Whole Section

  • 19.9 Internal Controls

    • 19.9.1

      A Trading Member must establish and maintain adequate internal control systems to:—

      (1) set credit limits or position limits;
      (2) monitor positions to manage market and credit risks, and comply with notification requirements on monitoring thresholds as prescribed by SGX-ST;
      (3) compute and collect margins, including conducting daily valuation of customers' positions and collateral;
      (4) monitor margin calls;
      (5) manage customers' accounts that are in margin deficit;
      (6) manage customers' accounts that may fail to meet settlement obligations;
      (7) define and manage sources of liquidity to ensure that there are sufficient liquidity facilities to meet increased settlement obligations;
      (8) limit the impact of significant market movements through the use of tools such as cash flow projections, stress testing or credit limits; and
      (9) meet such other requirements as SGX-ST may prescribe from time to time.