CDP shall establish and maintain a fund to be called the Clearing Fund, which size shall be determined by CDP.

Amended on 26 May 2023 .

The assets of the Clearing Fund shall be vested in CDP but shall be segregated from CDP's other property and shall be held by CDP on trust for the purposes set out in these Clearing Rules.

The Clearing Fund shall comprise:—

Amended on 3 May 20113 May 2011 and 26 May 2023.

Except as otherwise provided in this Clearing Rules or as determined by CDP, each Clearing Member shall pay to CDP contributions to the Clearing Fund in such amounts as may be determined under this Clearing Rules or by CDP in its absolute discretion. Each Clearing Member shall pay to CDP its contributions to the Clearing Fund (or any part thereof) when called upon and by such time as stipulated by CDP.

Amended on 1 July 20081 July 2008, 3 May 20113 May 2011 and 26 May 2023.

A Clearing Member is required to make the following contributions to the Clearing Fund:

Added on 3 May 20113 May 2011 and amended on 26 May 2023.

Amended on 1 January 20101 January 2010, 3 May 20113 May 2011 and deleted on 26 May 2023.

Amended on 3 May 20113 May 2011 and 21 January 201321 January 2013 and deleted on 26 May 2023.

Amended on 1 January 20101 January 2010 and 3 May 20113 May 2011 and deleted on 26 May 2023.

CDP shall notify each Clearing Member in writing of the Collateralised Contribution and the Contingent Contribution that the Clearing Member is required to pay under these Rules.

Added on 3 May 20113 May 2011 and amended on 26 May 2023.

Each Clearing Member shall provide its contribution to the Clearing Fund in cash, government securities or in such other forms and subject to such conditions as may be prescribed by CDP from time to time. Such contribution shall form part of the assets of the Clearing Fund.

Amended on 1 July 20081 July 2008, 3 May 20113 May 2011 and 26 May 2023.

Where a Clearing Member provides its contribution to the Clearing Fund (or any part thereof) in the form of cash, CDP shall place the entire cash amount in an interest-bearing account with its bankers. CDP shall not be obliged to segregate the cash contributions and may commingle cash contributions for ease of administration.

Amended on 26 May 2023

Deleted on 21 January 201321 January 2013.

CDP shall have the absolute discretion to decide upon the bank or banks with which the cash contributions are to be placed on deposit and the terms of deposit, provided that any such bank shall be a licensed bank in Singapore within the meaning of the Banking Act 1970.

Amended on 26 May 2023

Save for manifest error, CDP's records shall be conclusive and binding on a Clearing Member as to its contributions to the Clearing Fund. Notwithstanding any manifest error in CDP's records, or any dispute in relation to such records, a Clearing Member shall provide, in accordance with these Clearing Rules, such contributions as required by CDP, and any rectification shall be done as soon as practicable after the dispute is resolved.

Added on 10 December 201810 December 2018 and amended on 26 May 2023.

Contributions by CDP to the Clearing Fund shall be in an amount determined by CDP and not less than 25% of the Clearing Fund size. The contributions shall consist of:

Amended on 1 January 20101 January 2010, 3 May 20113 May 2011 and 26 May 2023.

Contributions by CDP to the Clearing Fund shall be in the form of cash or in such other form and subject to such conditions as may be determined by CDP. If any contributions by CDP (or any part thereof) is in the form of cash, such cash amount shall be placed in an interest bearing account with CDP's bankers and the entire interest earned on such contributions (or such part thereof) shall be paid to CDP.

Amended on 3 May 20113 May 2011 and 26 May 2023.

Deleted on 21 January 201321 January 2013.

CDP shall have the absolute discretion to decide upon the bank or banks with which the cash portion of contributions by CDP is to be placed on deposit and the terms of deposit, provided that any such bank shall be a licensed bank in Singapore within the meaning of the Banking Act 1970.

Amended on 3 May 20113 May 2011 and 26 May 2023.

Amended on 3 May 20113 May 2011 and deleted on 26 May 2023.

Deleted on 26 May 2023

Deleted on 3 May 20113 May 2011.

CDP may invest the assets and resources of the Clearing Fund in such manner as it shall deem fit.

Deleted on 21 January 201321 January 2013.

CDP may appoint such persons as it may deem suitably qualified to invest the assets and resources of the Clearing Fund.

CDP, if acting in good faith and in the absence of fraud or wilful misconduct on its part, shall not be liable for any losses in the investment of the assets or resources of the Clearing Fund.

Each Clearing Member shall pay CDP such administrative fees as may be prescribed by CDP and notified to the Clearing Member from time to time for the investment and management of the assets of the Clearing Fund and any excess monies or assets placed with CDP in respect of the Clearing Fund. Administrative fees may be deducted from the interest on the assets of the Clearing Fund, and on any excess monies or assets placed with CDP in respect of the Clearing Fund, payable to the Clearing Member by CDP pursuant to this Rule 7.7A or paid directly to CDP as determined by CDP.

Added on 21 January 201321 January 2013.

Interest and any other sums accruing to the assets of the Clearing Fund shall not form part of the assets of the Clearing Fund.

Added on 21 January 201321 January 2013.

CDP shall pay the Clearing Member interest on their respective contributions to the Clearing Fund and on any excess monies or assets placed with CDP in respect of the Clearing Fund at such rate and in such manner as prescribed by CDP and notified to the Clearing Member.

Added on 21 January 201321 January 2013 and amended on 26 May 2023.

Except as set forth in this Rule, CDP shall have no obligation to make payment of any other fees, interest and investment earnings arising from or in connection with the assets of the Clearing Fund, and any excess monies or assets placed with CDP in respect of the Clearing Fund, to any person.

Added on 21 January 201321 January 2013.

Subject to Rule 7.8.2 and unless otherwise provided in the Clearing Rules or as determined by CDP, the Clearing Fund may be applied in the manner set out in Rule 7.9, to meet any losses, costs or expenses incurred by CDP arising from or in connection with an Event of Default, whether such losses, costs or expenses are incurred before or after the Event of Default has been declared.

Amended on 23 January 200923 January 2009, 21 January 201321 January 2013, 6 September 2021 and 26 May 2023.

CDP shall apply the Clearing Fund in respect of an Event of Default only after the Defaulting Clearing Member's Collateral deposited with or provided to CDP has been fully applied, in accordance with Rule 8.6B, to satisfy the obligations of the Clearing Member to CDP.

Added on 21 January 201321 January 2013. and amended on 26 May 2023.

The Clearing Fund shall be applied in the following order:—

Amended on 3 May 20113 May 2011, 26 May 2023 and 31 October 2024.

Following the application of the Clearing Fund for the first Event of Default in a Relevant Period, any subsequent application of the Clearing Fund for subsequent Events of Default in the same Relevant Period shall continue from the remaining funds in the source of contribution with the highest order of application that has not been exhausted by the previous Event of Default.

Amended on 3 May 20113 May 2011 and 26 May 2023.

Once all the sources of contribution to the Clearing Fund have been exhausted, any further application of the Clearing Fund (as topped up in accordance with Rule 7.10) shall, irrespective of the number of times it has been topped up, and subject to Rules 7.10.4, 7.10.5 and 7.10.6, begin again at the start of and flow in the sequence of the priority set out in Rule 7.9.1.

Amended on 3 May 20113 May 2011, 26 May 2023 and 31 October 2024.

Upon the commencement of a new Relevant Period, regardless of the last source of contribution applied in the previous Relevant Period, any application of the Clearing Fund in the new Relevant Period shall begin at the start of the sequence of priority set out in Rule 7.9.1.

Amended on 3 May 20113 May 2011 and 26 May 2023.

Notwithstanding Rule 7.9.1, CDP shall be entitled to draw upon its available lines of credit or other such liquidity resources available to CDP at any time for the purposes set out in Rule 7.8 in the event that any of the assets comprising the Clearing Fund are not immediately available for application in accordance with Rule 7.9.1, such unavailability arising for example, where the cash deposits of the Clearing Fund are placed in fixed deposit accounts and penalty charges may be incurred for the premature termination of the fixed deposit accounts, or where there is delay in the realisation or disposal of the resources and assets of the Clearing Fund, or where there is delay in obtaining payment from the guarantees or other facilities of the Clearing Fund, or where CDP, in its absolute discretion, deems it advisable to draw upon its available lines of credit or other such liquidity resources available to CDP first.

Amended on 3 May 20113 May 2011 and 26 May 2023.

Where CDP, in lieu of applying any source of contribution, draws down on any lines of credit or other such liquidity resources available to CDP pursuant to Rule 7.9.5, CDP shall be entitled to be reimbursed from that source of contribution for the amount drawn down and all costs in relation to the draw down.

Amended on 3 May 20113 May 2011 and 26 May 2023.

CDP shall notify a Clearing Member in writing whenever its contributions to the Clearing Fund (or any part thereof) are applied in accordance with Rule 7.9.

Amended on 26 May 2023.

A Defaulting Clearing Member shall reimburse the Clearing Fund for any amount (except the amount it contributed to the Clearing Fund) which was applied out of the Clearing Fund as a result of or in connection with its default. Such reimbursement shall be made by such time as determined by CDP.

Amended on 26 May 2023.

If any amount is paid out of a Clearing Member's Collateralised Contributions or Contingent Contributions, the Clearing Member shall, upon demand by CDP, top-up the deficiency in its contributions arising from the said payment within such time as determined by CDP. CDP shall notify each Clearing Member in writing of the amount to be topped up and the time within which such top-up is required to be made under this Rule.

Amended on 1 July 20081 July 2008, 3 May 20113 May 2011, 26 May 2023 and 31 October 2024.

Notwithstanding any top-up pursuant to Rule 7.10.3, the application of a non-Defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution for each Event of Default shall not exceed an amount equal to its required Collateralised Contribution and Contingent Contribution amounts as set out in Rule 7.2.1A(2) and (3).

Added on 26 May 2023 and amended on 31 October 2024.

Notwithstanding Rule 7.9 and subject to Rule 7.10.6, the aggregate amount of a non-Defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution that can be applied in respect of all Events of Default occurring within a period of 30 calendar days shall not exceed an amount equal to three times of that Clearing Member's Prescribed Contributions as at the start of that 30-day period.

Added on 31 October 2024.

Where an Event of Default occurs, the amount of a non-Defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution that is available for application in respect of that Event of Default is the lower of:

1. an amount equal to three times of the Clearing Member’s Prescribed Contributions as at the start of the 30-day period that ends on the day of the Event of Default less the aggregate amount of that Clearing Member’s Collateralised Contribution and Contingent Contribution that has already been utilised for all other preceding Events of Default that had occurred in that 30-day period; or
2. where the Clearing Member’s Collateralised Contribution was adjusted during the aforementioned 30-day period, an amount (“Adjusted Amount”) equal to three times of the consequently adjusted Prescribed Contributions less the aggregate amount of the Clearing Member’s Collateralised Contribution and Contingent Contribution that has already been utilised for Events of Default that occurred after the day of that adjustment but before the Event of Default.

In the event the Clearing Member’s Collateralised Contribution is adjusted multiple times during the 30-day period, a separate Adjusted Amount shall be calculated for each adjustment and the lowest Adjusted Amount shall apply for the purpose of this Rule 7.10.6(2).

Refer to Practice Note 7.10.5, 7.10.6.

Added on 31 October 2024.

Deleted on 31 October 2024.

Amended on 26 May 2023 and Deleted on 31 October 2024.

Amended on 3 May 20113 May 2011 and 26 May 2023.

Any amount that is attributed back to non-Defaulting Clearing Members’ Collateralised Contributions or Contingent Contributions shall be allocated among the Clearing Members on a pro-rata basis, based on the amount that was paid out from each Clearing Member’s contribution relative to the aggregate amount that was paid out from all non-Defaulting Clearing Members’ contributions.

Added on 26 May 2023.

The amount of Collateralised Contributions or Contingent Contributions that is attributed back to a Clearing Member pursuant to Rule 7.12.1C shall be paid out to the Clearing Member, save where the Clearing Member has not met its top-up obligations pursuant to Rule 7.10.3, in which event the amount will be paid into the Clearing Fund to make good the Clearing Member’s obligations before the remainder is paid out to the Clearing Member.

Added on 26 May 2023.

Any amount to be paid back to the CDP First Contribution or the CDP Second Contribution shall be paid back to the Clearing Fund (and not to CDP) only to the extent that the source of contribution has not been fully topped up by CDP. Any amount in excess shall be paid back to CDP.

Added on 26 May 2023.

Deleted on 26 May 2023.

Within 6 months of a Clearing Member’s effective date of resignation, CDP shall return to the Clearing Member the unapplied portion of its Clearing Fund contributions, net of any outstanding liabilities, whether actual or contingent, that the Clearing Member may owe to CDP before the effective date of resignation.

Amended on 26 May 2023 and 31 October 2024.

Deleted on 3 May 20113 May 2011.

Deleted on 3 May 20113 May 2011.

Deleted on 3 May 20113 May 2011.

Deleted on 3 May 20113 May 2011.

Deleted on 3 May 20113 May 2011.

Amended on 3 May 20113 May 2011 and deleted on 26 May 2023.

Added on 3 May 20113 May 2011 and deleted on 26 May 2023.

Deleted on 26 May 2023.