| Rule Violation | Whether composition may be offered | Composition Amount which may be Offered by CDP, where CDP 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 | ||
| Rule 5 — Financial/Capital Requirements | ||||||
| 5.1 | Minimum Capital and Financial Requirements of Clearing Members Incorporated in Singapore | |||||
| 5.1.1(1) | General Clearing Member to maintain base capital requirement | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.1.1(2) | General Clearing Member to meet financial resources requirement | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.1.1(3) | General Clearing Member to meet aggregate indebtedness requirement | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.1.1(4) | General Clearing Member to comply with other financial and operational requirements prescribed by CDP | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.1.1A(1) | Bank Clearing Member to maintain base capital requirement | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.1.1A(2) | Bank Clearing Member to comply with RRA Financial Requirement | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.1.1A(3) | Bank Clearing Member to comply with other financial and operational requirements prescribed by CDP | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.1.1B(3) | Clearing Member to immediately notify CDP of failure, or impending failure, to comply with minimum capital and financial requirements | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.1.1C | Clearing Member to comply with CDP's directions where Clearing Member has failed to comply with the minimum capital and financial requirements | Not Compoundable | Not Compoundable | $10,000 | ||
| 5.1A | Early Warning Financial Requirements of Clearing Members Incorporated in Singapore | |||||
| 5.1A.1 | General Clearing Member to immediately notify CDP where financial resources have fallen below 120% of its total risk requirement, or where its aggregate indebtedness has exceeded 600% of its aggregate resources | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.1A.2 | General Clearing Member to comply with CDP's directions where financial resources have fallen below 120% of its total risk requirement | Not Compoundable | Not Compoundable | $10,000 | ||
| 5.1A.3 | General Clearing Member to comply with CDP's directions where aggregate indebtedness has exceeded 600% of aggregate resources | Not Compoundable | Not Compoundable | $10,000 | ||
| 5.1B | Notification Requirements of Clearing Members Incorporated in Singapore | |||||
| 5.1B.1 | Clearing Member to immediately notify CDP where financial resources have fallen below 150% of total risk requirement 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. |
| 5.1B.2 | Clearing Member to comply with other notification requirements and conditions prescribed by CDP | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.1B.3 | Clearing Member to comply with CDP's directions where financial resources have fallen below 150% of its total risk requirement or that a reportable event in relation to its regulatory capital and liquidity ratios has occurred | Not Compoundable | Not Compoundable | $10,000 | ||
| 5.1D | Minimum Capital and Financial Requirements of Clearing Members Incorporated Outside Singapore | |||||
| 5.1D.1(1) | General Clearing Member to maintain base capital requirements | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.1D.1(2) | General Clearing Member to meet adjusted net head office funds requirement | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.1D.1(3) | General Clearing Member to meet aggregate indebtedness requirement | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.1D.1(4) | General Clearing Member to comply with other financial and operational requirements prescribed by CDP | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.1D.2(1) | Bank Clearing Member to maintain base capital requirement | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.1D.2(2) | Bank Clearing Member to comply with RRA Financial Requirements | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.1D.2(3) | Bank Clearing Member to meet other financial and operational requirements prescribed by CDP | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.1D.3 | Clearing Member to immediately notify CDP of failure, or impending failure, to meet minimum capital and financial requirements | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.1D.4 | Clearing Member to comply with CDP's directions where Clearing Member has failed to meet minimum capital and financial requirements | Not Compoundable | Not Compoundable | $10,000 | ||
| 5.1DA | Bank Clearing Member to comply with Liquidity Resource Requirement | Not Compoundable | Not Compoundable | $10,000 | ||
| 5.1E | Early Warning Financial Requirements of Clearing Members Incorporated Outside Singapore | |||||
| 5.1E.1 | General Clearing Member to immediately notify CDP where adjusted net head office funds or cash and/or acceptable government securities deposited with CDP have fallen below 120% of total risk requirement, or where its aggregate indebtedness has exceeded 600% of aggregate resources | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.1E.2 | General Clearing Member to comply with CDP's directions where adjusted net head office funds have fallen below 120% of total risk requirement | Not Compoundable | Not Compoundable | $10,000 | ||
| 5.1E.3 | General Clearing Member to comply with CDP's directions where aggregate indebtedness has exceeded 600% of aggregate resources | Not Compoundable | Not Compoundable | $10,000 | ||
| 5.1F | Notification Requirements of Clearing Members Incorporated Outside Singapore | |||||
| 5.1F.1 | Clearing Member to immediately notify CDP where Clearing Member's adjusted net head office funds have fallen below 150% of total risk requirement 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. |
| 5.1F.2 | Clearing Member to comply with other notification requirements prescribed by CDP | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.1F.3 | Clearing Member to comply with CDP's directions where adjusted net head office funds have fallen below 150% of total risk requirement or that a reportable event in relation to its regulatory capital and liquidity ratios has occurred | Not Compoundable | Not Compoundable | $10,000 | ||
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| 5.5 | Reserve Fund Requirement | |||||
| 5.5.1 | General Clearing Member to maintain reserve fund based on its audited net profits of each year | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.5.2 | Reserve fund not to be made available for declaration of dividends without the prior approval of CDP | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.6 | Exposure to Single Customer | |||||
| 5.6.1 | General Clearing Member to immediately notify CDP of excess exposure to a single customer | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.7 | Exposure to Single Security | |||||
| 5.7.1 | General Clearing Member to immediately notify CDP of excess exposure to a single security | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.7.8 | General Clearing Member not to permit exposure to suspended security to increase in monetary value above the level subsisting on 30th consecutive day of suspension until suspension lifted | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.8 | Monthly Returns | |||||
| 5.8.1 | Clearing Member to submit monthly returns to CDP by by time frame and in format specified by CDP | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.9 | Appointment of Auditors and Audit Requirements | |||||
| 5.9.1 | Clearing Member to seek the approval of CDP prior to any appointment of new auditors | Compoundable | $500 | $1,000 | $2,000 | N.A. |
| 5.9.1A | Bank Clearing Member to inform CDP of the appointment of new auditors within 7 days of the appointment | Compoundable | $500 | $1,000 | $2,000 | N.A. |
| 5.9.2 | Failure by General Clearing Member to furnish relevant forms required under the SFR, annual accounts and auditors' certificate to CDP within 5 months of the end of the General Clearing Member's financial year | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.9.5 | Bank Clearing Members to furnish annual accounts and auditors' certificate within 5 months of the end of the Bank Clearing Members' financial year | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.11 | Other Financial Requirements | |||||
| 5.11.1 | General Clearing Member not to reduce paid-up ordinary share capital without prior written approval of CDP | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.11.2(1) | General Clearing Member to notify CDP prior to the issue of preference shares | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.11.2(2) | General Clearing Member to comply with conditions for redeeming redeemable preference shares that are computed as part of its financial resources | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.11.3(1) | General Clearing Member to obtain the prior approval of CDP if it enters into a subordinated loan agreement other than the format prescribed by CDP | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.11.3(2) | General Clearing Member to immediately notify CDP when it draws down a qualifying subordinate loan | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.11.3(3) | General Clearing Member not to repay a subordinated loan principal in contravention of the requirements and conditions | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.11.4 | General Clearing Member not to make any unsecured loan or advance, pay any dividend or Director's fees or increase in Director's remuneration without prior written approval of CDP | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.11.5 | General Clearing Member to submit to CDP a report on all its credit facilities, or any changes to its credit facilities | Compoundable | $2,000 – $4,000 | $4,000 – $7,000 | $7,000 – $10,000 | N.A. |
| 5.12 | Register of Connected Persons | |||||
| 5.12 | General Clearing Member to maintain register of directors and their connected persons | Compoundable | $500 | $1,000 | $2,000 | N.A. |
Added on 16 May 201116 May 2011 and amended on 29 December 201429 December 2014 and 22 April 201922 April 2019.