15.2	An FMI should hold liquid net assets funded by equity (such as common stock, disclosed reserves, or other retained earnings) so that it can continue operations and services as a going concern if it incurs general business losses. The amount of liquid net assets funded by equity an FMI should hold should be determined by its general business risk profile and the length of time required to achieve a recovery or orderly wind-down, as appropriate, of its critical operations and services if such action is taken.
APEX Clear holds liquid nett assets funded by equity mainly in the form of cash and cash equivalents deposited with reputable banks with investment grade credit ratings. APEX Clear also maintains liquid funds to meet at least six months of current operating expenses APEX Clear also ensures that it meets the capital adequacy requirements by Monetary Authority of Singapore (MAS) to meet its operational, investment and general counterparty risks. With these controls in place, APEX Clear is able to meet its immediate liabilities and to implement its recovery or orderly wind-down plan of its critical operations and services if such action is taken.
15.3	An FMI should maintain a viable recovery or orderly wind-down plan and should hold sufficient liquid net assets funded by equity to implement this plan. At a minimum, an FMI should hold liquid net assets funded by equity equal to at least six months of current operating expenses. These assets are in addition to resources held to cover participant defaults or other risks covered under the financial resources principles. However, equity held under international risk-based capital standards can be included where relevant and appropriate to avoid duplicate capital requirements.
APEX Clear maintains liquid net assets funded by equity equal to at least six months of current operating expenses as well as a recovery and orderly wind-down planto ensure a viable recovery or orderly windi-down. This recovery and orderly wind-down plan continues to be enhanced in line with its actual operational experience, and will be reviewed annually.
15.4	Assets held to cover general business risk should be of high quality and sufficiently liquid in order to allow the FMI to meet its current and projected operating expenses under a range of scenarios, including in adverse market conditions.
APEX Clear’s share capital is largely maintained in current accounts and fixed deposits with bank counterparties of investment grade credit rating. These banks are also regulated by the MAS. APEX Clear may also consider investing in Singapore government bonds which are of AAA credit rating, at a later point in time. Cash deposited in current accounts and fixed deposits, and Singapore Government bonds are regarded as high quality and liquid assets.
15.5	An FMI should maintain a viable plan for raising additional equity should its equity fall close to or below the amount needed. This plan should be approved by the board of directors and updated regularly.
The initial share capital injected into APEX Clear is intended to cover its operating requirements for a medium term of at least 5 years. The capital plan is reviewed regularly at the Board meetings, and should the need arise for raising additional equity, the plan will be approved by the Board.