02B.1.6Bank Clearing Member's managerial or executive staff to have a high standard of integrity and level of knowledgeCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.06.1 r/w 2.02B.1.7Bank Clearing Member to have sufficient resources and adequate systems for preserving sound liquidity and financial position.Not CompoundableNot Compoundable$10,000
2.06.1 r/w 2.02B.1.8Bank Clearing Member to maintain segregated and adequate back office functionsNot CompoundableNot Compoundable$10,000
2.06.1 r/w 2.02B.1.9Bank Clearing Member to satisfy requirements and criteria for such Clearing Membership as the Clearing House may prescribe from time to timeCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.06.2Compliance with SFANot CompoundableNot Compoundable$10,000
2.06AClearing Member to inform Clearing House immediately of the stipulated eventsCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.07.1General Clearing Member incorporated in Singapore to comply with the minimum base capital, Financial, Aggregate Indebtedness RequirementCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.07.1ADirect Clearing Member incorporated in Singapoe to comply with the minimum base capital, Financial, Aggregate Indebtedness RequirementCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.07.1BBank Clearing Member incorporated in Singapore to comply with the minimum base capital and RRA Financial RequirementCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.07.5Clearing 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 prescribedCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.07.6Clearing 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 requirementsNot CompoundableNot Compoundable$10,000
2.07A.1Clearing Member incoporated in Singapore to immediately notify the Clearing House of the stipulated failures to meet its financial requirementsCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.07A.2Clearing Member incorporated in Singapore to comply with the directions of the Clearing House where its financial resources have fallen below the specified thresholdNot CompoundableNot Compoundable$10,000
2.07A.3General 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 thresholdNot CompoundableNot Compoundable$10,000
2.07B.1Clearing 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 ratiosCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.07B.3Clearing 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 occurredNot CompoundableNot Compoundable$10,000
2.08.1General Clearing Member incorporated outside Singapore to comply with minimum base capital, Financial, Aggregate Indebtedness RequirementCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.08.1ADirect Clearing Member incorporated outside Singapore to comply with minimum base capital, Financial, Aggregate Indebtedness RequirementCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.08.1BBank Clearing Member incorporated outside Singapore to comply with the minimum base capital and RRA Financial RequirementCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.08.1BA

 

Bank Clearing Member incorporated outside Singapore to comply with Liquidity Resource Requirement

 

Not Compoundable

 

Not Compoundable

 

$10,000
2.08.5Clearing 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 prescribedCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.08.6Clearing 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 requirementsNot CompoundableNot Compoundable$10,000
2.08A.1Clearing Member incorporated outside Singapore to immediately notify the Clearing House of the stipulated failures to meet its financial requirementsCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.08A.2Clearing 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 thresholdNot CompoundableNot Compoundable$10,000
2.08A.3Clearing Member incorporated outside Singapore to comply with the directions of the Clearing House where its aggregate indebtedness has exceeded the specified thresholdNot CompoundableNot Compoundable$10,000
2.08B.1Clearing 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 ratiosCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.08B.3Clearing 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 occurredNot CompoundableNot Compoundable$10,000
2.09.1General Clearing Member incorporated in Singapore to maintain the stipulated special reserve fundCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.09.2Special reserve fund not to be available for the declaration of dividends without the approval of the Clearing HouseCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.10.1General Clearing Member incorporated outside Singapore to maintain the stipulated special reserve fundCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.10.2Special reserve fund not to be available for the declaration of dividends without the approval of the Clearing HouseCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.11.1.1Clearing Member incorporated in Singapore, except in the case of Bank Clearing Member, not to reduce paid-up capital without prior approval of the Clearing HouseCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.11.2.1Clearing 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 shareCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.11.2.2Clearing 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 outCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.11.3.1Clearing 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 downCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.11.3.2Clearing 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 outCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.11.4.1Clearing 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 – $10,000N.A.
2.11.5.1[deleted][deleted][deleted][deleted][deleted][deleted]
2.13.1.1Clearing Member to maintain bank accounts in the currencies that may incur settlement and with banks acceptable to the Clearing HouseCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.13.1.2Clearing 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 clearNot CompoundableNot Compoundable$10,000
2.13.1.3Clearing 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 MemberCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.13.1.4Clearing 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 HouseCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.13.1.5Clearing Member to provide and maintain Clearing Fund Deposit in addition to any security deposit requirement that may be requiredCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.13.1.7Clearing 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 servicesNot CompoundableNot Compoundable$10,000
2.13.1.8Clearing Member to have in place sufficient resources and establish and maintain adequate internal control and risk management system for its businessesCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.13.1.9Clearing Member to comply with such other requirements as may be prescribed by the Clearing House from time to timeCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.13A.1Clearing Member to assess business and operational risk and maintain adequate business continuity arrangementsCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.13A.2Clearing Member to document its business continuity arrangements in a business continuity planCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.13A.3Clearing Member to demonstrate awareness of risks, mitigating measures and state of readiness by way of attestation to the Board of DirectorsCompoundable$500$1,000$2,000N.A.
2.13A.4Clearing Member to review and test its business continuity plan regularlyCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.13A.5Clearing Member to appoint emergency contact persons and furnish the contact information to the Clearing HouseCompoundable$500$1,000$2,000N.A.
Clearing Member's emergency contact persons to be contactable at all timesCompoundable$500$1,000$2,000N.A.
Clearing Member to notify Clearing House in the event of emergenciesCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.14.1Clearing 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 requestCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.14.2Clearing Member to file any information requested by the Clearing House within the time period specified in the requestCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.14.3Clearing 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 requestCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.14.3AClearing 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 AccountCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.14.4Clearing 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 HouseNot CompoundableNot Compoundable$10,000
2.15.1General Clearing Member to furnish the required statutory audit report in accordance with the specified timelinesCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.15.1ADirect Clearing Member to furnish thre required audit report in accordance with the specified timelinesCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.15.1BBank Clearing Member to furnish the required audit report in accordance with the specified timelinesCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.15.2General Clearing Member or Bank Clearing Member to cause its internal auditors to conduct the required internal audit and submit a reportCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.17.1.1General Clearing Member not to grant any unsecured advance, loan or credit facility to any of its directors or their connected personsCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.17.1.2General 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 personCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.18.1.1General 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 AuthorityNot CompoundableNot Compoundable$10,000
2.18.3Clearing Member not to fix the Clearing House with a notice of fact or claim in respect of any Third PartyNot CompoundableNot Compoundable$10,000
2.19.1Clearing Member to provide Clearing House with the required information in relation to Ominibus AccountsCompoundable$500$1,000$2,000N.A.
2.19.3Clearing 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$2,000N.A.
2.19.4Clearing Member to notify Clearing House of any failure by the Omnibus Account Holder to disclose its gross long and short positionsCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
Clearing Member to comply with the orders of the Clearing House if the Omnibus Account Holder fails to make the required disclosureNot CompoundableNot Compoundable$10,000
Clearing Member to ensure that Omnibus Account Holder is aware of this Rule.Compoundable$500$1,000$2,000N.A.
2.20.3Clearing Member to ensure compliance with respective position limits prescribed by Clearing HouseCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.20.4Clearing 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 HouseCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.20A.2Clearing Member to comply with enforcement instructions upon notification by Clearing HouseCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.20BClearing Member to withold profits from overtrading upon notification by the Clearing HouseCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.20C.1Clearing Member to provide information as and when requested by Clearing HouseCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.21.1Clearing Member to ensure that its Memorandum and Articles of Association conform to this RulesCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.22.1.1Clearing Member to notify the Clearing House of any change in ownershipCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.22.1.2Clearing Member to notify the Clearing House of any change in circumstances which may alter the control of itselfCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.22.1.3Clearing Member to notify the Clearing House of any change in directorCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.22.1.4Clearing Member to notify the Clearing House of any change in nameCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.22.1.5Clearing Member to notify the Clearing House of change to constitutive documentsCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.22.1.6Clearing Member to notify the Clearing House of the death or bankruptcy of a directorCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.22.1.7Clearing Member to notify the Clearing House of the engagement or involvement in any new business or change in businessCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.22.1.8Clearing Member to notify Clearing House of any change in senior managementCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.23.1.1Clearing Member to notify the Cleairng House of the stipulated reduction in capital within the timelinesCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.23.1.2Clearing Member to immediately notify the Clearing House of any under-segregationCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.23.1.3Clearing Member to notify the Clearing House of the stipulated reduction in capital within the timelinesCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.24General Clearing Member or Direct Clearing Member not to appoint CEO, Deputy CEO unless the prior written approval of the Clearing House is obtainedCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.25Clearing Member to inform and consult the Clearing House at least 30 days prior to any general meeting where new auditors are to be appointedCompoundable$500$1,000$2,000N.A.
2.26.1Clearing Member to submit to the Clearing House such financial statements and in accordance with such timelines as required by the Clearing HouseNot CompoundableNot Compoundable$10,000
2.26.2Clearing Member to keep records of formal computations of capital and financial requirementsCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.27Clearing Member to notify the Clearing House of undermargined Customer Accounts and House AccountsNot CompoundableNot Compoundable$10,000
2.28.2[deleted][deleted][deleted][deleted][deleted][deleted]
[deleted][deleted][deleted][deleted][deleted][deleted][deleted]
2.28A.1.1Clearing Member to inform the Clearing House of the clearing arrangement with a Trading MemberCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
Clearing Member to provide such details as requested by the Clearing HouseNot CompoundableNot Compoundable$10,000
2.28A.1.2Clearing Member to pay such administrative fees as the Clearing House may levyCompoundable$500$1,000$2,000N.A.
2.28A.1.3Clearing Member to have in place adequate internal control measures and risk management systems to monitor the Trading Member's tradesCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.28A.1.4Clearing Member to enter into a written agreement with the Trading Member setting out the terms and conditions governing their relationshipCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.28A.1.5Clearing Member to inform the Clearing House if it believes that a Trading Member whom it has a clearing arrangement with has defaulted or may defaultCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.28A.1.6Clearing Member to have proper separation of front and back office functionsCompoundable$2,000 – $4,000$4,000 – $7,000$7,000 – $10,000N.A.
2.28BClearing Member not to clear any transactions where both sides of the trade belong to the same person.Not CompoundableNot 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]
2.35.2Clearing Member to notify relevant parties in an event of Force MajeureNot CompoundableNot Compoundable$10,000
2.35A.5[deleted][deleted][deleted][deleted]
2.37.1Clearing 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 – $10,000N.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, 3 August 2020 and 31 October 2024.