Whole Section

  • 5.1D Minimum Capital and Financial Requirements of Clearing Members Incorporated Outside Singapore

    • 5.1D.1

      Each General Clearing Member incorporated outside Singapore shall at all times:—

      (1) Base Capital Requirement
      (a) maintain net head office funds of not less than S$5,000,000; or
      (b) in the case of a General Clearing Member who is also a clearing member of SGX-DC, maintain net head office funds of not less than S$8,000,000;
      (2) Adjusted Net Head Office Funds Requirement

      not cause or permit its adjusted net head office funds to fall below its total risk requirement;
      (3) Aggregate Indebtedness

      not cause or permit its aggregate indebtedness to exceed 1,200% of its aggregate resources; and
      (4) Other Requirements

      comply with the accounting, reporting, book-keeping and any other financial and operational requirements prescribed by CDP.

      Added on 1 July 20081 July 2008.

    • 5.1D.2

      Each Bank Clearing Member incorporated outside Singapore shall at all times:—

      (1) Base Capital Requirement
      (a) maintain a base capital of not less than S$5,000,000; or
      (b) in the case of a Bank Clearing Member who is also a clearing member of SGX-DC, maintain a base capital of not less than S$8,000,000;
      (2) RRA Financial Requirement

      comply with all applicable RRA Financial Requirements; and
      (3) Other Requirements

      comply with the accounting, reporting, book-keeping and any other financial and operational requirements prescribed by CDP in relation to the Bank Clearing Member's business governed by this Clearing Rules.

      Added on 1 July 20081 July 2008 and amended on 25 August 200925 August 2009 and 22 April 201922 April 2019.

    • 5.1D.3

      A Clearing Member shall immediately notify CDP if it fails to meet the minimum capital and financial requirements prescribed in the preceding paragraphs or becomes aware that it will fail to comply with such requirements.

      Added on 1 July 20081 July 2008.

    • 5.1D.4

      If CDP is notified by a Clearing Member under Rule 5.1D.3 or becomes aware (whether or not there has been any notification by the Clearing Member under Rule 5.1D.3) that such Clearing Member has failed to comply with the minimum capital and financial requirements prescribed in the preceding paragraphs, CDP may direct the Clearing Member to do one (1) or more of the following actions:—

      (1) liquidate or cease any increase in positions for any account carried by the Clearing Member;
      (2) liquidate or transfer all or part of any customer's positions, securities margins, collateral, assets and accounts to one (1) or more other Clearing Members. For the avoidance of doubt, reference to "customer's positions, securities margins, collateral, assets and accounts" in relation to a Bank Clearing Member, shall refer to customer's positions, securities margins, collateral, assets and accounts falling within the Bank Clearing Member's business governed by this Clearing Rules;
      (3) operate its business or in the case of a Bank Clearing Member, its business governed by this Clearing Rules, in such manner and on such conditions as CDP may impose.

      Added on 1 July 20081 July 2008.