ICE CLEAR 

SINGAPORE 

S-1 SUPPLEMENT 

ANNEX A-1(1)
ACCOUNTING AND CORPORATE REGULATORY AUTHORITY ~FILE (ACRA) ~ 

Company No: 200702503C 

CERTIFICATE CONFIRMING INCORPORATION OF COMPANY 

This is to confirm that SINGAPOfiE MERCANTILE EXCHANGE CLEARING 

CORPORATION PTE. LTD. is incorporated under the Companies Act (Cap 

50), on and from 12/02/2007 and that the company is a PRIVATE 

COMPANY LIMITED BY SHARES. 

GIVEN UNDER MY HAND AND SEAL ON 14/02/2007. 

LINDA LEE 

ASSISTANT REGISTRAR 

ACCOUNTING AND CORPORATE REGULATORY AUTHORITY (ACRA) 

SINGAPORE 
FRIDAY, APRIL 25, 2014 1

First published in the Government Gazette, Electronic Edition, on 21st April 2014 at 5.00 pm.

No. 932 –– SECURITIES AND FUTURES ACT (CHAPTER 289)

APPROVED CLEARING HOUSE

It is hereby notified for general information that, Singapore Mercantile 

Exchange Clearing Corporation Pte Ltd, which has been approved by the 

Monetary Authority of Singapore as an approved clearing house pursuant to 

section 51(1) of the Securities and Futures Act, has changed its name to ICE 

Clear Singapore Pte. Ltd. with effect from 22nd April 2014.

[MPI-MIS 07/2010 Vol. 1]
ICE CLEAR 

SINGAPORE 

S-1 SUPPLEMENT 

ANNEX A-1(3) 


































ICE Clear Singaporesm

Clearing Rules
i

Table of Contents

Part 1 General Provisions ..........................................................................................................................................1

Part 2 Clearing Membership ....................................................................................................................................43

Part 3 Financial Requirements and Payments..........................................................................................................62

Part 4 Clearing Mechanism .....................................................................................................................................68

Part 5 Margin ...........................................................................................................................................................79

Part 6 Exposure Limits ............................................................................................................................................85

Part 7 Settlement and Delivery of Futures...............................................................................................................87

Part 8 [Not used.].....................................................................................................................................................91

Part 9 Default Rules.................................................................................................................................................92

Part 10 Disciplinary Proceedings.............................................................................................................................119

Part 11 Guaranty Fund.............................................................................................................................................130

Part 12 Settlement Finality ......................................................................................................................................137

Part 13 [Not used.]...................................................................................................................................................147

Part 14 [Not used.]...................................................................................................................................................147

Part 15 [Not used.]...................................................................................................................................................147

Part 16 [Not used.]...................................................................................................................................................147

Part 17 [Not used.]...................................................................................................................................................147

Part 18 [Not used.]...................................................................................................................................................147

Part 19 [Not used.]...................................................................................................................................................147

Part 20 [Not used.]...................................................................................................................................................147

Exhibit 1 [Not used.]............................................................................................................................................148

Exhibit 2 Customer-CM Transactions Standard Terms.......................................................................................149

Exhibit 3 [Not used.]............................................................................................................................................162

Exhibit 4 [Not used.]............................................................................................................................................163
1

Part 1 General Provisions

Rule 101 Definitions

The term "Account" means a Customer Account or a Proprietary Account, as the case may 

be, of a Clearing Member.

The term "Accounting Standards" means applicable accounting standards and principles.

The term "Affected FM Party" means a Person prevented, hindered or delayed by a Force 

Majeure Event.

The term "Affiliated Person" or "Affiliate" means, with respect to any specified Person, any 

other Person that Controls, is Controlled by, or is under common Control with, such specified 

Person.

The term "Appeals Panel" means the panel at which an appeal of a decision of a Disciplinary 

Panel is heard pursuant to Rule 1005.

The term "Applicable Law" means any applicable national, federal, supranational, state, 

regional, provincial, local or other statute, law, ordinance, regulation, rule, code, guidance, 

order, published practice or concession, regulatory requirement, judgment or decision of a 

Governmental Authority and, for the avoidance of doubt, includes MAS Requirements and 

any rules, regulations, guidance and approach document of any other Regulatory Authority.

The term "Approved Financial Institution" means a Person which has been designated as 

an approved financial institution by the Clearing House for purposes of making and receiving 

cash transfers to and from the Clearing House and Payment Transfer Orders.

The term "Assessment Amount" means the total amount of all Assessment Contributions 

payable by Clearing Members pursuant to Rule 909(a) in respect of an Event of Default.

The term "Assessment Contribution" has the meaning set out in Rule 909(b).

The term "Bank" has the meaning given to the term "bank" in Section 2 of the Banking Act 

(Chapter 19 of Singapore).

The term "Board" means the board of Directors of the Clearing House and, in the context of 

any power, discretion or authority of the board of the Clearing House, includes any other 

body established thereunder or given powers or discretions thereby, whether called a board, a 

committee or otherwise.

The term "Business Day" means a day on which the Clearing House is open for business or, 

in relation to deliveries in respect of a particular Contract, has the meaning given in the 

Delivery Procedures or, in relation to certain Contract Terms, has the meaning given in or 

pursuant to the Contract Terms Procedures, ICE Futures Singapore Contract Terms or the 

ICE Futures Singapore Rules.

The term "Buyer" means, in relation to deliveries under Part 7, the Clearing Member or the 

Clearing House, whichever is obliged to receive delivery of a Deliverable (whether itself or 

through another Person).
2

The term "Buying Counterparty" means, in respect of a Contract: (a) the Clearing Member 

that was, before formation of a Contract, party to the corresponding Transaction as buyer (or, 

in relation to a Financially-Settled FX Contract, Reference Currency Buyer); (b) where a 

Clearing Member's Customer is a party to the corresponding Transaction as buyer, the 

Clearing Member that provides clearing services to that Customer in relation to the 

Transaction in question (or, if more than one such Clearing Member exists, the Clearing 

Member that was selected by the Customer for the initial booking of that Transaction); or 

(c) overriding any designation that would occur pursuant to (a) or (b) above, where one 

Clearing Member that would be the Buying Counterparty in accordance with (a) or (b) above 

has allocated a Transaction to another Clearing Member for clearing in accordance with 

Market Rules, the Clearing Member to whom such Transaction is allocated.

The term "Capital", means Base Capital or Net Head Office Funds (both as defined in the 

Membership Procedures), and such other classes of capital as are permitted at the Clearing 

House's discretion pursuant to the Membership Procedures.

The term "Chairman" means the chairman of the Board from time to time.

The term "Circular" means a publication issued by the Clearing House for the attention of all 

Clearing Members and posted on the Clearing House's website in accordance with 

Rule 109(g).

The term "Clearing" means the central counterparty and, where relevant, related risk, Open 

Contract Position, Margin, settlement, delivery, administrative, acceptance, transaction data, 

settlement price establishment and other functions of the Clearing House pursuant to these 

Rules.

The term "Clearing House" means ICE Clear Singapore Pte. Ltd., a company incorporated in 

the Republic of Singapore under registration number 200702503C.

The term "Clearing House Account" means an account of the Clearing House at an 

Approved Financial Institution.

The term "Clearing House Contributions" means the Clearing House GF Contribution and 

the Clearing House Initial Contribution.

The term "Clearing House Event" means a Failure To Pay or Insolvency occurring in 

respect of the Clearing House.

The term "Clearing House GF Contribution" means amounts allocated by the Clearing 

House as being available to be applied following an Event of Default in accordance with 

Rule 908(b)(iii)(B) and as maintained pursuant to Rule 1103(f) including, where the context 

so requires, any proceeds of realisation of the same.

The term "Clearing House Initial Contribution" means amounts allocated by the Clearing 

House as being available to be applied following an Event of Default in accordance with 

Rule 908(b)(ii) and as maintained pursuant to Rule 1103(f) including, where the context so 

requires, any proceeds of realisation of the same.

The term "Clearing Member" means a Person which: (i) is incorporated or otherwise 

established in Singapore, or has established a branch in Singapore; (ii) is a Bank or holds a 

CMS Licence; (iii) has entered into a Clearing Membership Agreement with the Clearing 
3

House; (iv) has been admitted as a clearing member pursuant to Part 2 of these Rules; and 

(v) is authorised by the Clearing House to become party to Contracts.

The term "Clearing Membership Agreement" means an agreement between the Clearing 

House and a Clearing Member under which, inter alia, the Clearing House agrees to provide 

Clearing in respect of Contracts to that Clearing Member and that Clearing Member agrees to 

be bound by and subject to these Rules. 

The term "Clearing Organisation" means any clearing house duly authorised, regulated, 

recognised or licensed under Applicable Laws in any jurisdiction, including any approved 

clearing house, recognised clearing house, recognised overseas clearing house, derivatives 

clearing organisation or similar entity.

The term "Clearing Processing System" means the clearing processing systems and 

platforms used by the Clearing House for Contracts.

The term "CMS Licence" means a capital markets service licence granted by the MAS 

pursuant to Section 86 of the SFA, which, for the avoidance of doubt, is a licence falling 

within Regulation 15(c) of the SF(FMR)R.

The term "CNH" means Renminbi, being the lawful currency of the People's Republic of 

China that is lawfully circulated and traded in any jurisdiction outside the territory of the 

People's Republic of China (and, for the avoidance of doubt, the territory of the People’s 

Republic of China shall, for the purposes of this definition, exclude the Hong Kong Special 

Administrative Region, Macau Special Administrative Region and Taiwan), or any lawful 

successor currency or currencies thereto.

The term "Collateral Offset Obligations" means obligations of a Clearing Member arising 

pursuant to Rule 919 to pay the Clearing House, which offset obligations of the Clearing 

House to pay the Clearing Member or return assets in respect of Permitted Cover transferred 

to the Clearing House by the Clearing Member.

The term "Concentration Bank" means an Approved Financial Institution at which the 

Clearing House has an account or accounts for the purpose of making transfers between 

Clearing House Accounts.

The term "Contract" means a contract between the Clearing House and a Clearing Member 

arising in accordance with these Rules, and as amended, subject to netting or aggregation in 

accordance with these Rules, the terms and conditions of which are the relevant Contract 

Terms.

For the definition of the term "Contract Position", see 'Open Contract Position' below.

The term "Contract Terms" means all the terms and conditions of a Contract, as applicable, 

in: (i) the general conditions set out in the Contract Terms Procedures; (ii) the ICE Futures 

Singapore Rules; (iii) the ICE Futures Singapore Contract Terms; and (iv) (except in relation 

to Contracts which are settled only in cash) if such Contract becomes deliverable, the relevant 

Delivery Procedures for the class of Contract, the specified terms set out in the Contract 

Terms Procedures, ICE Futures Singapore Rules and ICE Futures Singapore Contract Terms.

The term "Control" has the meaning given to that term in Section 97A(6)(b) of the SFA, and 

its cognate terms shall be construed accordingly.
4

The term "Controller" means a Person who exercises Control over a Person, and its cognate 

terms shall be construed accordingly.

The term "Custodian" means any custodian, sub custodian, nominee, agent, depository or 

settlement system.

The term "Customer" means a Person who is a client or customer of a Clearing Member 

(which Customer may, subject to Applicable Law, be acting for one or more other clients or 

customers for purposes of the clearing of Contracts) provided that: (i) a Customer does not 

include a director, officer, employee or representative of the Clearing Member; (ii) a 

Customer shall only include a related corporation (as defined in Section 4(1) of the 

Companies Act (Chapter 50 of Singapore)) to the extent such related corporation acts for a 

client or customer who is not a related corporation of the Clearing Member; and (iii) a 

Customer does not include the Clearing Member itself. 

The term "Customer Account" means any one customer account at the Clearing House 

opened in the name of a Clearing Member for the recording of Contracts to which that 

Clearing Member is a party as a result of it acting for one or more Customers, and related 

Margin (and in which no assets or positions relating to the Clearing Member's Proprietary 

Account are recorded, enabling the Clearing Member to distinguish the assets and positions 

in Contracts held for the account of its Customers from those held for its Proprietary 

Account). Each Customer Account comprises the related Customer Position Account and 

Customer Margin Account. 

The term "Customer Account Contract" means a Contract recorded in a Customer Position 

Account.

The term "Customer Account Position" means an Open Contract Position as recorded in a 

Customer Position Account.

The term "Customer-Clearing Member Agreement" has the meaning set out in the 

Standard Terms.

The term "Customer-CM Transaction" means a Transaction between a Clearing Member 

and a Customer on economic terms similar to those of a corresponding Contract recorded in 

the Clearing Member's Customer Account (except, where applicable, the position of the 

Clearing Member as Buying Counterparty or Selling Counterparty and otherwise due to being 

governed by the Standard Terms).

The term "Customer-CM Collateral" means collateral provided by a Customer to a Clearing 

Member as collateral for the Customer's obligations (or, where applicable, other obligations) 

to the Clearing Member under Customer-CM Transactions.

The "Customer Margin Account" forms part of a Customer Account and the term means an 

account with the Clearing House opened in the name of a Clearing Member for the recording 

of debits and credits of Margin in respect of Customer Account Contracts recorded in the 

related Customer Position Account.

The "Customer Position Account" forms part of a Customer Account and the term means an 

account (if any) with the Clearing House opened in the name of a Clearing Member relating 
5

to Contracts to which the Clearing Member is a party as a result of it acting for one or more 

Customers and in which the Clearing House records such Contracts.

The term "Default Notice" means a notice issued by the Clearing House under Rule 902(b).

The term "Default Portability Preference" means the identity of any one or more designated 

"preferred" Transferee Clearing Member(s) specified to the Clearing House by a Customer as 

being the Clearing Member to which it would prefer its Customer-CM Transactions (and 

related Contracts) to be Transferred pursuant to the Default Portability Rules in the case of an 

Event of Default.

The term "Default Portability Rules" means Rule 904 and any terms setting out the meaning 

of the defined terms used therein.

The term "Defaulter" means a Clearing Member or former Clearing Member in respect of 

whom a Default Notice has been issued.

The term "Deliverable" means any property, right, interest, register or book entry, 

commodity, certificate, property entitlement or Investment, which is capable of being 

delivered pursuant to a Contract or with respect to which settlement amounts are calculated.

The term "Delivery Default" means a Clearing Member failing to deliver or transfer to the 

Clearing House in full any Deliverable required to be delivered or transferred by that 

Clearing Member under or in connection with any Contract, including a failure to deliver or 

transfer a Deliverable in accordance with the applicable Delivery Procedures, unless such 

failure constitutes a Force Majeure Event affecting the relevant Clearing Member.

The term "Delivery Facility" means any Person or facility used for the delivery of 

Deliverables (excluding Transferors and Transferees).

The term "Director" means a director of the Clearing House.

The term "Disciplinary Panel" means a disciplinary panel established pursuant to Rule 1003.

The term "Dispute" means any dispute, difference, controversy or claim (of any and every 

kind or type, whether based on contract, tort, statute, regulation, or otherwise) arising out of, 

in relation to, or in connection with these Rules or any Contract, including any dispute as to 

the existence, construction, validity, interpretation, enforceability, termination or breach of 

these Rules or any Contract.

The term "EFPs" means 'exchange for physicals' under the ICE Futures Singapore Rules or 

any similar transaction under such rules.

The term "EFSs" means 'exchange for swaps' under the ICE Futures Singapore Rules or any 

similar transaction under such rules.

The term "Eligible Currencies" means EUR, SGD, USD, CNH and such other currencies as 

are specified as eligible in the Finance Procedures or otherwise by the Clearing House from 

time to time.

The term "Encumbrance" means any claim, charge, mortgage, security, lien, equity, 

beneficial interest, power of sale, option or other right to purchase, usufruct, hypothecation, 
6

retention of title, right of pre-emption or other third party right or security interest of any kind 

or an agreement to create any of the foregoing.

The term "EUR" means the euro, or any lawful successor currency or currencies thereto.

The term "Event of Default" has the meaning set out in Rule 901 and the term "Default" 

shall be construed accordingly.

The term "Exchange" means any exchange or similar body duly authorised, regulated, 

recognised or licensed (to the extent necessary) under Applicable Laws in any jurisdiction, 

including, but not limited to, any recognised investment exchange, recognised overseas 

investment exchange, designated investment exchange, designated contract market, national 

securities exchange, swap execution facility, security-based swap execution facility, exempt 

commercial market, regulated market, alternative trading system, multilateral trading facility, 

swap execution facility, organised trading facility, systematic internaliser, trade affirmation 

or confirmation platform or similar entity.

The term "Exchange Delivery Settlement Price" in respect of a Set of Contracts or a 

Contract, means the closing, delivery or cash settlement price determined pursuant to 

Rule 701.

The term "Exposure Limit", of any Clearing Member or in respect of any Account, means 

the limit(s) on Open Contract Positions established by the Clearing House pursuant to 

Rule 601.

The term "Failure To Pay" means, in respect of a Contract, the failure of the Clearing House 

to make any payment when due pursuant to Part 3 of the Rules if such failure is not remedied 

on or before:

(i) if no extension has been granted to the Clearing House pursuant to 

Rule 110(b) or Rule 110(c) prior to this date: the date falling 3 Business Days 

after notice of such failure is given to it by the Clearing Member to whom 

such payment or return is due; or

(ii) if an extension has been granted to the Clearing House as referred to in 

paragraph (i) of this definition, 10 a.m. on the next Business Day after service 

of a notice of that failure to the Clearing House by the Clearing Member to 

whom such payment or return is due, provided that such notice is given no 

earlier than the final day of a period for which an extension has been granted 

to the Clearing House pursuant to Rule 110(b) or Rule 110(c),

save to the extent that any such failure to pay or return constitutes a Force Majeure Event 

affecting the Clearing House.

The term "Financial Emergency" means, with respect to any Clearing Member, any 

situation in which the financial or operational condition of such Clearing Member is not or is 

likely not to be, in either case determined at the discretion of the Clearing House, adequate 

for such Clearing Member to meet its obligations (including, without limitation, its 

obligations to comply with these Rules) or to engage in business, or is such that it would not 

be in the best interests of the Clearing House or the marketplace for such Clearing Member to 

continue to be a Clearing Member.
7

The term "Financial Indebtedness" means any indebtedness for or in respect of: (a) monies 

borrowed; (b) any amount raised by acceptance under any acceptance credit facility or 

dematerialised equivalent; (c) any amount raised pursuant to any note purchase facility or the 

issue of bonds, notes, debentures, loan stock or any similar instrument; (d) the amount of any 

liability in respect of any lease or hire purchase contract which would, in accordance with 

applicable accounting standards, be treated as a finance or capital lease; (e) receivables sold 

or discounted (other than any receivables to the extent they are sold on a non-recourse basis); 

(f) any amount raised under any other transaction (including any forward sale or purchase 

agreement) having the commercial effect of a borrowing; (g) any counter-indemnity 

obligation in respect of a guarantee, indemnity, bond, standby or documentary letter of credit 

or any other instrument issued by a bank or financial institution; and (h) the amount of any 

liability in respect of any guarantee or indemnity for any of the items referred to in (a) to (g) 

above.

The term "Financially-Settled FX Contract" means an FX Contract which provides for cash 

settlement in a single predetermined currency on the relevant FX Settlement Date based on 

the difference between the values on the FX Settlement Date of: (i) the purchase of an agreed 

amount in one currency by the Reference Currency Buyer from the Reference Currency 

Seller; and (ii) the purchase by the Reference Currency Seller of an agreed amount in a 

different currency from the Reference Currency Buyer. 

The term "Force Majeure Event" means any occurrence outside the control of the Clearing 

House or the relevant Clearing Member, as applicable, which hinders or prevents the 

performance in whole or in part of any of its obligations hereunder (excluding an obligation 

to make a payment, except for a payment by the Clearing House to a Clearing Member that 

would be funded from a Clearing House Account at a Concentration Bank which 

Concentration Bank has not released or made available funds to the Clearing House when 

expected or required) (and, in relation only to any obligation of the Clearing House or a 

Clearing Member under a Contract, which obligation has not yet fallen due, such an 

occurrence which would hinder or prevent performance in whole or in part of any of its 

obligations thereunder were the occurrence or effects of the occurrence to continue until the 

date of performance of the relevant obligation), including, but not limited to, fire, flood, 

storm, earthquake, explosion, war, hostilities, accidents howsoever caused, strike, labour 

dispute, lockout, work to rule or other industrial dispute, lack of energy supply, criminal 

action, terrorist action, civil unrest, embargoes, acts of God, acts of a public enemy, 

unavailability or impairment of computer or data processing facilities, the actions or 

omissions of third Persons (including, without limitation, Repositories, Delivery Facilities,

Approved Financial Institutions, Concentration Banks, bank or electronic transfer systems, 

Exchanges, Clearing Organisations, Governmental Authorities and Regulatory Authorities, 

but excluding the Clearing House in the case of a Force Majeure Event affecting the Clearing 

House and further excluding a Clearing Member, its Customers, Transferors and Transferees 

in the case of a Force Majeure Event affecting a Clearing Member); and in relation to 

delivery of a Deliverable pursuant to any Contract, any event that is an event of force majeure 

(or similar event, howsoever defined) for that Contract under the Contract Terms or Market 

Rules.

The term "Future" means a Contract that is a 'futures contract' under Section 2(1) of the 

SFA, (including, for the avoidance of doubt, short dated instruments on the same terms as 

futures that are entered into during the last week of trading) and including any similar 

contract treated as such under any Applicable Law.
8

The term "FX" means foreign exchange.

The term "FX Contract" means a Contract that is a foreign exchange contract that is subject 

to Clearing pursuant to these Rules.

The term "FX Settlement Date" means in relation to a Financially-Settled FX Contract, 

means the date on which the Reference Currency Buyer or Reference Currency Seller is 

obliged to make payment to the other party in order to discharge its obligations under the 

contract, which date may be expressed as a settlement, termination or payout date.

The term "FX Transaction" means an ICE Futures Singapore Transaction which is an 

FX transaction. 

The term "Goods and Services Tax" means any goods and services tax, consumption tax, 

value added tax or any tax of a similar nature.

The term "Governmental Authority" means any Regulatory Authority and any national, 

federal, supranational, state, regional, provincial, local or other government, government 

department, ministry, governmental or administrative authority, regulator, agency, 

commission, secretary of state, minister, court, tribunal, judicial body or arbitral body or any 

other Person exercising judicial, executive, interpretative, enforcement, regulatory, 

investigative, fiscal, taxing or legislative powers or authority anywhere in the world with 

competent jurisdiction (including, without limitation, the MAS).

The term "Group Company" means, with respect to any entity, a company which is a 

holding company, ultimate holding company or subsidiary of that entity or a subsidiary of 

any holding company or ultimate holding company of that entity. For the purposes of this 

definition, the expressions "holding company", "ultimate holding company" and "subsidiary" 

shall have the meanings given to them in Sections 5 and 5A of the Companies Act 

(Chapter 50 of Singapore), the expression "company" shall have the meaning given to it in 

Section 4 of the Companies Act (Chapter 50 of Singapore) and the expression "entity" shall 

have the same meaning as the expression "company".

The term "Guaranty Fund" means the guaranty fund established and maintained pursuant to 

Part 11 relating to ICE Futures Singapore Contracts. 

The term "Guaranty Fund Contribution" means Permitted Cover transferred by a Clearing 

Member to the Clearing House as a contribution to the Guaranty Fund pursuant to Part 11 

that has not been applied pursuant to Part 9 and includes, where the context so requires, any 

proceeds of realisation of the same.

The term "Guaranty Fund Period" for the Guaranty Fund, means such period as may be 

published from time to time by the Clearing House by Circular for which the total amount of 

Guaranty Fund Contributions for the Guaranty Fund is fixed (subject to any termination or 

suspension of any Clearing Member's membership or status as a Clearing Member, new 

Clearing Members making Guaranty Fund Contributions and the Clearing House's discretions 

pursuant to Part 11).

The term "Guidance" means guidance issued by the Clearing House pursuant to Rule 109(f).

The term "ICE Futures Singapore" means ICE Futures Singapore Pte. Ltd. (a company 

incorporated in the Republic of Singapore under registration number 200617072D) and the 
9

approved exchange (as defined in the SFA) known as and operated by ICE Futures 

Singapore.

The term "ICE Futures Singapore Block Contract" means a Contract resulting from an 

ICE Futures Singapore Block Transaction.

The term "ICE Futures Singapore Block Trade Facility" means the block trade facility 

operated by ICE Futures Singapore in accordance with the ICE Futures Singapore Rules.

The term "ICE Futures Singapore Block Transaction" means an EFS, EFP or ICE Futures 

Singapore Block Trade Facility transaction reported through ICE Futures Singapore in 

accordance with the ICE Futures Singapore Rules.

The term "ICE Futures Singapore Contract" means an ICE Futures Singapore Block 

Contract or an ICE Futures Singapore Matched Contract.

The term "ICE Futures Singapore Contract Terms" means the contract terms and 

procedures of ICE Futures Singapore.

The term "ICE Futures Singapore Matched Contract" means a Contract resulting from an 

ICE Futures Singapore Matched Transaction.

The term "ICE Futures Singapore Matched Transaction" means a Transaction that occurs 

or occurred on the ICE Futures Singapore exchange in accordance with the ICE Futures 

Singapore Rules.

The term "ICE Futures Singapore Rules" means the rules of ICE Futures Singapore.

The term "ICE Futures Singapore Transaction" means an ICE Futures Singapore Matched 

Transaction or an ICE Futures Singapore Block Transaction where the related trade 

particulars or data submitted or provided to the Clearing House or ICE Futures Singapore by 

or on behalf of a Clearing Member (including by any Representative) will give rise to a 

Contract or Contracts if the relevant circumstances specified in Rule 401(a) occur.

The term "ICE Group" means the Clearing House and all of its Group Companies.

The term "Illegality" means where, after giving effect to any applicable provision, disruption 

fallback or remedy specified in, or pursuant to, these Rules, the Procedures and the applicable 

Contract Terms, due to an event or circumstance (other than any action taken by a Clearing 

Member) occurring after a Contract arises, it becomes unlawful under any Applicable Law on 

any day, or it would be unlawful if the relevant payment, delivery or compliance were 

required on that day (in each case, other than as a result of a breach by the Clearing Member 

of Rules 202 and 203), to perform any absolute or contingent obligation to make a payment 

or delivery in respect of such Contract, to receive a payment or delivery in respect of such 

Contract or to comply with any other material provision of the Rules and Procedures relating 

to such Contract.

The term "Impossibility" means where, after giving effect to any applicable provision, 

disruption fallback or remedy specified in, or pursuant to, these Rules, the Procedures and the 

applicable Contract Terms, due to an event or circumstance (other than any action taken by a 

Clearing Member) occurring after a Contract arises, it becomes impossible on any day, or it 

would be impossible if the relevant payment, delivery or compliance were required on that 
10

day (in each case, other than as a result of a breach by the Clearing Member of Rules 202 and 

203), to perform any absolute or contingent obligation to make a payment or delivery in 

respect of such Contract, to receive a payment or delivery in respect of such Contract or to 

comply with any other material provision of the Rules and Procedures relating to such 

Contract.

The term "Insolvency" means, in relation to any Person: a bankruptcy or winding-up 

application being presented; a bankruptcy order being made; a voluntary arrangement being 

approved; an Insolvency Practitioner being appointed or application or order being made for 

such an appointment; a composition or scheme of arrangement being approved by a court or 

other Governmental Authority; an assignment, compromise or composition being made or 

approved for the benefit of any creditors or significant creditor; an order being made or 

resolution being passed for winding up; dissolution; the striking off of that Person's name 

from a register of companies or other corporate bodies; a distress or execution process being 

levied or enforced or served upon or against property of that Person; a Governmental 

Authority making an order pursuant to which any of that Person's securities, property, rights 

or liabilities are transferred; a Governmental Authority exercising, as it appears it to be 

necessary upon the occurrence of a Specified Event, one or more of the powers prescribed 

under any Applicable Law in Singapore, including but not limited to the powers prescribed 

under the Banking Act (Chapter 19 of Singapore) and the Monetary Authority of Singapore 

Act (Chapter 186 of Singapore), in respect of that Person; or any event analogous to any of 

the foregoing in any jurisdiction (always excluding any frivolous or vexatious petition or 

solvent reorganisation, change of Control or merger notified to the Clearing House in 

accordance with Rule 204(a)(i)).

The term "Insolvency Practitioner" means a receiver, judicial manager, administrator, bank 

administrator, manager or administrative receiver, liquidator, conservator, examiner, trustee 

in bankruptcy, relevant officeholder (under Part III of the SFA) or any other Person appointed 

or with powers in relation to an Insolvency in any jurisdiction.

The term "Intellectual Property" means all intellectual property rights in any part of the 

world and for the entire duration of such rights, which shall be deemed to include, without 

limitation, copyright, trade marks, design rights, patents, domain names, database rights and 

know-how, in each case whether registered or unregistered and including applications to 

register and rights to apply for registration, and all similar or equivalent rights which may 

subsist anywhere in the world.

The term "Investment" means any financial instrument, including any forward contract and 

any instruments which are securities, as the term 'forward contract' and 'securities' are defined 

in Section 2(1) of the SFA.

The term "Investment Losses" means losses, liabilities, damages, costs, claims, shortfalls or 

expenses incurred or suffered by the Clearing House, to the extent that the same are not 

subjected to any power of assessment under Rules 909 to 911, arising in connection with the 

default or Insolvency of an Approved Financial Institution, any Concentration Bank, any 

other Bank acting as banker to the Clearing House, the default of the issuer of any instrument, 

security or unit or any service provider appointed by or on behalf of such issuer, any 

Custodian and/or the counterparty to any repurchase or reverse repurchase contract or similar 

transaction in all cases in respect of any investment(s) or re-investment(s) by the Clearing 

House of assets representing Original Margin, Guaranty Fund Contributions or Permitted 

Cover in respect thereof (including any such assets transferred by a Defaulter) or the proceeds 
11

of any of the foregoing, other than any such losses, liabilities, damages, costs, claims, 

shortfalls or expenses resulting directly from a failure by the Clearing House to comply with 

its own investment policies.

The term "Invoice Back" means the process by which an offsetting Contract of the same Set 

as an existing Contract is created by the Clearing House pursuant to Rule 104(a)(i) or 

Rule 104(b) and Rule 401(a)(vi), with the role of Buying Counterparty or Selling 

Counterparty reversed and, at the Clearing House's discretion, a different price or premium 

and other terms as are determined by the Clearing House pursuant to Rule 104 or an existing 

Contract is terminated by the Clearing House pursuant to Rule 104(a)(i) or Rule 104(b) at a 

termination price and other terms as are determined by the Clearing House pursuant to 

Rule 104; and the terms "Invoiced Back", "Invoicing Back" and other similar expressions 

shall be construed accordingly.

The term "IRAS" means the Inland Revenue Authority of Singapore and any successor 

thereto.

The term "Loss Assets" means assets of the Clearing House of a value specified pursuant to 

Rule 919(p) which are intended to be applied towards Non-Default Losses or Investment 

Losses pursuant to Rule 919.

The term "Margin" means Permitted Cover required to be provided or actually provided (by 

way of title transfer pursuant to a Clearing Membership Agreement) to the Clearing House 

(or, in the case of Variation Margin, provided to or by the Clearing House, as the context may 

require or, in the case of Variation Margin provided pursuant to a transfer of cash) pursuant 

to a requirement for Original Margin, Variation Margin, or any other requirement under the 

Rules or the Finance Procedures and includes, where the context so requires, any proceeds of 

realisation of the same.

The term "Margin Account" means a Proprietary Margin Account or Customer Margin 

Account.

The term "Market" means the markets operated by ICE Futures Singapore. 

The term "Market Rules" means the rules, regulations, procedures of, and agreements 

governing, a Market, including the ICE Futures Singapore Rules and the ICE Futures 

Singapore Contract Terms.

The term "MAS" means the Monetary Authority of Singapore or any successor entity.

The term "MAS Requirements" means all requirements, regulations, notices, directions, 

guidelines, codes, practice notes, circulars, policy statements, guidance, examples, waivers 

and other similar materials published or otherwise made by the MAS from time to time.

The term "Monetary Default" means a Clearing Member failing to transfer to, deposit with, 

or pay to, the Clearing House in full any Margin, Guaranty Fund Contribution, amount due 

under or in connection with any Contract or other amount due to the Clearing House or 

required by or pursuant to Market Rules, unless such failure constitutes a Force Majeure 

Event affecting the relevant Clearing Member.

The term "Nominated Bank Account" means a Nominated Customer Bank Account or a 

Nominated Proprietary Bank Account.
12

The term "Nominated Customer Bank Account" means an account (if any) of a Clearing 

Member at an Approved Financial Institution, nominated by the Clearing Member in 

accordance with the Finance Procedures, used by the Clearing Member for transfers to or 

from the Clearing House of amounts due in respect of its Customer Account which may be 

designated by a Clearing Member for payments in respect of such Customer Account. For 

the avoidance of doubt, a Nominated Customer Bank Account is not and does not form part 

of a Customer Account.

The term "Nominated Proprietary Bank Account" means an account of a Clearing Member 

at an Approved Financial Institution, nominated by the Clearing Member in accordance with 

the Finance Procedures, used by the Clearing Member for transfers to or from the Clearing 

House of amounts due in respect of its Proprietary Account, which may be designated for 

payments in respect of Contracts. For the avoidance of doubt, a Nominated Proprietary Bank 

Account is not and does not form part of a Proprietary Account.

The term "Non-Default Losses" means losses, liabilities, damages, costs, claims, shortfalls or 

expenses incurred or suffered by the Clearing House that are not Investment Losses, arising 

in connection with any event other than an Event of Default and which threaten the Clearing 

House’s solvency.

The term "Non-Transfer Positions" in respect of a Customer Account of a Clearing 

Member, means the Customer Account Positions in respect of which either: (i) the relevant 

Customer has not made a Default Portability Preference; or (ii) a Default Portability 

Preference has been made by the relevant Customer but has not been communicated to the 

Clearing House by such Clearing Member or, where permitted, by such Customer, in each 

case in accordance with the Rules and the Procedures.

The term "Open Contract Position", in respect of each Set of Contracts for a Clearing 

Member from time to time, comprises the Contract Position and the Net Amount Position, 

where

(a) Contract Position means:

(i) in relation to a Proprietary Position Account for Contracts that are Futures: 

where a Clearing Member is party to one or more Futures Contracts of a 

particular Set, the gross number of buy positions and the gross number of sell 

positions pursuant to those Contracts recorded in that account (subject to any 

netting pursuant to Rule 406);

(ii) [Not used.];

(iii) in relation to a Customer Position Account for Contracts that are Futures: 

where a Clearing Member is party to one or more Futures Contracts of a 

particular Set, the gross number of buy positions and the gross number of sell 

positions pursuant to those Contracts recorded in that account (subject to any 

netting pursuant to Rule 406);

(iv) [Not used.];

in any case as calculated by the Clearing House from time to time based on data 

received by the Clearing House in respect of Contracts entered into by the Clearing 
13

Member up to the close of business on the immediately preceding Business Day (or 

such other period determined by the Clearing House at its discretion); and

(b) Net Amount Position for Contracts, means the price at which the Contract Position for 

any Set is recorded on the Clearing House's books based on Exchange Delivery 

Settlement Prices for each Contract.

The term "Opening Days" means the days upon which the Clearing House is operational, 

which may vary for different Contracts or between deliveries and other business, as notified 

by the Clearing House from time to time.

The term "Opening Hours" means the hours during which the Clearing House is operational, 

which may vary for different Contracts or between deliveries and other business, as notified 

by the Clearing House from time to time.

The term "Original Margin" means the Permitted Cover required to be provided or actually 

provided (by way of title transfer pursuant to a Clearing Membership Agreement) to the 

Clearing House as collateral for the obligations of a Clearing Member in respect of Contracts 

pursuant to Part 5 including any margin provided in relation to Contracts pursuant to 

Rule 502(g), in each case as calculated or permitted to be called in accordance with the risk 

policies of the Clearing House, but excluding in any case Variation Margin, and including 

where the context so requires, any proceeds of realisation of the same.

The term "Permitted Cover" means cash in Eligible Currencies and other assets determined 

by the Clearing House as permissible for Margin, Guaranty Fund Contributions or other 

financial resource requirements specified by the Clearing House and includes, where the 

context so requires, any such cash or assets transferred to the Clearing House and any 

proceeds of realisation of the same. A particular kind of currency or asset may be determined 

by the Clearing House to be Permitted Cover only in respect of Proprietary Accounts, 

Customer Accounts, Contracts or certain Sets of Contracts.

The term "Person" means any individual, partnership, firm, body corporate, association, 

trust, unincorporated organisation or other entity.

The term "Position Account" means a Proprietary Position Account or Customer Position 

Account.

The term "Position Holder" has the meaning set out in Rule 407.

The term "Potential Event of Default" means any event which, with the giving of notice or 

the lapse of time or both, would constitute an Event of Default.

The term "President" means the president of the Clearing House from time to time.

The term "Procedures" means the procedures of the Clearing House from time to time, as 

amended pursuant to Rule 109(e) and any reference to the "Business Continuity 

Procedures", "Clearing Procedures", "Complaint Resolution Procedures", "Default 

Auction Procedures", "Delivery Procedures", "Finance Procedures", "Contract Terms 

Procedures", "Membership Procedures", or any other section of the Procedures shall be 

interpreted accordingly.
14

The term "Proprietary Account" refers to a proprietary account at the Clearing House which 

may be designated for Contracts and all related Margin and comprises a Proprietary Position 

Account and Proprietary Margin Account.

The term "Proprietary Account Contract" means a Contract recorded in a Proprietary 

Position Account (or any sub-account thereof).

The "Proprietary Margin Account" forms part of a Proprietary Account and the term means 

an account with the Clearing House which is not a Customer Margin Account, opened in the 

name of a Clearing Member for the recording of debits and credits of Margin in respect of 

Proprietary Account Contracts recorded in the related Proprietary Position Account, which 

may be divided for administrative convenience only into sub-accounts. 

The "Proprietary Position Account" forms part of a Proprietary Account and the term 

means an account with the Clearing House which is not a Customer Position Account, 

opened in the name of a Clearing Member in which Proprietary Account Contracts entered 

into by the Clearing Member (whether directly or indirectly) and/or related Open Contract 

Positions are recorded, which may be divided for administrative convenience only into 

sub-accounts.

The term "Reference Currency Buyer" means, in respect of an FX Contract, the Clearing 

House if the Clearing Member who is party to that FX Contract (or its Customer) was the 

Reference Currency Seller under the corresponding FX Transaction, or the Clearing Member 

who (or whose Customer) was party to the corresponding FX Transaction as Reference 

Currency Buyer. 

The term "Reference Currency Seller" means, in respect of an FX Contract, the Clearing 

House if the Clearing Member who is party to that FX Contract (or its Customer) was the 

Reference Currency Buyer under the corresponding FX Transaction, or the Clearing Member 

who (or whose Customer) was party to the corresponding FX Transaction as Reference 

Currency Seller. 

The term "Reference Price" in respect of Contracts, means the reference price determined by 

the Clearing House on the basis of data provided by the relevant Market or otherwise 

pursuant to Rule 802.

The term "Regulatory Authority" means any Governmental Authority which exercises a 

regulatory or supervisory function under the laws of any jurisdiction in relation to financial 

services, the financial markets, Exchanges or Clearing Organisations (including, without 

limitation, the MAS and the IRAS).

The term "Repository" means a trade repository (as defined in the SFA) used and specified 

by the Clearing House for the reporting of Contracts (which may also be used for the 

recording of Transactions submitted for Clearing).

The term "Representative" means any Person that carries out or is responsible for (or 

purports to carry out or be responsible for) any of the functions of another Person, and any 

Persons that either such Person employs, authorizes or appoints to act on its behalf, including 

without limitation any director, partner, officer, executive, employee, Affiliate, Customer, 

contractor or agent of that other Person (provided, in the case of a Clearing Member, that a 

Customer will only be treated as a Representative of a Clearing Member in respect of any act, 
15

omission, conduct or behaviour in its capacity as a Customer to the extent that the Clearing 

Member is bound by the conduct of such Customer pursuant to Rule 102(j)).

The term "Rule Change" means any amendment, alteration, restatement, addition, deletion or 

other change to the Rules (excluding, for purposes of this definition, any Guidance or any 

Circular) made in accordance with Rule 109.

The term "Rules" means these rules, together with the Procedures, as interpreted in 

accordance with Guidance and Circulars.

The term "Seller" means, in relation to deliveries under Part 7, the Clearing Member or the 

Clearing House, whichever is obliged to make delivery of a Deliverable (whether itself or 

through another Person).

The term "Selling Counterparty" means, in respect of a Contract: (a) the Clearing Member 

that was, before formation of a Contract for Clearing, party to the corresponding Transaction 

as seller (or, in relation to Financially-Settled FX Contract, Reference Currency Seller); or 

(b) where a Clearing Member's Customer is party to the corresponding Transaction as seller 

the Clearing Member that provides clearing services to that Customer in relation to the 

Transaction in question (or, if more than one such Clearing Member exists, the Clearing 

Member that was selected by the Customer for the initial booking of that Transaction); or 

(c) overriding any designation that would occur pursuant to (a) or (b) above, where one 

Clearing Member that would be a Selling Counterparty in accordance with (a) or (b) above 

has allocated a Transaction to another Clearing Member for clearing in accordance with 

Market Rules, the Clearing Member to whom such Transaction is allocated.

The term "Sequential Guaranty Fund Depletion" in respect of a particular Clearing 

Member that is not a Defaulter, means circumstances in which: (i) there have been two or 

more Events of Default relating to different Clearing Members within a period of 20 or fewer 

Business Days; (ii) Guaranty Fund Contributions have been applied in respect of at least 

two such Events of Default; and (iii) the total amount that the Clearing Member has paid the 

Clearing House to replenish its Guaranty Fund Contributions exceeds the total amount of 

Guaranty Fund Contributions standing to the credit of that Clearing Member in the Clearing 

House's accounts prior to the first Event of Default.

The term "Set" means for Futures Contracts, a set or class of Contracts that are identical as to 

their terms (including the Deliverable or currency pair to which such Contract relates and 

settlement date; but excluding any amount paid or to be paid for entry into the Contract and 

any amount paid or to be paid in respect of entry into settlement or delivery of a Contract).

The term "SFA" means the Securities and Futures Act (Chapter 289 of Singapore).

The term "SF(CF)R" means the Securities and Futures (Clearing Facilities) 

Regulations 2013.

The term "SF(FMR)R" means the Securities and Futures (Financial and Margin 

Requirements for Holders of Capital Markets Services Licences) Regulations. 

The term "SF(LCB)R" means the Securities and Futures (Licensing and Conduct of 

Business) Regulations.

The term "SGD" means the lawful currency from time to time of the Republic of Singapore.
16

The term "SIAC" means the Singapore International Arbitration Centre or any successor 

thereto.

The term "SIAC Rules" means the arbitration rules of the SIAC.

The term "Specified Event" means a situation where:

(a) a Person is or is likely to become unable to meet its obligations;

(b) a Person is or is likely to become subject to an Insolvency;

(c) a Person has suspended or is about to suspend payments;

(d) a Person has contravened the provisions of any Applicable Law of Singapore, 

including but not limited to the provisions of the SFA, the Banking Act (Chapter 19 of 

Singapore) and the Monetary Authority of Singapore Act (Chapter 186 of Singapore);

(e) a Person has failed to comply with any condition attached to any license, approval or 

exemption granted to it under any applicable laws of Singapore, including but not 

limited to any licenses granted to it under the SFA, the Banking Act (Chapter 19 of 

Singapore) and any approvals granted to it under the Monetary Authority of 

Singapore Act (Chapter 186 of Singapore);

(f) a Person informs any Governmental Authority that one or more of the Specified 

Events in sub-paragraphs (a), (b) and (c) has occurred;

(g) any Governmental Authority is of the opinion that one or more of the Specified 

Events in sub-paragraphs (a), (b) (c), (d) and (e) has occurred;

(h) any Governmental Authority is of the opinion that a Person is carrying on its business 

in a manner likely to be detrimental to the interests of such persons as may be 

prescribed, in relation to the relevant Person, by any applicable laws of Singapore; or

(i) any Governmental Authority considers the exercise of one or more of the powers 

prescribed under any applicable laws of Singapore, including but not limited to the 

powers prescribed under the Banking Act (Chapter 19 of Singapore) and the 

Monetary Authority of Singapore Act (Chapter 186 of Singapore), in respect of a 

Person to be in the public interest.

The term "Standard Terms" means the form of Customer-CM Transactions Standard Terms 

as published by the Clearing House from time to time as an Exhibit to these Rules, but which 

do not form part of these Rules, which are applicable as between each Clearing Member and

each of its Customers in relation to Clearing, as amended from time to time in accordance 

with the Standard Terms.

The term "Summary Disciplinary Committee" means a summary disciplinary committee 

established pursuant to Rule 1004(c).

The term "Surplus Collateral", in respect of a Clearing Member or particular Account or 

account for Guaranty Fund Contributions at any time, means any Permitted Cover transferred 

to the Clearing House that is not required to satisfy the current or most recently calculated 

applicable requirements in respect of Margin or Guaranty Fund Contributions at such time. 
17

The term "Termination Close-Out Deadline Date" means: (i) in respect of termination of 

clearing membership under Rule 209(c)(i)(A), the date falling 30 Business Days after the 

Termination Notice Time; or (ii) notwithstanding (i), in any case, such later date as the 

Clearing House may at its discretion permit and notify in writing to the affected Clearing 

Member. 

The term "Termination Close-Out Time" means the time at which a Clearing Member that 

is terminating its membership ceases to be party to any open Contracts with the Clearing 

House.

The term "Termination Date" means the later of: (i) where applicable, the Termination 

Close-Out Deadline Date; (ii) the date of the Termination Close-Out Time; or (iii) the time of 

expiry of the termination notice period.

The term "Termination Notice Time" means the time of service by a Clearing Member of a 

termination notice under Rule 209(c)(i)(A) or (C).

The term "Transaction" means, in respect of the Clearing of Contracts, any ICE Futures 

Singapore Transaction. For the avoidance of doubt: (A) an ICE Futures Singapore 

Transaction will be valid and constitute a Transaction for purposes of this definition 

regardless of whether it reflects a binding contract or transaction between two Clearing 

Members or between a Clearing Member and its Customer and an ICE Futures Singapore 

Transaction shall include any trade particulars or any data resulting from the matching of any 

trade or block orders; and (B) in the case of an ICE Futures Singapore Transaction made on 

or reported to a Market, the Transaction need not yet have been reported to the Clearing 

House in order to give rise to an ICE Futures Singapore Contract.

The term "Transaction Rights or Obligations" means the rights, liabilities or obligations (if 

any) of a Clearing Member relating to, or arising out of or in connection with any 

Transaction, whether pursuant to contract, tort, equity, restitution or otherwise, whether joint 

or several, pursuant to the laws of any jurisdiction, which fall or fell due for performance to 

any Person other than as between a Customer of a Clearing Member in relation to the 

Transaction in question and such Clearing Member (to which the Standard Terms shall 

apply).

The term "Transfer" has the meaning given to that term in Rule 904(a).

The term "Transferee" means a Person nominated by a Buyer to whom a transfer or delivery 

is to be made under an ICE Futures Singapore Contract and includes reference to the Buyer 

where transfer or delivery is to be made to the Buyer.

The term "Transferee Clearing Member" means a Clearing Member which becomes party 

to a Contract as a result of a transfer, novation, sale or termination and replacement pursuant 

to Part 9 of the Rules.

The term "Transferor" means a Person nominated by a Seller by whom a transfer or delivery 

is to be made under an ICE Futures Singapore Contract and includes reference to the Seller 

where transfer or delivery is to be made by the Seller.

The term "Tribunal" means an arbitral tribunal established under Rule 117.
18

The term "USD" means the lawful currency from time to time of the United States of 

America.

The term "Variation Margin" means the cash required to be provided or actually provided 

by a Clearing Member to the Clearing House or by the Clearing House to a Clearing Member 

related to the market value of a Clearing Member's Open Contract Positions relating to ICE 

Futures Singapore Contracts, as determined pursuant to Rule 503(e) and the Finance 

Procedures and includes, where the context so requires, any proceeds of realisation of the 

same.

The term "Withdrawal Date" means, if at any time the Clearing House decides to terminate 

its services, either generally or in relation to a significant part of its business or certain 

categories of Contract, the date on which that termination will take effect.

Rule 102 Interpretation

(a) Any reference to a statute, statutory provision or rule shall include any notice, order, 

guidance, regulation or subsidiary legislation made from time to time under that 

statute, statutory provision or rule which is in force from time to time. Any reference 

to a statute or statutory provision shall include such statute or provision as from time 

to time amended, modified, re-enacted or consolidated from time to time and (so far 

as liability thereunder may exist or can arise) shall include also any past statute or 

statutory provision (as from time to time modified, re-enacted or consolidated) which 

was applicable at the time of any relevant action or omission.

(b) References to any rules or any agreement are references to such rules or agreement as 

amended or restated from time to time, provided that such amendments or 

restatements are made in accordance with these Rules.

(c) The Interpretation Act (Chapter 1 of Singapore) shall apply to these Rules in the same 

way as it applies to an enactment.

(d) When a reference is made in these Rules to a rule, part, paragraph or procedure, such 

reference is to a Rule, Part, paragraph, Procedure of, or made under these Rules,

unless otherwise indicated.

(e) The headings in these Rules are for reference purposes only and do not affect in any 

way the meaning or interpretation of these Rules.

(f) To the extent there is any conflict between any of the provisions of these Rules, a 

Clearing Membership Agreement, the Procedures (including all exhibits, attachments 

and appendices thereto), any Guidance or Circular or Market Rules or between any of 

the foregoing, the provision of the first document specified in the paragraphs below 

shall prevail, control, govern and be binding upon the parties:

(i) these Rules (excluding the Procedures, Contract Terms (save to the extent that 

the Contract Terms are in the Rules but excluding Contract Terms that are in 

the Procedures) and any other document incorporated by reference);

(ii) the Clearing Membership Agreement;

(iii) [Not used.]
19

(iv) [Not used.]

(v) [Not used.]

(vi) [Not used.]

(vii) in the case of Contracts traded on ICE Futures Singapore, in relation to those 

aspects of the ICE Futures Singapore Rules that include Contract Terms only, 

the ICE Futures Singapore Rules;

(viii) in the case of Contracts traded on ICE Futures Singapore, in relation to those 

aspects of the ICE Futures Singapore Contract Terms that include Contract 

Terms only, the ICE Futures Singapore Contract Terms;

(ix) [Not used.]

(x) the Contract Terms other than those set out in these Rules or Market Rules 

(except as set out in Rule 102(f)(i)) (excluding the Rules and any other 

document incorporated by reference);

(xi) the Procedures (excluding any Contract Terms set out in the Procedures);

(xii) Market Rules other than those referred to above (excluding any document 

described in Rule 102(f)(i) to (xi) incorporated by reference);

(xiii) any Guidance;

(xiv) any Circular (except for a Circular communicating an amendment to any of 

the above documents in accordance with these Rules, in which case the 

amendments communicated in such Circular shall be binding on the effective 

date specified in the Circular as if such amendments were one of those 

documents); and

(xv) [Not used.]

(xvi) in the case of Contracts recorded in a Customer Account, the Standard Terms 

(solely to the extent that the Standard Terms may be of interpretative 

relevance to the Rules or a Contract).

(g) [Not used.]

(h) All references to timings or times of day are to Singapore times, unless indicated 

otherwise. Business hours shall occur only on Business Days and shall be construed 

accordingly.

(i) All references to "tax" shall include, without limitation, any tax, levy, impost, duty, or 

other charge or withholding of a similar nature (including any penalty or interest 

payable in connection with any failure to pay or any delay in paying the same).

(j) Each Clearing Member shall be bound by any act, omission, conduct or behaviour 

("conduct") of its Representatives and of its Customers and clients of such Customers 

but only in any instance in which:
20

(i) any such Customer or client of such Customer is permitted by the Clearing 

Member to have access to any system or interface of any Market or the 

Clearing House which access enables or results in the entry into of Contracts 

and relates to Clearing by that Clearing Member for such Customer or client 

(which access, without limitation shall be deemed to have been granted by the 

Clearing Member if the Customer or client in question has been nominated to 

the Clearing House as an "Eligible Person" pursuant to the Clearing 

Membership Agreement to which such Clearing Member is a party);

(ii) any such Customer or client of such Customer is permitted by the Clearing 

Member to have access to any system or interface of any Market or the 

Clearing House which relates to Clearing by that Clearing Member for such 

Customer or client and which is used for the enriching of data held by the 

Clearing House relating to Contracts, the post-trade management of Contracts, 

allocations from one Clearing Member to another Clearing Member under 

Rule 401(a)(viii) or Rule 401(e), the transfer of Contracts between a 

Proprietary Account (or any sub-account thereof) or Customer Account of a 

Clearing Member, position transfers, novations or assignments under 

Rule 408(a), the service of any notice, the closing-out, expiry or termination of 

any Future or the netting, combining or offsetting of any Contract recorded in 

a particular account;

(iii) any such Representative, Customer or client of such Customer is nominated by 

a Clearing Member as a Transferee or Transferor for purposes of delivery 

under an ICE Futures Singapore Contract; or

(iv) any such Representative, Customer or client of such Customer is otherwise 

duly appointed to carry out such conduct as an agent of the Clearing Member.

If a Customer or client of a Customer or any of their Representatives would have 

breached the Rules in respect of any instance listed in (i), (ii), (iii) or (iv) above if it 

were a Clearing Member, then such Customer, client or Representative or their 

Clearing Member may be subject to disciplinary proceedings, in which Rule 1003(u) 

applies.

In addition, a Clearing Member shall be bound by and responsible for any conduct of 

or by any of the following Persons (including for purposes of disciplinary proceedings 

under Part 10):

(A) the Clearing Member itself (including its directors, officers, employees 

or partners); and

(B) the Clearing Member's Representatives (excluding Customers and their 

Customers' clients), as if such conduct were the conduct of the 

Clearing Member itself (but this provision shall not, for the avoidance 

of doubt, apply to determine any liability of a Clearing Member or 

Defaulter for losses of the Clearing House or any of its Affiliates or 

any Market or any of their Directors or directors (as the case may be), 

officers, employees, committees (or any individual committee 

member), which liabilities are governed solely by Rule 111 and 

Rule 905(f)).
21

(k) Pursuant to Rule 102(f), a Clearing Member's liability under clause 3.5 of the 

Clearing Membership Agreement shall be limited by Rule 102(j).

(l) Any capitalised term used in these Rules that is not defined in Rule 101 or elsewhere 

herein shall have the meaning given to it (in order of priority) in the Procedures, the 

Clearing House's standard form Clearing Membership Agreement and any relevant 

Market Rules.

(m) Each of the Rules shall, unless the context otherwise requires, be construed as an 

independent provision and shall be in addition and without prejudice to any other 

provision of the Rules.

(n) If any provision of these Rules (or part of any provision) is found by any court or 

other Governmental Authority to be invalid, illegal or unenforceable, that provision or 

part-provision shall, to the extent required, be deemed not to form part of the Rules, 

and the validity, legality or enforceability of the other provisions of these Rules shall 

not be affected.

(o) The Rules, together with the applicable Clearing Membership Agreement, and other 

documents listed in Rule 102(f) that are given contractual force pursuant to these 

Rules, (other than the Standard Terms) form a contract between the Clearing House 

and each Clearing Member. All obligations of the Clearing House hereunder are 

solely to Clearing Members. No Person other than the Clearing House has any 

obligation to Clearing Members pursuant to these Rules except as expressly provided 

in any provisions of these Rules, the Procedures or any of the Standard Terms 

purporting to create or define rights and obligations as between Clearing Members or 

between Clearing Members and their Customers (each a "Bilateral Obligation"). 

Subject to any Bilateral Obligation or Applicable Laws in respect of which the 

relevant Clearing Members or Customers (as applicable) shall have the right to 

enforce the relevant provisions of these Rules, Procedures or Standard Terms against 

one another or under which these Rules form a contract between each Clearing 

Member and every other Clearing Member, and except as provided in Rule 102(v), no 

Person shall have any right pursuant to the Contracts (Rights of Third Parties) Act 

(Chapter 53B of Singapore) to enforce any provision of these Rules or the Procedures.

(p) Any matter or right stated to be in, of or at the Clearing House's discretion shall be 

subject to the Clearing House's sole, unfettered and absolute discretion and such 

discretion may be exercised at any time. Where there is a provision that the Clearing 

House (or its Directors, officers, employees or committees) may make further 

directions upon or in relation to the operation of a Rule or may make or authorise any 

arrangement, direction or procedure thereunder, the Clearing House may make such 

direction or make or authorise such arrangement or procedure in relation to or under 

the whole or any part of the Rule and may make or authorise different directions, 

arrangements or procedures in relation to different Persons and may make or authorise 

such directions, arrangements or procedures generally or in relation to a particular 

Person or particular occasion and in all cases subject to such conditions as it may 

think fit. Any action taken at the discretion of the Clearing House may not be 

challenged by any Person (subject to the requirements of Rule 111(c) and the right of 

such Person to make a complaint pursuant to the Complaint Resolution Procedures or 

Part 10).
22

(q) Without prejudice to the requirements of any Applicable Laws, nothing in these Rules 

shall have the effect of enabling, requiring or implying that any Margin or other 

amounts deposited in relation to a Clearing Member's or Defaulter's Customer 

Account be used to meet a loss or shortfall on that Clearing Member's or Defaulter's 

Proprietary Account.

Without prejudice to the requirements of any Applicable Law, nothing in these Rules 

shall have the effect of enabling, requiring or implying that any Contracts recorded in 

a Clearing Member's or Defaulter's Customer Account be netted, combined or offset 

with any Contract recorded in that Clearing Member's or Defaulter's Proprietary 

Account (except as expressly provided under the Rules and to the extent permissible 

under Applicable Laws).

For the avoidance of doubt and ease of reference, the third and fourth sentences of 

clause 5.3 of the Clearing Membership Agreement also apply in respect of a Clearing 

Member's Customer Account.

(r) The Rules shall at all times be observed, interpreted and given effect to in the manner 

most conducive to the promotion and maintenance of:

(i) the Clearing House's status as an approved clearing house under 

Section 51(1)(a) of the SFA and any other legal or regulatory status it has from 

time to time under any other Applicable Law;

(ii) the good reputation of the Clearing House (and Clearing Members);

(iii) high standards of integrity and fair dealing in accordance with MAS 

Requirements and other Applicable Law;

(iv) [Not used.]

(v) proper protection for all Persons interested in the performance of Contracts; 

and

(vi) the safe and efficient functioning of the Clearing House and the protection of 

the interests of the investing public.

To the extent that the Clearing House or any Clearing Member has any right under 

these Rules which may on its face be performed in a manner that goes beyond that 

which is permitted by Applicable Law, that right may only be exercised to the extent 

permitted under Applicable Laws. For the avoidance of doubt, no reference in these 

Rules to Applicable Laws (including the expressions 'without prejudice to Applicable 

Laws', 'subject to Applicable Laws' or similar), shall be construed as restricting or 

negating the applicability of any provision of the SFA or any MAS Requirements 

thereunder or any obligation or liability of the Clearing House, a Clearing Member, a 

Customer or a Governmental Authority under the SFA or any MAS Requirements.

(s) These Rules, each Contract and all non-contractual obligations arising out of or in 

connection with these Rules or any Contract, shall be governed by and construed in 

accordance with the laws of the Republic of Singapore.
23

(t) These Rules may be supplemented by processes established pursuant to documents 

governing the internal governance of the Clearing House and its committees.

(u) References in these Rules to Singapore legislation shall be interpreted as references to 

such legislation as implemented in the Republic of Singapore, including by the 

relevant Singapore Governmental Authorities.

(v) Notwithstanding Rule 102(o), nothing in these Rules shall preclude a Customer or any 

other Person from agreeing to the application of these Rules or any provision of these 

Rules in their agreements with any Clearing Member or third party, in which case the 

Clearing House shall be entitled to enforce any provision of these Rules (including, 

without limitation, Rule 111 as a third party with rights pursuant to the Contracts 

(Rights of Third Parties) Act (Chapter 53B of Singapore).

(w) To the extent permitted by Applicable Laws and without prejudice to Rule 408, a 

Clearing Member may outsource performance of any of its obligations under the 

Rules to an Affiliate or other Person, but will remain fully liable to the Clearing 

House for such performance notwithstanding the outsourcing, provided that a 

Clearing Member may nominate another Person to perform its responsibilities with 

respect to the submission of end-of-day prices and participation in default auctions 

and such other obligations as permitted by the Clearing House, if such Person is 

acceptable to the Clearing House and enters into an agreement with the Clearing 

Member and Clearing House on such terms and conditions as are specified by the 

Clearing House. In any circumstances in which a Person performs pursuant to an 

outsourcing arrangement or such a nomination, such Person will act as the Clearing 

Member's Representative.

(x) If a Person with obligations under these Rules or a Contract is a partnership, the 

liability of each partner in the partnership under or in connection with these Rules or 

the Contract shall be joint and several. In the event of any circumstances which 

would be operation of Applicable Law give rise to the dissolution of the partnership, 

or entitle a partner to seek an order to dissolve the partnership, the obligations of the 

partners shall remain in full force and effect.

(y) Any provision of these Rules referring to a Concentration Bank shall only be 

operative as from the date that, pursuant to Rule 301(m), the Clearing House 

publishes details of the appointment of a Concentration Bank.

(z) Any provision of these Rules referring to a Clearing Member that is not a Bank or 

does not have a CMS Licence shall not take effect until such time as the Clearing 

House publishes a Circular otherwise and amends the definition of 'Clearing Member' 

in these Rules.

Rule 103 Delay in performance by the Clearing House

Subject to the provisions of the Contract Terms and further subject as set out in the 

Procedures, where an obligation of the Clearing House must be performed immediately, 

promptly or by or prior to a specified time or date but is not so performed, the Clearing 

House shall not be in breach of these Rules if, having used all reasonable endeavours to 

perform such obligation by such specified time or date, it performs the relevant obligation 

promptly after such specified time or date.
24

Rule 104 Invoicing Back and Specification of Terms

(a) Other than in circumstances in which Rule 912 applies and subject to Rules 104(c) to 

104(f), if a Force Majeure Event, Illegality or Impossibility affects Contracts of a 

particular Set, the Clearing House shall have the right, in consultation with the 

relevant Market (if any) to: 

(i) Invoice Back Contracts of such Set; or

(ii) specify or over-ride the price or other terms of Contracts of such Set.

(b) The Clearing House shall in addition have the right, in consultation with the relevant 

Market, to Invoice Back a Contract that is subject to delivery or tender in the 

circumstances and in the manner set out in the Delivery Procedures. 

(c) Any instance of Invoicing Back or specification or over-riding of price or other terms 

under Rule 104(a) must, subject to Rule 109(c), be approved in advance by an 

affirmative vote of the Board at a quorate meeting, at which meeting the facts giving 

rise to the Force Majeure Event, Illegality or Impossibility, as the case may be, will be 

considered and at which the Board decides that it would be appropriate to exercise the 

right in question. Any exercise of such a right will further be undertaken subject to 

any additional processes established pursuant to documents governing the internal 

governance of the Clearing House and its committees. 

(d) Neither Invoicing Back rights nor specification or over-riding of price or other terms 

rights under Rule 104(a) or Rule 104(b) are to be exercised by the Clearing House to 

deal with the general management of an Event of Default (such as for the purpose of 

changing the amount of any liability of the Clearing House to a Defaulter (or deemed 

defaulter) or to a Clearing Member which would be a Defaulter on the making of the 

relevant declaration by the Clearing House under Rule 901(a) or of any liability of 

any Defaulter (or deemed defaulter) or any such Clearing Member to the Clearing 

House) or as an alternative to applying the process in Part 10 et seq. in circumstances 

in which such provisions apply. However, nothing in this Rule 104(d) shall prevent 

the Clearing House from exercising its rights under Rule 104(a) or Rule 104(b) in 

respect of a Contract to which a Defaulter is party where, in the case of Rule 104(a), a 

Force Majeure Event, Illegality or Impossibility affects a Contract of a particular Set 

to which a Defaulter is party in a similar way to that in which it affects Contracts of 

the same Set to which non-defaulting Clearing Members are party, where the Clearing 

House takes similar action in respect of Contracts of the same Set of non-defaulting 

Clearing Members in accordance with this Rule 104 or where, in respect of 

Rule 104(b) and a Contract that is subject to delivery or tender, the Delivery 

Procedures provide for Invoicing Back to take place of a Defaulter's Contract.

(e) Where the Clearing House exercises any of its rights under Rule 104(a) or 

Rule 104(b), it will do so in good faith and in accordance with Rule 102(r).

(f) The Clearing House will not exercise any rights under Rule 104(a) or Rule 104(b) to 

Invoice Back or specify or over-ride the price or other terms of any Contract to which 

a Clearing Member is party unless there is an objective justification for it doing so 

and such an approach is applied objectively. The price at which any Invoicing Back 

or specification or over-riding of price or other terms under Rule 104(a) or 
25

Rule 104(b) is executed shall be determined in a commercially reasonable manner 

and, in respect of a Contract that is subject to delivery or tender, in accordance with 

the Delivery Procedures. The process established in Rule 109(k) shall apply to any 

class of Contract whenever the Clearing House exercises its rights under Rule 104(a), 

mutatis mutandis.

(g) Provided that any rights exercised under this Rule 104 are exercised in accordance 

with this Rule 104, any resulting Invoicing Back, specification or over-riding of price 

or other terms by the Clearing House shall be final and binding for the purposes of 

these Rules and not be subject to challenge by any Person under these Rules or 

otherwise, except in the case of manifest error, negligence or fraud.

Rule 105 Termination

(a) If at any time the Clearing House decides to cease acting as a clearing house, either 

generally, in relation to a particular Exchange or in relation to a class of Contracts 

(including if it determines, following loss of any authorisation, approval or 

recognition from a Regulatory Authority that it is unable to continue its business), it 

shall give advance notice of the proposed Withdrawal Date by Circular. In the event 

of a complete cessation of services or of services in relation to a particular Exchange 

or any class of Contracts, at least four months' notice shall be necessary. In any other 

event for which there is a Withdrawal Date, at least one month's notice shall be 

necessary. The Clearing House shall be entitled to postpone any such Withdrawal 

Date, generally or in respect of any individual Clearing Member, Exchange or class of 

Contract.

(b) If, at any Withdrawal Date, any affected Contracts have not been finally settled, the 

Clearing House shall be entitled to terminate any or all such Contracts and require any 

such Contracts to be cash settled on terms specified by the Clearing House in 

accordance with Rule 104.

(c) Rule 209(e) shall apply in relation to the Clearing House's services, whether generally 

or in relation to the Contracts in question, as applicable, in the event of any 

termination under this Rule 105. 

Rule 106 Confidentiality and Information

(a) The Clearing House shall be entitled to keep records in an electronic or durable 

medium of all data or information available to it under these Rules or otherwise 

concerning Clearing Members (including financial statements filed with the Clearing 

House), Customers, Accounts, Margin, Transactions, Contracts, past or current Open 

Contract Positions, deliveries and settlement. 

(b) The following information received or held by the Clearing House shall be held in 

confidence by the Clearing House and shall not be made known to any other Person, 

subject to paragraph (c):

(i) information concerning Transactions, Contracts or past or current Open 

Contract Positions held with the Clearing House;
26

(ii) information concerning positions with any other Clearing Organisation for a 

Clearing Member or relating to any Customer;

(iii) information concerning Margin payments between the Clearing House or any 

other Clearing Organisation and a Clearing Member, including in relation to a 

Customer; 

(iv) information concerning deliveries made by or to a Clearing Member or any of 

its Transferors or Transferees;

(v) any financial statements filed with the Clearing House by any Clearing 

Member; or

(vi) any other information relating to a Clearing Member or Customer provided by 

a Clearing Member or Customer to the Clearing House at the Clearing House's 

request, or pursuant to the Rules or Applicable Laws. 

(c) Clearing Members and Customers are given notice that the Clearing House is subject 

to Section 64(1) of the SFA (subject to the exemptions to the obligation to maintain 

confidentiality set out in Section 64(2) of the SFA and Regulation 15(1) of the 

SF(CF)R). Subject, at all times, to such Applicable Laws, the Clearing House may, 

notwithstanding paragraph (b), make the following disclosures of confidential 

information subject to such terms and conditions as the Clearing House may from 

time to time deem appropriate:

(i) to a Regulatory Authority or Governmental Authority where a request is 

formally made to the Clearing House by or on behalf of the same or pursuant 

to Applicable Laws or where disclosure is required under Applicable Laws or 

is necessary for the making of a complaint or report under Applicable Laws 

for an offence alleged or suspected to have been committed under Applicable 

Laws;

(ii) in the case of a breach by a Clearing Member of: (i) any clearing membership 

criteria established by the Clearing House, whether as a breach of 

Rule 202(a)(iv) or otherwise; or (ii) in the case of a Clearing Member, such 

Clearing Member's obligation to publicly disclose prices and fees associated 

with the clearing services it provides and/or its obligation to provide 

Customers with separate access to each specific service it provides; to the 

public;

(iii) pursuant to an order of a competent court or other Governmental Authority or 

otherwise to such other Persons, at such times and in such manner as may be 

required by Applicable Law;

(iv) to any member of the ICE Group, any Exchange or Clearing Organisation and 

any of their or the Clearing House's Representatives, committees, experts, 

Delivery Facilities, auditors, advisers or lawyers including (without limitation) 

for audit, compliance, making or taking delivery, market surveillance or 

disciplinary purposes for the purposes of an arbitration pursuant to Rule 117 or 

any proceedings in support of such an arbitration, or in relation to any possible 
27

or actual Event of Default or the termination or suspension of any clearing 

membership;

(v) to any Person in the business of providing data processing or similar services 

for the purposes of performing computations or analysis, or of preparing 

reports or records, for the Clearing House;

(vi) to any Person who has provided or is considering entering into a loan, 

insurance policy, guarantee or other financial arrangement with the Clearing 

House or any of its Affiliates, provided that information identifying the 

positions or name of a Clearing Member or any of its accounts or the name of 

any of a Clearing Member's Customers will not be so disclosed, except, in the 

case of a Clearing Member and its accounts only, as is necessary to respond to 

any enquiries of such a Person concerning the Clearing House's or any of its 

Affiliates' potential losses or exposures relating to an Event of Default 

(whether or not declared);

(vii) to any Insolvency Practitioner and any other Person having responsibility for 

any matter arising out of or connected with an Event of Default;

(viii) in the case of information relating to any Transaction or Contract (including 

details of the parties thereto and related Margin), to a Repository or 

Governmental Authority for purposes of transaction reporting;

(ix) to any Person or to the public as a result of its complaints procedure or 

disciplinary proceedings;

(x) to any Person if the information comes into the public domain, other than as a 

result of a breach of this Rule by the Clearing House or its Representatives; 

(xi) [Not used.]

(xii) in the case of information concerning any Customer, to any Clearing Member 

with a relationship with such Customer in respect of its Customer Account;

(xiii) otherwise with the specific written consent of the Person or Persons to whom 

the confidential information relates; or

(xiv) otherwise to any Person permitted under Section 64(2) of the SFA or 

Regulation 15(1) of the SF(CF)R, in accordance with such provisions.

(d) The Clearing House is a data controller in relation to Personal Data provided to it by 

Clearing Members, Customers and their Representatives and may collect and use such 

Personal Data for the purposes of operating an approved clearing house in accordance 

with these Rules. Each Clearing Member shall ensure that:

(i) any and all of its Representatives in relation to whom Personal Data are 

provided to the Clearing House ("Data Subjects") have consented in advance 

to such data being collected, used, disclosed and Processed by the Clearing 

House or, if not a natural person, have agreed to procure such consent to the 

extent necessary;
28

(ii) the disclosure of Personal Data by the Clearing Member or its Representatives 

is in all respects and in each case lawful; and

(iii) the information set out in Rule 106(e) has been provided to each Data Subject 

prior to collection, use or disclosure of Personal Data relating to such Data 

Subject to the Clearing House.

(e) The Clearing House shall have the right to disclose Personal Data to such Persons and 

for such purposes as are set out in Rules 106(a) to (c). The Clearing House and other 

Persons referred to in Rules 106(a) to (c) may transfer Personal Data outside 

Singapore subject to Applicable Law.

(f) Data Subjects have the right, (subject to Applicable Law): (i) on payment of a small 

fee to the Clearing House, to receive a copy of Personal Data held by the Clearing 

House; (ii) to have any errors or inaccuracies in such Personal Data rectified; and 

(iii) to submit questions to the Clearing House in relation to collection, use or 

disclosure by the Clearing House of Personal Data in relation to such Data Subject. 

Any request should be addressed to the Clearing House's registered office.

(g) In this Rule 106 only, the terms "Process" (and derivations thereof) and "Personal 

Data" each have the meaning given to such terms in the Personal Data Protection Act 

2012 (Act 26 of 2012).

(h) Each Clearing Member and the Clearing House:

(i) consents to the recording of telephone conversations between the trading, 

clearing and other relevant personnel of the Clearing Member and the Clearing 

House or their Group Companies in connection with the Rules and any 

Contract, potential Contract or Transaction;

(ii) agrees to obtain any necessary consent of, and give any necessary notice of 

such recording to, its and its Group Companies' relevant personnel;

(iii) agrees, to the extent permitted by Applicable Law, that recordings may be 

submitted as evidence in any Dispute; and

(iv) agrees that the remainder of this Rule 106 shall apply to any such recordings 

made by the Clearing House.

Rule 107 Conversion to other Eligible Currency

The Clearing House shall be entitled to direct Approved Financial Institutions to convert any 

cash standing to the debit or credit of any Clearing Member into such other Eligible Currency 

as the Clearing House, in its discretion, determines is appropriate or expedient. Any such 

conversion shall be effected at a reasonable exchange rate determined by the Clearing House 

at its discretion or such Approved Financial Institution.

Rule 108 Maintenance of Records; Return of Documents and other Materials

(a) Clearing Members and other Persons that provide or present any documentation or 

other materials to the Clearing House are required to make a copy (whether electronic 

or physical) prior to doing so and must maintain each such copy for at least ten years. 
29

Clearing Members that are authorised and regulated by the MAS will be deemed to 

satisfy this requirement if they comply with all applicable MAS Requirements 

relating to record-keeping in relation to their activities connected with the Clearing 

House provided that they must also keep relevant records required under MAS 

Requirements for the full ten-year retention period.

(b) The Clearing House shall not be obliged to return or provide a copy of any document 

or other materials presented or provided by any Clearing Member or other Person to 

the Clearing House, except where an express right to such copy or return is set out in 

these Rules.

Rule 109 Alteration of Rules, Procedures, Guidance and Circulars

(a) The Clearing House shall provide details (which, where appropriate, will include a 

reasoned account) of any Rule Change in a Circular. A Rule Change shall take effect 

and be binding on the Clearing House, Clearing Members and other Persons who have 

agreed to be bound by the Rules on the relevant date specified by the Clearing House 

in a Circular. Where the reason for any Rule Change is not manifest in the amended 

text of the Rules, the Clearing House will seek to provide an appropriate reasoned 

account of the Rule Change.

(b) The Clearing House shall be entitled, at its discretion, to make any Rule Change at 

any time and without consulting Clearing Members or any other Persons where such 

Rule Change:

(i) is of a minor nature and relates to Rules of an administrative or commercial 

nature;

(ii) is of a limited, technical nature, if a consultation is reasonably considered by 

the Clearing House not to be appropriate;

(iii) relates to the Clearing House's fees, if a consultation is reasonably considered 

by the Clearing House not to be appropriate;

(iv) is considered by the Clearing House to be necessary as a result of an Event of 

Default, Force Majeure Event or Financial Emergency which has been 

recognised by an affirmative vote of the Board at a quorate meeting (subject 

always to Rule 109(c)) and subject to any processes established pursuant to 

documents governing the internal governance of the Clearing House and its 

committees;

(v) is required to ensure compliance by the Clearing House or any Clearing 

Member or Customer with Applicable Laws, Accounting Standards or the 

requirements of any Governmental Authority or Regulatory Authority or is 

necessary or desirable to maintain the Clearing House's status as an approved 

clearing house under Section 51(1)(a) of the SFA or any other legal or 

regulatory status it has under any other Applicable Law;

(vi) concerns the parameters for Margin or the Guaranty Fund or classes of or 

haircuts for Permitted Cover, if a consultation is reasonably considered by the 

Clearing House not to be appropriate;
30

(vii) results from, and is or can be implemented solely by, a change in:

(A) Market Rules made by the relevant Market; or

(B) any other document that is not published by the Clearing House but 

which is incorporated into or forms part of the Contract Terms of any 

Contract in circumstances in which, pursuant to the Rules, upon such 

document being amended there results in a change to the Contract 

Terms without the need for any further step by the Clearing House,

which changes, for the avoidance of doubt shall take effect upon the relevant 

Market Rules or other document itself being amended without the need for any 

Circular or notice on the part of the Clearing House;

(viii) involves a technical or operational specification of any Contract Term 

previously published in a Circular or found in a Clearing House policy or 

procedure but which is not set out in the Rules or otherwise in the Procedures;

(ix) involves the removal of an existing Contract Set or the addition of a new 

Contract Set; or

(x) is considered by the Clearing House to be of an urgent nature (provided that 

the Clearing House may consult Clearing Members in relation to the continued 

applicability of the Rule Change after the urgent event or circumstance has 

concluded or ended), of a nature that would not affect significantly the rights 

of Clearing Members or of a nature where a consultation would otherwise not 

be appropriate or necessary;

provided that, in any such case, the requirements of Regulation 30 of the SF(CF)R 

would not prevent such Rule Change from being made.

(c) In relation to the determination of an Event of Default, a Force Majeure Event or a 

Financial Emergency pursuant to Rule 109(b)(iv) or, in relation to a Force Majeure 

Event only, Rule 112(b), or in relation to an approval of Invoicing Back under 

Rule 104(a), in the event that the Clearing House is unable to convene a meeting of 

the Board sufficiently promptly in the circumstances, any Director, officer, employee

or committee of the Clearing House designated by the Board from time to time for 

purposes of the applicable determination or approval may make such determination or 

approval, as the case may be, provided that the Clearing House shall convene a 

meeting of the Board as soon as practicable thereafter to ratify such determination or 

approval, rescind such determination or approval (only where, if rescission is desired, 

this is possible and practicable) or, where rescission is desired but not possible and 

practicable, to amend such determination or approval as appropriate.

(d) In cases other than those described in Rule 109(b), prior to any proposed Rule Change 

taking effect, the Clearing House will issue a consultation paper by Circular. In cases 

where this Rule 109(d) applies, the Clearing House will seek to provide at least 

14 days from the date of the relevant Circular for Persons to respond to the 

consultation. The contents of responses and the names of Persons who respond to any 

consultation may be made publicly available by the Clearing House, unless the 

Clearing House receives a request to the contrary by a Person making a response. If 
31

the Clearing House receives any such requests for confidentiality or anonymity, the 

Clearing House may state that an anonymous response was made and may make 

public a summary of the contents of any response but the response will otherwise be 

subject to Rule 106. Clearing Members are encouraged, where appropriate, to inform 

their Customers of proposed Rule Changes.

(e) The Clearing House may at any time amend the Procedures, subject to any processes 

established pursuant to documents governing the internal governance of the Clearing 

House and its committees. Any such amendment shall have immediate effect or shall 

take effect at such time as is specified by the Clearing House, provided that, in any 

such case, the requirements of Regulation 30 of the SF(CF)R would not prevent such 

Rule Change from being made. The Clearing House will issue a Circular in respect of 

any amendment to the Procedures.

(f) The Clearing House may issue, amend or revoke interpretative Guidance in relation to 

any aspect of the management of the Clearing House, its action under these Rules or 

the conduct of business of the Clearing House, Clearing Members or Customers at 

any time at its discretion and without prior consultation.

(g) The Clearing House may issue Circulars or amend or revoke the contents of Circulars 

in connection with Clearing, the Rules or any action taken by it under the Rules at any 

time at its discretion and without prior consultation.

(h) None of the following (whether proven, evidenced or alleged) shall invalidate any 

Rule Change, Procedures amendment or the contents of any Circular or Guidance in 

respect of any Person:

(i) omission by the Clearing House to give any notice or publish any Circular 

which may be required under these Rules;

(ii) non-receipt of any Circular by a Person or any of its Representatives;

(iii) lack of awareness on the part of the Person or any of its Representatives;

(iv) lack or inadequacy of any reasoned account; or

(v) failure by the Clearing House to comply with its obligations under 

Rule 109(d).

(i) Without prejudice to the generality of Rule 109(h), in the event of any of the 

circumstances in Rule 109(h)(i), (iv) or (v) occurring, the Clearing House will 

consider what action should appropriately be taken in relation to the Rule Change 

which may (or may not) include the Clearing House:

(i) opening a second or subsequent consultation on the past Rule Change, subject 

to the procedures required by this Rule 109 mutatis mutandis; or

(ii) allowing Clearing Members to make representations or submissions in relation 

to a past Rule Change and considering whether to propose a new Rule Change 

in accordance with this Rule 109.
32

(j) In accordance with paragraph 2 of the Standard Terms, a change may be made to the 

Standard Terms in the same way as a Rule Change is made pursuant to this Rule 109.

(k) The Clearing House may specify a one-off irreversible payment under Contracts of a 

particular relevant Set by Buying Counterparties or Selling Counterparties (which in 

any case shall also include an irreversible payment by the Clearing House to the 

extent that it takes a similar position in the affected Set), if it has made or proposes to 

make any Rule Change or other change to Contract Terms which the Clearing House 

determines, pursuant to documents governing the internal governance of the Clearing 

House and its committees, materially affects Exchange Delivery Settlement Prices of 

such Set. In such circumstances, the amount payable, the party that is obliged to 

make such payments, and the date of payments (which may be by reference to the 

date of introduction of a particular future Rule Change or change to Contract Terms) 

shall be specified by the Clearing House in a Circular. In making such 

determinations, the Clearing House may have reference to a poll of, or to price 

submissions by, Clearing Members or Market prices, the need and process for which 

is to be determined in any case pursuant to documents governing the internal 

governance of the Clearing House and its committees.

Rule 110 Extension or Waiver of Rules

(a) The performance by any Clearing Member of any of its obligations under the Rules or 

any Contract may be waived by the Clearing House subject to such conditions as the 

Clearing House thinks fit, provided that the Clearing House is satisfied that 

compliance with the relevant requirement would be unduly burdensome to the 

Clearing Member or Person concerned or that compliance with the relevant 

requirement would not be in the interests of the Clearing House or if the Clearing 

House in its discretion considers that such waiver is necessary or in the best interests 

of the Clearing House. Any waiver or variation of a requirement of a Rule must not 

disadvantage other Clearing Members or create unacceptable risks for the Clearing 

House. Waivers or variations of requirements may be publicised at the discretion of 

the Clearing House. 

(b) Subject to Rule 110(c), the time fixed by the Rules for filing any report or other 

document, for submitting any information or for making transfers, deposits or 

payments may be extended by the Clearing House whenever in its discretion it 

considers that such extension is necessary or in the best interests of the Clearing 

House. Any such extension may continue in effect after the event or events giving 

rise thereto.

(c) Any extension of the time for making transfers, deposits, payments or performance 

for any length of time longer than 3 Business Days after such transfer, deposit, 

payment or performance is due must be approved by the Clearing House in advance 

by an affirmative vote of the Board at a quorate meeting, at which meeting the facts 

giving rise to the proposed use of this provision will be considered and the meeting 

shall decide whether it would be appropriate to use this power, and provided further 

that the use of this power will be undertaken subject to any processes established 

pursuant to documents governing the internal governance of the Clearing House and 

its committees.
33

(d) Any waiver of any right or consent given by the Clearing House under these Rules is 

only effective if it is in writing, applies only in the circumstances for which it is given 

and shall not prevent the Clearing House from subsequently relying on the relevant 

provision. No delay or failure to exercise by the Clearing House of any of its rights or 

pursuing any of its remedies hereunder shall constitute a waiver. No single or partial 

exercise of any right or remedy by the Clearing House shall prevent any further 

exercise of the same or any other right or remedy.

(e) If any extension of any length of time is approved in respect of any payment, deposit, 

transfer or performance under this Rule 110, any notice given to the Clearing House 

prior to the end of such extension period shall be deemed not to have been given.

(f) The Clearing House shall be entitled without breach of these Rules to delay the 

making of a payment to any Clearing Member in respect of a Variation Margin call in 

respect of all or any of a Clearing Member's accounts on an intra-day basis without 

following the procedure set out in Rule 110(a) to (e) in circumstances in which:

(i) another Clearing Member or Clearing Members has or have been or will be 

asked to make payment in respect of a Variation Margin call occurring at or 

around the same time;

(ii) that other Clearing Member has, or those other Clearing Members have failed 

to pay the Clearing House; and

(iii) the total amount of such failure or failures to pay exceeds the Original Margin 

for each Proprietary Account or Customer Account to which the unpaid call 

relates provided by the Clearing Member or Clearing Members that has or 

have failed to pay the Clearing House.

Rule 111 Liability

(a) Each Clearing Member shall indemnify and hold harmless the Clearing House against 

any and all losses, liabilities, damages, injuries, costs and expenses (excluding any 

consequential losses, liabilities, damages, injuries, costs or expenses) incurred or 

suffered by the Clearing House or any of its Directors, officers, employees or 

committees (or any individual committee member) arising out of or in connection 

with any of the following:

(i) a breach (or an allegation made by the Clearing House or any Governmental 

Authority of a breach) by such Clearing Member of any of its obligations 

under these Rules, the Procedures, its Clearing Membership Agreement or any 

Contract;

(ii) such Clearing Member's conduct (excluding conduct attributed to a Clearing 

Member solely as a result of the conduct of a Customer under Rule 102(j)), 

excluding conduct which the Clearing Member is obliged to perform and has 

performed in accordance with the Rules or Procedures or its Clearing 

Membership Agreement;

(iii) a breach by such Clearing Member of any Customer-CM Transaction, agency 

relationship or other contract with its Customer or a failure to perform by such 
34

Clearing Member in breach of any other obligation to such Customer 

(including, without limitation, any failure by such Clearing Member in whole 

or in part to pass on or credit to any Customer equivalent performance under a 

Customer-CM Transaction or other contract with its Customer to that which 

such Clearing Member has received under a Customer Account Contract from 

the Clearing House where such failure constitutes a breach or failure to 

perform as aforementioned);

(iv) [Not used.]

(v) (A) any claim made or alleged against the Clearing House by, or any liability 

of the Clearing House to, an Eligible Person (as defined in the relevant 

Clearing Membership Agreement), Transferor, Transferee or Customer of that 

Clearing Member; or (B) such Clearing Member's conduct to the extent that 

the same is not covered by Rule 111(a)(ii); or

(vi) a breach (or an allegation made by the Clearing House or any Governmental 

Authority of a breach) by the Clearing Member of any Applicable Law,

provided that a Clearing Member shall not indemnify or hold harmless the Clearing 

House or any of its Directors, officers, employees or committees (or any individual 

committee member) to the extent that any such loss, liability, damage, injury, cost or 

expense arises out of or in connection with:

(A) a breach by the Clearing House of any of its obligations under these 

Rules, the Procedures or any Contract;

(B) fraud, bad faith, gross negligence or wilful misconduct by the Clearing 

House or any of its Directors, officers, employees or committees (or 

any individual committee member); or

(C) personal injury or death resulting from negligence, recklessness or an 

intentional act or omission of the Clearing House or any of its 

Directors, officers, employees or committees (or any individual 

committee member).

(b) The provisions of this Rule 111 shall apply:

(i) without prejudice to the liability of any other Person subject to the Rules or the 

rules of any Exchange for the same conduct;

(ii) in the case of inconsistency with any other provision of the Rules, in priority 

to that other provision;

(iii) whether or not the Clearing Member's Representative(s) are subject to the 

Rules; and

(iv) whether or not the Clearing Member's Representative(s) can be conclusively 

identified (provided that it is established that the relevant conduct was in fact 

carried out by a Clearing Member's Representative, albeit an unidentified 

Clearing Member's Representative).
35

(v) [Not used.]

(c) Neither the Clearing House nor any of its Representatives, its Affiliates or its 

Affiliates' Representatives shall be liable to any Clearing Member or any other Person 

in respect of any loss, liability, damage, injury, cost or expense incurred or suffered 

by such Clearing Member or Person, whether in contract, tort or restitution, as a 

fiduciary or under any other cause of action, arising out of or in connection with any 

of the following:

(i) any suspension, restriction or closure of the Clearing House or its services;

(ii) any failure or malfunction of or inability to use any systems, communication 

lines or facilities or technology supplied, operated or used (directly or 

indirectly) by the Clearing House or any Exchange or the suspension, 

restriction or closure of any Market or Exchange;

(iii) any act or omission of any Exchange, any Clearing Member or any other third 

party including any error in relation to price data;

(iv) any Force Majeure Event affecting the Clearing House (including, in relation 

to a delivery, a Force Majeure Event affecting a Person making or taking 

delivery on behalf of the Clearing House);

(v) any dispute relating to the validity, existence or terms of any Contract;

(vi) the exercise (or failure to exercise) by the Clearing House of any discretion or 

right conferred upon it pursuant to these Rules;

(vii) the exercise (or failure to exercise) by any Exchange of any discretion or right 

conferred upon it pursuant to its rules (including, without limitation, in 

relation to error trades);

(viii) any indirect or consequential loss, liability, damage, injury, cost or expense, 

any loss of profit (whether direct or indirect) or any loss of bargain;

(ix) any action in libel, defamation or slander in connection with the issue of any 

Default Notice, conduct of any proceedings relating to an Event of Default, the 

timing of termination of any Contracts or the manner in which or the price at 

which any Contracts are terminated following an Event of Default;

(x) rejection of any application to become a Clearing Member;

(xi) any Contract being void pursuant to Rule 403 or avoided pursuant to Rule 404, 

including (without limitation) the causes and consequences of such Contract 

being void or voidable;

(xii) any action or inaction on the part of a Transferor or Transferee;

(xiii) in respect of a Contract subject to tender, delivery or physical settlement:

(A) a tender given by the Clearing House;
36

(B) any documents accompanying a tender as required by Market Rules or 

the Procedures;

(C) the performance by the Clearing House of its obligations to make 

delivery of a Deliverable under a Contract or to pay the price or 

Exchange Delivery Settlement Price; or

(D) any other loss, liability, damage, injury, cost or expense arising under 

the terms of a Contract in relation to tender, delivery or physical 

settlement,

unless, the relevant Clearing Member gives notice of its loss, liability, 

damage, injury, cost or expense within seven Business Days of either the day 

on which relevant documents must be taken up and paid for by the Clearing 

Member (whether or not the Clearing Member fulfils that obligation) or the 

Clearing Member must take delivery of the Deliverable, whichever is the 

earlier;

(xiv) as a result of any action taken by it pursuant to Market Rules on the basis that 

Market Rules are to any extent invalid or ultra vires or that a determination or 

request made by the Market or any agreement made by the Market, is ultra 

vires or incompatible with Market Rules;

(xv) any express or implied representations or warranties in relation to the Clearing 

House's systems, including, but not limited to, representations or warranties of 

good title, merchantability and fitness for purpose or for a particular use;

(xvi) any statement, representation, assurance or warranty of the Clearing House or 

any other Person other than as expressly set out in the Rules, Procedures, 

Contract Terms or a Clearing Membership Agreement; or

(xvii) any action, suit or proceeding brought against the Clearing House over one 

year after the time that a cause of action, suit or proceeding has accrued, 

provided that neither this Rule 111(c) nor any other provision of these Rules shall 

affect the application of Section 74 of the SFA nor exclude or restrict the liability of 

the Clearing House or any other Person for:

(xviii) fraud, bad faith, gross negligence or wilful misconduct;

(xix) personal injury or death resulting from negligence, recklessness, or an 

intentional act or omission;

(xx) obligations under Contracts (except that, other than as provided in Part 7 and 

the Procedures, the Clearing House shall have no obligation physically to 

make or accept delivery of any Deliverable and shall have no liability arising 

out of the failure or lateness of another Clearing Member (or its Transferor or 

Transferee) physically to make or accept any such delivery or make any such 

payment); or

(xxi) any liability which in accordance with Applicable Laws cannot be excluded, to 

the extent such liability cannot lawfully be excluded.
37

(d) Any possible action, suit or proceeding against the Clearing House must be notified to 

the Clearing House as soon as reasonably practicable, including all relevant details 

then known and supporting documentation.

(e) [Not used.]

(f) Save for any liability which it cannot exclude pursuant to Applicable Laws, the 

Clearing House shall not be liable pursuant to these Rules or any Clearing 

Membership Agreement to any Person who is not a Clearing Member. Without 

prejudice to the generality of the foregoing, the Clearing House shall not be liable 

(save for any liability which it cannot by law exclude) to any Transferor or Transferee 

(that is not the Seller or Buyer under a Contract, respectively) or to any Customer of a 

Clearing Member.

(g) If the Clearing House is found liable to a Clearing Member in respect of a Contract 

and another Clearing Member is also found liable to the Clearing House in respect of 

a Contract which arose pursuant to the same Transaction as the first Contract, then the 

liability of the Clearing House under the first Contract shall be deemed to be a 

foreseeable consequence of the breach by the Clearing Member of the second 

Contract and the Clearing House shall be entitled to be indemnified by such Clearing 

Member in accordance with this Rule 111.

(h) Damage or loss to the property of the Clearing House or any other property on the 

Clearing House's premises will be paid for by the Clearing Member causing such 

damage or loss.

(i) [Not used.]

Rule 112 Force Majeure and similar events

(a) Neither the Clearing House nor a Clearing Member shall be liable for any failure, 

hindrance or delay in performance in whole or in part of its obligations under these 

Rules or of any Contract if and to the extent that such failure, hindrance or delay 

arises as a result of a Force Majeure Event.

(b) On the occurrence of any Force Majeure Event (and, where the Force Majeure Event 

affects the Clearing House, an affirmative vote of the Board at a quorate meeting 

recognising such Force Majeure Event (subject always to Rule 109(c)):

(i) the Affected FM Party shall immediately notify the Clearing House of the 

same (or, if the Affected FM Party is the Clearing House, the Clearing House 

shall issue a Circular in relation to the Force Majeure Event);

(ii) the Clearing House shall be entitled to require any Contracts affected by the 

event or circumstance to be performed in accordance with directions issued by 

the Clearing House or to be Invoiced Back;

(iii) the Clearing House shall be entitled to require any Clearing Member to take 

such action as the Clearing House may direct in respect of Contracts affected 

by the event or circumstance;
38

(iv) the Clearing House shall be entitled to require Clearing Members to comply 

with any directions issued by the Clearing House regarding the performance 

of, or otherwise in respect of, such affected Contracts as are specified by the 

Clearing House; and, upon receipt of such an invoice, settlement of all 

affected accounts shall be due immediately and shall be made forthwith in 

discharge of such Contracts;

(v) a Clearing Member affected by a Force Majeure Event shall use all reasonable 

endeavours to mitigate the effects of the same upon its ability to perform its 

obligations to the Clearing House and if the Clearing House is affected by a 

Force Majeure Event, it shall use all reasonable endeavours to mitigate the 

effects of same upon its ability to perform such obligations to Clearing 

Members; and

(vi) the Affected FM Party shall notify the Clearing House immediately as soon as 

its ability to perform is no longer affected by the Force Majeure Event (or, if 

Affected FM Party is the Clearing House, the Clearing House shall issue a 

Circular in relation to the cessation of the Force Majeure Event).

(c) If a Market determines in accordance with Market Rules that an excessive position or 

unwarranted speculation or any other undesirable situation or practice is developing 

or has developed which is affecting or capable of affecting the Market, the Clearing 

House may take such action as is requested of it by that Market in respect of one or 

more Contracts.

Rule 113 Notices

(a) The delivery by hand, electronic transmission, facsimile or telephone of any notice, 

order or other communication to a Clearing Member at the address, facsimile number 

or telephone number last designated by it shall be good and sufficient delivery thereof 

to such Person (unless another method of delivery is specified in the Rules or in 

relation to any Contract). The publication of a Circular shall amount to good and 

sufficient delivery of the contents of the Circular to all Clearing Members.

(b) Any notice, document, communication, filing or form to be served on, filed with, 

made to or provided to the Clearing House pursuant to these Rules or in relation to 

any Contract shall be served, filed, made or provided at the address, fax number or 

e-mail address (or through such other communication system) as is specified by the 

Clearing House from time to time in accordance with the Procedures and shall be 

marked for the attention of such person or department as is specified by the Clearing 

House from time to time in accordance with the Procedures. Unless another form or 

method is specified in the Rules or the Procedures for the notice, document, 

communication, filing or form in question, a notice, document, communication, filing 

or form must be served, filed, made or provided in writing.

(c) Any notice, document, communication, filing or form, unless otherwise specified in 

the Rules or the Procedures, will only be effectively served, filed, made or provided 

and delivered to the Clearing House for the purposes of these Rules:
39

(i) if sent by post, on the third Business Day (or tenth Business Day in the case of 

airmail) after the day on which it was deposited in the post, full postage 

prepaid, in a correctly addressed envelope; or

(ii) if delivered in person or by courier, at the time of delivery or, if not delivered 

during business hours on a Business Day, on the following Business Day.

(d) Unless otherwise specified in the Rules or Procedures, any notice by fax or electronic 

communication shall not be effective until hard copy confirmation is served pursuant 

to Rule 113(c).

(e) Each Clearing Member that is not incorporated or registered in Singapore shall 

appoint and maintain an agent in Singapore to act as its agent to accept service of 

process issued out of the courts of Singapore in relation to any arbitration commenced 

pursuant to Rule 117 or the Clearing Membership Agreement and shall deliver to the 

Clearing House an agreement substantially in the form specified by the Clearing 

House relating to such appointment countersigned by such agent. No Clearing 

Member shall give any notice of revocation to, or otherwise terminate the 

appointment of, any such agent unless prior to such termination it has validly 

appointed a replacement agent in Singapore reasonably acceptable to the Clearing 

House to accept service of process issued out of the courts of Singapore in relation to 

any arbitration commenced pursuant to Rule 117, the Clearing Membership 

Agreement and has delivered to the Clearing House a copy of that agent's acceptance 

of that appointment substantially in the form specified by the Clearing House 

countersigned by such agent. If for any reason any agent appointed under this 

Rule 113(e) ceases to be such an agent, the Clearing Member shall forthwith appoint a 

replacement agent in Singapore and deliver to the Clearing House a copy of the new 

agent's acceptance of that appointment substantially in the form specified by the 

Clearing House countersigned by such agent within ten Business Days of such 

appointment. Nothing in these Rules, the Procedures, the Clearing Membership 

Agreement or any Contract shall affect the right of the Clearing House to serve 

process in any other manner permitted by Applicable Law.

Rule 114 Action by the Clearing House

(a) Except as otherwise specifically set out herein, any action permitted or required to be 

taken by the Clearing House may be taken by the Board, the Chairman, the President, 

any other Director or any other employee, officer or committee to whom or which 

authority has been delegated by the Clearing House, the Board, the Chairman, the 

President or any committee.

(b) Where there is a provision to the effect that an action may be taken or power 

exercised by the Clearing House, any action taken or power exercised by the Clearing 

House shall be without prejudice to the right of the Clearing House to exercise such 

powers and take such other steps (or not as the case may be) as it may think fit upon 

that or any other occasion.

(c) The Clearing House may outsource operational functions, services or activities. If it 

does so, this shall not affect the Clearing House's responsibilities and liabilities under 

these Rules, any Clearing Membership Agreement or Applicable Laws.
40

Rule 115 Relations with Governmental Authorities and other Persons

(a) With a view to maintaining its status as an approved clearing house under 

Section 51(1)(a) of the SFA, the Clearing House may:

(i) make arrangements with any Person for monitoring compliance with and 

investigating alleged breaches of the Rules (and arrangements, Procedures and 

directions made, authorised or given thereunder); and

(ii) co-operate generally with any Governmental Authority.

(b) Without prejudice to the generality of Rule 115(a) and subject to Rule 106:

(i) this may include making arrangements for the sharing of information with 

Governmental Authorities; and

(ii) the Clearing House may, where appropriate, at any time refer a complaint or 

any other matter coming to its attention to one or more Exchanges, Clearing 

Organisations or Regulatory Authorities for its or their comment or 

investigation and may, pending the result of such reference, either suspend or 

continue with (in whole or in part) its own investigation, proceedings or other 

actions.

Rule 116 Opening Hours

The Clearing House will give notice of any changes to its Opening Days, Opening Hours and 

Business Days from time to time by Circular.

Rule 117 Dispute Resolution

(a) Any Dispute between the Clearing House and the Clearing Member(s) that is not 

subject to the procedures of Part 10 shall be referred to and finally resolved by 

arbitration under the SIAC Rules, which rules are deemed to be incorporated into this 

Rule 117. In the event of a conflict between any provision of the SIAC Rules and this 

Rule 117, this Rule 117 shall prevail.

(b) The seat of arbitration will be Singapore and the language of the arbitration 

proceedings shall be English.

(c) The Tribunal will comprise three arbitrators appointed in accordance with the SIAC 

Rules. Tribunal members shall not be current or former employees or directors of any 

Clearing Member that is a party to the arbitration, current or former employees of the 

Clearing House or any person or persons with a material interest or conflict of interest 

in the outcome of the Dispute.

(d) The Tribunal shall have the power on the application of any party to an existing 

arbitration, to require one or more Clearing Members to be joined to an existing 

arbitration. Each Clearing Member agrees that it may be joined as an additional party 

to an arbitration involving the Clearing House and another Clearing Member.

(e) If more than one arbitration is begun under these Rules and the Clearing House or a 

Clearing Member that is a party to an arbitration so concerned serves notice upon the 
41

Tribunals concerned that it believes two or more arbitrations are substantially related 

and that the issues should be heard in one set of proceedings, the Tribunal appointed 

in the first-filed of such proceedings shall have the power to determine whether, in the 

interests of justice and efficiency, the proceedings should be consolidated and heard 

together before that Tribunal.

(f) In the case of such joinder or consolidation, the Tribunal shall make a single, final 

award determining all Disputes between the relevant parties in those proceedings. 

Each Clearing Member and the Clearing House irrevocably waives any right to 

challenge any award or order of any Tribunal by reason of the fact that it arises from a 

joined or consolidated arbitration. In addition to the waiver of challenge on the basis 

of joinder set out in clause 8.5 of the Clearing Membership Agreement, each Clearing 

Member and the Clearing House hereby irrevocably waives any right to challenge any 

award or order of any tribunal appointed under the Clearing Membership Agreement 

by reason of the fact that it arises from a consolidated arbitration.

(g) The award of the arbitral Tribunal will be final and binding on the Clearing House 

and any Clearing Member from the day it is made. Judgment upon the award may be 

entered or the award enforced through any other procedure in any court of competent 

jurisdiction.

(h) No arbitral proceedings under this Rule 117 may be instigated where arbitral 

proceedings could have been instigated in respect of the same Dispute under Market 

Rules.

(i) The provisions of this Rule 117 may not be varied by any Clearing Member or 

Clearing Members save where each Clearing Member that is a party to the Dispute or 

arbitration proceedings and the Clearing House agree in express written terms.

(j) The commencement of any arbitral proceedings shall be without prejudice to and shall 

not limit in any way the right of the Clearing House to instigate any procedure under 

Part 9 or Part 10 of these Rules, including without limitation in relation to any Event 

of Default, any investigation, disciplinary proceedings or the imposition of a sanction.

(k) Each Clearing Member that now or hereafter has a right to claim sovereign immunity 

from suit or sovereign immunity from enforcement for itself or any of its assets shall 

be deemed to have irrevocably waived any such immunity to the fullest extent 

permitted by Applicable Laws. Such waiver shall apply in respect of any immunity 

from:

(i) any proceedings commenced pursuant to this Rule 117;

(ii) any judicial, administrative or other proceedings to aid an arbitration 

commenced pursuant to this Rule 117; and

(iii) any effort to confirm, enforce, or execute any decision, settlement, award, 

judgment, service of process, execution order or attachment (including 

pre-judgment attachment) that results from any judicial or administrative 

proceedings commenced pursuant to this Rule 117.
42

(l) The rights and obligations of a Clearing Member under the Rules and in relation to 

any Contract are of a commercial and not a governmental nature.

(m) No Clearing Member shall raise or in any way whatsoever assert a defence of 

sovereign immunity in relation to any claim or enforcement proceedings arising from 

a Dispute under these Rules.

(n) All Permitted Cover standing to the credit of a Clearing Member who is party to one 

or more Contracts subject to a Dispute or difference to which this Rule 117 or Market 

Rules applies, whether or not such Permitted Cover is held with respect to a disputed 

Contract, may be retained by the Clearing House until the Dispute in question is 

finally disposed of.

(o) [Not used.]

(p) [Not used.]

(q) [Not used.]

(r) Any arbitration or reference to arbitration made under this Rule 117 shall be deemed 

to be an arbitration or reference under the International Arbitration Act (Cap 143A).
43

Part 2 Clearing Membership

Rule 201 Clearing Membership Criteria

(a) In order to attain and maintain membership as a Clearing Member, a Person must, at a 

minimum, as from the date on which it is proposed that it becomes a Clearing 

Member:

(i) have paid the Clearing House's (non-refundable) application fee (if applicable) 

and provided completed membership application forms;

(ii) meet such additional financial resources requirements as are specified in the 

Membership Procedures;

(iii) (if proposing to become a Clearing Member in relation to ICE Futures 

Singapore Transactions) be a member of ICE Futures Singapore;

(iv) [Not used.]

(v) be a user of at least one Repository (if any) for the Contracts it proposes to 

clear where such Contract is required to be reported to a Repository under 

Applicable Law;

(vi) [Not used.]

(vii) have nominated a Person, satisfactory to the Clearing House, who: (A) is a 

director, general partner, trustee, officer or employee of the applicant (or 

Person occupying a similar status or performing similar functions); (B) is 

responsible for the clearing operations of the applicant; (C) is authorised to act 

on behalf of the applicant in all transactions with or involving the Clearing 

House; and (D) has all authorisations, registrations, licences, permissions, 

non-objections, consents or approvals required under Applicable Law in any 

jurisdiction in order to act as a representative for the relevant Clearing 

Member's business in connection with the Clearing House, or benefits from 

any exemption(s) and/or exclusion(s) from the requirement to obtain any of 

the same under Applicable Law (including, without limitation, pursuant to the 

SFA, the Financial Adviser's Act and MAS Requirements, and have 

nominated a second Person who meets the requirements of (A) to (D) above 

and who is authorised to act on behalf of the applicant in the event of the 

death, incapacity or other inability of the first Person to so act;

(viii) maintain sufficient Capital in accordance with Rule 206;

(ix) [Not used.]

(x) be party to a Clearing Membership Agreement with the Clearing House;

(xi) have in place all necessary regulatory authorisations, licences, permissions and 

approvals in its country of origin, Singapore and any other jurisdiction in 

which it conducts business;
44

(xii) have sufficient qualities of financial, compliance and managerial 

responsibility, operational capacity, business integrity, reputation and 

competence as the Clearing House, in its discretion, considers necessary or 

appropriate and satisfy the Clearing House that its directors, officers, 

employees and Controllers also satisfy such tests, including having adequate 

separation policies to mitigate concentration risk of critical business functions 

and compliance oversight in place to enable it to meet its obligations as a 

Clearing Member;

(xiii) satisfy the internal stringent credit criteria established by the Clearing House, 

such satisfaction to be confirmed by an examination of its books and records; 

provided further that this requirement may, at the discretion of the Clearing 

House, be met by a Controller of the Clearing Member if such Controller 

provides a guarantee in accordance with the Finance Procedures; 

(xiv) have such facilities, equipment, operational capability, personnel, hardware 

and software systems as are capable of supporting the proper performance of 

its business as a Clearing Member, including such IT links to the Clearing 

House and software as in the judgment of the Clearing House are necessary or 

desirable;

(xv) have appropriate business continuity arrangements in place to enable it to meet 

its obligations as a Clearing Member (and, where applicable, satisfy any 

minimum requirements of the MAS and any other Regulatory Authority);

(xvi) have a sufficient level of knowledge about the types of Contracts that it 

intends to clear and any risks involved in relation to the same;

(xvii) have demonstrated its ability to make available to the Clearing House 

sufficient Margin and make Margin payments as required pursuant to these 

Rules;

(xviii) have made the required Guaranty Fund Contributions;

(xix) not be subject to an Insolvency;

(xx) not be a natural person;

(xxi) demonstrate operational competence in respect of the classes of contracts that 

it proposes to clear;

(xxii) [Not used.]

(xxiii) if it is not incorporated in Singapore, have appointed an agent for the service 

of process pursuant to Rule 113(e);

(xxiv) [Not used.]

(xxv) if it is to clear transactions on behalf of Customers, have the necessary 

additional financial resources and operational capacity to perform this activity;
45

(xxvi) not be subject to any circumstances pursuant to which an Event of Default 

could be declared were the applicant to be a Clearing Member;

(xxvii) have provided details of an office which is staffed during normal business 

hours and sufficient for its proposed activities as a Clearing Member under the 

direct supervision and responsibility of an executive director or other

executive officer of the Clearing Member to which all notices, orders and 

other communications from the Clearing House may be transmitted or 

delivered;

(xxviii)satisfy the Clearing House that it, its directors, officers, employees, 

Representatives and substantial shareholders are fit and proper, in accordance 

with the criteria set out in the Guidelines on Fit and Proper Criteria issued by 

MAS;

(xxix) hold a Nominated Bank Account or Accounts (as necessary) at one or more 

Approved Financial Institutions in relation to each of which a direct debit 

mandate has been established in favour of the Clearing House, and satisfy the 

Clearing House of the adequacy of its contingency banking arrangements in 

the event of an Insolvency of an Approved Financial Institution which affects 

the operation of a Nominated Bank Account or Accounts or a Clearing House 

Account;

(xxx) if non-cash assets are to be used as Permitted Cover, have executed all 

necessary documentation relating to the transfer of such assets and not be in 

dispute with the Clearing House in relation to the ownership over or rights 

relating to such non-cash assets;

(xxxi) either (A) be a Person in respect of whom 'simplified customer due diligence' 

may be applied pursuant to the MAS Notice to Capital Markets Intermediaries 

on the prevention of money laundering and countering the financing of 

terrorism ("MAS Notice SFA04-N02"); or (B) have been subject to customer 

due diligence measures under MAS Notice SFA04-N02 to the Clearing 

House's satisfaction;

(xxxii) not be prevented from entering into any Contract or using the Clearing House 

as a result of any sanctions administered or imposed by any Governmental 

Authority in Singapore or the United Nations Security Council or any other 

relevant Governmental Authority affecting any Market, the Clearing House, 

any Clearing Member, any Customer or any of their assets;

(xxxiii)be incorporated or registered in and access the Clearing House from only 

jurisdictions whose Applicable Laws relating to insolvency, the regulation of 

clearing houses, Markets or central counterparties, the enforceability of 

Contracts and the Rules and such other matters as the Clearing House specifies 

are acceptable to the Clearing House (and an applicant may be required to 

supply a legal opinion of external counsel, addressed to the Clearing House, 

addressing such issues, at its cost); and comply with any additional restrictions 

or requirements imposed by the Clearing House as a result of activities in any 

such jurisdictions; and
46

(xxxiv)not be subject to statutory disqualification under Applicable Law.

(b) The Clearing House may at its discretion attach further objective conditions to any 

application for Clearing Member status prior to such status being granted, provided 

that such additional conditions are proportional to the risk brought by the applicant. 

The Clearing House may grant approval to an applicant conditional upon satisfying 

certain requirements, provided that the applicant has expressed its intention to meet 

such requirements and provided evidence of its ability to do so.

(c) Applicants for membership must provide information or documentation to the 

Clearing House evidencing compliance (or lack thereof) with each of the criteria set 

out in or required pursuant to Rule 201(a). Failure by an applicant to supply such 

information or documentation may result in an application being rejected or Clearing 

Member status or access to particular services being revoked.

(d) All information supplied to the Clearing House in respect of an application for 

membership shall be deemed to have been provided by the Clearing Member to the 

Clearing House on the day on which that Clearing Member becomes a Clearing 

Member, save to the extent that such information has been amended or revoked at 

least two Business Days prior to membership being granted.

(e) If the Clearing House determines that an application for membership should be 

denied, the applicant will be given notice of such denial, with the membership 

criterion or criteria that were not met being specified. In such an event, the applicant 

may request an opportunity to be heard by the Clearing House's Board (or an 

appropriately constituted sub-committee of the Board) in relation to the matter and to 

present evidence as to why its application should not be denied or may raise a 

complaint which the Clearing House will deal with in the same way as if Part 10 

applied to such complaint (notwithstanding that the Rules do not apply to the 

complaint).

(f) Membership of the Clearing House does not entitle any Clearing Member to any 

shareholding or other similar interest in the Clearing House or any of the Clearing 

House's Affiliates. Nothing in these Rules is intended to, or shall be deemed to, 

establish any partnership or joint venture between any Clearing Member, the Clearing 

House or any other Person. Except for any provision relating to the relationships 

between a Clearing Member and its Representative, nothing in these Rules constitutes 

any Clearing Member, Customer or the Clearing House as the agent or principal of 

any other Person. Nothing in these Rules authorises any Person to make or enter into 

any commitments for or on behalf of any other Person (save in the case of a Clearing 

Member acting on behalf, or for the account, of and being liable for a Customer or as 

otherwise expressly provided herein).

(g) Clearing Members shall be deemed to represent and warrant, upon their first date of 

membership and on each subsequent date that they are a Clearing Member, that they 

meet all of the membership criteria in Rule 201(a) and are in compliance with all of 

their obligations under these Rules.

(h) [Not used.]

(i) [Not used.]
47

(j) [Not used.]

(k) The references in Rule 201(g), Rule 202(a)(iv) and Rule 209(a)(iv) to satisfaction of 

the criteria for membership in or set out in Rule 201(a) include those criteria for 

membership which are required pursuant to (but not actually set out in) Rule 201(a).

Rule 202 Obligations of Clearing Members

(a) In connection with these Rules, all and any Contracts, its membership of the Clearing 

House and its business and activities as a Clearing Member, each Clearing Member 

shall at all times:

(i) comply with these Rules and any agreement with the Clearing House;

(ii) comply with all Applicable Laws relating to its status and performance as a 

Clearing Member;

(iii) act in good faith in its dealings with the Clearing House;

(iv) continually satisfy the criteria for membership set out in or required pursuant

to Rule 201(a);

(v) respond promptly to any direction by the Clearing House to provide 

information or documentation;

(vi) maintain at least the amount of Capital required pursuant to Rule 206;

(vii) pay all fees and other charges when due in accordance with Part 3;

(viii) provide Margin and make Margin payments to the Clearing House in 

accordance with Part 3 and Part 5;

(ix) make all such payments to the Guaranty Fund as are required pursuant to 

Part 11;

(x) respond promptly to all enquiries or requests for information made by the 

Clearing House;

(xi) maintain accounts at an Approved Financial Institution for the deposit of funds 

in Eligible Currencies and the deposit of securities required to be transferred to 

and from the Clearing Member pursuant to these Rules (whether by way of 

Margin, Guaranty Fund Contributions, fees, amounts due under Contracts or 

otherwise) and have arrangements with such Approved Financial Institutions 

satisfactory to the Clearing House for electronic transfer of funds and 

securities into and out of such accounts as is required under the Rules and 

Procedures, on the order of the Clearing House and without the need to seek 

the consent of such Clearing Member or any of its Customers;

(xii) if it is to have a Customer Account, consent to any Transferee Clearing 

Member and the Clearing House relying upon its customer due diligence in 

relation to all of its Customers and all other "beneficial owners" in respect of 

any Contracts entered into in respect of Customer business, Margin and 
48

Contracts entered into in respect of Customer business recorded in its 

Customer Account or any other collateral subject to the Default Portability 

Rules, such consent only to be relied upon in the event of the Clearing 

Member becoming a Defaulter and the Default Portability Rules being 

applied;

(xiii) if the Clearing House at its discretion so directs, allow formal audits or system 

tests of its operations related to its business with the Clearing House during 

reasonable business hours and on reasonable notice no more than 

twice annually, at the expense of the Clearing Member;

(xiv) have adequate systems and controls in place in order to ensure that:

(A) its internal affairs are organised and controlled in a responsible and 

effective manner, including having adequate separation policies to 

mitigate concentration risk of critical business functions and 

compliance oversight in place to enable it to meet its obligations as a 

Clearing Member, adequate segregation of front and back office 

functions and adequate back office and compliance support, as 

required under Applicable Laws;

(B) it has adequate risk management systems and internal audit processes 

that are applied appropriately;

(C) its internal record-keeping is adequate;

(D) all of its Representatives are fit and proper, suitable, adequately trained 

and properly supervised;

(E) all clearing business conducted by it, including in relation to individual 

Contracts, complies with the Clearing Member's obligations under the 

Rules and Applicable Laws;

(F) it only enters into Contracts or accesses the Clearing House (through 

actions of its Representatives or otherwise) in or from jurisdictions on 

a list of acceptable jurisdictions published by the Clearing House from 

time to time and in accordance with all conditions and requirements as 

are specified by the Clearing House from time to time for entry into 

Contracts or access in or from that jurisdiction;

(G) it is able continuously to monitor communication facilities for receipt 

of communications from the Clearing House; and

(H) it is able promptly to review Circulars and other communications 

delivered or made available to the Clearing Member or its 

Representatives by the Clearing House;

(xv) ensure that any power of attorney, appointment of any agent or Representative 

or other authorisation to transact business with the Clearing House given by a 

Clearing Member to any Person remains in effect on its original terms until 

not less than five Business Days after a written notice of change has been 

received by the Clearing House;
49

(xvi) keep accurate records showing the details of each Transaction submitted for 

Clearing by or on behalf of such Clearing Member and such other information, 

in such form, as shall be required by the Clearing House from time to time and 

in accordance with Applicable Laws and Accounting Standards;

(xvii) gather and make available to the Clearing House basic information to identify, 

monitor and manage relevant concentrations of risk relating to the provision of 

services to Customers; 

(xviii) upon request, inform the Clearing House about the criteria and arrangements 

adopted by it to allow clients access to Clearing with the Clearing House; 

(xix) participate in default management simulations, new technology testing and 

other exercises, as notified by the Clearing House from time to time; 

(xx) be responsible for ensuring that Customers comply with their obligations in 

the manner set forth in the Rules and Standard Terms; and

(xxi) without prejudice to Rule 202(a)(xiii) give such other access to the Clearing 

House (or any Person appointed by it) to its premises, records and personnel 

(or those of its Affiliates or service providers) to conduct any inspection, 

investigation or audit and allow the Clearing House or such Person to take 

copies of the accounts, books, contracts and any other records or documents of 

the Clearing Member, in order to facilitate discharge of the Clearing House's 

regulatory obligations or if required by MAS to do so, in any case at the cost 

of the Clearing Member. 

(b) Prior to making available services relating to Clearing of Contracts to any Customer, a 

Clearing Member is obliged to procure the agreement of such Customer to Standard 

Terms in such a way that: 

(i) the Standard Terms and/or Rules are duly cross-referenced (as being 

applicable to Customer-CM Transactions between such Customer and such 

Clearing Member) in an agreement between the Clearing Member and its 

Customer that has been duly executed and duly authorised by both of them; 

and 

(ii) subject to Rule 202(c), the obligations of the Customer to the Clearing 

Member and the Clearing House under the Standard Terms constitute its legal, 

valid and binding obligations, enforceable in accordance with their respective 

terms (subject to applicable bankruptcy, reorganisation, insolvency, 

moratorium or similar laws affecting creditors' rights generally and subject, as 

to enforceability, to equitable principles of general application and to other 

matters which are standardly excluded, restricted or qualified in legal opinions 

(regardless of whether enforcement is sought in a proceeding in equity or at 

law)); and 

(iii) automatic early termination does not apply under such agreement in respect of 

either the Clearing Member or its Customer and the relevant Customer-CM 

Transactions (unless the party, or each of the parties, to which automatic early 
50

termination applies is incorporated in Switzerland, Germany or any other 

jurisdiction approved by the Clearing House for such purposes).

To the extent that it agrees to be bound by the Rules, a Customer of a Clearing 

Member will be deemed to be bound by the Standard Terms in such a manner.

(c) Where:

(i) the governing law of the agreement between a Clearing Member and its 

Customer incorporating the Standard Terms and/or Rules is the law of any 

jurisdiction of incorporation of any Clearing Member; and

(ii) each of the place of incorporation and relevant place of business of the 

Customer is the same as any jurisdiction or incorporation of any Clearing 

Member or any other jurisdiction specified for this purpose by the Clearing 

House,

the obligation in Rule 202(b)(ii) to procure that the obligations of the Customer under 

the Standard Terms are of a legal, valid and binding nature and enforceable will be 

deemed to be satisfied and there shall be no obligation on such Clearing Member to 

carry out any further enquiry as regards enforceability of the Standard Terms under 

Applicable Laws.

(d) If the Clearing House so requests in writing and there are reasonable grounds for it 

making such a request, a Clearing Member will execute any documentation specified 

by the Clearing House which confirms its agreement to the Standard Terms relating to 

Contracts it clears for its Customer or any amendment to the Standard Terms made in 

accordance with those Standard Terms (either generally or in respect of any particular 

Customer). 

(e) Where a Customer of a Clearing Member has agreed or is deemed to have agreed to 

the application of the Standard Terms as set out in Rule 202(b) to Rule 202(c), the 

requirements of clause 3.2 of the Clearing Membership Agreement shall be deemed to 

have been satisfied by the Clearing Member in respect of such Customer.

(f) [Not used.]

Rule 203 Prohibitions on Clearing Members

(a) In connection with these Rules, any Contracts, its membership of the Clearing House 

or its business and activities as a Clearing Member, no Clearing Member shall at any 

time:

(i) provide any information to the Clearing House (including information for the 

purpose of obtaining or reinstating membership) which is false, misleading or 

inaccurate in any material respect;

(ii) breach any Applicable Law relating to its status and performance as a Clearing 

Member;

(iii) commit any act of fraud;
51

(iv) engage in any behaviour which amounts to market abuse, insider dealing, 

market manipulation, money laundering or which is in breach of any similar 

Applicable Laws;

(v) except with the prior written consent of the Clearing House and otherwise than 

to terminate existing positions, continue to trade, enter into Contracts or 

provide or accept payments or transfers in respect of Margin when not in 

compliance with the Capital requirement then applicable;

(vi) knowingly disseminate false, misleading or inaccurate reports concerning any 

Contract, product or market information or conditions that affect or tend to 

affect prices of Contracts;

(vii) make or report a false or fictitious Transaction or Contract;

(viii) [Not used.];

(ix) enter into any Contract or fail to close out the same either intending to default 

in performance of the same or having no reasonable grounds for believing that 

it would be able to avoid such default (provided that it shall not be sufficient 

to have intended to comply with any contractual or other provision governing 

the consequences of default);

(x) use or reveal any information confidential to the Clearing House or any of its 

Representatives when under a legal or contractual obligation to the Clearing 

House or any Applicable Law not to do so;

(xi) use any information technology or any online services provided to it or made 

available to it pursuant to its membership of the Clearing House other than for 

the purposes of conducting its business and activities as a Clearing Member in 

accordance with these Rules;

(xii) engage in any other event or practice which has developed or is developing on 

the Clearing House and is reasonably considered by the Clearing House to be 

capable of impairing the orderly conduct of business of the Clearing House or 

affecting the timely delivery or settlement of Contracts;

(xiii) represent or hold out to any Person that membership of the Clearing House 

brings with it any stamp of approval, special status, hallmark, regulatory 

supervision or approval or confers any rights or protections to Customers or 

any other Person in relation to the Clearing Member's business, policies, 

financial standing or otherwise (although Clearing Members may inform their 

Customers, potential Customers and other Persons that they are a member of 

the Clearing House and details of their privileges);

(xiv) participate in, facilitate, procure, counsel, incite, encourage, aid or abet any 

conduct by a third party which would be a violation or attempted violation of 

these Rules regardless of whether that third party is subject to these Rules;

(xv) take any action or make any omission or knowingly or recklessly permit the 

use of its services, facilities or membership or clearing privileges by any 
52

Person in a manner which in the reasonable opinion of the Clearing House is 

liable to:

(A) bring the Clearing House or any of its Clearing Members into 

disrepute;

(B) impair the dignity or degrade the good name of the Clearing House;

(C) create or maintain or exacerbate actual or attempted breaches, 

infringements, manipulations or violations of the Rules (or 

arrangements, provisions or directions made or given thereunder) or 

market practice; or

(D) otherwise be substantially detrimental to the interests or welfare of the 

Clearing House;

(xvi) engage in conduct that would render it unable to satisfy the membership 

criteria in Rule 201(a) or obligations on Clearing Members under Rule 202(a) 

or otherwise;

(xvii) knowingly, negligently, recklessly or carelessly allow any Representative to 

engage in any conduct that might itself breach these Rules or render it unable 

to satisfy the membership criteria in Rule 201(a);

(xviii) assign any of its rights or transfer by novation any of its rights and obligations 

under these Rules to a third party (or purport to do so) unless the Clearing 

House provides its prior written consent (which consent shall not unreasonably 

be withheld or delayed); 

(xix) breach any Contract Terms; or

(xx) operate any account as banker or Custodian to the Clearing House in its role as 

a Clearing Member (provided that a Clearing Member may operate an account 

as banker or custodian to the Clearing House in a separate capacity (i.e. other 

than in its role as a Clearing Member)); and where any Clearing Member (or 

its Affiliates) operates any account as banker or Custodian to the Clearing 

House which is used for the holding or investment of the proceeds of Margin, 

or Guaranty Fund Contributions:

(A) each such bank account and custodian account;

(B) such bank accounts or custodian accounts on the one hand, and the 

relevant Proprietary Account and Customer Account, on the other,

shall not be subject to any security, lien, other Encumbrance, right of set-off or 

counterclaim in respect of any sum owed by the Clearing House to the 

Clearing Member (or its Affiliates), provided that nothing in this Rule 

203(a)(xx) shall preclude the Clearing House from agreeing to any 

Encumbrance over any bank account or custodian account designated as a fees 

account.
53

Rule 204 Notifications by Clearing Members

(a) Each Clearing Member shall notify the Clearing House in writing without delay 

providing full particulars known to it:

(i) in relation to any change of Control, as soon as it becomes aware of that 

change or proposed change of Control and it is not prevented from disclosing 

the change of Control by Applicable Laws;

(ii) if it breaches any applicable Exposure Limit that has been notified to it;

(iii) if it ceases to have sufficient Capital and/or financial resources, as determined 

pursuant to Rule 206;

(iv) if its Capital for any reason is reduced by more than 10% from that shown on 

the latest financial statement filed by it with the Clearing House or if any of 

the notification requirements set out in Paragraph 5 of the Membership 

Procedures apply;

(v) prior to any payment, loan, distribution or redemption causing a reduction in 

Capital of the nature described in Rule 204(a)(iv), detailing the payment, loan, 

distribution or redemption involved and a description of the effect that the 

same will have on the Capital of the Clearing Member;

(vi) in the event that it fails to meet any obligation to transfer, deposit or pay any 

Margin when and as required by any Clearing Organisation of which it is a 

member (other than the Clearing House), excluding any matter subject to a 

dispute (where the Clearing Member is not in default) or resulting from 

manifest error;

(vii) in the event that it fails to comply with any applicable capital or financial 

requirements of any Governmental Authority, Regulatory Authority, 

Exchange, Clearing Organisation or Delivery Facility;

(viii) of an Insolvency affecting it or any of its Group Companies;

(ix) of any Event of Default affecting it;

(x) of any financial or commercial difficulty such as would give rise to a risk of 

an Event of Default occurring;

(xi) [Not used.]

(xii) of any breach by it (or any non-frivolous or non-vexatious investigation or 

allegation of a breach by it) of any Applicable Law relating to its status and 

performance as a Clearing Member or of the Rules, including full particulars 

of the breach; or

(xiii) of anything relating to the Clearing Member of which the Clearing House 

would reasonably expect notice (including of any matter, circumstance, 

change or occurrence which would cause a statement previously furnished 

pursuant to this Rule 204, any information supplied in connection with the 
54

Clearing Member's application for membership or otherwise to be inaccurate, 

incomplete or superseded).

(b) Where a Clearing Member is regulated by the MAS:

(i) Notifications under Rule 204(a)(i) shall only be required where a change of 

Control is notifiable to, or subject to the approval of, the MAS; and in such 

cases the Clearing Member should provide the Clearing House 

contemporaneously with a copy of all submissions sent to the MAS relating to 

the change of Control; and

(ii) Notifications under Rule 204(a)(xiii) (other than notifications of any matter, 

circumstance, change or occurrence which would cause a statement previously 

furnished pursuant to this Rule 204, any information supplied in connection 

with the Clearing Member's application for membership or otherwise to be 

inaccurate, incomplete or superseded) shall only be required if a notification is 

also required to the MAS under MAS Requirements.

Rule 205 Financial Reporting

(a) Each Clearing Member must file with the Clearing House in relation to the Clearing 

Member and, if so notified by the Clearing House at its discretion, any Controller:

(i) an audited financial statement including profit and loss accounts and balance 

sheet, with the auditor's report, drawn up in accordance with Applicable Laws 

and Accounting Standards or otherwise following the requirements of the 

Clearing House within five months of the end of the Clearing Member's or 

relevant Controller's fiscal year;

(ii) a quarterly financial statement including management profit and loss accounts 

and balance sheet, drawn up in accordance with Applicable Laws and 

Accounting Standards or otherwise following the requirements of the Clearing 

House, within 14 days of the end of each quarter; and

(iii) in the case of Clearing Members or their Controllers that are licensed, 

authorised or regulated by a Regulatory Authority, a copy of all financial 

returns, reports, statements and notices provided to the relevant Regulatory 

Authority as soon as so provided and, if any such material is other than a 

routine periodic financial return, statement or report required under Applicable 

Laws, a written statement setting out (to the extent known) the reasons why 

such Clearing Member or relevant Controller is filing it.

(b) [Not used.]

(c) Each Clearing Member shall file with the Clearing House such financial or other 

relevant information, in addition to what is explicitly required by this Rule 205, as 

may be requested by the Clearing House at its discretion from time to time.

(d) All qualifications and reports of Clearing Members' auditors in any financial report 

must be satisfactory to the Clearing House.
55

Rule 206 Minimum Capital

(a) Each Clearing Member shall maintain at all times the requisite types and amounts of 

Capital and financial resources as required pursuant to the Membership Procedures, or 

otherwise as specified in writing by the Clearing House from time to time.

(b) A Clearing Member must, upon request of the Clearing House, provide financial 

statements and other documentation supporting calculations of Capital or other 

financial resources requirements and details of the terms and conditions of any 

documentation relating to any Capital or other financial resources requirements 

(including, without limitation, subordinated loan agreements, legal opinions, 

information provided to Governmental Authorities and accounts and including in 

relation to any Controller) to the Clearing House.

Rule 207 Clearing Member Status

(a) Each Clearing Member shall be authorised to enter into Contracts and hold an Open 

Contract Position with the Clearing House. Clearing Members may, at the Clearing 

House's discretion, be subject to restrictions in their business with the Clearing House, 

for example by reference to certain Contracts, Markets or the clearing of Contracts for 

Customers or using a Customer Account. The Clearing House shall be entitled to 

publish lists of Clearing Members including details of their privileges and restrictions 

from time to time.

(b) Each Clearing Member shall have the privileges, rights and obligations provided for 

in these Rules. Such privileges, rights and obligations may be terminated or altered in 

any respect at any time as provided in these Rules.

(c) [Not used.]

(d) Each Clearing Member shall be liable to the Clearing House and responsible for all its 

obligations in respect of its Proprietary Account. Each Clearing Member shall be 

liable to the Clearing House and responsible for all its obligations in respect of its 

Customer Account as principal. No Customer Account recognised in the Clearing 

House's or any Clearing Member's books and records or those of any Approved 

Financial Institution nor any other Procedures or Rules of the Clearing House shall 

result in any obligation of the Clearing House towards any Customer of the Clearing 

Member or any other Person that is not a Clearing Member under Applicable Laws or 

otherwise except as required under the SFA and the SF(CF)R, including, without 

limitation, any trust obligation on the Clearing House arising pursuant to 

Regulation 23(3) of the SF(CF)R or on the Clearing Member arising pursuant to 

Regulations 16 and 26 of the SF(LCB)R. It is the responsibility of the Clearing 

Member (and not the Clearing House) to ensure that its Nominated Proprietary Bank 

Account and Nominated Customer Bank Account are linked appropriately to its 

Proprietary Account and its Customer Account and to ensure its own compliance with 

Applicable Laws relating to conduct of business, client money, segregation and use of 

client assets and segregation of Customer Transactions. Accordingly: (i) each 

Clearing Member with a Customer Account intends that it will be acting in a separate 

capacity in relation to its Customer Account to that in which it acts in relation to its 

Proprietary Account; and (ii) the Clearing House agrees with the Clearing Members 
56

acting in such different capacities. A Clearing Member shall be eligible to have 

one Proprietary Account and one Customer Account.

(e) [Not used.]

(f) Subject to Market requirements (if any), a Clearing Member may appoint another 

Clearing Member to perform specific functions, including deliveries, on the first 

Clearing Member's behalf. In order to do so, the relevant Clearing Members, the 

Market (if any) and the Clearing House must be party to an agreement pursuant to 

which the second Clearing Member agrees to perform specific functions detailed in 

the agreement on behalf of the first Clearing Member. A Clearing Member intending 

to perform functions for another Clearing Member will represent and warrant to the 

Clearing House that it has sufficient authorisation from the MAS and under other 

Applicable Laws to carry on such function.

(g) [Not used.]

Rule 208 Suspension of Clearing Member

(a) A Clearing Member may be suspended:

(i) if one or more of the conditions set out in Rule 209(a)(i) to (vi) is satisfied;

(ii) upon any breach by the Clearing Member of these Rules;

(iii) if a Market suspends the Clearing Member or any of its trading privileges;

(iv) if the Clearing House at its discretion considers that suspension is necessary to 

protect the interests of the Clearing House or its Clearing Members (excluding 

the Clearing Member concerned); or

(v) in the event of any Financial Emergency or Force Majeure Event affecting the 

Clearing Member.

(b) Any suspension may occur in relation to the Clearing Member's status as a Clearing 

Member or in respect of certain classes of Contracts or rights of a Clearing Member 

only. A Clearing Member that has been suspended shall, during the term of such 

suspension and thereafter, remain and continue to be:

(i) subject to and bound by these Rules and any agreements between it and the

Clearing House;

(ii) obliged to pay all fees, fines, assessments or other charges imposed by the 

Clearing House;

(iii) liable pursuant to these Rules for all other obligations arising under Contracts 

and all obligations incurred before, during or after such suspension including, 

but not limited to, obligations to transfer, deposit, maintain and pay Margin 

and make Guaranty Fund Contributions; and

(iv) able to undertake such activities of a Clearing Member as are expressly 

permitted by the Clearing House and required to undertake such activities of a 
57

Clearing Member as are required by the Clearing House, in each case subject 

to compliance with all reasonable instructions of the Clearing House in 

relation to those activities.

(c) The Clearing House shall be entitled at its discretion to revoke the suspension of any 

suspended Clearing Member.

(d) The Clearing House may publish details of any suspension or a copy of any 

suspension notice in or together with a Circular, at its discretion except to the extent 

that a notice is required by Rule 208(e).

(e) The Clearing House will issue a Circular promptly following any suspension of a 

Clearing Member or the suspension of any Clearing Member's ability to clear ICE 

Futures Singapore Contracts specifying the name of the Clearing Member affected.

Rule 209 Termination of Clearing Membership

(a) The Clearing House shall be entitled to terminate the membership of any Clearing 

Member upon written notice to the Clearing Member:

(i) following the occurrence of any Event of Default affecting that Clearing 

Member;

(ii) as a result of disciplinary proceedings brought against that Clearing Member 

pursuant to Part 10;

(iii) upon receipt of notice of termination of the Clearing Member's Clearing 

Membership Agreement from that Clearing Member;

(iv) following any material and unremedied breach by the Clearing Member of 

these Rules;

(v) upon such Clearing Member ceasing to meet, or being unable to satisfy the 

Clearing House that it is able to meet, any of the membership criteria set out in 

or required pursuant to Rule 201(a); 

(vi) upon an Insolvency in relation to that Clearing Member or any of its Group 

Companies; or

(vii) taking effect no less than 30 Business Days after the date of service of the 

notice.

(b) [Not used.]

(c) (i) A Clearing Member shall be entitled to terminate its membership of the 

Clearing House:

(A) taking effect upon no less than 30 Business Days' prior written notice 

to the Clearing House; or

(B) [Not used.];
58

(C) pursuant to Rule 909(h). 

(ii) The membership of a Clearing Member shall terminate automatically upon the 

occurrence of a Clearing House Event. In any such circumstances, Rule 912 

applies.

(iii) The membership of a Clearing Member shall terminate automatically upon the 

occurrence of a Failure to Pay in respect of the Clearing House. In any such 

circumstances, Rule 912 applies.

(d) [Not used].

(e) If a Clearing Member serves notice of termination of its membership under 

Rule 209(c)(i)(A) (other than if there is a termination pursuant to Rule 209(c)(i)(B)) it 

must use all reasonable endeavours, until such time as there is a subsequent Clearing 

House Event, to close out all of its open Contracts prior to the Termination Close-Out 

Deadline Date. Such a Clearing Member, after the Termination Notice Time, shall 

only be entitled to submit Transactions for clearing or become party to Contracts 

which it can demonstrate have the overall effect of reducing risks to the Clearing 

House associated with the Contracts to which that Clearing Member is party, whether 

by hedging, novating, transferring, terminating, liquidating or otherwise closing out 

such Contracts. If any such Clearing Member has any open Contracts with the 

Clearing House after the Termination Close-Out Deadline Date (and notwithstanding 

any provision of Rule 909 to the contrary) the Clearing Member shall as from the 

Termination Close-Out Deadline Date (and notwithstanding any provision of 

Rule 909 or Rule 209 to the contrary): (x) become liable to replenish any Guaranty 

Fund Contribution that would have fallen due for replenishment but has not been paid, 

to have applied any Guaranty Fund Contribution that would have been applied but 

was not so applied and to pay any Assessment Contribution that would have fallen 

due but has not been paid, in each case to the extent that the same would have been 

payable or applied but for its service of a notice to terminate and in each case in 

respect of any Event of Default affecting a Clearing Member and relating to Clearing 

that has occurred subsequent to the Termination Notice Time; (y) become liable for 

further obligations to replenish any Guaranty Fund Contribution, have any Guaranty 

Fund Contribution applied or pay Assessment Contributions in the same way as any 

other Clearing Member in respect of any Event of Default affecting a Clearing 

Member and relating to Clearing occurring prior to the Termination Date; and (z) 

(unless the termination was under Rule 209(c)(i)(A)) be reinstated as a Clearing 

Member without any need to follow the membership application process described in 

Part 2. For the avoidance of doubt, the Clearing House may call for additional 

Original Margin from a Clearing Member subject to this Rule 209(e), until such time 

as all of its open Contracts have been terminated, and such Clearing Member shall 

pay such additional Original Margin to the Clearing House. Following termination of 

all open Contracts to which a terminating Clearing Member (the "Terminated 

Clearing Member") was party in relation to its Customer Account or Proprietary 

Account, the Clearing House shall then declare a net sum (which may be declared in 

parts, as envisaged below) as due to or from the Terminated Clearing Member in 

accordance with Rule 905(f) and Rule 906, in the same way as if the Terminated 

Clearing Member were a Defaulter but with the following modifications:
59

(i) references in Part 9 to "Default" and an "Event of Default" shall be read as 

references to a Terminated Clearing Member terminating its clearing 

membership and, in the case of a failure to close out relevant Contracts only in 

respect of its Customer Account or its Proprietary Account, shall be construed 

as applying only in respect of such account;

(ii) any such net sum which is payable to the Terminated Clearing Member shall 

not be paid by the Clearing House to such Terminated Clearing Member until 

the later of: 

(A) ten Business Days after the Termination Close-Out Time and the 

realisation or return of any Margin provided in respect of Contracts, 

Guaranty Fund Contributions or other assets remaining credited to the 

Terminated Clearing Member's Proprietary Account or Customer 

Account in respect of clearing or otherwise in the Clearing House's 

possession in respect of clearing is completed (subject always to 

Rule 102(q)); or

(B) if the Terminated Clearing Member has any unapplied Guaranty Fund 

Contributions, the expiry of the Guaranty Fund Period for the Guaranty 

Fund immediately following the Guaranty Fund Period current on the 

Termination Date;

(iii) notwithstanding anything in Part 9 or elsewhere in these Rules:

(A) the Clearing House may at its discretion return amounts due to the 

Terminated Clearing Member in different currencies or by way of 

transfer or return of non-cash Permitted Cover to the Terminated 

Clearing Member; 

(B) the Clearing House may further pay any net sum calculated under 

Rule 906 and payable to the Terminated Clearing Member in different 

amounts denominated in different currencies and is not required to pay 

a single sum in one currency; and

(C) the Clearing House may make part payment of any amounts due 

excluding the Guaranty Fund Contribution prior to the time specified 

in Rule 209(e)(ii)(B);

(iv) it is acknowledged that any 'net sum' declared in accordance with this 

provision is not formally a 'net sum' for purposes of Division 4 of Part III of 

the SFA;

(v) a Clearing Member subject to these provisions is not a Defaulter and no 

Default Notice will be issued or required to be issued in respect of such 

Clearing Member in order for the Clearing House to exercise its rights under 

this provision or for the Clearing Member in question to receive any payment 

or return of assets; and

(vi) references to Part 9 in any other Rules or in the Procedures, Circulars and 

Guidance shall be construed in accordance with this Rule 209(e) when they 
60

fall to be applied in relation to the termination of a Clearing Member's 

membership under Rule 209 and any action taken by the Clearing House 

following such termination taking effect.

(f) After the Termination Date, a Person that was a Clearing Member shall remain and 

continue, in respect of all obligations, rights and liabilities relating to the Clearing 

Member's status as a Clearing Member:

(i) subject to any arbitration, investigations, panels or proceedings, and provisions 

of these Rules relating thereto, which relate in whole or in part to any acts or 

omissions of that Person while it was a Clearing Member;

(ii) bound to the Clearing House to perform all and any obligations and liabilities 

(which either have not been performed or have fallen due but are unpaid) 

resulting from its status as a Clearing Member, including obligations and 

liabilities relating to: fees, fines, charges and payments, obligations to pay 

Guaranty Fund Contributions (subject always to Rule 209(e) and Rule 909(h)), 

obligations to pay Assessment Contributions (subject always to Rule 209(e) 

and Rule 909(h)), Original Margin payments and Variation Margin payments; 

and

(iii) subject to Rule 909(h), in a position such that its Guaranty Fund Contributions 

may be applied in accordance with Part 9, until such time as the Clearing 

House returns such Guaranty Fund Contributions in accordance with Part 11 

and Rule 209(e)(ii)(B).

(g) The Clearing House may publish details of any termination or a copy of any 

termination notice in or together with a Circular, at its discretion except to the extent 

that a notice is required by Rule 209(h).

(h) The Clearing House will issue a Circular promptly following any termination of 

membership of a Clearing Member, specifying the name of the Clearing Member 

affected. 

(i) With effect as from the Termination Notice Time in respect of a notice of termination 

served by a Clearing Member under Rule 209(c)(i)(A) the following provisions shall 

apply, mutatis mutandis subject to paragraph (j):

(i) the second, third and fourth sentences of Rule 909(h); and

(ii) provisions of Rule 209 referred to therein.

(j) If: 

(i) a Clearing Member has served a notice of termination under 

Rule 209(c)(i)(A); 

(ii) either: (A) the Termination Close-Out Deadline Date has not yet passed; or 

(B) if the Termination Close-Out Deadline Date has passed, the Clearing 

Member closed out all of its open Contracts prior to the Termination 

Close-Out Deadline Date; and
61

(iii) there is an Event of Default or Events of Default after the Termination Notice 

Time but prior to the Termination Date,

then the Clearing Member in question shall remain liable for the application of any 

then unapplied Guaranty Fund Contributions and further Assessment Contributions 

for all such Events of Default as are referred to in paragraph (iii) (as if all such Events 

of Default had been declared by the Clearing House prior to the Termination Notice 

Time), provided that:

(A) the total amounts of Guaranty Fund Contribution applied in respect of 

all Events of Default referred to in paragraph (iii) shall not exceed the 

required Guaranty Fund Contribution as at the first day of the Guaranty 

Fund Period in which the Termination Notice Time fell; and

(B) the total amounts of Assessment Contributions for which the Clearing 

Member is liable in respect of all Events of Default referred to in 

paragraph (iii) shall not exceed an amount equal to two times the 

amount of the required Guaranty Fund Contribution referred to in 

paragraph (A).

(k) Any termination notice issued by a Clearing Member under Rule 209(c)(i)(A) shall be 

irrevocable by the Clearing Member and clearing membership may only be reinstated 

pursuant to a new application for membership.

(l) In addition to the remedies set out or referred to in this Rule 209, if any Clearing 

Member has served a notice of termination under Rule 209(c)(i)(A) and has any open 

Contracts with the Clearing House after the last day of the relevant notice period, the 

Clearing House may exercise its rights under Part 9 to liquidate the open Contracts of 

such Clearing Member, as if such Clearing Member were a Defaulter. An Clearing 

Member subject to this provision is not a Defaulter and no Default Notice will be 

issued or required to be issued in respect of such Clearing Member in order for the 

Clearing House to exercise its rights under this provision.
62

Part 3 Financial Requirements and Payments

Rule 301 Fees, Margin, Contract and other payment obligations

(a) Clearing Members shall be liable to pay such fees and charges as are levied by the 

Clearing House in accordance with published rates from time to time. Unless 

otherwise provided and without limitation, fees shall be payable on each Contract 

cleared by the Clearing House and the Clearing House shall be entitled to levy fees in 

respect of Permitted Cover. The Clearing House may amend its fees and charges and 

the bases for its fees at any time and will notify Clearing Members of any such 

amendments by means of a Circular prior to the same taking effect.

(b) Fees charged to Clearing Members by the Clearing House may include the fees of any 

one or more Markets. The Clearing House shall be entitled to collect fees due from 

Clearing Members on behalf of all Markets of which a Clearing Member is a member 

or participant.

(c) Clearing Members shall be liable to make any payment to the Clearing House that is 

required pursuant to these Rules at the time and in the amount specified by the Rules 

or required in accordance with the Rules. In particular, Clearing Members shall be 

liable to make payment in respect of Margin and Guaranty Fund Contributions from 

time to time in accordance with Part 5, Part 6 and Part 11 of the Rules at the times and 

in the amounts that are required pursuant to the instructions of the Clearing House 

made pursuant to Rule 302.

(d) Clearing Members shall be liable to pay all amounts due under the Contract Terms, 

upon entering into a Contract, as Margin and upon delivery or settlement, as further 

described in these Rules and the Contract Terms at the time and in such amounts as 

are required pursuant to the Contract Terms. Without prejudice to the generality of 

the foregoing:

(i) in relation to each Contract that is a Future, the parties to such Contract shall 

be liable to make such payments upon settlement and delivery as are required 

pursuant to Part 7, the Contract Terms, the Delivery Procedures and the 

Finance Procedures; and

(ii) [Not used.]

(e) Each Clearing Member will procure that the Clearing House has at all times the right 

to instruct, as agent for such Clearing Member, that Clearing Member's Approved 

Financial Institution to debit its Nominated Proprietary Bank Account (if any) and 

Nominated Customer Bank Account (if any) and any other account designated by that 

Clearing Member for the purposes of this Rule 301, for payment in respect of fees, 

charges, fines, penalties, Margin, Guaranty Fund Contributions, amounts due pursuant 

to Contracts (whether upon their formation, settlement or delivery) and any other 

amounts due to the Clearing House or due to any Market, with the Clearing House 

and any such Market being persons entitled to such amounts for the purposes of 

Regulation 21(a) of the SF(LCB)R or such payment otherwise being permitted under 

Regulation 21 of the SF(LCB)R. 
63

(f) All amounts payable to the Clearing House (except, with the prior written consent of 

the Clearing House, application fees) shall be payable by electronic transfer from an 

account at an Approved Financial Institution only. The Clearing Member shall 

continue to be liable for any amount due under these Rules and no payment obligation 

of a Clearing Member shall be treated as having been satisfied or discharged unless 

and until all of the following steps have taken place in respect of any payment of such 

amount:

(i) the relevant electronic transfer of funds is actually received by the Clearing 

House in unencumbered, fully cleared and fully available funds in a Clearing 

House Account, being an account at an Approved Financial Institution which 

is not subject to an Insolvency;

(ii) if the Approved Financial Institution used by the Clearing Member is not a 

Concentration Bank, such Approved Financial Institution has fully performed 

its concentration function in respect of the payment in question, by completing 

the transfer of funds from the Clearing House's account at such Approved 

Financial Institution to the Clearing House's concentration account at a 

Concentration Bank (which Concentration Bank is not subject to an 

Insolvency), in which account the Clearing House has received 

unencumbered, fully cleared and fully available funds, in respect of:

(A) in the case of a payment under Rule 302(a), a net amount reflecting all 

payments processed through that Approved Financial Institution in 

respect of all calls on or payments to or from all Clearing Members 

using that Approved Financial Institution under Rule 302(a) in respect 

of the Business Day in question; or

(B) in the case of a payment other than a payment under Rule 302(a) (such 

as a payment following an intra-day call for Margin or an ad hoc

transfer of additional cash Permitted Cover to the Clearing House), the 

amount received from the Clearing Member that is seeking to make the 

payment in question; and

(iii) in the case of a payment under Rule 302(a) only, that Approved Financial 

Institution (including if it is a Concentration Bank) has made all relevant 

payments under Rule 302(a) due to the Clearing Member and other Clearing 

Members (in its capacity as an Approved Financial Institution or 

Concentration Bank) in respect of the Business Day in question.
64

Nothing in this Rule 301(f) shall restrict or prevent the Clearing House or any 

Clearing Member from making any claim against an Approved Financial Institution 

which has failed to make a payment referred to under this Rule 301(f). In particular: 

(I) the Clearing House shall not be deemed to have had any loss, liability or shortfall 

made good or whole vis-à-vis an Approved Financial Institution by virtue of any 

further payment by a Clearing Member in addition to an attempted payment not 

credited to its account as a result of this Rule 301(f); and (II) an Approved Financial 

Institution which has failed to make any payment referred to in this Rule 301(f) shall 

remain fully liable to the Clearing House or relevant Clearing Member for any such 

failed payment or account balance notwithstanding a reimbursement or additional 

payment as between a Clearing Member and the Clearing House. In the event that: 

(x) a payment is received into a Clearing House Account at an Approved 

Financial Institution but the requirements of Rule 301(f)(ii) or Rule 301(f)(iii) 

are not satisfied;

(y) an affected Clearing Member has satisfied its payment obligations through an 

additional payment which complies with the requirements of this Rule 301(f); 

and

(z) the Clearing House makes a recovery or irrevocably receives any part or full 

payment from the Approved Financial Institution into one of its accounts at a 

Concentration Bank (which Concentration Bank is not subject to an 

Insolvency),

then the Clearing House will make payment to affected Clearing Members in respect 

of the recovery or receipt actually made by the Clearing House, net of the Clearing 

House's costs and expenses, pro rata in proportion to the amounts of the original 

missed payments of each affected Clearing Member.

No Clearing Member shall be declared subject to an Event of Default as a result of 

failing to make any payment due to the operation of either Rule 301(f)(ii) or 

Rule 301(f)(iii), unless and until the Clearing House has notified the Clearing 

Member of the failed payment in question and requested that the payment be made 

using alternative means and the Clearing Member has defaulted in making the latter 

payment (other than solely due to the operation of either Rule 301(f)(ii) or 

Rule 301(f)(iii)). Where the concentration function of an Approved Financial 

Institution that is not subject to an Insolvency is adversely affected by a non-payment 

(including by reason of an Event of Default, dispute or operational failure) of a 

particular Clearing Member, and the Clearing House is notified of such non-payment 

and the Clearing Member concerned, the Clearing House will re-issue new payment 

instructions for concentration payments excluding the non-payment of the relevant 

Clearing Member prior to requesting or requiring other Clearing Members to use a 

different Approved Financial Institution under this Rule 301(f).

(g) Interest shall be paid by the Clearing Member to the Clearing House on any unpaid 

but due amount from the date on which the amount becomes due and payable until the 

date of payment at 1% above the rate per annum which is the cost (without proof or 

evidence of any actual cost) to the Clearing House if it were to fund the relevant 

amount, compounded daily.
65

(h) In the event that the Clearing House determines that it will suffer or has suffered 

(directly or indirectly) any loss, liability or cost for or on account of any tax in 

connection with any Contract, any amount payable to the Clearing House or in respect 

of any future obligation, or these Rules, the Clearing Member counterparty to such 

Contract or the Clearing Member by which such amount is payable shall be liable to 

pay to the Clearing House, pursuant to Rule 302, an amount equal to such loss, 

liability, or cost.

(i) All amounts set out in or expressed to be payable to the Clearing House in connection 

with any Contract or these Rules or otherwise and which constitute the consideration 

for a supply made by the Clearing House for the purposes of Goods and Services Tax, 

and the value of any supply made by the Clearing House for Goods and Services Tax 

purposes, shall be deemed to be exclusive of any Goods and Services Tax which is 

chargeable on that supply and accordingly if Goods and Services Tax is chargeable on 

any supply made by the Clearing House the relevant Clearing Member shall pay to the 

Clearing House (in addition to and at the same time as the consideration is paid or 

provided, or if no consideration is due, at the time the supply is made or an 

appropriate Goods and Services Tax invoice is issued, whichever is earlier) an amount 

equal to the amount of the Goods and Services Tax and the Clearing House shall issue 

an appropriate Goods and Services Tax invoice.

(j) All amounts payable to the Clearing House or by the Clearing House in connection 

with any Contract or these Rules or otherwise shall be paid without any deduction or 

withholding for or on account of tax unless such deduction or withholding is required 

by Applicable Law. If a deduction or withholding for or on account of tax is required 

to be made in relation to an amount payable to the Clearing House, the amount of the 

payment due shall be increased to an amount which (after making the deduction or 

withholding) leaves an amount equal to the payment which would have been due if no 

such deduction or withholding had been required.

(k) [Not used.]

(l) Any payment due to a Clearing Member from the Clearing House will be recognised 

as having been duly made, and the Clearing House's obligations in respect thereof 

shall be treated as having been satisfied and discharged, at the time that the relevant 

Credit/Debit Payment Transfer Order arises relating to such payment provided that 

the Clearing House has reason to believe that the Clearing House Account from which 

payment is to be made has sufficient funds or credit on account.

(m) The Clearing House will maintain a list of Concentration Banks and Approved 

Financial Institutions and will issue a Circular upon any change to Concentration 

Banks or Approved Financial Institutions.

(n) [Not used.]

(o) Each Clearing Member acknowledges that any rights it may have from time to time to 

any amount owed to it from the Clearing House in relation to a Customer Position 

Account shall be held on trust by it for the relevant Customer to the extent required 

pursuant to Regulations 16 and 26 of the SF(LCB)R.
66

Rule 302 Mechanics for Payments

(a) Amounts payable to or by the Clearing House in a particular currency (as determined 

in accordance with the Finance Procedures) will be settled on a net basis (per 

Account), as set out below and in accordance with the Finance Procedures. The 

Clearing House shall advise each Clearing Member of amounts due to or from the 

Clearing Member in respect of its Proprietary Account and its Customer Account (if 

any) on each Business Day (or more frequently if the Clearing House determines to 

make an intra-day call in accordance with the Finance Procedures) and:

(i) if the net amount for a Proprietary Account is due to the Clearing House, the 

Clearing House shall instruct the Clearing Member's Approved Financial 

Institution to transfer funds from the relevant Nominated Proprietary Bank 

Account of the Clearing Member with the Approved Financial Institution to a 

Clearing House Account in an amount equal to the amount so due;

(ii) if the net amount for a Proprietary Account is due to the Clearing Member, the 

Clearing House shall instruct an Approved Financial Institution to transfer 

funds from a Clearing House Account to the relevant Nominated Proprietary 

Bank Account of the Clearing Member with the Approved Financial 

Institution in an amount equal to the amount so due;

(iii) if the net amount for a Customer Account is due to the Clearing House, the 

Clearing House shall instruct the Clearing Member's Approved Financial 

Institution to transfer funds from the relevant Nominated Customer Bank 

Account of the Clearing Member with the Approved Financial Institution to a 

Clearing House Account in an amount equal to the amount so due;

(iv) if the net amount for a Customer Account is due to the Clearing Member, the 

Clearing House shall instruct an Approved Financial Institution to transfer 

funds from a Clearing House Account to the relevant Nominated Customer 

Bank Account of the Clearing Member with the Approved Financial 

Institution in an amount equal to the amount so due;

(v) [Not used.]

(vi) [Not used.]

(vii) [Not used.]

(viii) [Not used.]

(b) Instructions made pursuant to this Rule 302 may be made by means of a SWIFT 

message (or, in the case of a contingency, such other electronic message, fax, 

telephone or other means as are allowed pursuant to the Finance Procedures) to the 

relevant Approved Financial Institution. Payments pursuant to this Rule 302 shall be 

made immediately at the time and on the date that the obligation to pay arises or at 

such other time as is specified by the Clearing House in writing.

(c) Upon notice from the Clearing House that a transfer of funds from a Clearing 

Member's Nominated Bank Account was not effected as instructed by the Clearing 
67

House for any reason, the Clearing Member shall deliver to the Clearing House the 

amount required at such time and in such form as the Clearing House may prescribe.

(d) Various authorities and powers are granted to the Clearing House pursuant to 

clause 5.2 of the Clearing Membership Agreement for purposes of supporting the 

payment arrangements set out in this Rule 302. 

(e) [Not used.]

Rule 303 Set Off

(a) Subject to Rule 102(q), the Clearing House may set off any obligation due to it from a 

Clearing Member against any obligation owed by the Clearing House to, or for the 

account of, the Clearing Member, regardless of the place of payment, account, branch 

or currency of either obligation. If the obligations referred to in this Rule 303(a) are 

in different currencies, the Clearing House may convert either obligation at a market 

rate of exchange in its usual course of business for the purpose of the set off.

(b) Subject to Rule 102(q), the Clearing House shall be entitled to make any necessary 

adjustments to the Clearing Member's Proprietary Account and Customer Account 

resulting from exercise of its rights of set off.

(c) The rights of the Clearing House in this Rule 303 are without prejudice to any rights 

of lien, set-off, netting, liquidation, combination of accounts or appropriation, or to 

instruct the same or any other rights or remedies of the Clearing House or any 

Approved Financial Institution, whether under these Rules or otherwise.

(d) Without prejudice to Applicable Laws of mandatory application following an 

Insolvency, notwithstanding any existing or future agreement and except as expressly 

provided in these Rules, the Clearing Membership Agreement, the Procedures or a 

Contract, each Clearing Member irrevocably waives any and all rights it may have to 

set off, net, recoup, combine accounts or otherwise withhold or suspend or condition 

payment or performance of any obligation between the Clearing House and such 

Clearing Member under these Rules or any Contract against any obligations between 

the Clearing House and such Clearing Member or any branch or Affiliate of the 

Clearing House or of such Clearing Member, under any other agreements.

Rule 304 [Not used.]
68

Part 4 Clearing Mechanism

Rule 401 Formation of Contracts

(a) Subject to Rule 403 and Rule 404, two Contracts shall arise automatically, one 

between the Selling Counterparty and the Clearing House and the other between the 

Clearing House and the Buying Counterparty (or a single Contract shall arise between 

the Clearing House and a Buying Counterparty or Selling Counterparty where 

applicable in the case of Rule 401(a)(vi)), at the moment that:

(i) in the case of any ICE Futures Singapore Matched Transaction, the relevant 

orders are matched on ICE Futures Singapore;

(ii) [Not used.]

(iii) in the case of any ICE Futures Singapore Block Transaction, ICE Futures 

Singapore, after the relevant details of the relevant Transaction have passed 

through the credit filter and risk controls of both relevant Clearing Members in 

the ICE Systems, receives and has recorded on its system complete data in 

respect of the Transaction;

(iv) [Not used.]

(v) in the case of Transactions generated by ICE Futures Singapore as a result of 

the operation of its contra trade, error trade, invalid trade, cancelled trade, 

trade correction, error correction or similar policies and rules or procedures 

relating thereto or otherwise, upon notice of the final terms of the Transaction 

being received by the Clearing House;

(vi) in the case of a Contract that is formed as a result of another Contract being 

Invoiced Back by the Clearing House, immediately upon notice of the 

existence and final terms of the new Contract being given by the Clearing 

House to the Clearing Member affected;

(vii) [Not used.];

(viii) in the case of an ICE Futures Singapore Contract that is allocated by one 

Clearing Member to a different Person (such Person receiving the allocation 

itself also being a Clearing Member) by agreement of both parties subsequent 

to that ICE Futures Singapore Contract arising but on the same day as that on 

which such Contract arose, upon both such parties having recorded their 

agreement to such allocation on the Clearing House's systems; and

(ix) [Not used.]

(x) [Not used.]

(xi) [Not used.]

(xii) [Not used.]

(xiii) [Not used.]
69

(xiv) [Not used.]

(b) For ICE Futures Singapore Contracts, a Contract or Contracts reversing the existing 

Contract or Contracts shall arise between the Clearing House and the Buying 

Counterparty and/or the Clearing House and the Selling Counterparty at the moment 

that an alternative delivery is agreed in respect of a Contract where, pursuant to the 

Clearing Procedures and Market Rules, a new collateral contract arises as a result of 

the alternative delivery being agreed, at the time and subject to the conditions and 

effects on existing Contracts specified in the Clearing Procedures.

(c) [Not used.]

(d) In the case of a new Contract that forms as a result of another Contract being Invoiced 

Back pursuant to Rule 401(a)(vi), the new Contract shall be on the same terms as the 

original Contract, except that the roles of Buying Counterparty and the Clearing 

House or, as the case may be, the Selling Counterparty and the Clearing House shall 

be reversed and the Clearing House shall be entitled, at its discretion, to determine the 

price at which the Contract was bought or sold and any delivery or settlement price.

(e) In the case of a Contract that forms as a result of another Contract being subject to 

allocation pursuant to Rule 401(a)(viii), the new Contract shall be on the same terms 

as the original Contract, except that the identity of the Clearing Member being the 

Buying Counterparty or Selling Counterparty shall be different, in accordance with 

the allocation instructions received by the Clearing House. The Clearing Member that 

was party to the original Contract and the Clearing House shall each automatically 

and immediately be released and discharged from all their rights, liabilities and 

obligations in respect of the original Contract upon formation of the new Contract.

(f) Upon request by the Clearing House, a Buying Counterparty or Selling Counterparty 

shall promptly confirm or otherwise notify the details of any Contract or Transaction 

to the Clearing House in such form and manner as the Clearing House requests. Any 

such confirmation or notification shall not of itself affect the status or terms of any 

Contract.

(g) Each Clearing Member shall promptly and accurately designate each new Contract 

through the ICE Systems in accordance with Applicable Laws as: (i) related either to 

its Proprietary Position Account or its Customer Position Account (if any); and (ii) in 

the case of a Proprietary Position Account, to any relevant sub-account in the ICE 

Systems. If a Clearing Member becomes aware of any event or circumstance which 

results in any designation previously made by it under this Rule 401(g) having been 

incorrect or requiring amendment, it shall provide a further designation to the 

Clearing House, specifying any required transfers between accounts or sub-accounts 

which, if acted upon by the Clearing House, would result in any Contract affected by 

such event or circumstance being correctly designated as for the appropriate Position 

Account and sub-account in the ICE Systems (if applicable). Each Clearing Member 

using a Customer Account or a Proprietary Account to which Open Contract Positions 

for its Affiliates are recorded shall submit to the Clearing House on a daily basis (or 

more frequent basis, on request) accurate data on the breakdown of its entire Open 

Contract Position for each such Customer Account or such Proprietary Account on a 

per Customer or per Affiliate basis (as the case may be). The Clearing House shall be 

entitled to act and shall (subject, in the case of any transfers, to the requirements of 
70

Rule 408(a)) act upon all designations and information submitted by Clearing 

Members in recording Contracts in its Position Account or other sub-accounts 

designated by the Clearing Member or otherwise provided under this Rule 401(g) 

from time to time, without the need for any further enquiry on the part of the Clearing 

House.

(h) [Not used.]

(i) [Not used.]

(j) [Not used.]

(k) [Not used.]

(l) [Not used.]

(m) Where an ICE Futures Singapore Contract arises pursuant to this Rule 401 as a result 

of trading, submission of trade data or other action by or relating to a Customer of a 

Clearing Member, an opposite Customer-CM Transaction shall arise between such 

Customer and Clearing Member at the same time as the Contract (and may be void or 

voided in the same manner as a Contract may be void or voided pursuant to this Part 4 

mutatis mutandis) and further corresponding transactions may arise between 

Customers, in the manner specified by and in accordance with the ICE Futures 

Singapore Rules.

(n) [Not used.]

(o) When a Clearing Member enters into any Contract or takes any action which results in 

a Contract arising for its own account, or has a Contract recorded in its Proprietary 

Account or Customer Account in its name, it may do so in only one of the following 

capacities:

(i) [Not used.]

(ii) [Not used.]

(iii) [Not used.]

(iv) [Not used.]

(v) [Not used.]

(vi) [Not used.]

(vii) as a clearing member in relation to a transaction or transactions connected 

with the provision of services to one or more Customers in respect of ICE 

Futures Singapore Contracts, in which case the Contract shall be designated by 

the Clearing Member in accordance with Rule 401(g) as for its Customer 

Account and the Contract shall be recorded by the Clearing House in 

accordance with such designation; or

(viii) [Not used.]
71

(ix) [Not used.]

(x) [Not used.]

(xi) [Not used.]

(xii) [Not used.]

(xiii) as a clearing member in any other capacity (including where the Clearing 

Member does not provide any services to any Customer) in which case the 

Contract shall be designated by the Clearing Member in accordance with 

Rule 401(g) as for the Proprietary Account of the Clearing Member and 

recorded by the Clearing House in accordance with such designation.

(p) For the avoidance of doubt, a Clearing Member with more than one Account enters 

into Contracts recorded in its each such Account in a different capacity to that in 

which it enters into Contracts recorded in any other Account.

Rule 402 Relationship between Buying Counterparties, Selling Counterparties and 

Clearing House

(a) Each Clearing Member that is party to a Contract shall act as principal and not as 

agent. In performing its obligations and exercising its rights under these Rules, the 

Clearing House shall treat the entitlement of Clearing Members to rights pursuant to 

Contracts to be a full legal and beneficial entitlement and not subject to any 

Encumbrance in favour of any Person other than the Clearing House (other than 

pursuant to the Contract Terms).

(b) Upon the formation of a Contract in accordance with Rule 401, any Clearing Member 

that has any Transaction Rights or Obligations in relation to the original Transaction 

shall be automatically and immediately released and discharged from all and any such 

Transaction Rights or Obligations other than any Transaction Rights or Obligations 

falling due for performance before the formation of such Contract.

(c) The liabilities and obligations of the Clearing House pursuant to Contracts extend 

only to, and are enforceable only by, Clearing Members. Without limiting the 

generality of the foregoing, the Clearing House shall have no liability or obligation 

whatsoever to any Customer of a Clearing Member or any client of such a Customer.

(d) The Clearing House shall have no liability or obligation in relation to any Transaction 

whatsoever, unless and until a Contract arises in accordance with Rule 401 and is not 

void; in which case its liabilities shall be pursuant to the Contract only. The Clearing 

House's obligations and liabilities under any Contract shall be limited to those 

pursuant to the Contract Terms and these Rules, and are subject to the Contract not 

being void pursuant to Rule 403 and to the Clearing House's rights in relation to 

voidable Contracts pursuant to Rule 404.

(e) As between the Clearing House and each Clearing Member, all Contracts, these Rules 

and the relevant Clearing Membership Agreement are entered into in reliance on the 

fact that all such documents constitute a single agreement between the Clearing House 

and such Clearing Member. Were it not for these Rules, the Clearing Membership 
72

Agreement and other Contracts, neither the Clearing House nor such Clearing 

Member would enter into any Contracts with the other.

(f) [Not used.]

Rule 403 ICE Futures Singapore Contracts that are Void from Inception

(a) No ICE Futures Singapore Contract will arise (it being void ab initio) and the 

Clearing House shall have no obligation or liability to any Person in respect of a 

Transaction for which incomplete, erroneous or conflicting details are received by the 

relevant Market.

(b) In the event of an ICE Futures Singapore Contract being void:

(i) the Clearing House shall immediately notify the affected Buying Counterparty 

and Selling Counterparty and the relevant Market;

(ii) all amounts paid pursuant to the purported ICE Futures Singapore Contract 

shall be returned by the affected Buying Counterparty, Selling Counterparty 

and the Clearing House to their respective contractual counterparties, in each 

case without interest; and

(iii) any Transaction Rights or Obligations shall be deemed never to have been 

affected by Rule 402(b).

(c) Nothing in this Rule 403 of itself is intended to result in any Transaction or 

Transaction Rights or Obligations being void or voided as between the original parties 

thereto.

Rule 404 Contracts that are Voidable

(a) In relation to ICE Futures Singapore Contracts, the Clearing House shall have the 

discretion to avoid any Contract (which is not void ab initio pursuant to Rule 403) if 

the relevant Contract or Transaction (or related information or data received by the 

Clearing House, as applicable) whether in whole or in part, as against any Clearing 

Member that is or would be bound thereto:

(i) conflicts or appears to conflict with information received by the Clearing 

House in relation to such Contract or Transaction from another source, 

including (without limitation) information received from a Market, Exchange, 

any other Clearing Member, Governmental Authority or any Representative of 

any such Person;

(ii) results or appears to result from a communications or information technology 

error or problem;

(iii) is or appears to be connected with fraud, illegality, insider dealing, market 

abuse, money laundering or any other breach of Applicable Laws;

(iv) is or appears to be a result of a Force Majeure Event;
73

(v) is one which any Governmental Authority or the relevant Market requires or 

requests in writing that the Clearing House treat as void or voided;

(vi) is one which any Applicable Law provides is void or voided or which any 

Applicable Law requires the Clearing House to treat as void or voided;

(vii) is one in respect of which, at the time of the Transaction, the Clearing House 

has requested additional Margin or Permitted Cover from the Clearing 

Member and no Margin or Permitted Cover is provided by the time required;

(viii) was entered into in breach of a representation by a Clearing Member arising 

under the Rules or the Procedures; or

(ix) is otherwise made or received in such circumstances or in such a manner that 

acceptance of the Contract or Transaction would be inadvisable, in the opinion 

of the Clearing House, for the Clearing House's own protection, the protection 

of Clearing Members generally or the protection of a Market or marketplace in 

any class of Contracts.

(b) [Not used.]

(c) [Not used.]

(d) [Not used.]

(e) If, in relation to an ICE Futures Singapore Contract, any of the circumstances in 

Rule 404(a) arises, the Clearing House shall immediately notify the affected Buying 

Counterparty and Selling Counterparty and any relevant Market. Upon such 

notification:

(i) the Clearing House, Buying Counterparty and Selling Counterparty shall each 

immediately be released from all rights, liabilities and obligations under any 

affected Contract;

(ii) the affected Contract shall become null and void;

(iii) all amounts paid pursuant to the Contract shall immediately be returned by the 

Buying Counterparty, Selling Counterparty and Clearing House to their 

respective contractual counterparties, in each case without interest;

(iv) in the case of an ICE Futures Singapore Contract;

(A) any Transaction Rights or Obligations shall be deemed never to have 

been affected by Rule 402(b);

(B) [Not used.]

(C) [Not used.]

(v) [Not used.]

(vi) [Not used.]
74

(f) Nothing in this Rule 404 of itself is intended to result in any Transaction or 

Transaction Rights or Obligations being void or voided as between the original parties 

thereto, except to the extent that any equivalent obligation under a Contract 

corresponding to a Transaction Right or Obligation has been performed or 

part-performed.

(g) [Not used.]

(h) [Not used.]

Rule 405 Representations and Warranties on Contract Formation

(a) In relation to each Contract, the Clearing House will, and will be entitled to, rely on 

representations and warranties, deemed automatically to arise pursuant to these Rules 

from each Buying Counterparty and Selling Counterparty proposing to become or 

becoming party to any Contract, that:

(i) it is in full compliance with the Rules;

(ii) its obligations under the Clearing Membership Agreement, and any Contract 

to which it is a party constitute its legal, valid and binding obligations, 

enforceable in accordance with their respective terms (subject to applicable 

bankruptcy, reorganisation, insolvency, moratorium or similar laws affecting 

creditors' rights generally and subject, as to enforceability, to equitable 

principles of general application (regardless of whether enforcement is sought 

in a proceeding in equity or at law));

(iii) no Event of Default or Potential Event of Default with respect to it has 

occurred and is continuing and no such event or circumstance would occur as 

a result of its entering into or performing its obligations under the Clearing 

Membership Agreement or any Contract to which it is a party;

(iv) there is not pending or, to its knowledge, threatened against it, any action, suit 

or proceeding at law or in equity or before any court, tribunal, governmental 

body, agency or official or any arbitrator that is likely to affect the legality, 

validity or enforceability against it of the Clearing Membership Agreement or 

any Contract to which it is a party or its ability to perform its obligations under 

the Clearing Membership Agreement or any Contract;

(v) it is acting as principal and not as agent;

(vi) it has made its own independent decisions to enter cleared Contracts and as to 

whether the entry into of cleared Contracts is appropriate or proper for it based 

upon its own judgment and upon advice from such advisers as it has deemed 

necessary;

(vii) it is not relying on any communication (written or oral) of the Clearing House 

as investment advice or as a recommendation to enter into the Contract, it 

being understood that information and explanations related to the terms and 

conditions of a Contract will not be considered investment advice or a 

recommendation to enter into a Contract;
75

(viii) no communication (written or oral) received from the Clearing House will be 

deemed to be an assurance or guarantee as to the expected results of that 

Contract;

(ix) it is capable of assessing the merits of and understanding (on its own behalf or 

through independent professional advice), and understands and accepts, the 

terms, conditions and risks of the Contract and it is also capable of assuming, 

and assumes, the risks of the Contract;

(x) the Clearing House is not acting as a fiduciary for or an adviser to it in respect 

of the Contract except to the extent arising pursuant to Regulations 16 and 26 

of the SF(LCB)R; and

(xi) if it is a Clearing Member, where the Contract is to be recorded in its 

Customer Account or is otherwise related to a Customer-CM Transaction, it 

acknowledges its obligation in Rule 202(a)(ii) and that compliance with 

Applicable Laws in the context of entering into Customer transactions 

includes compliance with Applicable Laws relating to customer due diligence 

in respect of its Customer and Applicable Laws relating to sanctions 

administered or imposed by a Governmental Authority in Singapore, the 

United Nations Security Council or any other relevant Governmental 

Authority affecting the Customer or any of its Customer's assets.

(b) In relation to each Contract (other than a Contract arising pursuant to 

Rule 401(a)(vi)), the Clearing House will, and will be entitled to, rely on 

representations and warranties, deemed automatically to arise pursuant to these Rules 

from each Buying Counterparty and Selling Counterparty proposing to become or 

becoming party to any Contract, that:

(i) the data submitted to the relevant Market (if applicable) or the Clearing 

House:

(A) is complete and correct in all respects; and

(B) has been duly authorised by it; and

(ii) Market Rules (if applicable), and all Applicable Laws have been complied 

with by it and any relevant Customer in respect of the Transaction.

(c) In relation to each Contract that arises pursuant to Rule 401(a)(iii) or 

Rule 401(a)(viii), the Clearing House will, and will be entitled to, rely on 

representations and warranties deemed automatically to arise pursuant to these Rules 

from each Buying Counterparty and Selling Counterparty proposing to become or 

becoming party to any Contract, that:

(i) all and any previously subsisting contracts, rights, obligations or liabilities in 

connection with the subject matter of the Transaction or proposed Contract are 

on equal terms to that of the relevant Contract Terms (save as to the parties) 

and, in the case of rights, are free from all Encumbrances (excluding liabilities 

and obligations arising pursuant to the Contract Terms); and
76

(ii) any Person other than the Buying Counterparty and Selling Counterparty to 

whom any contracts, rights, obligations or liabilities referred to in 

Rule 405(c)(i) pertain has agreed with it, or such other Person as is relevant, to 

be released from all of its rights, obligations and liabilities as a result of 

Contracts arising pursuant to Rule 401(a) (save for any contracts, rights, 

obligations or liabilities as between the Clearing Member and its Customer 

(under a Customer-CM Transaction or otherwise) or between any Customer 

and its customers and so on, in relation to the subject matter of the Contract on 

a back-to-back basis with a Contract).

(d) Clearing Members will become party to, and liable under, Contracts each and every

time a Contract arises from a Transaction as a result of the action or omission of its 

Representatives, regardless of any circumstance in relation to such Transaction, 

including without limitation whether the person submitting the Transaction was 

authorised to do so by the Clearing Member or its Representative or whether the 

Transaction caused a Representative to exceed the Clearing House's credit or other 

parameters set for such Representative, a Market's or Exchange's position limits or the 

Clearing House's Exposure Limits or otherwise was in breach of the Rules or any of 

the Clearing Member's or Clearing House's policies, procedures or controls.

(e) [Not used.]

(f) The Clearing House shall be entitled to assume, without enquiry, that at each time at 

which a Customer-CM Transaction arises, the respective obligations of the Clearing 

Member and Customer under such Customer-CM Transaction constitute its legal, 

valid and binding obligations enforceable in accordance with its terms, subject to 

applicable bankruptcy, reorganisation, insolvency, moratorium or similar laws 

affecting creditors' rights generally and subject, as to enforceability, to equitable 

principles in general application (regardless of whether enforcement is sought in a 

proceeding in equity or at law).

Rule 406 Open Contract Positions

(a) At the end of each Business Day or at such other frequency as the Clearing House 

determines at its discretion either generally or in respect of any Clearing Member, the 

Clearing House will calculate Open Contract Positions in its books and records. 

Settlement or revaluation of Open Contract Positions and Contracts will take place 

pursuant to the applicable Contract Terms and through the Clearing Processing 

System. The Clearing House shall have no obligation to notify any Clearing Member 

or any other Person of Open Contract Positions or Contracts other than through the 

Clearing Processing System or otherwise than in accordance with the Rules and the 

Clearing Procedures.

(b) If a Clearing Member so instructs the Clearing House in accordance with the Clearing 

Procedures, the Clearing House will net particular buy and sell positions (for a Set of 

Futures that are Contracts) within the Clearing Member's Open Contract Position in 

respect of a Clearing Member's Customer Position Account, provided that no buy or 

sell positions or long or short positions in respect of one Customer are to be netted 

against buy or sell positions or long or short positions in respect of another Customer

and no buy or sell positions or long or short positions in respect of Contracts recorded 

in different position-keeping accounts in the Proprietary Account are to be netted. 
77

(c) Subject to its obligations under Rule 406(b), the Clearing House may at its discretion 

treat any Contract pursuant to which a Clearing Member is the Buying Counterparty 

and another Contract of the same Set pursuant to which the same Clearing Member is 

the Selling Counterparty simultaneously as being netted, set off and mutually closed 

out and terminated upon calculation of the Open Contract Position in respect of such 

Contracts, subject to the Clearing Member having made all then due payments 

pursuant to the Contract Terms in respect of such Contracts and to separate treatment 

of Open Contract Positions in its Proprietary Account and its Customer Account. 

Where the position as Buying Counterparty is not of the same size as a position a 

Selling Counterparty, the Contracts in question shall be closed out and terminated in 

part. For the avoidance of doubt, any contractual netting of Contracts is subject to 

Rule 102(q) and there shall be separate treatment (and no offsetting and close-out or 

resulting termination nor any aggregation or consolidation) as between: (A) any 

Contract recorded in a Clearing Member's Proprietary Account; and (B) any Contract 

recorded in that Clearing Member's Customer Account. Moreover, there shall be 

separate treatment of (and no offsetting and close-out or resulting termination or any 

aggregation or consolidation) except for purposes of a liquidation following an Event 

of Default under Part 9, any Contract recorded in respect of different Customers 

within the same Customer Account. 

(d) [Not used.]

(e) [Not used.]

(f) [Not used.]

(g) All Intellectual Property in data relating to Transactions, Contracts and Open Contract 

Positions provided to the Clearing House under these Rules or generated by the 

Clearing House shall be the property of the Clearing House (except as otherwise 

agreed with a Market). Such data may be provided by the Clearing House to the 

relevant Market or any member of the ICE Group and used by the Clearing House or 

such other Persons for any commercial or other purpose, subject in each case to the 

restrictions in Rule 106. Each Clearing Member's and Customer's rights in such 

Intellectual Property shall be automatically assigned to the Clearing House by virtue 

of this provision as such rights arise and where necessary, each Clearing Member and 

Customer represents, warrants and undertakes to obtain the necessary consents, 

authorisations and permissions in each case for the automatic assignment of such data 

to the Clearing House in accordance with this Rule 406.

Rule 407 Reporting of Open Contract Positions Carried by Other Clearing Members

If a Clearing Member (for the purposes of this Rule 407 only, the "Position Giver") has 

Customer Account or Proprietary Account positions in respect of any Contract carried for it 

in a Customer Account of another Clearing Member (for the purposes of this Rule 407 only, 

the "Position Holder"), the Position Giver shall give written notice to the Clearing House of 

the name of the Position Holder and the extent of its position on the Business Day following 

the Business Day on which a position was carried by the Position Holder.
78

Rule 408 Transfer of Contracts

(a) No Person other than the Clearing House shall be entitled to assign, allocate or 

transfer, or create any Encumbrance whatsoever in relation to, any of its rights, 

liabilities or obligations under a Contract or the Rules except:

(i) that all rights and obligations of a Clearing Member pursuant to a Contract 

may be transferred, novated or terminated and replaced from one Clearing 

Member to another Clearing Member with the agreement of each of the 

two Clearing Members involved (and, if required under Applicable Law for 

Open Contract Positions in a Customer Account, the consent of the relevant 

Customers), and the consent of the Clearing House and relevant Market (if 

any), subject to such conditions as the Clearing House at its discretion 

stipulates;

(ii) as a result of an allocation resulting in a Clearing Member being the 'Buying 

Counterparty' or 'Selling Counterparty' as such terms are defined in Rule 101;

(iii) as a result of an allocation pursuant to Rule 401(a)(viii); or

(iv) [Not used.]

(v) as a result of a Transfer of Contracts pursuant to Rule 904.

(vi) [Not used.]

(b) Any purported transfer of any rights, liabilities or obligations under a Contract or the 

Rules other than in accordance with Rule 408(a) shall be null and void.

Rule 409 Amendment of Contract Terms

The terms of any Contract may only be amended, waived or varied with the prior written 

consent of the Clearing House.

Rule 410 [Not used.]

Rule 411 [Not used.]
79

Part 5 Margin

Rule 501 Approved Financial Institutions

(a) The Clearing House will maintain a list of Approved Financial Institutions. Only 

Approved Financial Institutions shall be permitted by the Clearing House:

(i) to open and operate, on behalf of Clearing Members, accounts from which the 

Clearing House can draw amounts pursuant to a direct debit mandate, for the 

collection of amounts due to the Clearing House from time to time; and

(ii) to act in such other capacity as the Clearing House may approve from time to 

time.

(b) All cash transfers made by Clearing Members to or to the order of the Clearing House 

must be made from an account at an Approved Financial Institution, unless the 

Clearing House gives its prior written consent to another method being used.

(c) Clearing Members are given notice that the Clearing House may suspend or terminate 

the status of an Approved Financial Institution or attach, amend or revoke conditions 

to the continued status of an Approved Financial Institution. The Clearing House may 

take such steps if an institution no longer meets all of the requirements of the Clearing 

House or if the Clearing House determines that it would be advisable for the Clearing 

House's own protection, the protection of Clearing Members or the protection of a 

Market to do so.

Rule 502 Margin

(a) Each Clearing Member shall transfer Permitted Cover to the Clearing House in 

respect of Margin in such amounts, in such forms and at such times as are required 

pursuant to this Part 5 and otherwise as may be prescribed by the Clearing House and 

notified to Clearing Members, in each case in accordance with these Rules and the 

Finance Procedures, from time to time.

(b) At any time on which a requirement for Original Margin or Margin under Rule 502(g) 

falls due and insufficient Permitted Cover is held, the Clearing Member must initially 

transfer cash in an Eligible Currency. Thereafter a Clearing Member may substitute 

such cash Margin with other Permitted Cover by delivery of the replacement 

Permitted Cover to the Clearing House. The amount of Original Margin or Margin 

under Rule 502(g) for any Business Day shall be calculated (and, if necessary, called)

separately in respect of the Proprietary Account and the Customer Account for each 

Clearing Member in accordance with the Finance Procedures.

(c) Variation Margin payments may be made by the Clearing House or a Clearing 

Member only in cash in the Eligible Currency in which the Contract in question is to 

be or can be settled pursuant to the Contract Terms (save where the Finance 

Procedures require otherwise).

(d) Details of Eligible Currencies and other Permitted Cover that may be used to satisfy 

Margin obligations will be notified to Clearing Members from time to time by a 

Circular. The Clearing House may, at its discretion, vary or alter Margin 

requirements, nature or types of acceptable Eligible Currencies and Permitted Cover, 
80

specify proportions or maximum proportions of cash or asset classes to be provided as 

Margin or modify any valuation procedures or haircuts set out in or established 

pursuant to the Finance Procedures, Circulars or any risk policies. Any general 

changes to requirements for Margin or Permitted Cover will be notified to Clearing 

Members by a Circular.

(e) Certain classes of Permitted Cover may be subject to haircuts in accordance with the 

Finance Procedures (as specified from time to time by Circular) pursuant to which 

certain classes of Permitted Cover do not count for their full face or market value in 

the determination of Margin for the account of a Clearing Member. 

(f) The Clearing House may require a Clearing Member or Clearing Members to transfer 

cash in other Eligible Currencies or Permitted Cover with the Clearing House in 

substitution for any Permitted Cover already transferred to the Clearing House.

(g) The Clearing House may impose, amend or withdraw additional Margin requirements 

in respect of any Clearing Member at any time and at its discretion.

(h) Changes to the matters described in Rules 502(d) and (e) above, including assets 

eligible as Margin or Permitted Cover and the haircuts established with respect 

thereto, will be based on an analysis of appropriate factors as determined by the 

Clearing House, including historical and implied price volatility of such assets, 

current and anticipated conditions in the market for those assets, spreads and 

correlations between relevant assets, liquidity in the trading market for those assets, 

composition of the relevant market, default risk (including sovereign risk) with 

respect to those assets, relevant foreign exchange market conditions and other relevant 

information. 

(i) [Not used.]

(j) [Not used.]

Rule 503 Margin Calls and Return of Surplus Collateral

(a) Margin shall be and become due and payable at the times specified by the Clearing 

House pursuant to Rule 302.

(b) Regular Margin calculations will be made by the Clearing House on each Business 

Day. Any such calculation may result in a call for additional Permitted Cover 

pursuant to Part 3.

(c) The Clearing House shall be entitled, at its discretion, to make an intra-day call for 

Margin or any other amount payable to it. In the event of such a call being made, the 

Clearing House will:

(i) give notice to each Clearing Member which is required to make payment to 

the Clearing House of the amount payable by such Clearing Member and time 

by which payment must be made; and

(ii) immediately after giving or making reasonable efforts to give the notice 

described in Rule 503(c)(i), instruct the relevant Approved Financial 

Institution to transfer funds equal to the amount due to the Clearing House 
81

from the account of such Clearing Member to an account of the Clearing 

House.

(d) For regular calls relating to Contracts, Margin shall be calculated with reference to a 

Clearing Member's Open Contract Position in accordance with the Finance 

Procedures. For any intra-day Margin call relating to Contracts, Margin shall be 

calculated with reference to a Clearing Member's net Open Contract Position 

(including, in relation to the Customer Account, and where position-keeping accounts 

are used for the Proprietary Account, where positions are held gross in accordance 

with the Clearing Procedures, the net additional exposure relating to any Contracts 

held gross which have not been contractually netted or aggregated in accordance with 

Rule 406) in accordance with the Finance Procedures.

(e) The amount of Variation Margin for any Business Day shall be calculated (and, if 

necessary, called) separately in respect of the Proprietary Account and the Customer 

Account for each Clearing Member in accordance with the Finance Procedures. Each 

such Variation Margin call shall be:

(i) in the case of Contracts reflected in a net or aggregated Open Contract 

Position, based on the Exchange Delivery Settlement Prices at which Open 

Contract Positions in Contracts are recorded on the Clearing House's books; 

and

(ii) in the case of Contracts not yet reflected in a net or aggregated Open Contract 

Position, represented by the difference between the Exchange Delivery 

Settlement Price and the price at which each such Contract was bought or 

sold; provided, however, that in the case of any Contract based on an index, 

the amount of the final Variation Margin payment shall be determined as 

specified in the rules of the Exchange on which the index is based.

(f) [Not used.] 

(g) [Not used.] 

(h) [Not used.] 

(i) [Not used.]

(j) The Clearing House shall return to a Clearing Member the amount of any Surplus 

Collateral, provided that the Clearing House receives a request for such a release from 

such Clearing Member prior to such time as may be specified by the Clearing House 

for the day on which such release is to be made or pursuant to standing instructions 

for the return of Surplus Collateral, as the same may be established or amended in 

accordance with the Finance Procedures, such returns to be made in accordance with 

Rule 302 and the Finance Procedures.

(k) [Not used.]

(l) Each Clearing Member acknowledges that any contractual rights or receivables it may 

have from time to time to any Surplus Collateral from the Clearing House in relation 

to its Customer Margin Account shall be held on trust by it for the relevant Customer 

to the extent required by Regulations 16 and 26 of the SF(LCB)R.
82

(m) Notwithstanding anything to the contrary in Rule 502 and this Rule 503, for each 

Customer Account and for each position-keeping account maintained for the 

Proprietary Account, regular calls for Margin shall be calculated and called for on a 

"gross" basis without netting as between the positions related to different Customers

or position-keeping accounts, as the case may be.

Rule 504 Rights relating to Margin and Representations of Clearing Members

(a) The rights and liabilities of the Clearing House and each Clearing Member in relation 

to Permitted Cover are set out in the Clearing Membership Agreement and these 

Rules.

(b) Each Clearing Member will act as principal and not as agent in providing Margin to 

the Clearing House. The Clearing House will take no account of any right or interest 

which any Person other than the Clearing Member may have in any Margin furnished 

by such Clearing Member to the Clearing House.

(c) Each Clearing Member will be deemed to represent and warrant to the Clearing 

House on each date on which such Clearing Member transfers Permitted Cover to the 

Clearing House that:

(i) immediately prior to any such Permitted Cover being transferred to the 

Clearing House, the Clearing Member is or was the sole legal and beneficial 

owner of all such assets (or such assets are provided with all legal and 

beneficial owners' unconditional consent for their use and application pursuant 

to these Rules such that any trust or other Encumbrance over such assets in 

favour of a Customer under Applicable Law is extinguished upon transfer to 

the Clearing House) subject only to any applicable requirements of the 

Clearing House under Applicable Law, including, without limitation, 

Regulation 23(3) of the SF(CF)R;

(ii) the Clearing House is not subject to any obligation to perform directly to any 

of a Clearing Member's Customers, Affiliates or Representatives or any third 

party as a result of the Clearing Member granting any interest in any 

receivable from the Clearing House resulting from the Clearing House's 

receipt or use of such Permitted Cover, except as expressly provided pursuant 

to these Rules or as mandated pursuant to Applicable Law, including, without 

limitation, any trust obligation on the Clearing House arising pursuant to 

Regulation 23(3) of the SF(CF)R;

(iii) such Permitted Cover is provided on the basis that it may be used by the 

Clearing House and applied in accordance with these Rules;

(iv) the Clearing Member will not claim that any transfer of Permitted Cover to or 

use of Permitted Cover by the Clearing House in accordance with the Rules or 

the relevant Clearing Membership Agreement is contrary to or in breach of 

any requirement of Applicable Law, third party right or other contractual 

obligation (provided that the Clearing House does not cause such breach by 

amending these Rules); and
83

(v) the Clearing Member is not in breach of any of its contractual or regulatory 

obligations towards any third party as a result of the transfer of Permitted 

Cover to the Clearing House (provided that the Clearing House does not cause 

such breach by amending these Rules).

(d) The Clearing Member shall be liable to the Clearing House for any cost or liability 

incurred by the Clearing House as a result of the Clearing House possessing, holding, 

perfecting the title to or otherwise being associated with, any asset provided to it by 

that Clearing Member by way of Margin.

(e) [Not used.]

(f) Each Clearing Member shall require and receive Customer-CM Collateral from its 

Customers or fund such Permitted Cover only in such a manner as is consistent with 

these Rules and the Standard Terms and in a manner which allows the Clearing 

Member to transfer Permitted Cover to the Clearing House in accordance with its 

obligations under the Clearing Membership Agreement and these Rules. A Clearing 

Member shall ensure that where it pre-funds any Permitted Cover for a Customer 

Margin Account, the relevant Customer provides Customer-CM Collateral of the 

same value to the Clearing Member within a reasonable period (which the Clearing 

House may further specify by Circular from time to time).

(g) Any amount or asset recorded in a particular Account may be applied by the Clearing 

House to the extent permitted under Part 9 of the Rules as against the net sum for such 

Account or transferred to the extent permitted under Rule 906 regardless of the origin 

or status of such amount or assets at the time of transfer or prior to the time of transfer 

as Customer-CM Collateral, title transfer collateral, security interest collateral or 

otherwise.

(h) The Clearing House has acknowledged in Rule 102(q), Rule 906(b), Circulars and 

Clearing Membership Agreements that:

(i) no Customer Account of a Clearing Member (or any money, asset or contract 

recorded in such a Customer Account) is to be combined or co-mingled with 

the Proprietary Account of the same Clearing Member (or any money, asset or 

contract recorded in such Proprietary Account); and

(ii) [Not used.]

(iii) no right of set-off shall be exercised by the Clearing House against money, 

asset or contract credited to a Customer Account in respect of any sum or 

obligation owed to the Clearing House on any other account.

(i) A Clearing Member shall take any action reasonably requested by the Clearing House 

that may be necessary or desirable to create, preserve, perfect or validate the right, 

title or interests of the Clearing House in Margin or Guaranty Fund Contributions 

intended to be created under these Rules, the relevant Clearing Membership 

Agreement or to enable the Clearing House to exercise or enforce any of its rights 

with respect thereto.
84

Rule 505 Use of Permitted Cover

(a) Each Clearing Member agrees, and each Customer shall be deemed to agree, that any 

use, investment, transfer, holding, appropriation, set off, enforcement or application of 

Permitted Cover by the Clearing House pursuant to these Rules is in accordance with 

Applicable Laws. To the extent permitted under Applicable Laws, each Clearing 

Member irrevocably waives, and each Customer shall be deemed to have irrevocably 

waived, any claim or right it may have against the Clearing House arising from the 

Clearing House's use, investment, transfer, holding, appropriation, set off, 

enforcement or application of, any Permitted Cover in accordance with these Rules, 

including, any claim that such use, investment, transfer, holding, appropriation, set 

off, enforcement or application is in breach of Regulation 24 of the SF(CF)R, any 

trust or fiduciary obligation of the Clearing House arising pursuant to 

Regulation 23(3) of the SF(CF)R or any breach of Regulations 21 or 35 of the 

SF(LCB)R.

(b) If the Clearing House makes payment or otherwise transfers Permitted Cover in 

relation to a Customer Margin Account to a Clearing Member or other Person in 

accordance with these Rules, and such amounts are required to be held by such Person 

on trust or otherwise segregated for a Customer pursuant to Regulations 16 or 26 of 

the SF(LCB)R or other Applicable Law, any claim by such Customer against the 

Clearing House and any trust property held by the Clearing House pursuant to 

Regulation 23(3) of the SF(CF)R for such Customer shall be accordingly reduced by 

the amount paid to such Person.

Rule 506 [Not used.]
85

Part 6 Exposure Limits

Rule 601 Establishment of Exposure Limits

(a) Subject to Applicable Laws, the Clearing House will be entitled at its discretion to 

establish, amend or revoke Exposure Limits for Clearing Members or in respect of 

particular Accounts. The Clearing House may or may not inform Clearing Members 

of their Exposure Limits.

(b) The Exposure Limit for each Clearing Member and Account will be determined 

taking into account: (i) any position held by any other Person directly or indirectly 

controlled by the relevant Clearing Member; and (ii) any position held by any other 

Person acting, pursuant to an express or implied agreement or understanding, as if 

such position were held by the Clearing Member; but otherwise at the Clearing 

House's discretion and may take into account the Clearing House's evaluation of the 

financial and operational capacity of the Clearing Member and such other factors as 

the Clearing House at its discretion deems appropriate.

(c) If a Clearing Member is not notified of a Exposure Limit for an Account, particular 

Set of Contracts or broader group of Contracts, it may assume that there is no such 

Exposure Limit in place (and shall not be treated as having breached any Exposure 

Limit) until such time as the Clearing House notifies it of the Exposure Limit. Any 

finding of breach of a Exposure Limit by the Clearing House may only be prospective 

and not retrospective with respect to the time of notification to the Clearing Member 

of the Exposure Limit.

Rule 602 Breach of Exposure Limit

(a) If a Clearing Member exceeds its Exposure Limit, the Clearing House may, at its 

discretion:

(i) require a Clearing Member to provide information to the Clearing House in 

respect of any of its positions;

(ii) require a Clearing Member to allocate, transfer or terminate such Contracts or 

close out its Open Contract Position in any affected Account to the extent 

necessary to reduce its Open Contract Position so as to meet its Exposure 

Limit within such time as the Clearing House may prescribe;

(iii) make an additional call for such Margin as the Clearing House in its discretion 

determines; and/or

(iv) impose such additional Capital requirements on the Clearing Member as the 

Clearing House in its discretion determines.

(b) If the Clearing Member fails to comply with any requirement imposed on it pursuant 

to Rule 602(a), the Clearing Member shall be in breach of these Rules and, without 

limitation, the Clearing House may, at its discretion, in respect of the Clearing 

Member concerned:

(i) declare an Event of Default;
86

(ii) terminate or suspend membership of the Clearing Member;

(iii) terminate such Contracts as the Clearing House at its discretion selects on 

behalf of the Clearing Member;

(iv) instigate an investigation or disciplinary proceedings under Part 10 of the 

Rules; and/or

(v) impose such other requirements on the Clearing Member as it sees fit.

(c) (i) A Clearing Member shall be deemed not to have exceeded a Exposure Limit 

(for purposes of Rules 602(a)(ii) and (iv) and Rule 204(a)(ii) only) to the 

extent that such Exposure Limit is exceeded as a result of it being party to any 

Contract arising pursuant to any of Rule 401(a)(v) or (vi) which was entered 

into: (A) five or fewer Business Days prior to the date of determination by the 

Clearing House that a Exposure Limit has been exceeded; or (B) five or fewer 

Business Days prior to the relevant Set becoming ineligible for Clearing 

(provided that if the relevant Set later becomes eligible for Clearing again, this 

paragraph (B) shall cease to apply five Business Days after the Set has so 

become eligible for Clearing) (or, in either case (A) or (B), as a result of any 

Open Contract Position or Contract reflecting any such Contract). 

Consequently, where a Clearing Member is party to any such Contract, the 

existence of the Contract will be disregarded in calculating the position of the 

Clearing Member that is used for purposes of determining the availability of 

the Clearing House's powers under Rule 602(a)(ii) or (iv) or the applicability 

of a notification requirement under Rule 204(a)(ii) and instead the position of 

the Clearing Member excluding each disregarded Contract will be used for the 

purposes of such determinations.

(ii) A Clearing Member shall be deemed not to have breached a requirement 

imposed on it pursuant to Rule 602(a)(ii) to the extent that such a requirement 

is breached as a result of it being party to any Contract arising pursuant to any 

of Rule 401(a)(v) or (vi) which was entered into: (A) at any time after the 

requirement was imposed; (B) five or fewer Business Days prior to the 

requirement being imposed; or (C) five or fewer Business Days prior to the 

Set becoming ineligible for Clearing (provided that if the relevant Set later 

becomes eligible for Clearing again, this paragraph (C) shall cease to apply 

five Business Days after the Set has so become eligible for Clearing) (or, in 

any such case (A), (B), or (C), as a result of any Open Contract Position or 

Contract reflecting any such Contract). Consequently, where a Clearing 

Member is party to any such Contract, the existence of the Contract will be 

disregarded for purposes of determining any breach of a requirement under 

Rule 602(a)(ii) and instead the position of the Clearing Member excluding 

each disregarded Contract will be used for the purposes of any such 

determination.

(iii) Nothing in this Rule 602(c) shall restrict the taking by the Clearing House of 

any action under Rule 602(a)(i) or (iii), which it may do without regard to the 

nature of Contracts making up any Open Contract Position.

Rule 603 [Not used.]
87

Part 7 Settlement and Delivery of Futures

References to Contracts in this section are to ICE Futures Singapore Contracts. References to 

any Account in this section are references only to an Account in which ICE Futures 

Singapore Contracts may be recorded and the terms 'Customer Margin Account', 'Customer 

Position Account', 'Proprietary Margin Account' and 'Proprietary Position Account' shall be 

construed accordingly. References to Customers in this section are solely to Customers of 

Clearing Members in relation to Contracts that are Futures. 

Rule 701 Determination of Exchange Delivery Settlement Price

(a) The Clearing House will specify the Exchange Delivery Settlement Price for any 

Future Set.

(b) The Exchange Delivery Settlement Price will generally be determined on the basis of 

data provided and published by the Market on which the Contract in question is 

traded, subject to Rule 701(c).

(c) The Clearing House shall be entitled to determine the Exchange Delivery Settlement 

Price itself, at its discretion, if:

(i) a Market fails on any day to determine an Exchange Delivery Settlement 

Price;

(ii) a Market fails to provide the Clearing House with necessary data for 

determination of an Exchange Delivery Settlement Price;

(iii) there is an error in data provided by a Market; or

(iv) the Clearing House at its discretion otherwise considers it appropriate to do so.

Any Exchange Delivery Settlement Price determined by the Clearing House under 

this Rule 701(c) will be communicated to Clearing Members.

Rule 702 Cash Settlement

(a) A Futures Contract shall be settled in cash if:

(i) pursuant to the applicable Contract Terms it can be settled only in cash; or

(ii) pursuant to the applicable Contract Terms it may be settled in cash and the 

Clearing Member opts to settle the Contract(s) in cash.

(b) Without prejudice to any contractual netting under Rule 406 or the Clearing 

Procedures prior to settlement, cash settlement for a Set of Futures Contracts shall 

occur separately, and separate payment obligations shall accrue, in respect of a 

Clearing Member's:

(i) net position in the relevant Set in respect of its Proprietary Account where 

only one position-keeping account is used;
88

(ii) gross buy positions in the relevant Set in respect of its Customer Account (if 

applicable); 

(iii) gross sell positions in the relevant Set in respect of its Customer Account (if 

applicable);

(iv) gross buy positions in the relevant Set in respect of its Proprietary Account for 

each position-keeping account used where paragraph (i) does not apply; and 

(v) gross sell positions in the relevant Set in respect of its Proprietary Account for 

each position-keeping account used where paragraph (i) does not apply.

(c) Provided that all Margin payments in respect of the Set have been paid by the 

Clearing Member to the Clearing House or repaid by the Clearing House, the amount 

payable for cash settlement of any Future shall be the net gain or loss, as the case may 

be, based on the price at which Open Contract Positions were last recorded on the 

Clearing House's books and the Exchange Delivery Settlement Price or, in relation to 

Contracts entered into on the same day as the day of settlement, the difference 

between the Exchange Delivery Settlement Price and the price at which the relevant 

Contract was bought or sold. Each cash settlement shall occur in accordance with the 

Contract Terms.

(d) Neither the Delivery Procedures nor the requirements of Rule 703 shall apply to any 

Contract which is settled in cash in accordance with this Rule 702.

Rule 703 Delivery

(a) In relation only to Futures which are not settled in cash pursuant to Rule 702 and FX 

Contracts other than Financially Settled FX Contracts, the Delivery Procedures and 

the requirements of this Rule 703 shall apply.

(b) The Buyer and Seller shall each make such payments and deliveries and deliver such 

tenders, notices and invoices as are required pursuant to the Delivery Procedures and 

Market Rules.

(c) The passing on by the Clearing House of such tenders or such other documents shall 

not constitute acceptance by the Clearing House of such tenders or such documents if 

the Clearing Member to which the Clearing House passed on such tender or 

documents rejects the same where permitted to do so. In the event of such rejection, 

the Clearing House shall also be entitled to reject the tenders or other documents. 

Similarly, where a Clearing Member who is a Buyer under a Contract rejects a 

Deliverable delivered to it, the Clearing House as Buyer under the corresponding back 

to back Contract shall be entitled, if to do so would be in accordance with the 

applicable Contract Terms, to take the same action as against the Seller under that 

Contract and the Clearing House shall not be deemed to have accepted such delivery 

until the relevant Buyer has accepted delivery under the first Contract.

(d) Subject to Rule 703(c), no tender received by the Buyer may be withdrawn or 

substituted by the Seller except with the consent of the Buyer or otherwise in 

accordance with the Contract Terms and Procedures.
89

(e) Full compliance with the Delivery Procedures applicable to the Contract in question 

and, where applicable, Market Rules shall amount to a good discharge of the rights, 

liabilities and obligations of the parties under such Contract (but shall be without 

prejudice to any rights, liabilities or obligations of any party to a Contract in relation 

to breach of warranty, representation, damaged goods, under-delivery, over-delivery 

or otherwise).

(f) The Clearing House may, at its discretion, direct a Clearing Member who is a Seller 

under a Contract subject to delivery to deliver the Deliverable that is the subject 

matter of such Contract to another Clearing Member that is a Buyer. The Seller and 

Buyer shall each be bound by any such direction. Delivery in accordance with any 

such direction shall be deemed to constitute delivery by the Seller to the Clearing 

House and from the Clearing House to the Buyer for the purposes of the Contract or

Contracts in question (but title shall not pass unless and until the time specified in the 

Delivery Procedures). All payments in relation to such Contracts shall nonetheless be 

made only to and from the Clearing House by the Clearing Members concerned.

(g) If an invoice has not been prepared or delivered when payment becomes due pursuant 

to a Contract, payment shall be made and received on account, pending the issue of 

that invoice.

(h) Where a Clearing Member that is a Buyer or Seller under a Contract subject to

delivery is subject to an Event of Default or Force Majeure Event, the rights, 

liabilities and obligations of any Clearing Member that is not a Defaulter in respect of 

such performance shall be discharged and there shall arise in place of the same an 

obligation to account as between the Clearing Member and the Clearing House for a 

settlement amount. The Clearing House shall be entitled to substitute an obligation to 

account for such settlement amount, or a proportion thereof, for the Clearing House's 

rights, liabilities and obligations in respect of performance of delivery obligations 

under other Contracts subject to tender with other Clearing Members (such Contracts 

and Clearing Members selected by the Clearing House at its discretion) of the same 

Set.

(i) [Not used.]

Rule 704 Credit and Debit of Accounts

(a) The Clearing House shall make any necessary credits or debits to or from Clearing 

Members' Proprietary Margin Account and Customer Margin Account, as appropriate, 

arising as a result of each cash settlement and delivery in accordance with Part 3.

(b) Subject to the Contract Terms and Procedures, any compensation, adjusting payment 

or other allowance payable by or to either the Buyer or the Seller under the terms of 

the Contract shall be paid by or to the Clearing House for onward payment to the 

Buyer or the Seller as the case may be.

Rule 705 Settlement and Delivery Obligations only in respect of Open Contract 

Position and Termination of other Contracts

(a) Without prejudice to any contractual netting under Rule 406 or the Clearing 

Procedures prior to settlement, the Clearing House and each Clearing Member shall 
90

make cash settlement and delivery only for such number of Contracts as are reflected 

in the Clearing Member's Open Contract Position, separately for the Clearing 

Member's:

(i) net position in the relevant Set in respect of its Proprietary Account where 

only one position-keeping account is used;

(ii) gross buy positions in the relevant Set in respect of its Customer Account (if 

applicable);

(iii) gross sell positions in the relevant Set in respect of its Customer Account (if 

applicable); 

(iv) gross buy positions in the relevant Set in respect of its Proprietary Account for 

each position-keeping account used where paragraph (i) does not apply; and 

(v) gross sell positions in the relevant Set in respect of its Proprietary Account for 

each position-keeping account used where paragraph (i) does not apply.

No such Open Contract Position (or additional Contracts) may be netted against 

another Open Contract Position on cash settlement or delivery without the prior 

written consent of the Clearing House, and subject always to Rule 102(q).

(b) Upon each of the parties to a Contract having made all necessary payments and 

deliveries in accordance with these Rules in respect of all Futures Contracts in a Set in 

relation to which a cash settlement or delivery obligation exists for any account or 

positions specified in Rule 705(a), the Clearing Member and the Clearing House shall 

each be discharged and released from all rights, liabilities and obligations to one 

another arising pursuant to Futures Contracts belonging to such Set in respect of such 

account or position.
91

Part 8 [Not used.]
92

Part 9 Default Rules

Without prejudice to the status of any other provision of these Rules, all the provisions of this 

Part 9 are intended to constitute 'default rules' for purposes of Part III of the SFA and the 

SF(CF)R and provide for the taking of proceedings or other action if a participant has failed 

or appears to be unable or to be likely to become unable to meet his obligations for any 

unsettled or open market contract to which he is a party. Accordingly, any action taken by 

the Clearing House pursuant to this Part 9 is intended to constitute "default proceedings" for 

purposes of Part III of the SFA and the SF(CF)R. In addition to these Rules, the Clearing 

House relies on its legal rights under Applicable Laws in handling Events of Default.

Rule 901 Events of Default affecting Clearing Members 

(a) If any of the following events should occur with respect to any Clearing Member 

(regardless of whether it is cured by the Clearing Member, a guarantor or other 

third party on behalf of the Clearing Member or otherwise), such event shall, if so 

declared by the Clearing House, constitute an "Event of Default":

(i) any breach by that Clearing Member of these Rules, the Procedures, the 

Clearing Membership Agreement, any other agreement with the Clearing 

House or Market Rules;

(ii) that Clearing Member being unable, or likely to be unable, to meet its 

obligations under these Rules or in respect of any Contract;

(iii) a Monetary Default or Delivery Default occurring with respect to that Clearing 

Member;

(iv) any Financial Indebtedness of that Clearing Member or any of its Group 

Companies: (A) not being paid when due or within any originally applicable 

grace period; or (B) being declared to be or otherwise becoming due and 

payable prior to its specified maturity as a result of an event of default 

(however described);

(v) any commitment for any Financial Indebtedness of that Clearing Member or 

any of its Group Companies being cancelled or suspended by a creditor as a 

result of an event of default (however described);

(vi) any creditor of that Clearing Member or any of its Group Companies 

becoming entitled to declare any Financial Indebtedness due and payable prior 

to its specified maturity as a result of an event of default (however described);

(vii) an Insolvency in relation to that Clearing Member or any of its Group 

Companies;

(viii) any material action being taken against that Clearing Member (including, 

without limitation, any declaration of default, material adverse notice or 

finding, material fine, suspension or expulsion or withdrawal of, revocation of 

or failure to renew any permission, exemption, licence or authorisation) by 

any Governmental Authority, Regulatory Authority, Exchange, Clearing 

Organisation or Delivery Facility;
93

(ix) breach by that Clearing Member of any Applicable Law relevant to its 

business as a Clearing Member;

(x) [Not used.]

(xi) the Clearing Member consolidates or amalgamates with, or merges with or

into, or transfers all or substantially all its assets to, or reorganises, 

reincorporates or reconstitutes into or as, another entity and, at the time of 

such consolidation, amalgamation, merger, transfer, reorganisation, 

reincorporation or reconstitution the resulting, surviving or transferee entity 

fails to assume all the obligations of such Clearing Member under any 

Contract to which it or its predecessor was a party; or

(xii) any breach by a Clearing Member of the Capital requirements imposed under 

the Membership Procedures or the SF(FMR)R or any circumstances 

contemplated in the SF(FMR)R pursuant to which a Clearing Member's CMS 

Licence is automatically revoked or MAS is or is likely to become entitled to 

revoke any CMS Licence held by such Clearing Member, including, without 

limitation, the circumstances set out in Regulations 7(3) and 17(2) of the 

SF(FMR)R.

(b) The Clearing House may assume that the occurrence of any Event of Default means 

that a Clearing Member is unable, or likely to be unable, to meet its obligations in 

respect of any Contract to which it is a party.

(c) The Clearing House may exercise rights under the power of attorney granted under 

clause 5.1 and 5.2 of the Clearing Membership Agreement if there has been an Event 

of Default. If, following an Event of Default, the Clearing House exercises rights 

under the power of attorney in clause 5.1 and 5.2 of the Clearing Membership 

Agreement for purposes of enforcement to exercise any of its rights under this Part 9 

and a Circular has not been issued in respect of the Event of Default, the Clearing 

House will notify the Clearing Member concerned as soon as is reasonably practicable 

of such exercise.

(d) [Not used.]

(e) The Clearing House may inform any relevant Regulatory Authority of an Event of 

Default prior to declaring an Event of Default and disclose such information to such 

Regulatory Authority as it sees fit.

Rule 902 Actions to be taken following declaration of a Clearing Member Event of 

Default

(a) If an Event of Default has been declared, the Clearing House may immediately 

suspend or terminate the Defaulter's membership as a Clearing Member and any other 

entitlements under these Rules, take any action to close out the Defaulter's positions 

under this Part 9 and take such action as is necessary to control or reduce losses or 

liquidity pressures resulting from the Event of Default. Any such suspension or 

termination may be temporarily postponed or may not be enforced if the Clearing 

House in its discretion determines that any such suspension or termination would 
94

either (i) not be in the best interests of the Clearing House; or (ii) be likely to 

adversely affect the operation of any market.

(b) As soon as practicable after the Clearing House has declared that a Clearing Member 

is subject to an Event of Default, the Clearing House shall issue a Default Notice to 

the Defaulter and shall provide a copy of such Default Notice to any other party to an 

affected Contract (if any). The Clearing House will issue a Circular in respect of any 

Default Notice specifying the name of the Defaulter. The Clearing House may at its 

discretion publish a copy of the relevant Default Notice in or together with a Circular. 

The Clearing House shall, as soon as reasonably practicable after issuing a Default 

Notice, appoint a day on which any net sums certified under Rule 906 are to be paid.

(c) The Clearing House may take such steps pursuant to this Part 9 as appear in the 

circumstances to be necessary or expedient to discharge all the Defaulter's rights and 

liabilities under or in respect of Contracts to which it is party, to protect the Clearing 

House, its non-defaulting Clearing Members or Markets or to complete the process 

described in this Part 9.

(d) Transfer Orders shall be legally enforceable, irrevocable and binding on third parties 

in accordance with Part 12, even in the event of an Event of Default.

Rule 903 Treatment of Contracts following a Clearing Member Event of Default and 

Hedging

(a) The Clearing House shall be entitled to take any of the following steps at its discretion 

following the occurrence of an Event of Default with respect to a Clearing Member:

(i) to arrange for Contracts to be subject to a Transfer to a Transferee Clearing 

Member in accordance with Rule 904 and effect the same;

(ii) if it determines at its discretion that the protection of the financial integrity of 

the Clearing House so requires, or because of the cessation or curtailment of 

trading on a Market where contracts may be traded, to delay a close out or 

termination of some or all Contracts of the Defaulter; and

(iii) subject always to Rule 102(q), if the Defaulter acts as Buying Counterparty 

and Selling Counterparty in respect of Contracts of the same Set, to net, offset, 

mutually close out or terminate such Contracts (or any part thereof) provided 

that, following such netting, offsetting, closing out or termination, Contracts 

representing in aggregate the Open Contract Position of the Defaulter in the 

relevant Set are recognised.

(iv) to combine and replace two or more FX Contracts of a Defaulter (or any part 

of an FX Contract) with a single FX Contract, which may occur where the 

Defaulter is Reference Currency Seller under one of the FX Contracts in 

respect of a particular currency and Reference Currency Buyer under the other 

FX Contract in respect of the same currency, and those two FX Contracts have 

the same FX Settlement Date.
95

(b) All Contracts to which a Defaulter is party (which are not voidable and voided by the 

Clearing House pursuant to Part 4) shall be closed out in the manner set out in 

Rule 905 except to the extent that Rule 903(a) applies to such Contracts.

(c) To the extent that any Contracts to which a Defaulter is party remain open from time 

to time (whether pursuant to Rule 903(a)(ii), pending Transfers, terminations or 

otherwise) or if the Clearing House is otherwise unable for any reason to liquidate 

Contracts in a prompt and orderly fashion, the Clearing House may authorise the 

execution from time to time for the account of the Clearing House, for the purpose of 

an orderly unwind of any Contracts to which a Defaulter is party or reducing the risk 

to the Clearing House and the risk to Clearing Members (in the case of Clearing 

Members, except to the extent that reducing any risk to Clearing Members creates or 

increases any risk for the Clearing House) resulting from the continued maintenance 

of such Contracts, of hedging transactions including, without limitation, the purchase, 

exercise, sale or grant of Contracts. Any such hedging transactions that are executed 

shall be submitted by Clearing Members with whom they are executed to the Clearing 

House for Clearing on a daily basis. Any costs, expenses or losses sustained by the 

Clearing House in connection with transactions effected pursuant to this Rule 903(c) 

shall be charged to the Defaulter and any gains shall be credited to the Defaulter in the 

relevant net sum calculation under Rule 906 for the Account in respect of which 

exposures were hedged.

(d) (i) If a Contract is automatically terminated pursuant to an automatic early 

termination provision or under Applicable Law as a result of an Event of 

Default, Insolvency or related event affecting the Defaulter, this Part 9 shall 

apply mutatis mutandis in relation to such terminated Contract to which such 

Defaulter was party and the rights, obligations and liabilities relating thereto.

(ii) [Not used.]

(e) Upon an Event of Default being declared with respect to a Clearing Member, any 

accrued or invoiced amounts shall be immediately due and payable by the Defaulter 

to the Clearing House.

Rule 904 Transfer of Contracts and Margin on a Clearing Member Event of Default

Provisions applicable to all Defaulters and all Contracts

(a) The Clearing House may arrange for any of the following steps (any such step, a 

"Transfer" and the term "Transferred" shall be interpreted accordingly) to take 

place in respect of the Contracts of a Defaulter as part of its default proceedings:

(i) a transfer, sale, assignment or novation of Contracts (and related 

Customer-CM Transactions) of a Defaulter to a Transferee Clearing Member; 

or

(ii) the termination of Contracts between the Clearing House and a Defaulter (and 

related Customer-CM Transactions, where applicable) and the entry into of 

new replacement Contracts (and related Customer-CM Transactions, where 

applicable) between the Clearing House and the Transferee Clearing Member 
96

or between such Customer and such Transferee Clearing Member, as 

applicable (by way of novation and amendment or otherwise).

Unless the Clearing House specifies otherwise in writing, all Transfers shall occur 

pursuant to the process described in Rule 904(a)(ii).

(b) All Contracts subject to a Transfer shall be Transferred on the basis of the applicable 

Exchange Delivery Settlement Price, Reference Price, or other price specified by the 

Clearing House. Transferee Clearing Members will be notified of applicable prices 

determined pursuant to this provision prior to the Transfer.

(c) For the avoidance of doubt, the Clearing House shall have no obligation to enter into 

or effect any Transfer if to do so: (i) would result in or risk an Account being 

under-collateralised with respect to any remaining Contracts; (ii) would result in or 

risk an Event of Default or a Failure to Pay in respect of the Clearing House, the 

application of Guaranty Fund Contributions of non-Defaulters, a call for Assessment 

Contributions or invocation of any of the procedures in Rule 912; (iii) would result in 

or risk a breach of Applicable Laws; or (iv) lacks any Governmental Authority, 

Customer or other consent or approval that is required or desirable in the 

circumstances, in each case as determined by the Clearing House at its discretion. 

Any Transfers shall be fair to clients and indirect clients of the Defaulter.

(d) If any Contracts recorded in a Defaulter's Customer Account are subject to any 

Transfer pursuant to Rule 904(a)(i):

(i) any related Margin recorded in the relevant Customer Account may, at the 

discretion of the Clearing House also be transferred from that Customer 

Account to the Transferee Clearing Member's Customer Account;

(ii) to the extent that any transfer of Margin takes place in accordance with 

Rule 904(d)(i), the Defaulter shall have no claim against the Clearing House 

or any Transferee Clearing Member for return of such Margin and the 

Clearing House shall be released from any liability or obligation to return such 

Margin (or any property in substitution thereof) to the Defaulter; and

(iii) as between the Transferee Clearing Member and the Clearing House, the 

Clearing House shall have all rights in relation to any Margin transferred 

pursuant to Rule 904(d)(i) as if the same were Margin transferred to the 

Clearing House directly from the Transferee Clearing Member. 

(iv) [Not used.]

(v) [Not used.]

(e) The Clearing House may rely upon any information relating to the positions, assets or 

identities of individual Customers provided to it by an Exchange or Clearing Member, 

without need for further enquiry by the Clearing House with respect thereto. The 

books and records of the Clearing House may be treated as definitive evidence of the 

positions and Customers which correspond to Contracts recorded in the Defaulter's 

Customer Account.
97

(f) The Clearing House shall be entitled to make partial or full transfers of available 

Margin at any time from the relevant account of a Defaulter in respect of Contracts 

subject to a Transfer, provided that in any case the total amount of Margin transferred 

in respect of any Contracts relating to a particular Customer remains commensurate to 

the Margin that was provided in respect of such transferred Contracts and held by the 

Clearing House immediately prior to the Event of Default.

(g) Nothing in these Rules shall require a Clearing Member to accept any Transfer of 

Contracts as a Transferee Clearing Member, without the prior consent of that Clearing 

Member (and for these purposes no such consent shall have been provided as a result 

of a Clearing Member being named as a potential Transferee Clearing Member in a 

Default Portability Preference). Including as a result of the consents in paragraph 6(b) 

of the Standard Terms, the Clearing House shall be entitled (but not required) to 

Transfer any Contract regardless of whether the relevant Customer has designated the 

Transferee Clearing Member as a permitted transferee or has consented to such 

Transfer.

(h) If the Clearing House determines that any Contracts of the Defaulter are to be 

Transferred pursuant to this Rule 904, the Clearing House may estimate the loss or 

gain that it would incur in respect of the relevant Customer Account Positions (i.e. the 

amount L-A in Rule 906 as calculated in respect of those Customer Account 

Positions) and the extent, if any, to which any Margin would be applied to any such 

loss and may (but shall not be required to) prioritise and give effect first to any 

Transfers on the basis of the extent of any potential resulting loss or gain to a 

Customer Account notwithstanding the time at which any Transfer instructions are 

submitted or confirmed.

(i) The Clearing House may take into consideration such factors as the Clearing House 

determines to be relevant in accepting or effecting any Transfer. Without limiting the 

foregoing, any Transfer or transfer of Margin shall be subject to any requirements or 

limitations under Applicable Law, and any approvals or consents that the Clearing 

House may determine to be required or desirable under the circumstances.

(j) The Clearing House will have regard to any Default Portability Preference in 

determining whether or not to give effect to any Transfer. Nonetheless, and without 

prejudice to the generality of Rule 904(g), the Clearing House shall be entitled to 

Transfer any Contract recorded in the Customer Account of a Clearing Member 

regardless of whether the relevant Customer has designated the Transferee Clearing 

Member as a permitted transferee pursuant to a Default Portability Preference or has 

made any Default Portability Preference, in reliance upon the consents of Customers 

to a Transfer of Contracts or Margin to any Transferee Clearing Member provided 

pursuant to the Standard Terms. If, pursuant to a Transfer, the Clearing House 

becomes party to a Contract with a Transferee Clearing Member as replacement for 

any Customer Account Contract of a Defaulter, the Clearing House and (to the extent 

necessary) the Defaulter shall contemporaneously cause the Transfer of the related 

Customer-CM Transactions between each affected Customer and the Defaulter, such 

that Customer-CM Transactions are established between each relevant Customer and 

the Transferee Clearing Member and such Transferred Customer-CM Transactions 

between the Defaulter and each relevant Customer are terminated (or otherwise 

subject to a Transfer) as follows:
98

(i) If a Contract recorded in the Defaulter's Customer Account is Transferred, the 

Transferee Clearing Member shall enter into a Customer-CM Transaction with 

each affected Customer (to replace the terminated Customer-CM Transaction 

with the Defaulter) on such terms as are specified in Rule 904(j)(ii). Upon 

such Transfer, the Transferee Clearing Member shall assume and undertake in 

favour of the Customer the obligations of (or obligations similar to those of) 

the Defaulter under the Transferred Contract(s) and the Transferred 

Customer-CM Transaction(s). Any termination payments due or payable in 

respect of the termination of the Contracts and related Customer-CM 

Transactions to which the Defaulter was party and any amounts due or payable 

in respect of the establishment of the replacement Contracts or Customer-CM 

Transactions to which the Transferee Clearing Member is party shall be equal 

(in each case based on the amount determined by the Clearing House for 

purposes of close out of the Contract in accordance with these Rules, and not 

taking into account any clearing fees or similar amounts agreed to by the 

relevant parties or affecting any other amount mentioned in Rule 906) and all 

obligations to make such termination payments shall be deemed to have been 

paid, netted and satisfied among the relevant parties beneficially entitled to 

such payments.

(ii) If the Transferee Clearing Member and a relevant Customer have previously 

entered into a Customer-Clearing Member Agreement, any Customer-CM 

Transactions between the Transferee Clearing Member and Customer 

Transferred to the Transferee Clearing Member in accordance with this 

Rule 904 shall be subject to such Customer-Clearing Member Agreement. If 

the Transferee Clearing Member and Customer have not entered into a 

Customer-Clearing Member Agreement, the Transferred Customer-CM 

Transactions shall be deemed subject to an agreement in such form as is 

specified by the Transferee Clearing Member.

(iii) Following any Transfer of Contracts and, where applicable, Customer-CM 

Transactions, pursuant to this Rule 904, the Clearing House may transfer, and 

if such transfer occurs, will record the transfer, of any available Margin 

recorded in the corresponding Customer Margin Account of the Defaulter for 

each affected Customer the Customer-CM Transactions of which are to be 

Transferred (to the extent that the same has not been subject to netting under 

Rule 904(j)) to the applicable Customer Margin Account of the Transferee 

Clearing Member, to be treated in the same way as if such assets had been 

transferred by the Transferee Clearing Member direct to the Clearing House 

pursuant to the Clearing Membership Agreement and these Rules. In relation 

to any such transfer, the Defaulter shall be deemed to agree and consent to any 

such transfer and shall take any necessary action to facilitate such transfer (and 

the Clearing House may take any action on the Defaulter's behalf in 

connection therewith). Notwithstanding the foregoing, the Transferee 

Clearing Member shall remain obliged to satisfy any Margin requirements 

resulting from its entry into of, or becoming party to, Contracts for its 

Customer Account pursuant to this Rule 904 which may be calculated without 

taking into account any amount that may be transferred by or due from the 

Defaulter to the Clearing House pursuant to the foregoing requirement but 

which has not been transferred.
99

(k) The Clearing House may recalculate the balance between Margin and Surplus 

Collateral for the Customer Account of a Defaulter to reflect any increase in the 

Margin requirement for such Customer Account as a result of the Transfer of fewer 

than all of the relevant Customer Account Contracts and related Customer Account 

Positions.

(l) [Not used.]

(m) Upon an Event of Default being declared in respect of a Clearing Member, the 

Clearing House commits to triggering the procedures for the Transfer process set out 

in this Rule 904 for both Margin and Open Contract Positions recorded in a Customer 

Account provided that the Clearing House shall not be obliged to effect any Transfer 

unless: (i) each Customer is not itself also a Defaulter or subject to Insolvency; 

(ii) the conditions precedent set out in Rule 904(c) are satisfied in respect of each 

Customer; and (iii) a single Transferee Clearing Member accepts all the Transfers 

relating to all Customers in writing. A Transferee Clearing Member shall be deemed 

to have accepted the Transfer if it has previously entered into a contractual 

relationship with a Customer by which it has committed itself to do so and the same 

has been notified to the Clearing House pursuant to a Default Portability Preference.

(n) [Not used.]

(o) [Not used.]

(p) [Not used.]

(q) [Not used.]

(r) [Not used.]

(s) [Not used.]

(t) [Not used.]

(u) [Not used.]

Rule 905 Termination and close out of Contracts on a Clearing Member Event of 

Default

(a) The following contracts shall be terminated or closed out in such manner as the 

Clearing House in its discretion may direct for the purposes of discharging all the 

rights, obligations and liabilities of the Defaulter:

(i) Contracts to which a Defaulter is party, which are not voidable and voided by 

the Clearing House pursuant to Part 4, and which are required to be terminated 

or closed out pursuant to Rule 903(b);

(ii) contracts arising from hedging transactions made pursuant to Rule 903(c), 

which shall be treated as if they were "Contracts" for purposes of this 

Rule 905 and Rule 906.

(iii) [Not used.]
100

To the extent necessary, the Clearing House may take such steps pursuant to such 

powers as are granted pursuant to the Clearing Membership Agreement.

(b) Without prejudice to the generality of Rule 905(a), at the Clearing House's discretion, 

any of the following steps may be taken in respect of contracts to which Rule 905(a) 

applies:

(i) The Clearing House may place, with one or more members of an Exchange, 

Clearing Organisation or over-the-counter marketplace upon which the 

relevant category of Contract is traded, orders for the purchase, grant, exercise 

or sale of Contracts. The Clearing House may designate and authorise an 

individual to be responsible for the placement of such orders or may enter into 

Contracts with non-defaulting Clearing Members or (providing that the 

relevant Clearing Member has consented to the order) Customers by way of 

auction.

(ii) For purposes of liquidation of Contracts, hedging market risks of the Defaulter 

or otherwise, Contracts (or any part thereof) may be terminated or closed out 

by the Clearing House pursuant to the submission of any Transactions,

Invoicing Back or the creation of new Contracts to which the Defaulter is 

party at the Clearing House's discretion (regardless of whether they are held 

for different accounts or different beneficial owners), but subject always to, 

and accounting for the close-out amounts under, Rule 906: (i) Contracts (or 

any part thereof) to which the Defaulter is party on opposite sides of the 

market of the same Set; and (ii) Contracts having different expiration dates or 

exercise dates. For the avoidance of doubt, this Rule 905(b)(ii) does not 

empower the Clearing House to oblige non-defaulting Clearing Members to 

become party to any Contracts.

(iii) FX Contracts of a Defaulter having different FX Settlement Dates may be 

combined, terminated and replaced by any transactions, Invoicing Back or the 

creation of new FX Contracts at the Clearing House's discretion, for purposes 

of liquidation of Contracts, hedging market risks of the Defaulter or otherwise, 

if the Defaulter is Reference Currency Buyer under one of the FX Contracts in 

respect of a particular currency and Reference Currency Seller under the other 

FX Contract in respect of the same currency.

(iv) Any Contracts (including those recorded in the Defaulter's Customer Position 

Account) which are sale and purchase Contracts in the same Set may be closed 

out and terminated (in whole or in part), together with any termination 

payments settled by way of off-set.

(v) [Not used.]

(vi) Notwithstanding any other provision of this Rule 905, the Clearing House may 

pair and cancel offsetting long and short positions in the same Set; and where 

it is necessary or desirable for there to be a price (for example, in the case of a 

liquidation of offsetting Customer Account and Proprietary Account 

Contracts, where the close-out values of the offsetting Contracts are required 

to be taken into account for the calculation of different net sums pursuant to 

Rule 102(q) and Rule 906), the price for a Contract will be equal to the 
101

Exchange Delivery Settlement Price on the day such cancellation is ordered 

(or alternatively, such other price shall apply as the Clearing House may 

establish in accordance with the Procedures and its risk policies).

(vii) The Clearing House shall be entitled (without the prior or subsequent consent 

or agreement of the Defaulter or any court order) to sell, transfer, value or 

create any interest in any Permitted Cover, Margin, Guaranty Fund 

Contributions or other assets that are credited to the Defaulter's Proprietary 

Margin Account, its Customer Margin Account or any of its accounts used for 

Guaranty Fund Contributions or any other asset of the Defaulter that is 

otherwise in the Clearing House's possession (subject always to Rule 102(q) 

and Rule 906(c)), subject to an obligation to account for the net proceeds of 

such actions after having deducted the Clearing House's reasonable and 

properly incurred expenses and costs in doing so in accordance with Part 1.

(viii) [Not used.]

(ix) [Not used.]

(x) The Clearing House shall be entitled to take such actions, take or make 

delivery and give such notices on behalf of the Defaulter in respect of a 

Contract under delivery as it determines; or to make or receive a tender in the 

Defaulter's name.

(xi) The Clearing House shall be entitled to determine an amount due from the 

Defaulter in substitution for delivery obligations.

(xii) The Clearing House shall be entitled to take any other action with respect to 

the Event of Default or the Defaulter as it deems to be necessary or prudent.

(xiii) The Clearing House's powers to convert currency under Rule 107 may be 

applied.

(xiv) The Clearing House shall be entitled to Transfer Contracts to which a 

Defaulter is party to one or more other Transferee Clearing Members at a price 

agreed between the Clearing House and the Transferee Clearing Member 

pursuant to this Part 9.

(xv) Subject to Rule 904(g), the Clearing House shall be entitled to effect the 

Transfer of the Defaulter's rights, title and interest to Contracts, any related 

Margin or other assets of the Defaulter and any related Customer-CM 

Transaction(s) or other transactions between a Customer and a Defaulter to a 

Transferee Clearing Member, without any further action being required on the 

part of any Person. This may be done through the Clearing House's exercise 

of rights pursuant to its power of attorney in the relevant Clearing Membership 

Agreement with the Defaulter or on the basis of this default rule, as opposed to 

pursuant to the process and legal entitlements described further in Rule 904.

(xvi) The Clearing House may take action so as to terminate or replace 

Customer-CM Transactions or other transactions between a Customer and a 
102

Defaulter which are consequential on it taking actions in relation to Contracts 

in accordance with Rule 904.

(xvii) The Clearing House shall be entitled to take any other action with respect to 

the Defaulter, the Contracts to which the Defaulter is party or any Margin, 

Guaranty Fund Contribution or Surplus Collateral provided by the Defaulter as 

the Clearing House at its discretion considers to be necessary or prudent in the 

circumstances.

(xviii) The Clearing House may make appropriate entries on the records of the 

Clearing House and submit appropriate data to Delivery Facilities to give 

effect to any action taken in accordance with this Part 9.

(xix) [Not used.]

(c) [Not used.]

(d) If, as a result of the rules of an Exchange which limit fluctuations in price or other 

circumstances, it is not possible to close out or terminate all Contracts to which the 

Defaulter is party pursuant to Rule 905(b), the Clearing House may close out or 

terminate such Contracts by taking opposite positions for Contracts in Contracts in the 

current expiration period and terminating the resultant terminated positions.

(e) All terminations and closing out of Contracts pursuant to this Rule 905 shall be for the 

account and cost of the Defaulter.

(f) Without prejudice to the generality of the indemnities in Rules 111 and 301, but 

without duplication of any other obligation under these Rules, the Defaulter, acting 

for its own account as principal, shall indemnify, hold harmless and be liable to the 

Clearing House in respect of all the losses, unpaid fees, liabilities, damages, injuries, 

taxes, costs and expenses (including, without limitation, legal, accountancy or other 

professional services expenses and disbursements, the costs of close-out, termination 

or Transfer of Contracts or Margin, amounts payable by the Clearing House to 

Approved Financial Institutions or custodians and any amount payable by the 

Clearing House to any Person in respect of tax in connection with the Defaulter or its 

Contracts, Margin, obligations or the Event of Default), in the case of any such item 

whether relating to the Proprietary Account or Customer Account of the Defaulter, 

incurred or suffered by any of the Clearing House, any Market or any of their

Directors or directors (as the case may be), officers, employees, committees 

(including any individual committee member) or those of their Affiliates arising out 

of the Defaulter's conduct (whether such conduct took place prior to or after 

declaration of the Event of Default) or in connection with the Event of Default. 

Rule 111(b) shall apply in respect of this Rule 905(f) in the same way as it applies to 

Rule 111(a).

Rule 906 Net Sums Payable

(a) Following discharge of a Defaulter's rights, obligations and liabilities under Contracts 

pursuant to this Part 9, the Clearing House shall carry out the following calculation 

separately in respect of the Proprietary Account and the Customer Account of the 

Defaulter. Upon termination of all Contracts following an Event of Default, the only 
103

obligation of the Clearing House or Defaulter, except for any obligation which had 

already fallen due for performance but at the time had not been performed (which 

obligations would be taken into account in the calculation of the net sum, save to the 

extent that any party has become subject to an irrevocable Transfer Order under 

Part 12 and/or Rule 902(d), shall be limited to calculation and payment of the net sum 

and such other obligations as are expressed to apply in Rule 209 or this Part 9. 

Following an Event of Default, there shall be no requirement for future payments or 

deliveries to be made in respect of any terminated Contracts (including in each case 

no requirement to pay or deliver any related Margin that has not at the time fallen due 

for payment, except as part of the net sum). The methodology involves aggregating 

or setting off various amounts (as applicable) so as to produce separate net sums for 

the Proprietary Account and the Customer Account of the Defaulter (each such net 

sum, N) in each case defined by the formula:

N = L - A - D - C - M - GFC - SC - OA + OL

where such letters have the meanings set out below in this Rule 906(a):

L = the aggregate amount, expressed as a positive number, of all sums payable by the 

Defaulter in respect of Contracts recorded in the relevant Account (which are not 

voidable and voided by the Clearing House pursuant to Part 4) taking into account any 

of the following actions under Rule 903, 904 or 905:

(i) any rescission, termination, close-out, or liquidation; and

(ii) the Transfer of any of the Defaulter's Contracts to a Transferee Clearing 

Member (not being the Defaulter) or acceptance or entry into by a Clearing 

Member of any of the Defaulter's Contracts or contracts similar to any of the 

Defaulter's Contracts,

plus all amounts that were payable but remain unpaid by the Defaulter under the terms 

of Contracts, plus any costs and expenses of the Clearing House in any way relating to 

any Contract to which the Defaulter was party, including, without limitation, legal, 

accountancy or other professional services expenses and disbursements, the costs of 

close-out, termination or Transfer of Contracts and any amount payable by the 

Clearing House to any Person in respect of tax in connection with the Defaulter or its 

Contracts, Margin, obligations or the Event of Default; but excluding, in respect of a 

Contract where the Defaulter acts as agent (if any), any liabilities attributable to the 

Defaulter arising out of the relationship of principal and agent; and the Clearing 

House may assess any one or more elements of such amount L in its discretion, 

provided that any costs, expenses, taxes or other amounts falling within the scope of 

the indemnity in Rule 905(f) (not being amounts payable in respect of Contracts 

falling under L(i) or (ii) above) shall be allocated to the Proprietary Account 

regardless of the Contracts or Account to which they relate.

A = the aggregate amount, expressed as a positive number, of all sums payable to the 

Defaulter in respect of Contracts recorded in the relevant Account (which are not 

voidable and voided by the Clearing House pursuant to Part 4), taking into account 

any of the actions referred to under L(i) or (ii) above, plus all amounts that were 

payable but remain unpaid by the Clearing House under the terms of Contracts, 

excluding, in respect of a Contract where the Defaulter acts as agent (if any), any 
104

rights attributable to the Defaulter arising out of the relationship of principal and 

agent and further excluding any amount included under D, C, M, GFC or SC; and the 

Clearing House may assess any one or more elements of such amount A in its 

discretion.

Note on calculation of the amounts L and A: For the purposes of calculating 

amounts L and A, the amount payable by or to the Defaulter in respect of any 

Contract or Open Contract Position is the difference between:

(x) the price of the Contract or Open Contract Position recorded in the 

Clearing House's books for the later of: (A) the last date on which a payment 

in respect of Variation Margin was successfully and fully made by the 

Clearing Member to or to the account of the Clearing House; or (B) the last 

date on which a return of amounts following a Variation Margin call was 

successfully and fully made by the Clearing House to the Clearing Member or 

to the account of the Clearing Member; and

(y) the price at which the Contract or Open Contract Position was Transferred, 

terminated or closed out pursuant to Rules 903 to 905.

D = if the Clearing House so determines at its discretion, the aggregate amount of any 

sums in respect of a Deliverable delivered, physically settled, to be delivered or to be 

physically settled under a Contract with the Defaulter or in respect of which cash 

settlement is to be made as calculated by the Clearing House at its discretion relating 

to the relevant Account (if payable to the Clearing Member being a positive number 

and hence set off in the calculation under this Rule 906(a) against any amount L-A if 

that amount is also a positive number or if payable to the Clearing House being a 

negative number and aggregated in the calculation under this Rule 906(a) with any 

amount L-A if that amount is a positive number), in any case excluding any amount 

included under C, M, GFC or SC.

C = if relevant, any sum owed by or to the Clearing House to or from a recognised 

investment exchange or another approved clearing house or recognised clearing house 

of which the Defaulter is or was a member, under an indemnity given or 

reimbursement or similar obligation in respect of a margin set off agreement in which 

the Defaulter chose to participate (if payable to the Clearing Member being a positive 

number and set off in the calculation under this Rule 906(a) against any amount 

L-A-D if that amount is also a positive number or if payable to the Clearing House 

being a negative number and aggregated in the calculation under this Rule 906(a) with 

any amount L-A-D if that amount is a positive number).

M = means the following, expressed as a positive number:

(iii) in relation to a net sum calculation for the Proprietary Account of the 

Defaulter, the value of any property provided by or on behalf of the Defaulter 

in respect of its Proprietary Account as Margin under Rule 502(g), Original 

Margin, buyer's security or seller's security (without any double counting) or 

in satisfaction of such Margin requirements and recorded in the Proprietary 

Margin Account of the Defaulter; or
105

(iv) in relation to a net sum calculation for the Customer Account of the Defaulter, 

the value of any property provided by or on behalf of the Defaulter as margin 

under Rule 502(g), Original Margin, buyer's security or seller's security 

(without any double counting) in respect of such Customer Account or in 

satisfaction of such Margin requirements and that is recorded in the related 

Customer Margin Account of the Defaulter, excluding any Margin that would 

otherwise fall under amount M but that is transferred to a Transferee Clearing 

Member pursuant to this Part 9.

(v) [Not used.]

GFC = the value, expressed as a positive number, of any property provided by or on 

behalf of the Defaulter as Guaranty Fund Contributions, which may be applied in 

connection with the net sum for the Customer Account or the Proprietary Account of 

the Defaulter at the discretion of the Clearing House, provided that the total applied to 

the Customer Account and Proprietary Account of a Defaulter in accordance with 

Rules 906(b) and (c) under GFC shall not exceed the total Guaranty Fund 

Contributions of the Defaulter.

SC = the value, expressed as a positive number, of any property provided by or on 

behalf of the Defaulter in respect of the relevant Account that constitutes Surplus 

Collateral.

OA = the aggregate of any amounts, expressed as a positive number, not falling under 

A, D, C, M, GFC or SC standing to the credit of the Defaulter or payable to the 

Defaulter or any right or claim of the Defaulter against the Clearing House relating to 

the relevant Account, in any case whether pursuant to these Rules, any Contract or

otherwise, including without limitation, any available assets that would be recorded in 

the Proprietary Account but for Rule 906(c), but excluding in any case, any Surplus 

Collateral.

OL = the aggregate of any other amounts, expressed as a positive number, not falling 

under L payable by the Defaulter to the Clearing House or any right or claim of the 

Clearing House against the Defaulter relating to the relevant Account, in any case 

whether pursuant to these Rules, any Contract or otherwise (including without 

limitation any fines payable pursuant to Part 10 and any other amounts payable in 

respect of any breach by the Defaulter of these Rules in either case not falling under 

L), in any case at the discretion of the Clearing House, provided that any amounts 

falling within the scope of the indemnity in Rule 905(f) but not falling under L shall 

be allocated to the Proprietary Account regardless of the Contracts or Account to 

which they relate.

All such amounts specified above must be aggregated, set off and applied in the order 

set out in the calculation above and in such order as is further required, restricted or 

limited by Rules 102(q), 906(b) and 908 and provided further that any amount is only 

included in respect of the relevant net sum to the extent allowed pursuant to 

Rule 906(b).

(b) The Defaulter's Guaranty Fund Contributions may be used for the purpose of 

calculating any net sum on any Account relating to that Defaulter (provided that any 

such amounts are not double counted), in accordance with Rule 906(a) and subject to 
106

the restrictions in Rule 906(c), Rule 908, Rule 102(q) and this Rule 906(b) as 

determined by the Clearing House. The aggregate sums finally payable shall be 

separately certified under Rule 906(e). 

(c) The Clearing House shall aggregate, set off or apply any Margin, Surplus Collateral 

or other surplus assets available to it in relation to a Defaulter's Proprietary Account 

to meet a shortfall on that Defaulter's Customer Account (and, if it does so, shall

include any such amounts within the net sum to be calculated in relation to such 

Customer Account), provided that if any amounts are so aggregated, set off or 

applied, the amount A, D, C, M, SC or OA (as applicable) and consequently the net 

sum payable by the Clearing House in relation to the Defaulter's Proprietary Account 

shall be reduced by the same amount as is so included within the net sum for its 

Customer Account. In so doing, the Margin, Surplus Collateral or other surplus assets 

available to the Clearing House in relation to a Defaulter's Customer Account may 

only be aggregated, set off or applied to such Defaulter's Customer Account if:

(i) following calculation of what would otherwise be the net sum on the 

Proprietary Account, the Clearing House has aggregated, set off or applied any 

Margin, Surplus Collateral or other surplus assets available to it in relation to a 

Defaulter's Proprietary Account and not included such amount in the 

calculation of the net sum for the Proprietary Account under this Rule 906(c) 

(such Margin, Surplus Collateral or other surplus assets so aggregated, set off 

or applied to the Customer Account and not included in the net sum 

calculation for the Proprietary Account, being any money and assets deposited 

with or paid to the Clearing House for or in relation to Proprietary Account 

Contracts for the purposes of Regulation 24(1)(b)(i)(A) of the SF(CF)R and 

any money and assets, not being any money or assets of the Customer of the 

Defaulter, deposited by the Defaulter with the Clearing House as collateral or 

guarantee for the purpose of satisfying all obligations of the Defaulter to the 

Clearing House including Guaranty Fund Contributions) referred to in 

Regulation 24(1)(b)(i)(B) of the SF(CF)R;

(ii) the Clearing House has reasonable grounds for forming an opinion that 

applying such assets to such Defaulter's Customer Account would not 

jeopardise the financial integrity of the Clearing House; and

(iii) all other provisions applicable to the Defaulter's Customer Account, as set out 

in this Part 9, are complied with.

The Clearing House may not aggregate, set off or apply any Margin, Surplus 

Collateral or other surplus available to it in relation to the Defaulter's Customer 

Account to meet a shortfall on the Defaulter's Proprietary Account.

(d) Where N is a positive number, the net sum equal to N shall be payable by the 

Defaulter to the Clearing House. Where N is a negative number, the net sum equal to 

the absolute value of N shall be payable by the Clearing House to the Defaulter, or, 

otherwise at the Clearing House's election and discretion in respect of a Customer 

Account, directly to a Customer, if the Clearing House is aware of the identity of the 

Customer or indirect client in question, and in all cases where the Clearing House is 

aware of an appropriate account to receive transfer of such net sum.
107

If the Clearing House makes payment in respect of amounts which would have 

otherwise been included any net sum to or to the account of a Person other than the 

Defaulter in accordance with these Rules, the Defaulter's claim against the Clearing 

House shall be accordingly reduced by the amount paid to such Person and the 

amount of any net sum N payable to the Defaulter shall be accordingly reduced. If the 

Clearing House makes payment in respect of amounts, whether pursuant to a net sum 

or otherwise, to any Person in accordance with these Rules, and such amounts are 

required to be held by such Person on trust or otherwise segregated for a Customer 

pursuant to Regulations 16 and 26 of the SF(LCB)R or other Applicable Law, any 

claim by such Customer against the Clearing House and any trust property held by the 

Clearing House for such Customer pursuant to Regulation 23(3) of the SF(CF)R shall 

be accordingly reduced by the amount paid to such Person. Where N is equal to zero, 

no amount shall be payable as between the Clearing House and the Defaulter pursuant 

to this Rule 906. Where there is more than one separately certified amount N certified 

under Rule 906(e) as a result of Rule 906(b), each amount so certified shall be treated 

as a separate obligation which cannot be netted off against another certified amount N 

in respect of a different account of the Defaulter.

(e) Each amount N shall be certified by the Clearing House promptly upon its 

determination. Such determination may be delayed or withheld until such time as all 

relevant sums and components have been evaluated, all Transfers have been 

completed and the value or sale proceeds of any non-cash Margin, Surplus Collateral, 

Guaranty Fund Contributions or other assets are determined, received or available. A 

certificate of the Clearing House made pursuant to this Rule 906(e) shall be 

conclusive as to the amount required to be paid by or to any Defaulter or other Person 

in discharge of rights and liabilities in respect of the Contracts, property and Account 

to which such certificate relates.

(f) [Not used.]

(g) [Not used.]

(h) [Not used.]

Rule 907 Administrative matters concerning an Event of Default

(a) The Clearing House may co-operate, by the sharing of information and otherwise, 

with any Governmental Authority, Clearing Organisation, Exchange or Insolvency 

Practitioner having responsibility for any matter arising out of, or connected with, an 

Event of Default or the default of a recognised investment exchange or another 

approved clearing house or recognised clearing house.

(b) The Clearing House will report to the Defaulter or any relevant Insolvency 

Practitioner, on steps taken pursuant to this Part 9.

(c) For the avoidance doubt, nothing in these Rules shall oblige the Clearing House to 

take any step to recover any asset or amount in the possession of a Defaulter or one of 

its Customers in connection with an Event of Default.

(d) Without prejudice to the Clearing House relying on any other information provided to 

it by a Clearing Member or any other Person, the Clearing House shall be entitled to 
108

rely on the most recent information provided to it in relation to Default Portability 

Preferences and Non-Transfer Positions and Margin provided to the Clearing House 

by a Defaulter prior to declaration of an Event of Default, notwithstanding any notice 

or purported notice to the contrary from a Defaulter, its Insolvency Practitioner or any 

other Person received by the Clearing House after declaration of an Event of Default. 

The Clearing House shall have no obligation to enquire of any Customer or other 

Person as to any Default Portability Preference or Non-Transfer Positions. The rights 

of the Clearing House to deal with Margin and other Permitted Cover under the 

default rules shall not be restricted as a consequence of a Defaulter having either 

entered into any indebtedness with a Customer or having provided different forms of 

collateral to the Clearing House from that which it had received from its Customer, in 

either case in order to facilitate the provision of Permitted Cover to the Clearing 

House.

(e) A Defaulter shall immediately disclose the names, addresses and contact details of 

each of its Customers or any Customer upon receiving notice to do so from the 

Clearing House.

(f) Rule 202(a)(xii) shall apply in respect of the Defaulter for the benefit of the Clearing 

House and any Transferee Clearing Member in respect of each Transfer of Contracts 

(and any related Customer-CM Transactions) and any related transfer of Margin or 

other assets taking place pursuant to this Part 9.

(g) The Clearing House (including any Insolvency Practitioner with powers over the 

Clearing House or other Representative) and all Clearing Members and Customers 

and their Representatives (including any Insolvency Practitioner with powers over any 

Clearing Member, Customer or other Representative) shall, to the extent permitted by 

Applicable Laws:

(i) refrain from taking any action or seeking any order of any Governmental 

Authority that would result in or facilitate any asset or liability being applied 

contrary to the requirements of this Part 9; and

(ii) take all reasonable steps possible including, without limitation, the application 

for and procurement of such orders from such Governmental Authorities as 

are necessary, to ensure that assets of the Clearing House are applied only 

pursuant to this Part 9.

(h) Notwithstanding any other provision of these Rules or the Finance Procedures 

concerning the use of Nominated Bank Accounts or Approved Financial Institutions, 

any amount payable to or from the Clearing House following the declaration of a net 

sum in accordance with this Part 9 may be paid to or from an account other than a 

Nominated Bank Account and/or to or from an account other than with an Approved 

Financial Institution that has previously been designated as such by the Clearing 

House, provided that:

(i) the account is an account of the Defaulter or an account operated by an 

Insolvency Practitioner on behalf of the Defaulter;

(ii) in the case of payments to the Defaulter, details of the account to be used and 

such other information relating to the account as is reasonably requested by 
109

the Clearing House are provided in writing to the Clearing House by the 

Defaulter or its Insolvency Practitioner; and

(iii) the bank of the account to which such payment is made shall be treated as if it 

were an Approved Financial Institution for purposes of any payments referred 

to in this Rule 907(h) and Part 12 without the need for any further action on

the part of the Clearing House.

(i) [Not used.]

(j) Without prejudice to the status of any other provision of the Rules that is potentially 

applicable following an Event of Default as a default rule for purposes of the SFA:

(i) [Not used.]

(ii) Part 12 contains additional default rules; and

(iii) where any defined term is used in a default rule or any general interpretative 

provision of these Rules is relevant to the interpretation of a default rule, the 

definition of that term or that interpretative provision is itself also a default 

rule.

(k) [Not used.]

(l) [Not used.]

(m) The Clearing House may, if so requested by a Clearing Member, Transfer any 

Contracts recorded in the Customer Account of that Clearing Member to the 

Proprietary Account of the same Clearing Member, in order to facilitate the 

management by the Clearing Member of a Customer default or a breach by a 

Customer of a Customer-Clearing Member Agreement. This Rule 907(m) applies 

equally in the absence of declaration of any Event of Default by the Clearing House.

Rule 908 Application of Assets upon an Event of Default

(a) Notwithstanding any other provision of these Rules:

(i) [Not used.]

(ii) [Not used.]

(iii) any Guaranty Fund Contributions (including additional Guaranty Fund 

Contributions) invoiced to or transferred by Clearing Members that are not 

Defaulters or accrued in each case after the declaration of an Event of Default 

but prior to the completion of the relevant default proceedings for the Event of 

Default shall not be applied to meet any obligations or liabilities of the 

Defaulter or any shortfall, loss or liability to the Clearing House arising in 

connection with that prior Event of Default; and

(iv) [Not used.]
110

(v) without limitation to the generality of Rule 102(q), this Rule 908 is subject to 

Rule 102(q).

(vi) [Not used.]

(vii) [Not used.]

(viii) [Not used.]

(ix) [Not used.]

(b) The Clearing House shall be entitled to meet the obligations and liabilities of the 

Defaulter and any shortfall, loss or liability to the Clearing House upon or following 

any Event of Default of that Defaulter (including in connection with any net sum 

calculated under Rule 906), by applying the following assets in the order of recourse 

set out below:

(i) first, any amounts falling under N in Rule 906(a) in the order and in respect of 

the Accounts specified in Rule 906(a) subject to the restriction set out in 

Rule 906(c) (provided that the Clearing House shall not be required to assert 

or pursue any such claim or bring any such action as a precondition to 

applying assets referred to in Rule 908(b)(ii) to (v) but shall be required to 

account for any subsequent proceeds not included in the amount determined, 

less the costs of realising any such claim or action or obtaining such amount or 

asset);

(ii) second, the Clearing House Initial Contribution;

(iii) third:

(A) Guaranty Fund Contributions of Clearing Members other than the 

Defaulter in question (including, where relevant, any surplus Guaranty 

Fund Contributions of other Defaulters, if two or more Default 

proceedings take place concurrently and any such surplus is available); 

and

(B) the Clearing House GF Contribution,

on a basis pro rata (subject to Rule 908(i)) to the sum of the total of all 

Guaranty Fund Contributions (excluding Guaranty Fund Contributions of the 

Defaulter and Guaranty Fund Contributions of other Defaulters that have been 

or are to be applied in connection with separate Default proceedings) and the 

Clearing House GF Contribution at the time of the Event of Default;

(iv) fourth, any claims under default insurance policies (including the proceeds of 

any claim) of which the Clearing House is the beneficiary that are available to 

the Clearing House as a result of the Event of Default; and

(v) fifth, Assessment Contributions received by the Clearing House pursuant to 

Rule 909.

(c) [Not used.]
111

(d) [Not used.]

(e) [Not used.]

(f) [Not used.]

(g) [Not used.]

(h) The requirements of this Rule 908 shall apply and be binding upon the Clearing 

House and all Clearing Members including upon the event of any Insolvency affecting 

the Clearing House or any Clearing Member. The Clearing House (including any 

Insolvency Practitioner with powers over the Clearing House or other Representative) 

and all Clearing Members (including any Insolvency Practitioner with powers over 

any Clearing Member or their Representatives) shall, to the extent permitted by 

Applicable Laws:

(i) refrain from taking any action or seeking any order of any Governmental 

Authority that would result in or facilitate any asset or liability being applied 

contrary to the requirements of this Part 9; and

(ii) take all reasonable steps possible including, without limitation, the application 

for and procurement of such orders from such Governmental Authorities as 

are necessary, to ensure that assets of the Clearing House are applied only 

pursuant to this Part 9.

(i) Notwithstanding Rule 908(b)(iii) and Rule 909, if an auction is held following an 

Event of Default, the Guaranty Fund Contributions of particular non-defaulting 

Clearing Members (or other funds transferred to the Clearing House by other auction 

participants) may be applied in different orders or sequences, and Assessment 

Contributions may be called in different orders or sequences, rather than being 

applied or called pro rata for all Clearing Members, with reference to the bids made 

or other behaviours in the default auction, in accordance with the applicable 

provisions of the Default Auction Procedures.

Rule 909 Powers of Assessment

(a) Powers of assessment under this Rule 909 may be exercised by the Clearing House 

following an Event of Default occurring in respect of an Clearing Member and the 

liabilities of a Defaulter that is or was an Clearing Member not having been met 

pursuant to Rule 908(b)(i) to (iv). Immediately upon the Clearing House certifying 

the Assessment Amount in a Circular, all Clearing Members (other than Defaulters) 

shall indemnify the Clearing House and become liable to pay Assessment 

Contributions to the Clearing House in accordance with Rule 909(b).

(b) The Assessment Contribution payable by each Clearing Member shall be the amount:

AA x GF(CM)

GF(all)

where:
112

AA is the Assessment Amount certified by the Clearing House in a Circular as the 

total shortfall following an Event of Default occurring after funds referred to in 

Rule 909(a) have been applied, provided that the total Assessment Amount shall be no 

greater than the amount equal to twice the total required Guaranty Fund Contributions 

of all Clearing Members immediately prior to the relevant Event of Default (less 

Guaranty Fund Contributions of Defaulters);

GF(CM) is the required Guaranty Fund Contribution of the relevant Clearing Member 

immediately preceding the relevant Event of Default; and

GF(all) is the total required Guaranty Fund Contributions of all Clearing Members 

immediately preceding the relevant Event of Default (less Guaranty Fund 

Contributions of Defaulters). 

(c) A Person that is or was an Clearing Member and that has served a termination notice 

shall be subject to obligations to pay Assessment Contributions only in respect of: 

(i) Events of Default declared in relation to Clearing Members that are Clearing 

Members occurring prior to the Termination Notice Time; and

(ii) any Events of Default declared in relation to Clearing Members that are 

Clearing Members occurring after the Termination Notice Time but prior to 

the Termination Close-Out Time,

provided that Assessment Contributions made by a Person terminating its membership 

of the Clearing House pursuant to Rule 909(h) shall be included for the purpose of 

calculating such a cap.

(d) If the Assessment Amount is not met by Assessment Contribution receipts from 

Clearing Members due to non-payment by a Clearing Member or Clearing Members, 

Default of an Clearing Member or Clearing Members or otherwise, the Clearing 

House shall at its discretion determine what, if any, further action to take. Unless, or 

unless to the extent that, the Clearing House directs otherwise in a Circular, any 

shortfall shall be re-assessed against all Clearing Members (other than Defaulters and 

Persons that have defaulted in making an Assessment Contribution) in accordance 

with Rule 909(a), as if the shortfall were the Assessment Amount, provided that no 

Clearing Member shall be liable to pay Assessment Contributions in respect of a 

single Default for an amount greater than twice its Guaranty Fund Contribution 

immediately prior to the relevant Default. Subject to Rule 909(c), further Assessment 

Contributions may be levied and repeated in this manner at the discretion of the 

Clearing House until the entire Assessment Amount has been met in full by 

Assessment Contributions.

(e) All Assessment Contributions shall become due and payable at such time as the 

Clearing House notifies to Clearing Members (which may be by Circular) and may be 

collected by the Clearing House pursuant to Rule 209(a).

(f) If, after any Assessment Contribution has been paid in relation to an Event of Default, 

the Clearing House collects amounts in respect of a defaulted obligation or unpaid 

Assessment Contribution in whole or in part from the Defaulter in question or a 

Person liable to pay an unpaid Assessment Contribution, the Clearing House shall 
113

refund the amount so collected (less any expenses of the Clearing House, including 

without limitation any legal fees and expenses incurred in connection therewith) to 

other Clearing Members (excluding any Defaulter) pro rata in respect of paid 

Assessment Contributions relating to the Event of Default in question, subject to the 

Clearing House first retaining or repaying amounts up to the amount of any assets of 

the Clearing House or other third parties applied to meet any liability following 

exhaustion of the assets specified in Rule 908 or in substitution of any such assets. 

(g) Amounts transferred to the Clearing House by Clearing Members in respect of 

Guaranty Fund Contributions, including without limitation amounts transferred to 

restore a deficiency in any Guaranty Fund following an Event of Default, do not 

constitute Assessment Contributions. Neither the exercise of powers of assessment 

by the Clearing House nor the payment of Assessment Contributions shall reduce or 

otherwise affect the liability of a Clearing Member to make Guaranty Fund 

Contributions pursuant to Rule 1101 et seq. or to replenish any Guaranty Fund 

Contribution pursuant to Rule 1102(i). Assessment Contributions do not constitute 

Guaranty Fund Contributions.

(h) Upon an Event of Default or Events of Default being declared and either Assessment 

Contributions becoming due or there being a Sequential Guaranty Fund Depletion, a 

Clearing Member liable either to pay an Assessment Contribution or to have its 

Guaranty Fund Contribution applied (as applicable) shall be entitled to terminate its 

membership of the Clearing House in accordance with and subject to the provisions of 

this Rule 909(h). Subject as set out in Rule 209(e), a Clearing Member that 

terminates its membership in such circumstances shall have no further obligation to 

replenish the Guaranty Fund pursuant to Rule 1102(i) as from the Termination Notice 

Time. Such a Clearing Member shall nonetheless remain liable for further application 

of its Guaranty Fund and further Assessment Contribution payments pursuant to 

Rule 909(c)(i) and (d), in either case in connection with any Event of Default declared 

by the Clearing House prior to the Termination Notice Time. For the avoidance of 

doubt, Rule 912, Rule 209(e) and Rule 209(f), shall apply in relation to any such 

termination. To be valid, a termination notice under this Rule 909(h) must be 

delivered to the Clearing House: (i) between the first date on which a call for 

Assessment Contributions was made in respect of the relevant Event of Default and 

the date falling 10 days after such date; or, as applicable (ii) between the first date on 

which the Clearing House gave notice that Guaranty Fund Contributions have been 

applied in circumstances which constitute a Sequential Guaranty Fund Depletion and 

the date falling 10 days after such date.

Rule 910 [Not used.]

Rule 911 [Not used.]

Rule 912 Default procedure for certain termination events

(a) In the event of any termination pursuant to Rule 209(c)(ii) or (iii) or Rule 909(h), the 

rights and liabilities of each Clearing Member under all Contracts will be deemed to 

be terminated without need for any further step on the part of any party and 

discharged for the purposes of Rule 906 and a net sum or net sums payable by or to 

the Clearing Member to or from the Clearing House shall be determined as if each 

Clearing Member were a Defaulter, in accordance with Rule 906 mutatis mutandis
114

and without need for the prior occurrence or declaration of an Event of Default in 

relation to such Clearing Member.

(b) In circumstances in which this Rule 912 applies:

(i) Rule 909 shall only apply where necessary to meet a shortfall resulting from 

an Event of Default or Events of Default actually declared by the Clearing 

House pursuant to Rule 901 (rather than any Event of Default effectively 

deemed to occur pursuant to this Rule 912);

(ii) Rules 901, 902, 903, 904 and 905 shall apply only to Clearing Members that 

are actually declared subject to an Event of Default (rather than effectively 

deemed subject to an Event of Default pursuant to this Rule 912); and

(iii) [Not used.]

(iv) [Not used.]

(v) otherwise, this Part 9 shall apply mutatis mutandis in relation to terminated 

Contracts and rights, obligations and liabilities relating thereto.

(c) If the Clearing House becomes aware of a Clearing House Event occurring, the 

Clearing House will promptly issue a Circular specifying that the same has occurred.

Rule 913 [Not used.]

Rule 914 [Not used.]

Rule 915 [Not used.]

Rule 916 [Not used.]

Rule 917 [Not used.]

Rule 918 [Not used.]

Rule 919 Non-Default Losses and Investment Losses

(a) This Rule 919 shall only apply if:

(i) there has been a Non-Default Loss or Investment Loss; and

(ii) there has been no Clearing House Event.

(b) Any Non-Default Loss will first be met by the Clearing House applying any Loss

Assets that were available at the time of the event giving rise to the Non-Default Loss 

and after that, only by applying any other available capital or assets of the Clearing 

House. The first portion of any Investment Loss will also be met by the Clearing 

House first applying any Loss Assets that were available at the time of the event 

giving rise to the Investment Loss prior to taking any action under Rule 919(c).

(c) Upon the Clearing House certifying an Investment Loss Amount in a Circular of an 

amount greater than the Loss Assets that were available at the time of the event giving 
115

rise to the Investment Loss, all Clearing Members shall indemnify the Clearing House 

and become liable to pay Collateral Offset Obligations to the Clearing House in 

accordance with the formula set out in Rule 919(d). Any Circular under this Rule 

919(c) shall specify:

(i) the nature and extent of the Investment Loss;

(ii) the date on which Collateral Offset Obligations will become due; and

(iii) such other matters the Clearing House considers to be relevant.

(d) The Collateral Offset Obligation payable by each Clearing Member shall be the

amount:

(ILA – LA) x GF&M(CM)

GF&M(all)

subject to the caps in Rules 919(d)-(e), where:

ILA is the Investment Loss Amount certified by the Clearing House in a Circular;

LA is the total amount of available Loss Assets at the time of the event giving rise to 

the Investment Loss and have been or are to be attributed to meet the Investment Loss 

Amount;

GF&M(CM) is the total of all Original Margin, Guaranty Fund Contributions and

Permitted Cover across all Accounts of the relevant Clearing Member at the time of

the event giving rise to the Investment Loss (provided that for a Defaulter,

GF&M(CM) shall only equal the amount of such Original Margin, Guaranty Fund 

Contribution and Permitted Cover that is not otherwise used to offset amounts 

representing losses in the net sum calculation as a result of the Default); and

GF&M(all) is the total of all Original Margin, Guaranty Fund Contributions and

Permitted Cover across all Accounts of all Clearing Members at the time of the event

giving rise to the Investment Loss (less Original Margin, Guaranty Fund

Contributions and Permitted Cover in respect thereof provided by any Defaulter that

is used to offset amounts representing losses in the net sum calculation pursuant to

these Rules as a result of the Default and excluding the Clearing House Contributions

and Loss Assets).

(e) The Collateral Offset Obligation of any Clearing Member shall at no time exceed the 

total of the Original Margin, Guaranty Fund Contributions and Permitted Cover in 

respect thereof that it has deposited with or transferred to the Clearing House at the 

time of the event giving rise to the Investment Loss across all its Accounts.

(f) All Collateral Offset Obligations shall arise on the date specified in the Circular under 

Rule 919(c). Any Collateral Offset Obligations falling due may, at the election of the 

Clearing House, be offset against the obligation of the Clearing House to return or pay 

any Original Margin, Guaranty Fund Contributions or other Permitted Cover to a 

Clearing Member and will be collected pursuant to a call for additional cash Margin 

or cash Guaranty Fund Contributions from a Proprietary Account of the Clearing 

Member in accordance with Rule 302 and the Finance Procedures. In the case of a 
116

Defaulter, Collateral Offset Obligations may, at the election of the Clearing House, be 

included in any net sum calculation or offset against any obligation to return or pay 

outside of the net sum calculation any Original Margin, Guaranty Fund Contributions 

or other Permitted Cover that has not been included in the net sum calculation 

pursuant to these Rules as a result of the Default. Collection from a Proprietary 

Account is not intended to prevent the Clearing Member from passing on the cost of a 

Collateral Offset Obligation to any of its Customers under the relevant CustomerClearing Member Agreement or Standard Terms, to the extent that the Collateral 

Offset Obligation relates to Margin on a Customer Account or is otherwise 

attributable to a Customer and to the extent permitted by Applicable Laws.

(g) The Clearing House shall apply Collateral Offset Obligations solely to meet 

Investment Losses referred to in a Circular under Rule 919(c).

(h) If, after any Collateral Offset Obligations have fallen due, the Clearing House collects 

amounts from an issuer, counterparty or otherwise so as to reduce an Investment Loss, 

in either case in cleared funds, the Clearing House shall be obliged to pay the amount 

or value of Permitted Cover so collected (less any expenses of the Clearing House, 

including without limitation any expenses incurred in connection with recovery) to 

the Clearing Members that provided such Collateral Offset Obligations pro rata in 

respect of satisfied Collateral Offset Obligations relating to the event in question, 

subject to the Clearing House first retaining or repaying amounts up to the amount of 

any assets of the Clearing House (not being Loss Assets) or other Persons applied to 

meet the Investment Loss following exhaustion of the assets specified in this Rule 919 

or in substitution of any such assets.

(i) No Collateral Offset Obligation shall reduce or otherwise affect the liability of a 

Clearing Member to make Guaranty Fund Contributions pursuant to Rule 1101 et 

seq., to replenish any Guaranty Fund Contribution pursuant to Rule 1102(i) or to pay 

Assessment Contributions. Notwithstanding any Collateral Offset Obligations, 

Clearing Members shall remain liable to pay, and shall continue to make timely 

payment of, all amounts falling due to, and shall remain liable to deliver, and shall 

continue to make timely delivery of, all property falling due for delivery to, the 

Clearing House in accordance with the Rules and Procedures, including obligations to 

pay Original Margin, Guaranty Fund Contributions and Assessment Contributions and 

the Clearing House will remain liable to pay or release Margin to Clearing Members 

in the usual way, subject to netting under Part 3 and the Finance Procedures to take 

into account the effect of any Collateral Offset Obligation. All such payments shall be 

made without regard to whether any payment which would have fallen due (were it 

not for the Collateral Offset Obligations) and without any offsetting or withholding of 

amounts under any other right of or to netting, set-off, lien, recouping, property, 

combination of accounts or other basis.

(j) If the Clearing House determines that it has provided for Collateral Offset Obligations 

in excess of that required or actually applied against an Investment Loss (less Loss 

Assets applied) or makes a recovery that is due to Clearing Members under Rule 

911(h), it shall credit any excess or recovered amounts due to the Clearing Member's 

Proprietary Account. Credit to a Proprietary Account is not intended to prevent the 

Clearing Member from passing on the credit related to a Collateral Offset Obligation 

to any of its Customers under the relevant Customer-Clearing Member Agreement 

and Standard Terms, to the extent that the Collateral Offset Obligation relates to 
117

Margin or Permitted Cover on a Customer Account or is otherwise attributable to a 

Customer. If a Proprietary Account becomes over-collateralised as a result of any 

such credit, any resulting Surplus Collateral will be available for withdrawal under 

Part 3 and the Finance Procedures in the normal way. No amount credited to any 

Account shall be affected by any Non-Default Loss, Investment Loss or a Collateral 

Offset Obligation being satisfied, save as provided for in Rule 919(h).

(k) Liabilities of Clearing Members in respect of Collateral Offset Obligations under this 

Rule 919 shall apply independently from any powers of assessment under Rules 909 

to 911 and give rise to a separate and additional payment obligation for Clearing 

Members.

(l) Any right being exercised or circumstances occurring that are governed by this Rule 

919 shall not constitute any kind of Clearing House Event. Neither a Non-Default 

Loss nor an Investment Loss shall constitute a Clearing House Event.

(m) Payments of Collateral Offset Obligations may be made pursuant to Part 3 of the 

Rules and the Finance Procedures. This Rule 919 is without prejudice to the Clearing 

House's rights to set off or net any sum owed by a Clearing Member to the Clearing 

House against any sum payable by the Clearing House to a Clearing Member or to 

any other powers of the Clearing House under Parts 3, 9 or 11 or the Procedures, but 

the Clearing House may not take any action under those provisions to the extent 

inconsistent with the provisions of this Rule 919.

(n) Nothing in this Rule 919 shall require the Clearing House to pursue any litigation, 

claim or other action against a Clearing Member, Defaulter, Custodian or any other 

Person in respect of any amount, obligation or asset which is owed or due but unpaid 

or unsatisfied by such Clearing Member, Defaulter, Custodian or other Person.

(o) In carrying out any calculations or making any determinations pursuant to this Rule 

919, the Clearing House may convert any amounts denominated in one currency into 

another currency chosen by the Clearing House in its discretion and at a rate of 

exchange chosen by the Clearing House in its discretion, provided the Clearing House 

shall act in a commercially reasonable manner when choosing a currency or a rate of 

exchange for the aforesaid purposes.

(p) The Clearing House will notify Clearing Members from time to time, by Circular of 

the total amount of Loss Assets, which will be set at a level of USD 1 million as at the 

date of introduction of this Rule.

(q) The total amount of Loss Assets applied in connection with any Investment Loss shall 

be notified to Clearing Members in a Circular prior to or promptly after the same 

being applied or replenished. The Clearing House may also replenish any regulatory 

capital, using its or its Affiliates' resources or otherwise, as is required to bring it in 

compliance with Applicable Laws at any time including following an Investment Loss 

or Non-Default Loss. However, no such recapitalisation shall result in any obligation 

of any Clearing Member to pay Collateral Offset Obligations being reduced nor the 

size of any Investment Loss being reduced. The Clearing House may replenish Loss 

Assets through re-applying retained earnings, where these are available. To the extent 

that the Clearing House replenishes Loss Assets or its capital in such or other 

circumstances, its liability for any further Non-Default Losses or Investment Losses 
118

shall not exceed the amount specified in Rule 919(p) or such other amount as is 

notified by Circular.

(r) Without limiting Rule 111 or Rule 502, but subject to any contrary requirements of 

Applicable Laws and this Rule 919, the Clearing House shall not be liable to any 

Clearing Member, Customer or other Person for any losses, liabilities, damages, costs, 

claims, shortfalls or expenses arising out of or relating to any failure, in whole or in 

part, of any payment or securities services provider, including without limitation any 

Custodian, Approved Financial Institution, central securities depository or central 

bank.
119

Part 10 Disciplinary Proceedings

Rule 1001 Complaints

(a) The Clearing House shall consider all complaints made to it in writing by a Clearing 

Member and may consider any complaints made to it by any other person. If the 

Clearing House, in its discretion, considers it appropriate or if it is otherwise 

compelled to do so under any Applicable Law, the Clearing House may refer the 

matter or make a report on the matter to a Market, Regulatory Authority or 

Governmental Authority.

(b) In the case of a complaint which alleges a breach of these Rules, the Clearing House 

may authorise an investigation or commence disciplinary proceedings under this 

Part 10 or take no further action if it considers it disproportionate or otherwise, in its 

discretion.

(c) The Clearing House shall inform the complainant in writing of any steps taken as a 

result of the complaint and of the result thereof.

(d) In the event of a complaint against the Clearing House or any of its Directors, 

officers, employees or committees (including any individual committee member) (or 

agents in their capacity as such), such complaint shall be investigated in accordance 

with the Complaint Resolution Procedures and shall not otherwise be subject to this 

Part 10.

Rule 1002 Investigations

(a) Investigations into breaches or alleged breaches of the Rules may be authorised and 

conducted by the Clearing House.

(b) Upon determining that a complaint, matter or concern requires investigation, the 

Clearing House shall issue a Notice of Investigation ("NoI") notifying the Clearing 

Member concerned that an investigation has been commenced. The NoI shall be sent 

to the Clearing Member or the person concerned and shall contain a brief description 

of the matter under investigation.

(c) In the course of conducting an investigation, the Clearing House may call for the 

assistance of such professional, legal or accounting advisers, Clearing Organisations, 

Exchanges, Regulatory Authorities and advisers or other Persons as it thinks fit. Any 

external adviser appointed by the Clearing House shall be required to treat all 

information obtained in the course of the investigation as confidential and to disclose 

it only to the Clearing House, save where compelled to disclose such documents to a 

third party under any Applicable Law.

(d) Clearing Members shall co-operate fully with all investigations (whether or not such 

Clearing Member or person is the direct subject of such investigation). Without 

limitation, each Clearing Member shall:

(i) promptly furnish to the Clearing House such information and documentary 

and other material (including any information in electronic form) as may 

reasonably be requested (including without limitation in the case of Clearing 

Members, details of the Clearing Member's Customers' accounts);
120

(ii) permit those persons appointed to carry out or assist in carrying out the 

investigation on reasonable notice, such notice being commensurate with the 

seriousness of the potential or alleged breach of the Rules and to enter any 

premises in any part of the world where the Clearing Member carries on its 

business or maintains its records during normal business hours for the purpose 

of carrying out such investigation. Each Clearing Member hereby irrevocably 

grants the Clearing House a licence for this purpose and shall procure a 

licence to the Clearing House from any Affiliated Person, agent or third party 

under its control that is necessary for this purpose;

(iii) exercise best endeavours to make available for interview such of the Clearing 

Member's Representatives as may reasonably be requested and use its best 

endeavours to ensure that such persons answer truthfully and fully any 

question put to him or them by or on behalf of the Clearing House. A 

Clearing Member who fails to procure any of its Representatives to attend an 

interview or hearing with the Clearing House and who fails in the reasonable 

opinion of the Clearing House to demonstrate good cause for such failure may 

be fined SGD 2500 per day of non-attendance, such fine representing a 

genuine pre-estimate of the likely cost to the Clearing Houses attributable to 

such non-attendance, and the Clearing Member may be suspended until the 

Clearing Member takes reasonable steps to make its Representatives available 

on an alternative date;

(iv) make available for inspection such documents, records or other material in its 

possession, power or control as may reasonably be required and, upon request, 

provide copies of the same; and

(v) use its best endeavours to ensure that so far as possible its Representatives

give similar co-operation.

(e) Failure to co-operate with an investigation by the Clearing House, failure to provide 

information requested on a timely basis and concealment or destruction of evidence 

are each, for the avoidance of doubt, a breach of these Rules.

(f) The Clearing House, having conducted an investigation into an alleged breach of the 

Rules, shall send to the relevant Clearing Member a letter of mindedness ("Letter of 

Mindedness") setting out its preliminary factual conclusions and its intended course 

of action in relation to the alleged breach.

(g) Following its issuing of the Letter of Mindedness, the Clearing House shall invite the 

Clearing Member to either attend an initial meeting ("IM") or alternatively send the 

Clearing House written comments. The purpose of the IM or the written comments 

shall be to afford the Clearing Member an opportunity to correct any factual error it 

considers to be contained in the Letter of Mindedness. The IM is not intended to be a 

hearing. The proceedings of the IM will take place on a confidential basis, subject, in 

the case of the Clearing House, to Rule 106. The Clearing House and Clearing 

Member shall each be entitled to nominate up to four attendees, who may include 

lawyers or legal advisers.
121

(h) Following the IM or the receipt of written comments from the Clearing Member (if 

received within a reasonable time) the Clearing House shall finalise its initial findings 

and communicate these in writing to the Clearing Member.

(i) Without prejudice to any other powers, the possible powers of the Clearing House 

following the completion of its investigation and the communication of its initial 

findings to the Clearing Member include:

(i) to decide that no further action should be taken and notify any Clearing 

Member or other Person concerned in writing accordingly;

(ii) in the event of a minor breach, to issue a written warning (which shall be 

private save as provided for in Rule 1002(i)(vii) below) to the Clearing 

Member concerned (or, in the case of such a breach by some other Person, that 

Person with a copy to any Clearing Member with whom he was associated at 

the time of such breach);

(iii) to order that the Clearing Member concerned pay a fine which the Clearing 

House in its discretion regards as commensurate with a breach of the Rules, 

the amount of such fine to be appellable to the Appeals Panel directly without 

reference first to a Disciplinary Panel;

(iv) to commence disciplinary proceedings under Rule 1003 et seq.;

(v) to refer the matter for further enquiry by the Clearing House, a Market or a 

Governmental Authority where the Clearing House considers it necessary to 

investigate further;

(vi) to report the findings of the investigation and hand over any documents or 

communicate any information it has acquired whether during the course of its 

investigation or otherwise, to other Clearing Organisations, Exchanges, 

Regulatory Authorities or Governmental Authorities; or

(vii) to publish such findings as it has made following the IM and in such detail as 

the Clearing House deems appropriate where the matter under investigation is 

considered of relevance to the market in general or in the public interest, save 

that the Clearing Member shall be afforded an opportunity to comment on the 

text of such an announcement during a period of no less than 48 hours prior to 

publication, such period commencing on a Business Day,

provided that the Clearing House may, in an appropriate case, take more than one of 

the above actions in relation to any one Clearing Member and/or different actions in 

relation to different Clearing Members concerned in the same investigation or on 

similar facts.
122

Rule 1003 Disciplinary Proceedings

(a) Disciplinary proceedings may be commenced by the Clearing House only when the 

Clearing House is satisfied (whether or not a formal investigation has taken place 

under this Part 10) that there is prima facie evidence of a breach of the Rules by a 

Clearing Member.

(b) Upon determining that disciplinary proceedings should be commenced, the Clearing 

House must establish a Disciplinary Panel. Each Disciplinary Panel shall consist of a 

chairman sitting with two other persons. Such persons, including the Chairman, that 

are appointed to the Disciplinary Panel may be drawn from market practitioners, 

experts, lawyers or other suitable persons at the discretion of the Clearing House. 

Neither employees nor directors of the Clearing House or Clearing Member subject to 

disciplinary proceedings nor any of their Affiliated Persons, Representatives or 

Customers shall be appointed to a Disciplinary Panel. Expert assessors may be 

appointed, at the discretion of the Disciplinary Panel itself, to sit with and advise the 

Disciplinary Panel but not to vote. No person shall serve on or sit with a Disciplinary 

Panel if he has a personal or financial interest in or has been involved in any 

investigation into or previous disciplinary panel hearing on the matter under 

consideration.

(c) The Clearing Member alleged to have committed the breach may object to any 

particular appointment to the Disciplinary Panel, which objection will be determined 

in the first instance by the chairman of the Disciplinary Panel and, in the event that 

the objection is in relation to the chairman of the Disciplinary Panel, the Chairman of 

the Clearing House.

(d) In the event of any member of the Disciplinary Panel having or acquiring a personal 

or financial interest in the outcome or in any other way being or becoming 

incapacitated or permanently unavailable, the chairman of the Disciplinary Panel (or 

in the case of the chairman of the Disciplinary Panel, the Chairman of the Clearing 

House) may direct that the Disciplinary Panel shall continue to act with a reduced 

number or appoint another person to take the place of the retiring member of the 

Disciplinary Panel (and the disciplinary proceedings shall then proceed as if such 

person had been originally appointed in lieu of the first person) or may direct that a 

new Disciplinary Panel should be appointed to rehear the matter.

(e) In the event of equality of votes, the chairman shall have a second or casting vote in 

reaching any determination.

(f) The Clearing House may discontinue disciplinary proceedings or reach a settlement 

with the Clearing Member on such terms as it sees fit at any stage during the course of 

the disciplinary proceedings (including any Summary Procedure pursuant to 

Rule 1004 or any appeal).

(g) When the Clearing House commences disciplinary proceedings, it shall send a written 

notice ("Notice") to the Clearing Member, setting out the alleged breach of the Rules, 

including a summary of facts relied upon in sufficient detail for a party in the Clearing 

Member's position properly to understand and respond to the allegations made against 

it.
123

(h) The Clearing Member or other person the subject of a Notice shall have 20 calendar 

days (or such further time as either the Clearing House or Disciplinary Panel may in 

their discretion allow) from the service of the Notice in which to provide a statement 

of defence (the "Defence") responding to all or any of the allegations, stating its 

intended pleas and what admissions of fact, if any, it makes. If no Defence has been 

served within 20 days of service of the Notice or such extended period as has been 

agreed, the Disciplinary Panel may in its discretion deem the Clearing Member to 

have accepted the facts and matters alleged in the Notice.

(i) Having seen and considered the Defence, the Clearing House may proceed with the 

disciplinary proceedings, discontinue the disciplinary proceedings or deal with the 

matter as set out in Rule 1003(j).

(j) The Clearing House may at any time amend a Notice by deletion, alteration or 

addition, change to the Rule breach alleged in the Notice or addition of another 

Rule breach in the Notice provided that:

(i) the deletion, alteration, addition, change, amendment or variation is relevant to 

the course of conduct under investigation;

(ii) the essential character of the allegation or Rule breach has not been changed;

(iii) the Clearing Member or other respondent would not be substantially 

prejudiced in any defence he might wish to put before the Disciplinary Panel; 

and

(iv) the Disciplinary Panel has not previously and does not subsequently make a 

procedural ruling adverse to the Clearing House in connection with such 

deletion, alteration, addition, change, amendment or variation.

(k) For the avoidance of doubt, the power of the Clearing House to amend a Notice will 

exist where the Clearing House has in its discretion determined that a separate or 

unrelated prima facie breach of the Rules has been revealed during the course of the 

disciplinary proceedings. The Disciplinary Panel may order an adjournment at any

stage upon an application by the Clearing House to enable such an alleged separate or 

unrelated prima facie breach to be investigated further. The Clearing House shall not 

be obliged to hold a further IM or otherwise consult with the Clearing Member in 

respect of additional or new alleged breaches.

(l) Upon amendment of a Notice, the Clearing Member shall have 14 calendar days or 

such extended period as may be agreed with the Clearing House or as directed by the 

Disciplinary Panel to make any consequential amendment of its Defence. If no 

amended Defence has been served within 14 calendar days of service of the amended 

Notice on the Clearing Member, the Disciplinary Panel may in its discretion deem the 

Clearing Member to have accepted the facts and matters alleged in the Notice.

(m) The Disciplinary Panel shall hear submissions on the matter of the alleged breach of 

the Rules and shall determine whether there has been a violation of the Rules and, if 

so, the appropriate sanction (if any) to be imposed. In carrying out this function, the 

Disciplinary Panel acting as a whole or through the chairman may adopt such 

procedure as it thinks fit, including the holding of a pre-hearing review to hear 
124

procedural applications by the Clearing House or Clearing Member at any stage 

following its composition or in order to set a procedural timetable. Without 

limitation, the Disciplinary Panel may:

(i) order the disclosure by the Clearing House or Clearing Member of such 

further statements, information, documents or other evidence as may be 

necessary;

(ii) allow either party to the proceedings to present to it further evidence within 

time limits ordered by the Disciplinary Panel;

(iii) issue directions and take such other steps as it considers appropriate for the 

clarification of the facts and issues and for the just and expeditious 

determination of the case;

(iv) balancing the need for cases to be dealt with expeditiously and the need for 

affected Persons to have sufficient opportunity to prepare and present their 

case: specify deadlines for the production of documents or hearings, which 

shall be binding on the parties;

(v) if it considers appropriate, but only with the express agreement of the Clearing 

House and the Clearing Member concerned (or the Person concerned and any 

associated Clearing Member), decide to determine the case upon written 

submissions and evidence placed before it;

(vi) in all other cases, give the opportunity to, or require, the Clearing House and 

the Clearing Member to attend hearings before the Disciplinary Panel and the 

Clearing House and the Clearing Member may call witnesses to give evidence 

and be questioned;

(vii) allow the Clearing Member and the Clearing House to be assisted or 

represented by any person, who may or may not be legally qualified;

(viii) call for any person to attend its hearings;

(ix) require hearings to be held in private unless the Clearing Member or Clearing 

House requests otherwise and the other consents; and

(x) appoint its own legal advisers.

(n) The Disciplinary Panel shall apply the civil standard of proof on the balance of 

probabilities, with the cogency of evidence required being commensurate with the 

seriousness of the alleged breach.

(o) The Disciplinary Panel shall not be bound by any rule of law or court procedure 

concerning admissibility of evidence and may accept as conclusive any finding of fact 

made by a court or any other Governmental Authority.

(p) If the Clearing House or Clearing Member should fail to meet a time limit imposed by 

the Disciplinary Panel or fail to attend a hearing, the Disciplinary Panel may in its 

discretion allow an extension of time, adjourn its proceedings or proceed, if necessary 

in the absence of the Clearing Member.
125

(q) Upon having determined whether a breach of the Rules has been proven in 

accordance with the standard of proof set out in Rule 1003(n), the Disciplinary Panel 

shall communicate in writing its findings and particulars of any sanction determined 

to the Clearing House and to the Clearing Member concerned. Such findings and 

sanction shall be deemed conclusive and binding upon expiry of the time permitted 

for appeal or receipt by the Clearing House of any earlier written notice from the 

Clearing Member that such right of appeal will not be exercised. The Disciplinary 

Panel may in its absolute discretion communicate its findings to the parties and give 

them, where there is a finding that there has been a disciplinary breach, the 

opportunity to make representations as to the appropriate sanction(s) before deciding 

on the sanction(s).

(r) Subject to Rule 1003(u), the sanctions which may be imposed on a person subject to 

the Rules by a Disciplinary Panel shall be communicated to the Clearing Member and 

shall not exceed the following:

(i) the issue of a private warning or reprimand;

(ii) the issue of a public notice of censure;

(iii) in the case of a Representative, a finding that any Clearing Member for which 

such Representative is a director, controller, officer or employee would not 

meet the Clearing House's membership criteria for any period or indefinitely;

(iv) in the case of a Clearing Member, disqualification (either indefinitely or for a 

fixed term) of any of its Representatives from being a Director or member of a 

committee or any panel of the Clearing House;

(v) a fine of any amount, to be paid on such terms as may be prescribed;

(vi) the disgorgement of any gain made by the Clearing Member or its 

Representatives in connection with the breach of the Rules;

(vii) a recommendation to the relevant Market and/or Clearing House to suspend 

membership for a period of time or terminate the membership of the Clearing 

Member;

(viii) the issue of an order requiring the Clearing Member or Representative found 

to have committed the breach to take such steps including making an order for 

compensation, as the Disciplinary Panel may direct, to remedy the situation 

including, without limitation, making an order for restitution to any affected 

person when the Clearing Member (or person concerned) has profited (or 

avoided a loss) from a breach at that person's expense;

(ix) in an appropriate case, more than one of the above actions in relation to any 

one Clearing Member and/or different actions in relation to different Clearing 

Members concerned in the same investigation or on similar facts; and

(x) any combination of the foregoing.

(s) Following the suspension or expulsion of a Clearing Member, the Clearing House 

may make such directions as it thinks fit in respect of Contracts to which that Clearing 
126

Member is a party (including, without limitation, directions for the transfer or 

liquidation of any of them).

(t) (i) The contravention by a Clearing Member of any sanction imposed or direction 

made under or pursuant to Rule 1003(q) may be treated for all purposes as a 

breach of the Rules. The lack of enforcement or actioning by the Clearing 

House of a recommendation to suspend or terminate under Rule 1003(r)(vii) 

shall not constitute a breach of the Rules by the Clearing House.

(ii) A Disciplinary Panel may order any party to the proceedings to pay costs as it 

thinks appropriate, including, but not limited to the costs of running the 

Disciplinary Panel, further administration costs directly attributable to the 

disciplinary proceedings, costs incurred in the investigation, preparation and 

presentation of the case, including the costs of the Clearing House's and 

Disciplinary Panel's external advisers.

(u) The following sanctions may be imposed by a Disciplinary Panel where the conduct 

in question is found by the Disciplinary Panel to result in whole or in part from the 

conduct of a Customer or client of a Customer of a Clearing Member:

(i) the issue of a private warning or reprimand naming the Customer or client of a 

Customer or any of their Representatives;

(ii) the issue of a public notice of censure naming the Customer or client of a 

Customer or any of their Representatives;

(iii) a recommendation to the Clearing House to suspend the Customer or client of 

a Customer (either indefinitely or for a fixed term) or any of their 

Representatives from being a Director or member of a committee of the Board 

or any panel established under the Rules or from being a Customer or client of 

a Customer of any Clearing Member of the Clearing House for purposes of 

Clearing or the Clearing of any particular product at the Clearing House;

(iv) a fine of any amount, to be paid by such Person as is specified by the 

Disciplinary Panel to the Clearing House (which shall be binding on the 

Customer or client of a Customer or any of their Representatives if so 

specified by the Disciplinary Panel), on such terms as may be prescribed;

(v) the disgorgement of any gain made by the Customer or client of a Customer or 

any of their Representatives in connection with the breach of the Rules 

payable by such Person as is specified by the Disciplinary Panel to the 

Clearing House (which shall be binding on the Customer or client of a 

Customer or any of their Representatives if so specified by the Disciplinary 

Panel), on such terms as may be prescribed;

(vi) in an appropriate case, more than one of the above actions in relation to any 

one Customer or client of a Customer or any of their Representatives and/or 

different actions in relation to different Customers or clients of Customers or 

any of their Representatives concerned in the same investigation or on similar 

facts; and
127

(vii) any combination of the foregoing.

The Disciplinary Panel shall only impose any sanction on a Person that it determines 

is or was responsible (whether solely, jointly or by way of contribution) for the 

relevant conduct. If sanctions are to be imposed as a result of any conduct of a 

Customer or client of a Customer, the relevant Clearing Member may present 

information or evidence to the relevant Disciplinary Panel as to whether any sanctions 

should be limited to those set out in this Rule 1003(u). If any pecuniary sanction 

imposed by a Disciplinary Panel is expressed to be payable by a Customer or any of 

its clients or their Representatives but not to be payable by the Clearing Member, the 

Clearing Member shall not be liable for payment of, or to collect, any such amount.

Rule 1004 Summary Procedure

(a) A Clearing Member may submit in writing a request that the Clearing House adopt a 

summary procedure under this Rule 1004 ("Summary Procedure") for disposing of 

the matter. Such notice may be served by the Clearing Member at any time prior to 

the formation of the Disciplinary Panel.

(b) The Clearing House may in its discretion agree to refer the matter to the Summary 

Procedure and shall notify the Clearing Member of any such determination.

(c) Upon reference of the matter to the Summary Procedure the Clearing House in its 

absolute discretion shall nominate three Directors or employees of the Clearing House 

or of any Clearing Member other than the Clearing Member subject to the Summary 

Procedure to hear the submissions of the Clearing Member into the alleged breach, 

who shall form a Summary Disciplinary Committee. The Clearing House shall 

nominate one such member of the Summary Disciplinary Committee to act as 

chairman.

(d) The Summary Disciplinary Committee shall make such directions as to the procedural 

conduct of the case before it as it sees fit.

(e) The Summary Disciplinary Committee shall apply the civil standard of proof on the 

balance of probabilities, with the cogency of evidence required being commensurate 

with the seriousness of the alleged breach. The Summary Disciplinary Committee 

shall not be bound by any rule of law or court procedure concerning admissibility of 

evidence and may accept as conclusive any finding of fact by a court or Governmental 

Authority.

(f) The Summary Disciplinary Committee shall hold a private hearing at which the 

Clearing Member shall be present in order to put to the Clearing Member the alleged 

breach of the Rules and hear any submissions the Clearing Member or its 

Representatives make in relation to the alleged breach or the mitigation.

(g) None of the Clearing House, the Clearing Member or the Summary Disciplinary 

Committee shall be represented by legal advisors at a hearing except with the prior 

express agreement of the Summary Disciplinary Committee.

(h) Save as provided in Rule 1005, a Clearing Member that chooses to submit itself to the 

Summary Procedure expressly waives any right of appeal or review by any body 
128

including any court of law against any determination or ruling of the Summary 

Disciplinary Committee.

(i) The Summary Disciplinary Committee shall, following the hearing, determine 

whether a Clearing Member has breached the Rules and shall determine what sanction 

or sanctions are to be imposed on the Clearing Member or Representative. Upon 

having determined in its absolute discretion whether a breach of the Rules has 

occurred, the Summary Disciplinary Committee shall communicate its findings and 

particulars of any sanction to the Clearing Member. The Summary Disciplinary 

Committee shall enjoy the full range of powers of sanction open to a Disciplinary 

Panel and may impose a combination of any such sanctions as it sees fit.

(j) A determination or sanction imposed by the Summary Disciplinary Committee may 

be appealed under Rule 1005 to an Appeals Panel and shall not be referred to a 

Disciplinary Panel.

Rule 1005 Appeals

(a) (i) Within 14 days of receiving notice in writing of a decision of a Disciplinary 

Panel, a determination in writing of a Summary Disciplinary Committee or a 

notice of sanction (whichever is the later), or such longer period as the 

chairman of the Disciplinary Panel or the Summary Disciplinary Committee 

may in his discretion direct, a Clearing Member (whether current or former in 

the case of expulsion) or the Clearing House, or both, may appeal to an 

Appeals Panel by lodging with the Clearing House a notice of appeal in 

writing and by delivering a copy thereof to any other party to the disciplinary 

proceedings.

(ii) A notice of appeal shall set out the grounds of the appeal and shall contain a 

brief statement of all matters relied on by the appellant. The grounds of the 

appeal may be any one or more of the following:

(A) the Disciplinary Panel or Summary Disciplinary Committee 

misdirected itself; or

(B) the Disciplinary Panel's or Summary Disciplinary Committee's 

decision was:

(1) one which no reasonable tribunal could have reached; or

(2) unsupported by the evidence or was against the weight of the 

evidence; or

(3) in the case of the Disciplinary Panel only, based on an error of 

law, or a misinterpretation of the Rules; or

(C) the sanction imposed by the Disciplinary Panel, Clearing House or 

Summary Disciplinary Committee was excessive or, in the case of an 

appeal by the Clearing House, was insufficient or inappropriate; or

(D) new evidence is available and that, had it been made available, the 

Disciplinary Panel, Clearing House or Summary Disciplinary 
129

Committee could reasonably have come to a different decision. This 

will not apply, in the case of the Disciplinary Panel only, if the 

evidence could have been adduced before the Disciplinary Panel by the 

exercise of reasonable diligence;

but no party may otherwise appeal.

(iii) In the case of appeal against a sanction, the Appeals Panel may affirm, vary or 

revoke the sanction. The Appeals Panel may make such order or give such 

direction as it considers fit, including, in the case of an appeal from the 

Disciplinary Panel, a direction for a rehearing of the case by another newly 

constituted Disciplinary Panel.

(b) Upon receipt of such a notice of appeal, the Clearing House shall appoint an Appeals 

Panel.

(c) The Clearing House shall have 14 working days or such other period as the chairman 

of the Disciplinary Panel or the Summary Disciplinary Committee, as the case may be 

(or the Appeals Panel in its exclusive discretion should it be constituted at such time), 

may allow from the service of the notice of appeal to serve notice of any grounds on 

which it objects to such appeal.

(d) An Appeals Panel shall consist of a chairman sitting alone who shall be a lawyer who 

shall be appointed at the discretion of the Clearing House. No members of any 

disciplinary panel, serving members of the Clearing House's committees dealing with 

any disciplinary or summary disciplinary proceedings, employees of the Clearing 

House or Clearing Member subject to disciplinary proceedings or any of their 

Affiliated Persons, Representatives or Customers shall be appointed to an Appeals 

Panel. Expert assessors may be appointed, at the discretion of the chairman of the 

Appeals Panel, to sit with and advise the Appeals Panel but not to vote. No Person 

shall serve on or sit with an Appeals Panel if he has a personal or financial interest in 

or has been involved in any investigation into or previous disciplinary panel or 

Summary Disciplinary Committee hearing (including that which is the subject of the 

appeal itself) on the matter under consideration.

(e) An Appeals Panel may adopt such procedure as it thinks fit and just, including, 

without limitation, the procedures described in Rule 1003(m) and shall be bound by 

Rule 1003(n) and (o). An Appeals Panel shall further enjoy all powers vested in 

disciplinary panels, procedural or otherwise. The appellant and the respondent may 

appear, make representations and (subject to any restriction on adducing new 

evidence), call witnesses, who may be examined and cross-examined.

(f) The decision of an Appeals Panel shall be final and binding and there shall be no 

further appeal. The decision with reasons shall be notified to the appellant and 

respondent in writing without undue delay.

Rule 1006 [Not used.]
130

Part 11 Guaranty Fund

Rule 1101 Establishment and parameters of the Guaranty Fund

(a) There shall be one Guaranty Fund operated by the Clearing House. Clearing 

Members shall be liable to make and maintain Guaranty Fund Contributions. The 

total amount required in the Guaranty Fund will be established by the Clearing House 

in accordance with the Finance Procedures. The total amounts of the Guaranty Fund 

will be expressed (and Guaranty Fund Contributions will be called) in the currency or 

currencies set out in the Finance Procedures and will be reviewed periodically by the 

Clearing House in advance of the end of the Guaranty Fund Period for the Guaranty 

Fund. If the Clearing House determines that the total amount in the Guaranty Fund is 

to change, Clearing Members will be given notice by Circular and will be informed of 

their new Guaranty Fund Contribution requirements prior to the start of the Guaranty 

Fund Period when the change becomes effective.

(b) The Clearing House will communicate to Clearing Members by Circular the basis on 

which their Guaranty Fund Contributions are calculated.

(c) The Clearing House may vary the parameters by reference to which Guaranty Fund 

Contributions are calculated from time to time and at any time upon issuing a Circular 

to Clearing Members. Any new parameters will come into effect on the date of the 

next applicable re-calculation of Guaranty Fund Contributions, unless Clearing 

Members are otherwise notified of a different effective date. Parameters for the 

Guaranty Fund will be established on the basis that the Guaranty Fund Contributions 

of each Clearing Member will be proportional to the exposures of each Clearing 

Member and that the Guaranty Fund shall enable the Clearing House to withstand, 

under extreme but plausible market conditions, at least the default of the Clearing 

Member (and its related corporations (as defined in Section 4(1) of the Companies 

Act (Chapter 50 of Singapore)) to which it has the largest exposure and the two 

financially weakest Clearing Members. The Clearing House may add further 

parameters to define the size of the Guaranty Fund.

(d) Clearing Members shall be required and liable to make Guaranty Fund Contributions 

in the amounts and at the times specified in accordance with Rule 1102 and 

Rule 1101(a), such that the Guaranty Fund is always at least of the size required 

pursuant to this Rule 1101, except in circumstances in which amounts are drawn 

down from the Guaranty Fund in order to meet liabilities resulting from an Event of 

Default and such amounts have not been replenished in accordance with this Part 11. 

For the avoidance of doubt, a Clearing Member will not be in breach of the Rules nor 

capable of being declared a Defaulter solely as a result of any of its Guaranty Fund 

Contributions being applied and its Guaranty Fund Contributions with the Clearing 

House not being the total required amount (unless and until such time as the Clearing 

House issues a call for further Guaranty Fund Contributions and the amount called is 

not paid when due, in which case such Clearing Member may be declared a 

Defaulter).

(e) [Not used.]
131

Rule 1102 Clearing Members' Contributions

(a) Clearing Members' required Guaranty Fund Contributions at the start of each 

Guaranty Fund Period (or otherwise when a payment to a Guaranty Fund is due) will 

be calculated with reference to the total amount of the relevant Guaranty Fund 

established pursuant to Rule 1101.

(b) Guaranty Fund Contributions for each Clearing Member, will be calculated for each 

Guaranty Fund Period based on criteria set out in the Finance Procedures, risk policies 

and Circulars.

(c) Required Guaranty Fund Contributions will be calculated or re-calculated, as the case 

may be, by the Clearing House for each Clearing Member and notified in advance of 

each Guaranty Fund Period.

(d) Guaranty Fund Contributions must be in the form of cash or other Permitted Cover, 

subject to such limits as are specified in the Finance Procedures and Circulars.

(e) In the event of any change in the value of non-cash Guaranty Fund Contributions, the 

Clearing Member may be required by the Clearing House to make an additional 

Guaranty Fund Contribution. Clearing Members will be permitted (and may be 

required) at any time to make additional Guaranty Fund Contributions (beyond the 

required Guaranty Fund Contributions) in order to reduce the risk that revaluations of 

non-cash Permitted Cover result in such additional Guaranty Fund Contributions 

falling due.

(f) New Clearing Members admitted to membership of the Clearing House shall make 

the required minimum Guaranty Fund Contributions plus such other amount as the 

Clearing House at its discretion determines is necessary based on projected clearing 

activity. Any such Guaranty Fund Contributions by a new Clearing Member or 

Clearing Members shall not result in any obligation on the Clearing House to repay 

the Guaranty Fund Contributions to other Clearing Members and the size of the 

Guaranty Fund shall be increased accordingly until the end of the Guaranty Fund 

Period.

(g) Guaranty Fund Contributions of a Clearing Member following termination of its 

membership of the Clearing House will be returned to the Clearing Member on the 

first date of the first new Guaranty Fund Period beginning after the Transfer, close out 

or termination of all of its positions at the Clearing House and the payment of all other 

amounts due to the Clearing House (subject to Guaranty Fund Contributions being 

applied under Part 9 or this Part 11 and further subject to any extension to the 

Guaranty Fund Period pursuant to Rule 1102(l)). The obligation of the Clearing 

House to return to a Clearing Member any remaining portion of its Guaranty Fund 

Contributions in the event of termination of its clearing membership of the Clearing 

House will be satisfied by accounting for the amount of that obligation in the 

determination of a net sum under Rule 906, in either case payable by the Clearing 

House or the Clearing Member to the other, provided that in the case of a termination 

under Rule 209(c)(i)(A), the determination of the portion of such Guaranty Fund 

Contributions to be so taken into account may be made up to and including the first 

date of the first new Guaranty Fund Period beginning after the transfer or liquidation 

of all of the relevant Clearing Member's Contracts at the Clearing House. 
132

(h) Each Clearing Member will be entitled to receive interest payments on its cash 

Guaranty Fund Contributions each quarter through the banking arrangements detailed 

in Part 3 and no accommodation charges will apply to any non-cash Guaranty Fund 

Contributions.

(i) In the event of application of any Guaranty Fund Contributions taking place pursuant 

to Rule 908 or Rule 1103, the Clearing House shall:

(i) give notice by Circular of the amount by which the Guaranty Fund has been 

reduced;

(ii) notify each Clearing Member and any relevant former Clearing Member of the 

amount for which it is liable to make additional Guaranty Fund Contributions 

in order to replenish the Guaranty Fund; and

(iii) in the case of any Guaranty Fund Contributions being applied, specify the new 

amount of each of the Clearing House Contributions by Circular.

(iv) [Not used.]

(v) [Not used.]

Clearing Members must make required replenishment Guaranty Fund Contributions 

upon demand. The Clearing House shall ensure that any specified new Clearing 

House Contributions are held by it in accordance with Rule 1103(f) at the same date 

as Guaranty Fund Contributions for the Guaranty Fund are so due. Any obligation on 

a Clearing Member to make payments pursuant to this Rule 1102(i) is separate from, 

and shall apply in addition to, any obligation to make payment in respect of 

Assessment Contributions pursuant to Rule 909.

(j) If:

(i) an Event of Default is declared in relation to more than one Defaulter 

contemporaneously (the defaulter in respect of whom default proceedings are 

first completed being the "First Defaulter" and any other defaulter being an 

"Additional Defaulter" or, if default proceedings are completed at the same 

time, the Defaulter whose name would appear first alphabetically being the 

"First Defaulter" and any other Defaulter or Defaulters being an "Additional 

Defaulter"); or

(ii) a separate Event of Default is declared in relation to a Defaulter or Defaulters 

that has or have made a Guaranty Fund Contribution or Guaranty Fund 

Contributions to the Guaranty Fund (any, an "Additional Defaulter") prior to 

the termination of default proceedings in relation to an existing Defaulter 

("First Defaulter"),

and recourse is made to Guaranty Fund Contributions in respect of the First Defaulter 

(or any Additional Defaulter), then Clearing Members shall be required to replenish 

the Guaranty Fund pursuant to Rule 1102(i) separately in respect of each Defaulter 

causing a reduction in the Guaranty Fund. The Clearing House may apply Guaranty 

Fund Contributions and Clearing House Contributions resulting from replenishment 

following default proceedings in relation to the First Defaulter to meet the liabilities 
133

of an Additional Defaulter and may apply Guaranty Fund Contributions and Clearing 

House Contributions resulting from replenishment following default proceedings in 

relation to an Additional Defaulter to meet the liabilities of another Additional 

Defaulter. Other than as set out in this Rule 1102(j), amounts transferred by Clearing 

Members or former Clearing Members in order to replenish Guaranty Fund 

Contributions under Rule 1102(i) or amounts designated as Clearing House 

Contributions may not be applied to meet liabilities arising in connection with any 

Event of Default occurring prior to the time at which the relevant replenishment or 

designation is required under these Rules.

(k) In the event of the Clearing House applying any Guaranty Fund Contributions of 

non-defaulting Clearing Members, the Clearing House will make payment to the 

Persons whose Guaranty Fund Contributions have been applied (and retain assets in 

respect of Clearing House GF Contributions) pro rata in respect of any amounts 

received from the Defaulter as a result of its being a creditor of the Defaulter in the 

Defaulter's Insolvency or otherwise (net of the Clearing House's costs of recovery), up 

to the amount by which the Guaranty Fund was reduced (excluding the Guaranty 

Fund Contribution of the Defaulter) but without counting for interest, subject to the 

Clearing House first: (i) retaining or repaying amounts up to the amount of any other 

assets of the Clearing House (including following claims under insurance policies) or 

other third parties applied to meet any shortfall or loss following exhaustion of the 

assets specified in Rule 908 or in substitution of any such assets; and (ii) making 

reimbursement payments to Persons that have made Assessment Contributions (in that 

order of priority).

(l) If an Event of Default occurs prior to the end of a Guaranty Fund Period where the 

total amount of Guaranty Fund Contributions or the Guaranty Fund Contribution of 

any particular Clearing Member would otherwise subsequently be reduced in the next 

Guaranty Fund Period, the Clearing House shall at its discretion be entitled to defer 

the end of the current Guaranty Fund Period and start of the next Guaranty Fund 

Period until the completion of default proceedings or retain all then held Guaranty 

Fund Contributions made to the Guaranty Fund. In either such circumstance, the 

Clearing House shall not be obliged to make any repayment to Clearing Members in 

respect of Guaranty Fund Contributions to the Guaranty Fund until and subject to 

completion of the relevant Default proceedings pursuant to Part 9 and this Part 11. 

For the avoidance of doubt: in such circumstances, the Clearing House shall 

nonetheless be entitled to make periodic adjustments to Guaranty Fund Contributions 

as otherwise set out in these Rules at its discretion.

(m) [Not used.]

(n) [Not used.]
134

Rule 1103 Use of Guaranty Fund Contributions

(a) Following an Event of Default, the Clearing House shall apply the Guaranty Fund 

Contribution of a Defaulter pursuant to Rules 906 and Rule 908. Otherwise, Guaranty 

Fund Contributions of a Clearing Member or proceeds thereof may be applied or used 

by the Clearing House at its discretion in any of the following manners to the extent 

of the relevant Clearing Member's Guaranty Fund Contribution:

(i) against any amount that becomes due to the Clearing House by that Clearing 

Member for any reason (including but not limited to Margin, amounts due 

pursuant to Contract Terms, fees, dues, assessments and fines);

(ii) in managing an Event of Default or an event which could be declared by the 

Clearing House as an Event of Default, including:

(A) where necessary, to meet the Clearing House's costs involved in 

facilitating the transfer of Contracts recorded in a Clearing Member's 

Customer Position Account, if that Clearing Member is experiencing 

financial difficulty or during a termination of membership, to another 

Clearing Member;

(B) provisionally, in respect of any actual or potential shortfall, loss, 

obligation or liability if the Clearing House at its discretion determines 

that Guaranty Fund Contributions are likely to be applied pursuant to 

Rule 908 or Rule 1103(a)(i), provided that to the extent that any 

Guaranty Fund Contributions are not applied pursuant to Rule 908 or 

Rule 1103(a)(i) within a reasonable period of time, the Clearing House 

shall account to the relevant Clearing Member for the difference 

between the amount by which any Guaranty Fund Contributions were 

actually applied and the amount by which the same were provisionally 

applied under this Rule 1103(a)(ii)(B); or

(iii) for making payments, including for liquidity or to raise liquidity for liabilities 

to make payments in respect of obligations incurred by the Clearing House in 

its capacity as a clearing house and central counterparty,

provided that: (1) Guaranty Fund Contributions may only be used to meet actual or 

prospective liabilities or obligations relating to Clearing; (2) nothing in this 

Rule 1103(a) shall affect the order of application of assets following a declared Event 

of Default pursuant to Rule 908; (3) any Guaranty Fund Contributions used or applied 

under this Rule 1103(a) (but not actually applied under Rule 908) shall be returned or 

reallocated by the Clearing House to the Guaranty Fund; and (4) following an Event 

of Default declared by the Clearing House, Guaranty Fund Contributions may only be 

used or applied under this Rule 1103(a) after available resources of the Defaulter have 

been exhausted.

(b) The Clearing House may at any time and from time to time sell, substitute, set off, 

transfer, assign, mortgage, pledge, repledge or otherwise create or grant a lien, 

interest, charge or other security interest on or use as collateral by way of title transfer 

arrangement, any proceeds of Guaranty Fund Contributions for any of the purposes 

set out in Rule 1103(a). Any borrowings using proceeds of Guaranty Fund 
135

Contributions as collateral shall be on terms and conditions deemed necessary or 

advisable by the Clearing House in its sole discretion, and may be in amounts greater, 

and extend for periods of time longer, than the obligations, if any, of any Clearing 

Member to the Clearing House for which such cash, securities or other property was 

transferred to or deposited with the Clearing House. Any amounts so borrowed shall 

be used and applied by the Clearing House solely for the purposes set out in 

Rule 1103(a); provided that the failure of the Clearing House to comply with 

Rule 1103(a) in respect of any borrowings, facility or agreement shall not impair any 

of the rights or remedies of any transferee, assignee, mortgagee, pledgee, collateral 

taker or holder of any lien or security interest.

(c) Any expense (including, without limitation, legal fees and expenses) incurred by the 

Clearing House in connection with the use, application or transfer of Guaranty Fund 

Contributions, or the return of equivalent assets to a Clearing Member, may, at the 

option and discretion of the Clearing House, be charged to the account of such 

Clearing Member.

(d) A Clearing Member's entitlement to repayment of any Guaranty Fund Contribution or 

any part of it or interest thereon shall not be capable of assignment or transfer by the 

Clearing Member or being made subject to any Encumbrance whatsoever purporting 

to rank in priority over, pari passu with, or subsequent to, the rights of the Clearing 

House or in conflict with Rule 908. Any purported Encumbrance of a Clearing 

Member in respect of any Guaranty Fund Contribution shall be null and void.

(e) Default insurance policies of which the Clearing House is the beneficiary (if any) may 

be subject to limits on claims applicable in respect of particular time periods (each 

such period, a "Relevant Period"). Furthermore, pursuant to the terms of any such 

insurance obtained by the Clearing House, it is possible that (i) insurance claims may 

be payable in excess of losses resulting from a Default or Defaults above a certain 

amount ("Loss Threshold") occurring within a Relevant Period as opposed to 

following the application of particular assets in respect of particular Defaults in the 

order set out in Rule 908; or (ii) default insurance policies may apply only in relation 

to losses occurring in relation to certain Sets of Contracts cleared by the Clearing 

House or the Guaranty Fund. As a result, it is possible that: (A) insurance receipts 

may be available to (and applied by) the Clearing House at an earlier order to that 

specified in Rule 908 if the total available Guaranty Fund Contributions exceed the 

Loss Threshold or in respect of a second or subsequent Default where the limit on 

claims for the Relevant Period has not been exhausted; (B) no or reduced insurance 

may be available in the case of a second or subsequent Default occurring in a 

Relevant Period; (C) the insurance policies (if any) may not provide cover in respect 

of certain Events of Default; or (D) there may be no default insurance either generally 

or in respect of any particular products cleared by the Clearing House. The Clearing 

House will issue a Circular to Clearing Members specifying the amount of insurance, 

Loss Threshold, Relevant Period and any restrictions by Set of Contract or Guaranty 

Fund applicable to any default insurance obtained by the Clearing House. Neither this 

Rule 1103(e) nor any Circular issued by the Clearing House shall affect the liability of 

Clearing Members in respect of Guaranty Fund Contributions under these Rules.

(f) The Clearing House will notify Clearing Members from time to time, by Circular and 

in accordance with the Finance Procedures, of each of the Clearing House 

Contributions. The Clearing House undertakes to all non-defaulting Clearing 
136

Members from time to time to maintain amounts equal to the total of the Clearing 

House Contributions in a separate account from its other assets and to use such 

amounts only for the purposes of meeting shortfalls arising directly or indirectly from 

Defaults in accordance with this Part 11. This Rule 1103(f) shall not restrict the 

Clearing House from investing such amounts in any way that it is able to invest 

Guaranty Fund Contributions made by Clearing Members. Clearing House 

Contributions may be used by the Clearing House in the same way as Guaranty Fund 

Contributions may be used pursuant to Rule 1103(a).

(g) The total amount of Guaranty Fund Contributions for the Guaranty Fund and any 

Clearing House Contributions applied in connection with any Event of Default shall 

be notified to Clearing Members in a Circular prior to the same being applied.
137

Part 12 Settlement Finality

Without prejudice to the status of any other provision of these Rules, including Part 9, the 

provisions of this Part 12 are intended to also constitute 'default rules' for purposes of Part III 

of the SFA and the SF(CF)R, and provide for the taking of proceedings or other action if a 

participant has failed or appears to be unable or to be likely to become unable to meet his 

obligations for any unsettled or open market contracts to which he is a participant. 

Accordingly, any action taken by the Clearing House pursuant to this Part 12 in connection 

with an Event of Default are intended to constitute 'default proceedings' for purposes of 

Part III of the SFA and the SF(CF)R. In addition to these Rules, the Clearing House relies on 

its legal rights under Applicable Laws in handling Events of Default.

Rule 1201 Introduction and Interpretation

(a) [Not used.]

(b) [Not used.]

(c) Each Participant is on notice of the provisions of this Part 12. Each Participant shall, 

by participating in the Payment System, be deemed to have agreed that: 

(i) (without prejudice to the generality of the provisions of any Clearing 

Membership Agreement), the provisions set out in this Part 12 apply to and 

shall bind such Participant (and to any Insolvency Practitioner appointed for, 

or with powers in respect of, it) in connection with such Participant's 

participation in the Payment System; and 

(ii) (without prejudice to the generality of Rule 102(f)), to the extent that there is 

any conflict between any provision of this Part 12 and any provision of any 

agreement (including any AFI Agreement) or any contractual or 

non-contractual obligation which may arise or exist from to time between any 

Participant and the Clearing House, the relevant provision of this Part 12 shall 

prevail, control, govern and be binding upon the parties (regardless of the date 

of entry into or amendment of any such agreement or obligation).

(d) The term "AFI Agreement" means a payment services agreement between the 

Clearing House and an Approved Financial Institution.

(e) The term "Indirect Participant" means any Customer, provided that: (i) the identity 

of that Customer has been notified to the Clearing House in writing by the Clearing 

Member; (ii) the Clearing House has accepted such notification and treatment as an 

indirect participant in writing (and this Part 12 shall apply equally to any Insolvency 

Practitioner appointed for, or with powers in respect of, an Indirect Participant); and 

(iii) such Customer has executed such agreement as is prescribed by the Clearing

House from time to time in order for it to become contractually bound by these Rules 

and this Part 12 in particular.

(f) The term "Intermediary Financial Institution" means any bank or branch used by a 

System Bank, whether as banker, corresponding banker, intermediary or agent, for the 

fulfilment of a Payment Transfer Order (and this Part 12 shall apply equally to any 

Insolvency Practitioner appointed for, or with powers in respect of, such a person).
138

(g) The term "Investment Agent Bank" means a bank used by the Clearing House for 

the deposit of cash prior to such cash being invested. An Investment Agent Bank may 

also be an Approved Financial Institution or Concentration Bank. 

(h) The term "Investment Agency Agreement" means an agreement between an 

Investment Agent Bank and the Clearing House, including in respect of the deposit of 

cash prior to such cash being invested. 

(i) The term "Non-Cash Collateral" means any Permitted Cover other than in the form 

of cash.

(j) The term "Participant" means the Clearing House, each Clearing Member, each 

Approved Financial Institution, each Concentration Bank, each Investment Agent 

Bank, each Intermediary Financial Institution and each SF Custodian (and this Part 12 

shall apply equally to any Insolvency Practitioner appointed for, or with powers in 

respect of, a Participant).

(k) The term "Payment System" means the system operated by the Clearing House 

consisting of the formal arrangements, between the Clearing House and Participants 

including the common rules (including the Rules and the Procedures) and the 

standardised arrangements (including the AFI Agreements, Investment Agency 

Agreements, Clearing Membership Agreements and other agreements involving the 

Clearing House, Clearing Members, Approved Financial Institutions, Concentration 

Banks and Investment Agent Banks, provided that in the event of any conflict 

between any provision of the Rules or Procedures and any provision of any such 

agreement or arrangements, the provision of the Rules or Procedures shall prevail, 

control, govern and be binding on the parties) and related functionality for the 

effecting of Transfer Orders between the Clearing House and Participants which, inter 

alia:

(i) enable the Clearing House to give instructions and to place at the disposal of 

Clearing Members amounts of money on the account of Approved Financial 

Institutions;

(ii) enable Clearing Members to give instructions and to place at the disposal of 

the Clearing House amounts of money on the accounts of Approved Financial 

Institutions;

(iii) enables the Clearing House to give instructions and make transfers between its 

accounts at Approved Financial Institutions, Concentration Banks and 

Investment Agent Banks;

(iv) enable the Clearing House and Clearing Members to fulfil the obligations they 

incur in respect of Contracts and otherwise to one another pursuant to the 

Rules;

(v) enable transfers, assignments and novations of Contracts between Clearing 

Members or following a Default;

(vi) enable transfers of Non-Cash Collateral to or to the order of the Clearing 

House and Clearing Members;
139

(vii) enable ICE Futures Singapore Block Transactions, to give rise to Contracts;

(viii) facilitate supplementary and incidental matters to the satisfaction of 

obligations pursuant to Contracts and the collection and payment of amounts 

due in respect of Contracts or Permitted Cover.

(l) The term "Payment Transfer Order" means a payment transfer order that is a New 

Contract Payment Transfer Order, Credit/Debit Payment Transfer Order, or CH 

Account Payment Transfer Order subject to this Part 12.

(m) The term "Securities Transfer Order" means a securities transfer order that is a 

Position Transfer Order, Collateral Transfer Order or ICE Futures Singapore Block 

Clearing Order subject to this Part 12.

(n) The term "SF Custodian" means any custodian, sub custodian, nominee, agent, 

depository or settlement system used by a Clearing Member or the Clearing House for 

the holding or transfer of Non Cash Collateral that is subject of a Collateral Transfer 

Order in the Payment System (and this Part 12 shall apply equally to any Insolvency 

Practitioner appointed for, or with powers in respect of, such a person).

(o) The term "System Bank" means an Approved Financial Institution, Concentration 

Bank or Investment Agent Bank. 

(p) The term "Transfer Order" means a Payment Transfer Order or a Securities Transfer 

Order.

(q) The term "ICE Systems" means the trade registration, clearing processing and 

finance hardware and software used by the Clearing House and Clearing Members 

from time to time, as further described in the Procedures.

Rule 1202 Transfer Orders Arising

(a) A Payment Transfer Order shall arise and shall enter the Payment System 

immediately and automatically upon:

(i) in relation to a Contract that forms in accordance with Rule 401(a) at the time 

that a Contract arises under Rule 401 (such Payment Transfer Order, a "New 

Contract Payment Transfer Order");

(ii) the Clearing House sending an instruction for payment to or from the Clearing 

House pursuant to Rule 302, Rule 502 to Rule 503 and/or the Finance 

Procedures (such Payment Transfer Order, a "Credit/Debit Payment 

Transfer Order"); and

(iii) the Clearing House sending an instruction by means of a SWIFT message, 

other electronic message, fax, telephone or other means to a System Bank to 

transfer a sum of money from an account of the Clearing House at such 

System Bank to an account of the Clearing House at the same or a different 

System Bank (such Payment Transfer Order, a "CH Account Payment 

Transfer Order").
140

(b) A Securities Transfer Order shall arise and shall enter the Payment System 

immediately and automatically upon:

(i) if either:

(A) the Clearing House, the relevant Market (if any) and the two Clearing 

Members involved (both being Participants) have already agreed to a 

transfer, assignment or novation of Contracts from one Clearing 

Member to another Clearing Member pursuant to Rule 408(a)(i);

(B) a request is accepted by the relevant Market (if any) or the Clearing 

House in respect of an allocation from one Clearing Member to 

another Clearing Member for purposes of Rules 401(a)(viii) and 

401(e); or

(C) the Clearing House has declared an Event of Default under Rule 901 

and any Contracts to which a Defaulter is party are proposed to be 

transferred from the Defaulter to another Clearing Member (being a 

Participant) pursuant to the Clearing House's powers under Rule 903, 

Rule 904, Rule 905 or otherwise,

in either case, instructions for settlement of the transfer, assignment, novation 

or allocation in question being effected through the ICE Systems at the 

relevant settlement transfer deadline for the relevant Contract (such Securities 

Transfer Order, a "Position Transfer Order");

(ii) the Clearing House accepts, through the ICE Systems, that a Clearing Member 

has validly requested either:

(A) the transfer of Non-Cash Collateral to or to the order of the Clearing 

House; or

(B) a transfer of Non-Cash Collateral to or to the Order of that Clearing 

Member,

(such Securities Transfer Order, in either case, a "Collateral Transfer 

Order");

(iii) in respect of an ICE Futures Singapore Block Transaction at the point at which 

the relevant details of the relevant Transaction have passed through the credit 

filter and risk controls of both relevant Clearing Members in the ICE Systems 

(such Securities Transfer Order, an "ICE Futures Singapore Block Clearing 

Order").

(iv) [Not used.]

(v) [Not used.]

(vi) [Not used.]

(vii) [Not used.]
141

(viii) [Not used.]

(ix) [Not used.]

(c) If two or more Transfer Orders exist in respect of the same obligation prior to 

becoming irrevocable, all such Transfer Orders shall be valid. No duplication of an 

obligation to pay shall arise as a result of two or more Transfer Orders existing in 

respect of the same obligation.

(d) The status of a Transfer Order shall not be affected by any calculation of Open 

Contract Position, netting, set off or closing out of a Contract to which it relates.

(e) Each Payment Transfer Order shall apply and have effect in respect of the following 

amounts:

(i) in the case of a New Contract Payment Transfer Order, the amount due to or 

from the Clearing House pursuant to the Contract Terms as a result of the 

Contract referred to in Rule 1202(a)(i) arising; or

(ii) in the case of a Credit/Debit Payment Transfer Order, or CH Account Payment 

Transfer Order, the amount specified in the relevant instruction referred to in 

Rule 1202(a);

(f) Each Position Transfer Order shall apply and have effect in respect of the Contracts to 

be transferred, assigned, novated or allocated.

(g) Each Collateral Transfer Order shall apply and have effect in respect of the Non-Cash 

Collateral to be transferred to or to the order of the Clearing House or Clearing 

Member.

(h) Each ICE Futures Singapore Block Clearing Order shall apply and have effect in 

respect of the ICE Futures Singapore Block Transaction in question and any resulting 

ICE Futures Singapore Contract.

(i) [Not used.]

(j) [Not used.]

(k) [Not used.]

(l) [Not used.]

(m) [Not used.]

(n) Transfer Orders shall apply to, and have effect as against and between each of the 

following Persons, in respect of any particular Person only to the extent that such 

Person is a Participant or an Indirect Participant:

(i) in the case of a New Contract Payment Transfer Order, the affected Clearing 

Member (if it is a Participant) and the Clearing House and, as from and after 

the time of irrevocability only, the affected Approved Financial Institution;
142

(ii) in the case of a Credit/Debit Payment Transfer Order, the affected Clearing 

Member (if it is a Participant), the affected Approved Financial Institutions 

and the Clearing House;

(iii) in the case of a CH Account Payment Transfer Order, the affected System 

Bank or System Banks and the Clearing House;

(iv) in the case of a Position Transfer Order:

(A) the Clearing Members (that are the transferor, assignor or person 

whose rights, liabilities and obligations are transferred, assigned, 

novated or allocated and the transferee, assignee or person that 

assumes rights, liabilities and obligations pursuant to a transfer, 

assignment, novation or allocation);

(B) each Customer affected by the Position Transfer Order which is an 

Indirect Participant (if any); and

(C) the Clearing House.

(v) in the case of a Collateral Transfer Order:

(A) the Clearing Member that is the transferor of the Non-Cash Collateral 

in question;

(B) any SF Custodian of the Clearing Member or the Clearing House; and

(C) the Clearing House;

(vi) in the case of an ICE Futures Singapore Block Clearing Order:

(A) each Clearing Member that has submitted or confirmed details of the 

ICE Futures Singapore Block Transaction;

(B) any Affiliate or Customer of the Clearing Member that was party to an 

ICE Futures Singapore Block Transaction and which is an Indirect 

Participant (if any); and

(C) the Clearing House;

(vii) [Not used.]

(viii) [Not used.]

(ix) [Not used.]

(x) [Not used.]

(o) Where a Transfer Order applies to a System Bank, it shall also apply to and be 

effective against any Intermediary Financial Institution used by that System Bank.

(p) Where a Transfer Order applies additionally to an Indirect Participant, the liability of 

any Participant pursuant to the same Transfer Order shall not be affected.
143

Rule 1203 Transfer Orders Becoming Irrevocable

(a) A Credit/Debit Payment Transfer Order shall become irrevocable at the time when the 

Approved Financial Institution sends a SWIFT confirmation message, other electronic 

message, fax, telephone or other message confirming that the relevant payment will 

be or has been made.

(b) A CH Account Payment Transfer Order shall become irrevocable at the time when the 

System Bank of the account from which payment is to be made sends a SWIFT 

confirmation message, other electronic message, fax, telephone or other message 

confirming that the relevant payment will be or has been made.

(c) Without prejudice to Rule 1205(g) and Rule 1205(h), a New Contract Payment 

Transfer Order shall become irrevocable upon an Approved Financial Institution 

sending a SWIFT confirmation message, other electronic message, fax, telephone or 

other message confirming that amount to which the New Contract Payment Transfer 

Order relates (as specified in Rule 1202(e)(i)) will be or has been made.

(d) A Position Transfer Order shall become irrevocable at the time when the definitive 

record of the Open Contract Position of the Clearing Member (that is the assignee, 

transferee or person that assumes rights, liabilities and obligations pursuant to a 

novation) is updated as a result of a successful position transfer clearing run in the 

ICE Systems to reflect the transfer, assignment or novation of Contracts which are 

given effect pursuant to the Position Transfer Order.

(e) A Collateral Transfer Order shall become irrevocable at the earlier of the time when: 

(i) the Clearing House receives the Non-Cash Collateral; or (ii) any related securities 

transfer order (which relates to the same subject matter as the Collateral Transfer 

Order but which is a securities transfer order in a designated system for purposes of 

the Payment and Settlement Systems (Finality and Netting) Act (Chapter 231 of 

Singapore) which is not the Payment System) becomes irrevocable.

(f) An ICE Futures Singapore Block Clearing Order shall become irrevocable at the time 

that the Clearing House becomes party to resulting Contracts with the Clearing 

Members in question, pursuant to Rule 401(a)(iii).

(g) [Not used.]

(h) [Not used.]

(i) [Not used.]

(j) [Not used.]

(k) As from the time when a Transfer Order becomes irrevocable, it shall not be revoked 

or purported to be revoked by any Participant or the Clearing House and shall be 

binding upon all Participants.

(l) Transfer Orders shall be legally enforceable, irrevocable and binding on third parties 

in accordance with this Part 12, even in the event of an Event of Default.
144

Rule 1204 Variations to or Cancellation of Transfer Orders

(a) This Rule 1204 applies only to a Transfer Order that is not irrevocable and:

(i) in the case of any Transfer Order, it is affected by manifest or proven error or 

an error that is agreed so to be by all affected Participants;

(ii) in the case of a New Contract Payment Transfer Order, Credit/Debit Payment 

Transfer Order or Position Transfer Order, it relates to a Contract which is:

(A) void ab initio pursuant to Rule 403;

(B) avoided pursuant to Rule 404;

(C) amended as a result of the Clearing House exercising its discretion 

pursuant to Rule 104 or otherwise pursuant to these Rules; or

(iii) [Not used.]

(iv) [Not used.]

(v) without prejudice to the generality of Rule 1204(a)(i) or (ii), in the case of an 

ICE Futures Singapore Block Clearing Order, it relates to a Transaction which 

is not eligible for Clearing or which is or are not accepted for Clearing by the 

Clearing House.

(b) Subject to Rule 1204(d), (e) and (f), neither the validity nor the irrevocability of any 

Transfer Order shall of itself be affected by any event described in Rule 1204(a) 

occurring.

(c) The terms of all Transfer Orders that have not become irrevocable shall each be 

subject to a condition (which, if not satisfied, shall enable the Clearing House to 

exercise its rights under this Rule 1204) that the circumstances described in 

Rule 1204(a) have not occurred.

(d) If any of the circumstances described in Rule 1204(a) has occurred, the amount 

payable, Contracts to be transferred or to arise or securities or Non-Cash Collateral to 

be delivered pursuant to the affected Transfer Order may at the discretion of the 

Clearing House be increased, decreased or otherwise varied, as necessary, to reflect 

the payments, transfers, Contracts, assignments, novations, securities, Non-Cash 

Collateral or deliveries that would have been required:

(i) in the case of Rule 1204(a)(i) applying, had there been no error;

(ii) in the case of Rule 1204(a)(ii)(A), Rule 1204(a)(ii)(B) or Rule 1204(a)(v) 

applying, had no Contract or Transaction ever arisen, occurred or been 

submitted; or

(iii) in the case of Rule 1204(a)(ii)(C) applying, had the Contract always been 

subject to such amended terms as are agreed or determined;

(iv) [Not used.]
145

(v) [Not used.]

(any such variation, a "Transfer Order Variation").

(e) A Transfer Order Variation may be effected only by the Clearing House delivering a 

notice of amendment of an existing Transfer Order to all affected Participants. 

(f) If any of the circumstances described in Rule 1204(a) has occurred, the Transfer 

Order in question may at the discretion of the Clearing House alternatively be 

cancelled. Any such cancellation may be effected by the Clearing House serving a 

notice of cancellation on all affected Participants. In respect of an ICE Futures 

Singapore Block Clearing Order such notice shall be deemed to have been given if the 

Clearing House or any Market rejects a Transaction for Clearing.

(g) [Not used.]

(h) [Not used.]

(i) [Not used.]

(j) This Rule 1204 does not affect the ability of the Clearing House to take steps giving 

rise to a new Transfer Order of opposite effect to an existing Transfer Order or part 

thereof if any of the events described in Rule 1204(a) occur. No Transfer Order 

Variation shall preclude the cancellation of a Transfer Order in any circumstances in 

which a Transfer Order may alternatively be cancelled by the Clearing House. The 

ability of the Clearing House to cancel or vary a Transfer Order shall not preclude a 

Transfer Order Variation from taking effect. 

Rule 1205 Termination of Transfer Orders

(a) Each Payment Transfer Order shall be satisfied immediately and automatically upon 

all payments required pursuant to the Payment Transfer Order being received in 

cleared funds or full satisfaction of the relevant underlying obligations is otherwise 

made and recorded in the Clearing House's systems, in either case not subject to any 

Encumbrances except as set out in Part 5.

(b) Each Position Transfer Order shall be satisfied immediately and automatically at the 

same time that it becomes irrevocable under Rule 1203(d) (whereupon all Contracts to 

which the Transfer Order in question relates will have been transferred, assigned or 

novated pursuant to the Rules).

(c) Each Collateral Transfer Order shall be satisfied immediately and automatically at the 

later of the time when: (i) the Clearing House receives the Non-Cash Collateral in its 

account; or (ii) the definitive record of the Permitted Cover transferred by the 

Clearing Member that is the transferor is updated in the ICE Systems to reflect the 

successful transfer of Non-Cash Collateral to or to the order of the Clearing House 

pursuant to the Collateral Transfer Order.

(d) An ICE Futures Singapore Block Clearing Order shall be satisfied immediately and 

automatically at the same time that the relevant resulting Contracts arise under 

Rule 401(a).
146

(e) [Not used.]

(f) [Not used.]

(g) If a Credit/Debit Payment Transfer Order becomes irrevocable in respect of the same 

obligation to which a New Contract Payment Transfer Order relates, the New 

Contract Payment Transfer Order shall automatically be satisfied and shall not 

become irrevocable. It is acknowledged that New Contract Payment Transfer Orders 

will generally terminate in accordance with this Rule 1205(g) when standard Clearing 

and payment processes apply.

(h) A New Contract Payment Transfer Order relating to a Contract shall be satisfied 

immediately and automatically if and at the point that the relevant Transaction or 

Contract has become subject to a Position Transfer Order that has itself become 

satisfied under Rule 1205(b).

Rule 1206 Provision of Information by the Clearing House and Participants

(a) The Clearing House and any Participant must provide, upon payment of a reasonable 

charge, the following information to any person who requests it, save where the 

request is frivolous or vexatious, within 14 days of a request being made:

(i) details of the Payment System; and

(ii) information about the Rules relevant to the functioning of the Payment 

System.

(b) The Clearing House will provide a copy of information referred to in Rule 1206(a) to 

any Clearing Member upon request.

Rule 1207 [Not used.]
147

Part 13 [Not used.]

Part 14 [Not used.]

Part 15 [Not used.] 

Part 16 [Not used.] 

Part 17 [Not used.]

Part 18 [Not used.]

Part 19 [Not used.]

Part 20 [Not used.]
148

EXHIBIT 1 

[Not used.]
149

EXHIBIT 2

ICE CLEAR SINGAPORE 

CUSTOMER-CM TRANSACTIONS STANDARD TERMS

BACKGROUND:

In respect of a Clearing Member and Customer using a Customer Account:

(1) Clearing Member is a Clearing Member, as defined in the rules (together with the 

procedures, as interpreted in accordance with guidance and circulars thereunder, the 

"Rules") of ICE Clear Singapore Pte. Ltd. (the "Clearing House") and is thereby 

permitted to submit certain Transactions which result in a cleared Contract arising in 

accordance with the Rules and the Procedures of the Clearing House.

(2) Clearing Member and Customer are or intend to become party to one or more 

Customer-CM Transactions, where related cleared Contracts are requested or are to be 

requested by the Clearing Member to be recorded in a Customer Position Account in 

which Contracts may be recorded. They further desire to agree to the operation of the 

Rules and the Procedures in relation to any Customer-CM Transactions that may arise 

following the submission of the related Transactions, as further provided for in these 

Customer-CM Transactions Standard Terms (these "Standard Terms").

(3) Clearing Member and Customer have established a "master" futures account, clearing 

agreement or other master agreement (the "Cleared Transactions Master 

Agreement", as amended from time to time) and, if applicable, a related collateral 

arrangement, whether contained in the same or another agreement with respect to 

cleared transactions, including such Customer-CM Transactions (which Cleared 

Transactions Master Agreement may be supplemented by a cleared derivatives 

addendum, or similar document, as agreed by Clearing Member and Customer 

(together, the "Customer-Clearing Member Agreement") and as amended and 

supplemented by these Standard Terms).

STANDARD TERMS:

1. Defined Terms. Terms used but not otherwise defined in these Standard Terms shall 

have the meaning set forth in the Rules or the Procedures, as applicable.

2. Exhibit to Rules. These Standard Terms are published by the Clearing House as an 

Exhibit to the Rules but do not form part of the Rules. Clearing Member and 

Customer agree that any amendments, modifications, restatements or supplements in 

respect of such Exhibit to the Rules (including the withdrawal of any part of these 

Standard Terms) may be effective if made by the Clearing House pursuant to the 

provisions of Rule 109 as if the Exhibit were Rules and as if Rule 109 applied to 

Customers in addition to, and in the same way as it applies to, Clearing Members. At 

the request of Clearing Member or the Clearing House, Customer will enter into a 

written confirmation of the terms of any such amendment, modification, supplement 

or restatement.
150

3. Cleared Transactions.

(a) Clearing Member may designate, by specifying that certain Transactions 

submitted to the Clearing House are to be recorded in a Customer Position 

Account, that certain transactions between Clearing Member and Customer 

shall arise at the same time as related Contracts and shall constitute 

Customer-CM Transactions.

(b) Clearing Member and Customer agree that a Customer-CM Transaction shall 

arise automatically and without further action on the part of Clearing Member 

or Customer as set out in Part 4 of the Rules in respect of the related Contract.

(c) The terms of any Customer-CM Transaction shall, save as contemplated by 

these Standard Terms, be identical to those of the related Contract between 

Clearing Member and the Clearing House (as such Contract may be amended 

from time to time in accordance with the Rules and/or Procedures), except 

that:

(i) if the Clearing Member is the seller under the Contract it shall be the 

buyer under the Customer-CM Transaction and vice versa;

(ii) Customer's recourse against Clearing Member shall be limited and 

Clearing Member's obligations to Customer shall be conditional as 

provided for in Section 8(c) below; 

(iii) Customer-CM Transactions shall also be subject to these Standard 

Terms and the terms of the Customer-Clearing Member Agreement; 

and

(iv) except where a Customer-Clearing Member Agreement provides for 

specific timings in respect of the performance of obligations:

(1) any obligation of the Clearing Member to the Customer shall 

not be required to be performed until a reasonable period has 

passed after the Clearing Member has received equivalent 

performance from the Clearing House; and

(2) any obligation of the Customer to the Clearing Member may be 

required by the Clearing Member to be performed a reasonable 

period in advance of the Clearing Member becoming obliged to 

the Clearing House in respect of an equivalent obligation.

(d) If any Customer-CM Transactions are governed by a Customer-Clearing 

Member Agreement which is not a separate agreement from any master 

agreement applicable to transactions between Clearing Member and Customer 

other than Customer-CM Transactions ("Non-Cleared Transactions"), 

Clearing Member and Customer shall distinguish in their books and records 

Customer-CM Transactions from Non-Cleared Transactions to the extent 

required to enable them to comply with the Rules, the Procedures and these 

Standard Terms.
151

(e) For purposes of the Customer-Clearing Member Agreement, in the event of 

any inconsistency among or between the Customer-Clearing Member 

Agreement, these Standard Terms, the Rules and the Procedures with respect 

to Customer-CM Transactions the following provisions shall prevail in the 

following order: (i) first, the Rules from time to time; (ii) second, subject to 

(m) below, the Procedures from time to time; (iii) third, these Standard Terms 

from time to time; and (iv) fourth, the Customer-Clearing Member Agreement.

(f) Customer agrees with Clearing Member that Customer-CM Transactions shall 

be subject to the provisions of the Rules and the Procedures applicable to 

Customer-CM Transactions as such Rules or Procedures are amended, 

modified, supplemented or restated from time to time. In particular but 

without limitation, Customer hereby agrees that it shall be bound by, shall 

comply with and shall facilitate compliance by Clearing Member with the 

terms and conditions set forth in Parts 5 and 9 of the Rules and Rule 202 in so 

far as they relate to Customer-CM Transactions. 

(g) Customer agrees that publication of a Circular by the Clearing House shall 

constitute valid notice by the Clearing House of any matter under or relating to 

the Rules, the Procedures, Customer-CM Transactions or these Standard 

Terms.

(h) Clearing Member and Customer agree that, save in the circumstances 

contemplated by these Standard Terms and as provided for in any 

Customer-Clearing Member Agreement or other agreement between Clearing 

Member and Customer, each Customer-CM Transaction is intended to reflect 

exactly the operation of the related Contract. In any circumstances in which a 

Contract is netted (in whole or in part), terminated or voided under the Rules, 

the related Customer-CM Transaction will also be netted (in whole or in part), 

terminate or be voided by reference to the same price as the Contract is so 

netted, terminated or voided and a payment in respect of such price may be 

payable between Customer and Clearing Member pursuant to the 

Customer-Clearing Member Agreement or as determined by the Clearing 

Member. Thereupon, Customer and Clearing Member shall have no further 

rights and be under no further liability with respect to such Customer-CM

Transaction(s) (or, if applicable, part thereof) other than in respect of any 

unpaid payments under such Customer-CM Transactions (which shall be 

payable as and when originally payable). Clearing Member may, at its 

discretion, elect to continue an equivalent transaction with Customer as a 

Non-Cleared Transaction. 

(i) In addition, without limiting any rights that Clearing Member may have under 

the Customer-Clearing Member Agreement, if the Clearing House takes any 

step, including but not limited to the following events or actions, or any such 

event or action otherwise occurs (in each case including but not limited to any 

change in Applicable Law or any action taken by any Regulatory Authority 

pursuant to Applicable Law) in relation to a Contract, Clearing Member, at its 

option and discretion, shall be entitled to take equivalent action (or, if it cannot 

take equivalent action, it is not advisable to do so or equivalent action would 

not deal with the matter in hand, other appropriate action) in good faith and in 

a commercially reasonable manner, in relation to the related Customer-CM 
152

Transaction and/or against Customer, including but not limited to terminating, 

and/or modifying the non-economic terms of, such Customer-CM Transaction 

and/or making adjustments to any determination of amounts paid or payable 

under the Customer-Clearing Member Agreement:

(i) imposition of a fine or disgorgement payment pursuant to Part 10, any 

arbitral award or any other payment obligation arising other than 

pursuant to the Contract Terms or Parts 5 or 11 of the Rules, where the 

conduct in question is caused by, or in any way due to, the Customer 

and/or under the Customer-CM Transaction;

(ii) any other event or action the effect of which is to create a material 

mismatch between the rights, obligations or exposures as between 

Clearing Member and the Clearing House pursuant to a Contract on the 

one hand and the rights, obligations or exposures as between Clearing 

Member and Customer, including without limitation pursuant to the 

related Customer-CM Transaction, on the other hand; and

(iii) any other event or action the effect of which is to result in any loss, 

liability, cost, claim, damages or expenses being incurred by Clearing 

Member in connection with a Contract where such event or action does 

not form part of the Contract (and so is not reflected in the related 

Customer-CM Transaction). 

(j) Notwithstanding Section 3(c), Clearing Member and Customer may agree 

different settlement arrangements between Clearing Member and Customer so 

as to accommodate any particular requirements of Clearing Member or 

Customer. 

(k) Any price or rate determined by the Clearing House under the Rules in 

relation to a Contract shall be used as the same price or rate by the Clearing 

Member in relation to the related Customer-CM Transaction(s).

(l) Customer shall not be entitled to serve any type of notice under a 

Customer-CM Transaction in circumstances in which or by means that the 

Clearing Member would not, by virtue of the Rules or Procedures, be entitled 

to serve a corresponding notice on the Clearing House in relation to the 

corresponding Contract. Clearing Member and the Clearing House shall be 

entitled to treat any service of a notice in breach of this provision as invalid.

(m) Clearing Member may, but (subject as otherwise agreed) is not obliged to, 

deliver any electronic notices in relation to Customer-CM Transactions at the 

times allowed under the Rules and Procedures.

(n) These Standard Terms may, pursuant to the process provided for in Section 2 

of these Standard Terms, from time to time, incorporate additional standard 

terms published by the Clearing House so as to establish mechanics for 

dealing with the relationship between Contracts and Customer-CM

Transactions until such time as market infrastructure solutions are available to 

address the relevant operational issues. Such additional standard terms shall 

form part of these Standard Terms, may (if so specified) prevail over the 
153

applicable Procedures in respect of Customer-CM Transactions and may be 

amended and/or withdrawn only as provided for in Section 2 of these Standard 

Terms.

(o) On each date on which the Customer has any open Customer-CM Transaction, 

the Customer shall represent that the Clearing House is not prevented from 

entering into any Contract nor is the Clearing Member prevented from 

entering into any Customer-CM Transaction as a result of any sanctions 

administered or imposed by a Governmental Authority of Singapore, the 

European Union, H.M. Treasury, the United Nations Security Council or any 

other relevant Governmental Authority affecting the Customer or any of its 

assets.

4. Margin Requirements.

(a) Subject as agreed otherwise in the Customer-Clearing Member Agreement, 

Clearing Member shall be entitled to require each of its Customers in respect 

of Contracts to provide margin (or permitted cover in respect thereof) in an 

amount no less than the amount of Margin of each relevant type required on a 

gross basis by the Clearing House with respect to the relevant Open Contract 

Position(s) for its Customer Account. For this purpose, "gross basis" shall 

mean that the margin requirement will be determined giving effect to any 

offset permitted under the Rules of such Open Contract Positions against Open 

Contract Positions relating to the same Set and Customer in such Customer 

Account, but without giving effect to any offset or permitted offset of such 

Open Contract Positions against Open Contract Positions relating to a different 

Customer.

(b) Customer agrees that Clearing Member may use any margin provided by 

Customer under the Customer-Clearing Member Agreement to satisfy 

Clearing Member's obligations to the Clearing House under Rule 504 or 

Part 11. Customer shall not be entitled to assert any equitable or other claim 

to any such collateral and/or Permitted Cover that has been transferred to the 

Clearing House except as required under the SFA and the SF(CF)R, including, 

without limitation, any trust obligation on the Clearing House arising pursuant 

to Regulation 23(3) of the SF(CF)R. Where Clearing Member uses margin 

other than that provided by Customer under the Customer-Clearing Member 

Agreement to satisfy Clearing Member's obligations to the Clearing House 

under Rule 504 in relation to a Contract where Customer is party to the related 

Customer-CM Transaction, Customer shall provide Customer-margin of the 

same value to Clearing Member within a reasonable period.

(c) Customer consents to the Clearing House acting as agent and/or attorney for 

the Clearing Member pursuant to Rule 301(e) or any Clearing Membership 

Agreement and, without prejudice to the rest of the Rules and Procedures, 

Customer acknowledges and agrees to Rule 505 which Rule shall be 

incorporated into these Standard Terms mutatis mutandis.
154

5. Events of Default and Termination. 

(a) In the event of the declaration by the Clearing House of an Event of Default 

(as defined in the Rules) with respect to Clearing Member (such an event 

being an "ICE-Declared Default"), whether or not any other default 

(howsoever defined or described) has also occurred under the 

Customer-Clearing Member Agreement or otherwise, Customer shall not be 

entitled to exercise any remedies with respect to Customer-CM Transactions 

pursuant to the Customer-Clearing Member Agreement or otherwise, except as 

provided herein (and any other remedies being exercised at the time of the 

declaration of such ICE-Declared Default shall cease and be superseded by the 

applicable provisions of these Standard Terms).

(b) If an ICE-Declared Default occurs at a time when Clearing Member has not 

already terminated the relevant Customer-CM Transactions by reason of the 

occurrence of an event of default or termination event relating to Customer, 

Clearing Member may not take any action against Customer that may interfere 

with the Default Portability Rule resulting in Customer discharging its 

obligations to Clearing Member as provided for in Section 6(e) below. Save 

for such restriction, nothing in these Standard Terms will limit Clearing 

Member's remedies under the Customer-Clearing Member Agreement in 

respect of Customer-CM Transactions if an event of default or termination 

event (or similar concept) with respect to Customer occurs under the 

Customer-Clearing Member Agreement. 

6. Post-default Portability; Termination and Valuation of Cleared Transactions.

(a) Customer shall indicate to Clearing Member in such manner as the Clearing 

House may direct:

(i) Customer's preference as to whether, in the event of an ICE-Declared 

Default, it would prefer the Clearing House to apply the Default 

Portability Rules and related processes to the Customer's 

Customer-CM Transactions and related Contracts; and 

(ii) its Default Portability Preference.

Any Default Portability Preference notified by Customer must apply to all 

Customer-CM Transactions with Clearing Member. Any such Default 

Portability Preference by Customer may be amended by notice to Clearing 

Member (who will, in turn, notify the Clearing House in accordance with the 

Rules and the Procedures), at any time prior to the occurrence of an 

ICE-Declared Default in respect of Clearing Member or, at the discretion of 

the Clearing House, by notice directly to the Clearing House in accordance 

with the Rules and the Procedures, following the occurrence of such an 

ICE-Declared Default. 

(b) Unless it has notified the Clearing Member and Clearing House in writing to 

the contrary, Customer hereby consents and agrees that, in the event of an 

ICE-Declared Default, whether or not Customer has specified a Default 

Portability Preference, the Clearing House shall be entitled (but shall not be 
155

obliged) to apply the Default Portability Rules with respect to Contracts to 

which Clearing Member and Customer's Customer-CM Transactions relate, 

including by taking any of the following steps:

(i) transferring, assigning, selling or novating Customer-CM Transactions 

(and related Contracts) to any Transferee Clearing Member;

(ii) terminating Customer-CM Transactions (and related Contracts) and 

arranging for the entry into of new replacement Customer-CM 

Transactions (and related Contracts) with any Transferee Clearing 

Member (by way of novation or otherwise); and/or

(iii) transferring Margin (in such amount as the Clearing House may 

determine) credited to the Customer Margin Account of Clearing 

Member to the Customer Margin Account of the Transferee Clearing 

Member and, if such a transfer occurs, Clearing Member's obligations 

to Customer in respect of the transferred Margin shall be fully 

discharged.

(c) In the event that the Clearing House arranges for a replacement Contract and 

related Customer-CM Transaction pursuant to Section 6(b)(ii), the 

Customer-CM Transaction with the Transferor Clearing Member shall be 

deemed terminated at the same time that the replacement Contract and related 

Customer-CM Transaction is entered into. Customer shall take no action, 

including but not limited to attempting to obtain a court order, that could 

interfere with the ability of the Clearing House to take action contemplated by 

Part 9 of the Rules, including, without limitation, the Transfer of Contracts 

and Customer-CM Transactions, the transfer of any related Margin or other 

collateral or cover (or contingent cover) for the same or the imposition of the 

Transferee Clearing Member's form of Customer-Clearing Member 

Agreement where so permitted under the Default Portability Rules. 

(d) Customer hereby appoints the Clearing House as its lawful agent and 

attorney-in-fact to take such actions on behalf of the Customer as the Clearing 

House determines necessary or appropriate in order to effect the Default 

Portability Rules with respect to Customer's Customer-CM Transactions and 

the Customer Margin Account, including executing any document or 

instrument with respect to the Transfer or replacement of the Customer-CM

Transaction and/or exercising rights and remedies to terminate or Transfer 

Customer-CM Transactions, including (without limitation) the execution of 

any Transfer, or the exercise of any termination notice or the transfer of 

amounts recorded in the Customer Margin Account. Such appointment shall 

not be revoked by Customer. Customer shall take such actions as the Clearing 

House and/or a Transferee Clearing Member may request to give full effect to 

the Default Portability Rules, including without limitation execution of 

documentation confirming or agreeing to any terms specified by Transferee 

Clearing Member pursuant to Rule 904(j).

(e) In connection with any Transfer of Customer-CM Transactions pursuant to the 

Default Portability Rules, any termination payments owed between Customer 

and Clearing Member in respect of the relevant Customer-CM Transactions 
156

(determined in accordance with the Rules and the provisions of the 

Customer-Clearing Member Agreement), any termination payments owed 

between Clearing Member and the Clearing House in respect of the related 

Contracts (which in each case shall be determined by the Clearing House 

pursuant to its default rules), any upfront variation margin payments owed 

between Customer and the Transferee Clearing Member with respect to the 

initiation of the replacement cleared transactions and any upfront Variation 

Margin payments owed between such Transferee Clearing Member and the 

Clearing House with respect to the initiation of replacement Contracts shall be 

equal. 

(f) In the event of an ICE-Declared Default: 

(i) There will be a minimum 4-hour period, after issuance by the Clearing 

House of a Circular including a Default Notice naming a Clearing 

Member, for Customers and their Transferee Clearing Members to 

notify the Clearing House of their agreement that Contracts and/or 

Margin can be Transferred to a Transferee Clearing Member pursuant 

to the Default Portability Rules ("Porting Notice"). Any Porting 

Notice, in order to be valid, must:

(A) [Not used.]

(B) concern and be duly authorised and executed by a Customer 

who would not, if it were a Clearing Member, be capable of 

being declared a Defaulter;

(C) concern and be duly authorised and executed by a Transferee 

Clearing Member who is not a Defaulter;

(D) be delivered to the Clearing House electronically in the form 

and to the address specified by the Clearing House;

(E) concern positions which have not already been closed out or 

Transferred; and

(F) otherwise comply with the requirements of Part 9 of the Rules.

Subject to Rule 904(c), the Clearing House will act upon Porting Notices 

received by it within the 4-hour period specified above. The Clearing House 

may also act upon other Porting Notices received by it after the end of such 

period, at its discretion. However, Customers and Transferee Clearing 

Members acknowledge that due to operational constraints and depending on 

market conditions, it may not be possible for the Clearing House to process all 

Porting Notices (whether received within the 4-hour period or thereafter) 

within a reasonable period of time. Porting Notices received within the initial 

4-hour period will be prioritised over any other notice. The Clearing House 

may select Porting Notices to be dealt with in such order as it sees fit, based 

on such criteria as it determines are relevant, including completeness and due 

execution of Default Notices, legibility, time of receipt, size of positions, 

lawfulness of porting, Customer jurisdiction of incorporation or place of 
157

business, whether risk increasing or risk decreasing and satisfaction of the 

requirements of Part 9 of the Rules. The Clearing House will not be obliged to 

comply with any Porting Notice which has not been acted upon by it:

(A) if the Default Notice was issued before 13:00 hrs on a Business Day 

prior to the close of business on the same Business Day;

(B) if the Default Notice was issued on a day which is not a Business Day 

prior to close of business on the next following Business Day; or

(C) if the Default Notice is issued after 13:00 hrs on a Business Day prior 

to noon of the next following Business Day.

At the end of this period, the Clearing House may, at its sole discretion, 

terminate any open Contracts and related assets of the Defaulter or undertake 

other Transfers under consents provided for in the Rules and these Standard 

Terms. The deadlines for the delivery of prioritised Porting Notices or for the 

Clearing House to act upon any Porting Notices may be extended at the 

Clearing House's discretion by Circular. If, as of the end of the period for 

acting upon Default Notices, any Customer-CM Transactions have not been 

Transferred pursuant to the Default Portability Rules, such Customer-CM 

Transactions shall be deemed terminated, and in such case an early 

termination date (or similar concept) in respect of the Customer-CM 

Transactions shall occur under the Customer-Clearing Member Agreement, on 

the applicable date on which the Clearing House terminates the related 

Contracts pursuant to Part 9 of the Rules. 

(ii) Notwithstanding anything to the contrary in the Customer-Clearing 

Member Agreement or any other agreement or arrangement between 

Clearing Member and Customer, the amount payable pursuant to the 

Customer-Clearing Member Agreement in respect of the termination of 

the Customer-CM Transactions shall be determined on the basis of the 

termination value calculated by the Clearing House for the 

corresponding Contracts pursuant to Part 9 of the Rules but subject 

always, in the case of amounts due from Clearing Member, to 

Section 8(c) below. Customer hereby agrees and acknowledges that 

any determination made by the Clearing House with respect to the 

termination value of a Contract or a Customer-CM Transaction shall be 

conclusive and binding upon Customer for this purpose to the same 

extent that any 'net sum' declared by the Clearing House is conclusive 

and binding on Clearing Member. The obligation of a Clearing 

Member to a Customer under a Customer-CM Transaction shall be 

discharged to the extent that the Clearing House makes payment of any 

net sum or any part thereof direct to the Customer.

(iii) Customer acknowledges and agrees that the allocation and, subject to 

Applicable Law, return of available amounts in the relevant Customer 

Margin Account shall be governed by Part 9 of the Rules, which may 

reduce or defer Clearing Member's obligations to Customer.
158

(g) For the avoidance of doubt, nothing in these Standard Terms shall prevent 

other amounts being due and payable between Clearing Member and 

Customer as provided for in the Customer-Clearing Member Agreement. 

7. Consents to Disclosure. 

(a) Customer hereby consents to:

(i) the Clearing House having the right to obtain information in relation to 

the Customer-CM Transactions from any Market so as to enable the 

Clearing House to identify which Contracts and Margin or Permitted 

Cover between the Clearing House and Clearing Member relate to such 

Customer-CM Transactions;

(ii) Clearing Member making any disclosures in connection with Customer 

and Customer-CM Transactions as are required by the Rules and/or 

Procedures or as are required by Applicable Law;

(iii) disclosures to, use by and disclosures by the Clearing House of 

information relating to Customer (including the Personal Data of its 

Data Subjects) pursuant to Rule 106; and

(iv) submissions of and other actions relating to data concerning 

Customer-CM Transactions by the Clearing House pursuant to 

Section 12, the Rules and the Procedures. 

8. Certain Limitations. 

(a) Customer agrees and acknowledges for the benefit of the Clearing House and 

Clearing Member that: (i) the liability of the Clearing House to Customer 

shall be excluded and limited as set forth in Rule 111 and specifically that the 

Clearing House shall have no liability or obligation to Customer in respect of a 

Customer-CM Transaction or otherwise nor shall it have any duty of care 

directly to Customer, in any case whether in tort, contract, restitution, in 

respect of any Contract, pursuant to the Rules, pursuant to a Clearing 

Membership Agreement, pursuant to these Standard Terms or otherwise, save 

for any liability which by law may not be excluded, (ii) in no event shall 

Customer attempt to interfere with the ability of the Clearing House to 

exercise its rights hereunder or as set forth in the Rules, the Procedures or any 

Clearing Membership Agreement, and (iii) it is not entitled to, and will not, 

petition a court or take any action or commence any proceedings against the 

Clearing House, directly or indirectly and will if any such action is taken fully 

indemnify the Clearing House against any costs, losses or other consequences 

of Customer taking any such action. Customer agrees that Clearing Member 

acts as principal at all times in all its Contracts with the Clearing House.

(b) The Clearing House shall have no responsibility for the compliance by 

Clearing Member or Customer with its obligations under a Customer-Clearing 

Member Agreement. The Clearing House shall be under no obligation to

enquire into, and shall be fully protected in relying on, any instructions or 

directions with respect to a Customer Account or the assets recorded therein or 
159

transferred thereto or therefrom under the Rules received from a Person that 

the Clearing House believes to be authorised to act on behalf of Clearing 

Member.

(c) Customer agrees and acknowledges that the performance and payment 

obligations of Clearing Member to Customer are limited by and contingent on 

the actual performance or payment by the Clearing House under the related 

Contract and that Clearing Member shall have no responsibility for the 

compliance by the Clearing House (or any person other than that Clearing 

Member) with its obligations, including without limitation, under any

Contract, the Rules or the Procedures. In the event that the Clearing House 

defaults in or defers or varies the payment or performance of any obligation 

otherwise owed by it in respect of a Contract corresponding to a 

Customer-CM Transaction (including, without limitation, any shortfall in 

repayment of Permitted Cover or any recovery of less than 100% of amounts 

owed by the Clearing House or property provided to the Clearing House in 

circumstances in which Rule 912 applies), Clearing Member will be entitled to 

make a corresponding deduction, withholding or other reduction from, or 

tolling or deferring of, any payment or performance otherwise owed by it 

under such corresponding Customer-CM Transactions and/or to make its 

performance under such Customer-CM Transactions conditional on 

performance by the Clearing House under the related Contract (and where any 

such deduction may be attributable to both Customer-CM Transactions and to 

Customer Account Contracts of other Customers, Clearing Member shall 

allocate such deduction among such contracts on a pro rata basis) provided 

that if such defaulted or delayed payment or performance is subsequently 

obtained by Clearing Member from the Clearing House (in whole or in apart), 

Clearing Member shall thereupon make the corresponding payment or 

performance (or portion thereof) to Customer.

9. Certain Tax Matters. 

Subject always, and without prejudice, to any provisions of a Customer-Clearing 

Member Agreement: (i) if Clearing Member is required to pay to Clearing House any 

additional amount under Rule 301(j) or the Contract Terms with respect to a Contract

corresponding to a Customer-CM Transaction, Customer shall be obliged to pay to 

Clearing Member an amount equal to such additional amount (or the applicable 

portion thereof), but without duplication of any additional amount payable by 

Customer under any relevant provision of the Customer-Clearing Member 

Agreement, (ii) for the avoidance of doubt, and without prejudice to the above, if 

Clearing House deducts or withholds any amount otherwise payable to Clearing 

Member on a Contract pursuant to Rule 301 or the Contract Terms, Clearing Member 

shall be entitled to make a corresponding deduction from any amount otherwise 

payable by Clearing Member to Customer under a corresponding Customer-CM 

Transaction, and (iii) where such additional amount or deduction may be attributable 

to both Customer-CM Transactions and to Customer-CM Transactions of other 

customers, Clearing Member shall allocate such additional amount or deduction 

among such contracts on a pro rata basis.
160

10. Reliance on Transactions etc.

The Clearing House shall be entitled to assume, without enquiry, that at each 

Acceptance Time at which a Customer-CM Transaction arises, the respective 

obligations of Clearing Member and Customer under such Customer-CM Transaction 

constitutes its legal, valid and binding obligations enforceable in accordance with 

their respective terms, subject to applicable bankruptcy, reorganisation, insolvency, 

moratorium or similar laws affecting creditors' rights generally and subject, as to 

enforceability, to equitable principles in general application (regardless of whether 

enforcement is sought in a proceeding in equity or at law). The sole remedy of 

Customer in the case of any error shall be to request that Clearing Member request the 

Clearing House to amend or correct any error pursuant to the Rules or Procedures.

11. Third Party Rights. 

The Clearing House shall be entitled to rely upon and enjoy the benefit of the 

representations, warranties, agreements, obligations and covenants of the Customer 

under these Standard Terms and shall have the right to enforce such representations, 

warranties, agreements, obligations and covenants against the parties under the 

Contracts (Rights of Third Parties) Act (Chapter 53B of Singapore). Other than as set 

out in this Section 11, no persons other than Clearing Member and Customer shall 

have the right to enforce any provision of these Standard Terms under the Contracts 

(Rights of Third Parties) Act (Chapter 53B of Singapore) or otherwise.

12. Miscellaneous.

(a) Intellectual Property. Customer agrees to the representation, warranty and 

undertaking specified in Rule 406(g).

(b) Entire Agreement. These Standard Terms (together with the 

Customer-Clearing Member Agreement and the Rules and the Procedures 

incorporated by reference herein) constitutes the entire agreement and 

understanding of Customer and Clearing Member with respect to its subject 

matter and supersedes all oral communication and prior writings (except as 

otherwise provided herein) with respect thereto.

(c) Headings. The headings used in these Standard Terms are for convenience of 

reference only and are not to affect the construction of or to be taken into 

consideration in interpreting these Standard Terms.

(d) Governing Law. Any contractual or non-contractual disputes arising out of or 

in connection with the Customer-Clearing Member Agreement are governed 

by and shall be construed in accordance with the law specified in the 

Customer-Clearing Member Agreement and subject to the non-exclusive 

jurisdiction of the courts specified in the Cleared Transactions Master 

Agreement provided that: (i) Sections 6(d) and 11 of these Standard Terms 

shall be governed by and shall be construed in accordance with the laws of 

Singapore and are subject to arbitration under Rule 117 as if such provisions 

of these Standard Terms were Rules and the parties were bound thereby as if 

they were both Clearing Members, notwithstanding any choice of law or 

jurisdiction in the Cleared Transactions Master Agreement; and (ii) each 
161

provision of the Rules and the Procedures incorporated by reference herein or 

in the Customer-Clearing Member Agreement shall be governed by and 

construed in accordance with the laws of the Republic of Singapore. Clearing 

Member and Customer hereby irrevocably waive any right to object to any 

such proceedings on the basis of forum non conveniens or otherwise. 
162

EXHIBIT 3

[Not used.]
163

EXHIBIT 4

[Not used.]
ICE Clear Singaporesm

Finance Procedures 
SIDOCS01/117455.7 i 

Table of Contents 

1. General ..................................................................................................................................................... 1

2. Cash Collateral ......................................................................................................................................... 1

3. [Not Used.] ............................................................................................................................................... 1

4. Assured Payment System: Accounts ........................................................................................................ 1

5. Assured Payment System: Procedures ..................................................................................................... 2

6. Payments to and from the Clearing House ............................................................................................... 3

7. Custody Accounts .................................................................................................................................... 8

8. Permitted Cover: Securities ...................................................................................................................... 9

9. [Not Used.] ............................................................................................................................................... 9

10. [Not Used.] ............................................................................................................................................... 9

11. Settlement Procedures for Non-Cash Collateral ....................................................................................... 9

12. [Not Used.] ............................................................................................................................................. 11

13. Risk Management ................................................................................................................................... 11

14. Guaranty Fund Parameters and Restrictions .......................................................................................... 13

15. Clearing House Contributions ................................................................................................................ 13
SIDOCS01/117455.7 1 

1. GENERAL 

1.1 These Finance Procedures are 'Procedures' as defined in the ICE Clear Singapore rules (the "Rules") 

and are subject to the Rules, including, without limitation, Rule 102. These Finance Procedures, and 

all non-contractual obligations arising out of or in connection with them, are governed by and shall be 

construed in accordance with Singapore law, and any Dispute arising under these Finance Procedures 

will be subject to arbitration under Rule 117. These Finance Procedures set out details on how 

Clearing Members’ financial obligations are met, including the provision of cash and securities to the 

Clearing House. 

1.2 The Clearing House will execute and initiate a range of financial transactions on a daily basis to 

manage Clearing Members’ requests, rights, liabilities and obligations. Such transactions will result in 

payments being made to cover Margin obligations and to pay fees, among others. ICE Clear Singapore 

has established a network of Approved Financial Institutions for this purpose. This is also known as 

the "Assured Payment System" or "APS". 

2. CASH COLLATERAL 

2.1 The Clearing House will support transactions and account holdings in four currencies: USD, EUR, 

SGD and CNH. Original Margin obligations may be met only in these currencies. Other currencies 

may be used by Clearing Members only for the receipt of income on non-cash Permitted Cover with 

coupons payable in those currencies. CNH may also be used for settlement payments or Variation 

Margin payments only for Contracts which settle in CNH (whether in whole or in part). 

2.2 The Clearing House supports cross currency collateral, which means that it is not necessary to cover 

Margin requirements in the same currency as the underlying Contract (other than Variation Margin in 

accordance with Rule 502(c)). The relevant exchange rates (or methodology concerning exchange 

rates) to be applied in such circumstances shall be specified in ECS or otherwise published by the 

Clearing House by Circular, or in the event that such exchange rate is not available, such other 

reasonable exchange rate as determined by the Clearing House. The Clearing House may impose a 

"haircut" on any Original Margin provided in a currency other than the reference currency to cover 

fluctuations in exchange rates. Applicable exchange rate haircuts will be published from time to time 

by Circular. 

3. [NOT USED.] 

4. ASSURED PAYMENT SYSTEM: ACCOUNTS 

4.1 Each Clearing Member must, as a minimum, maintain the following accounts at one or more Approved 

Financial Institutions: 

(a) up to three Nominated Proprietary Bank Accounts (also known as 'house' accounts) linked to 

each Proprietary Account, denominated in up to one each of USD, EUR, SGD and CNH as 

follows: 

(i) all Clearing Members must have an account denominated in USD; 

(ii) a Clearing Member that transfers non-cash Permitted Cover to the Clearing House 

which pays a coupon, interest or redemptions must have an account in the currency 

of such coupon, interest or redemption; and 

(iii) a Clearing Member which has an Open Contract Position in a contract for which 

CNH is a settlement currency must have an account denominated in such currency; 

and 
SIDOCS01/117455.7 2 

(b) additional Nominated Customer Bank Accounts (also known as ‘client' accounts), one for 

each currency used by it for its Customer Account, based on the same principles as set out in 

Paragraphs 4.1(a)(i) to (iii). 

4.2 [Not used.] 

4.3 Nominated Proprietary Bank Accounts and Nominated Customer Bank Accounts must be accounts at 

Approved Financial Institutions but need not all be at the same Approved Financial Institution. 

4.4 [Not used.] 

4.5 The Clearing House’s Extensible Clearing System ("ECS") will be used for payments. Successful 

applicants for membership status will be issued with log-ins and given training in the use of ECS. ECS 

will be used by Clearing Members to give instructions in respect of certain transactions relating to the 

transfer of cash and securities to the Clearing House and, when there is excess Permitted Cover in place 

and when requested by the Clearing Member, to the Clearing Member. The Clearing House will be 

entitled to act upon instructions made through ECS by the Clearing Member or any of its 

Representatives. The accounts described in Paragraph 4.1 are the only accounts that may be used for 

day-to-day transfers to and from the Clearing House through ECS. 

4.6 The Clearing House operates Clearing House Accounts in each of the currencies at each Approved 

Financial Institution and separately for each Customer Account and Proprietary Account of Clearing 

Members. Such separation by the Clearing House is undertaken to comply with Applicable Laws and 

provide administrative benefits to Clearing Members. Upon an Event of Default being declared, 

amounts in all Proprietary Accounts of a Clearing Member may be combined and set off, and amounts 

relevant to a single separate Customer Account may be combined and set off with one another but not 

with any other Account, as set out in the Rules. 

4.7 Additionally, the Clearing House will hold Clearing House Accounts at a Concentration Bank in order 

to facilitate transfers between accounts at Approved Financial Institutions. 

5. ASSURED PAYMENT SYSTEM: PROCEDURES 

5.1 Each Clearing Member will be required to have in place at all times a standard debit mandate, allowing 

the Clearing House to call funds from its Nominated Bank Accounts, established in the relevant 

Approved Financial Institution’s standard form ("Third Party Authority Form"). Pursuant to the 

Clearing Membership Agreement, each Clearing Member must at all times have in place a duly 

executed Third Party Authority Form in favour of each Approved Financial Institution used by it and in 

respect of each of its Nominated Bank Accounts. Pursuant to Clearing Membership and arrangements 

between the Clearing House and Approved Financial Institutions, the Clearing House is given various 

powers, including to take any action as it in its discretion determines in the Clearing Member’s or the 

Clearing House’s name in connection with a Clearing Member’s Nominated Bank Accounts. 

Approved Financial Institutions will act upon any instructions received from the Clearing House in 

relation to the Nominated Bank Accounts without any further reference to, or authority from, a 

Clearing Member. 

5.2 Changes in APS account details must be notified at least five Business Days in advance. 

5.3 It is the responsibility of each Clearing Member to have sufficient funds in its Nominated Bank 

Accounts to enable all cash transfers required under the Rules to be settled. Approved Financial 

Institutions will not be able to reverse any payment from or to a Clearing House Account without 

receipt of authorisation from the Clearing House evidenced in writing. 

5.4 Clearing Members will be advised of debits from or credits to their physical accounts by the standard 

SWIFT advices of debit and credit (MT900 and MT910 respectively) or otherwise in accordance with 

arrangement established with Approved Financial Institutions. 
SIDOCS01/117455.7 3 

5.5 Clearing Members must ensure that Approved Financial Institutions make payment to the Clearing 

House Account at the relevant Approved Financial Institution within the time periods specified in 

Table 1. The Clearing House will notify all affected Approved Financial Institutions if a contingency 

method is to be invoked. In the event that no payment notification is received from an Approved 

Financial Institution by the time specified in Table 1, the Clearing House will be permitted to act as if 

the funds have not and will not be received, which includes the declaration of an Event of Default in 

respect of any affected Clearing Member. In such circumstances, the Clearing House will use its 

reasonable endeavours to determine the cause of the late notification with the relevant Approved 

Financial Institutions. The remittance of funds remains at all times the responsibility of Clearing 

Members. The Clearing House may otherwise treat funds as not having been received and take similar 

actions as a result of Rule 301(f). In the case of the failure or Insolvency of an Approved Financial 

Institution used by a Clearing Member in circumstances in which an amount is not treated as having 

been paid as a result of Rule 301(f), the amount must still be paid (through a further payment, if 

necessary) by a Clearing Member using alternative methods or a different Approved Financial 

Institution, in order to discharge the Clearing Member's liabilities. 

5.6 If the Clearing House has been transferred excess cash (beyond applicable Margin requirements) by 

any Clearing Member, the Clearing Member in question is entitled to request repayment through ECS, 

either on an ad hoc basis or automatically on a daily or other regular basis. Such repayments will take 

place through the same systems and accounts as for payments to the Clearing House. 

TABLE 1: TIME PERIODS FOR DELIVERY OF FUNDS AND SWIFT MT900/MT910 

Type of Instruction Time for Receipt of Instruction Latest time for APS Bank to make payment 

of amount specified in Instruction and send 

SWIFT MT900/MT910 

Routine End-of-day 

Instruction 

On or after 00:00:00 Singapore 

Time on Business Day X+1 but on 

or before 08:59:59 on Business 

Day X+1 

Before 10:00:00 Singapore time on Business 

Day X+1 

Intra-day Instruction 

(contingency) 

On or after 10:00:00 on Business 

Day X but on or before Cut-Off 

Time on Business Day X 

Within one hour of instruction on Business 

Day X 

6. PAYMENTS TO AND FROM THE CLEARING HOUSE 

6.1 General 

(a) [Not used.] 

(b) Pursuant to Part 3 of the Rules, payments between the Clearing House and a Clearing Member 

may be set off and consolidated into end-of-day or ad hoc payments in respect of each 

Account. Adjustments in Margin calls resulting from price changes in underlying open 

Contracts will result in either a payment from the Clearing Member’s relevant Nominated 

Bank Account by direct debit or a payment from a Clearing House Account to a Clearing 

Member’s relevant Nominated Bank Account. Margin payments are combined with all other 

amounts due and payable pursuant to the Rules and discussed further in this Paragraph. 

(c) Payments will be executed as an intra-APS-bank, between accounts, book transfer from the 

relevant Nominated Bank Account to a Clearing House Account at the same Approved 

Financial Institution. Payment into Clearing Members’ relevant Nominated Bank Accounts 

will generally take place through a similar book transfer. However, if insufficient funds are 

available within the relevant Clearing House Account at that Approved Financial Institution, 
SIDOCS01/117455.7 4 

the remaining balance may be transferred from a relevant Clearing House Account at another 

Approved Financial Institution or Approved Financial Institutions. 

(d) In ECS, Clearing Members have the ability to set standing instructions to return all funds 

above applicable Margin requirements or above a threshold (if higher). Such standing 

instructions can only be set for cash collateral. 

(e) If a Clearing Member has not established standing instructions in ECS, it may manage its cash 

accounts by giving manual instructions. An increase in cash positions through ECS will result 

in a direct debit from the relevant Nominated Bank Account of the Clearing Member. A 

reduction in cash positions will result in a payment from a Clearing House Account to one of 

the Clearing Member’s Nominated Bank Accounts. ECS does not permit requested reductions 

or standing instructions to result in a Clearing Member holding any positions below applicable 

Margin and Guaranty Fund Contribution requirements. 

All cash instructions should be instructed before: 

Currency Instruction deadline 

EUR Before 12:00 Singapore time 

USD Before 12:00 Singapore time 

SGD Before 12:00 Singapore time 

CNH Before 12:00 Singapore time or as 

specified in the Delivery Procedures, as 

applicable 

(f) Withdrawals entered after these deadlines will be executed in the end-of-day process unless 

required to cover liabilities before the end-of-day process. Clearing Members are still able to 

enter cash deposits for value next day. These requests need to be entered and approved by 

Clearing Members prior to end-of-day, but will only be accepted by the Clearing House on the 

following morning. Following acceptance by the Clearing House, the changes will take effect 

immediately. The Clearing House may require any Clearing Member to reduce excess cash 

on account with the Clearing House or may specify that excess cash on account above a 

certain threshold does not receive interest. 

(g) Overnight payments must be made to the Clearing House at or before 10:00 on the morning 

following a call. Ad hoc payments must be made within one hour of an instruction being 

issued by the Clearing House through ECS. In relation to overnight pending transactions, any 

withdrawals or deposits instructed after the relevant deadline will be rejected by ECS. 

(h) The Clearing House will not provide Clearing Members with any specific notifications or 

confirmations after the execution of a cash movement. Clearing Members may instead find 

details of all instructions in daily and other reports available through the ECS graphical user 

interface (or "GUI"). After execution, the status of an instruction within ECS will change 

from ‘pending’ to ‘processed’. 

(i) The following sections describe the various payments that may be included in any cash 

transfer: 

(i) Variation Margin 

Daily Calls: Pursuant to Rule 503, all Contracts will be revalued and subject to 

Variation Margin calls on a daily basis for settlement on the same-day in accordance 

with Table 1. Variation Margin requirements are calculated and settled only in cash. 

Adjustments will be calculated and payments will ordinarily be executed in the 
SIDOCS01/117455.7 5 

currency of the relevant Contracts (or underlying Contracts). Liabilities resulting 

from Variation Margin requirements will be included in the overnight call or return. 

Intra-day Calls: Contracts may also be marked to market and subject to an additional 

Variation Margin call (the proceeds of which may be applied against future Variation 

Margin calls) on an ad hoc intra-day basis. Affected Clearing Members will be 

informed (not in writing) by the Clearing House in the event of an intra-day call 

being applicable. If the call affects a significant number of Clearing Members, the 

Clearing House may issue a Circular. Intra-day calls will be executed via a direct 

debit from the Clearing Member’s Nominated Bank Account at an Approved 

Financial Institution. Payment must be made within one hour. Intra-day calls will 

only be in USD. 

(ii) Original Margin 

Daily Calls: Pursuant to Part 5 of the Rules, Original Margin requirements will be 

recalculated on a daily basis. Requirements will be calculated and payments will 

ordinarily be executed in the currency of the relevant Contracts (or underlying 

Contracts). Liabilities resulting from Original Margin requirements will be included 

in the overnight call or return. 

Intra-day Calls: Original Margin may also be subject to ad hoc intra-day 

recalculations and calls. Affected Clearing Members will be informed (not in 

writing) by the Clearing House in the event of an intra-day call being applicable. If 

the call affects a significant number of Clearing Members, the Clearing House may 

issue a Circular. Intra-day Original Margin calls will be executed via a direct debit 

from the Clearing Member’s Nominated Bank Account at an Approved Financial 

Institution. Payment must be made within one hour. Intra-day calls will only be in 

USD. 

As explained in the Clearing Procedures, in the event that an intra-day Margin call is 

anticipated, the Clearing House will contact the Clearing Member by phone to notify them of 

the requirement. This will be followed by written notification distributed by email. Intra-day 

Margin calls can be made between 10:00 and 18:00 Singapore Time and must be met within 

60 minutes of notification by the Clearing House. Clearing Members will be able to answer 

the call by reducing positions (e.g. reallocation of trades/clearing give-ups) or submitting new 

cash and/or collateral. Margin calls are rounded to the smallest currency unit (e.g. US dollar 

cents). 

(iii) Guaranty Fund adjustments 

Each relevant Guaranty Fund Period, the total value of the Guaranty Funds and 

required Guaranty Fund Contributions of Clearing Members are reviewed and may 

be amended. Each Clearing Member will be notified of its total Guaranty Fund 

Contribution requirements at each Guaranty Fund Period end by Circular. The 

Clearing House Contributions will also be notified to Clearing Members. 

Adjustments to Guaranty Fund Contributions will be notified to individual Clearing 

Members by e-mail to a nominated e-mail account of each Clearing Member the 

Business Day after the end of the relevant Guaranty Fund Period. Adjustments will 

be made ten Business Days after the date of notification unless the relevant Circular 

specifies otherwise. Other than in exceptional circumstances, any additional required 

Guaranty Fund Contribution payments will be included together with overnight calls 

and details will be included in daily reports provided to Clearing Members through 

ECS. 
SIDOCS01/117455.7 6 

(iv) Interest 

The Clearing House will notify Clearing Members of its interest rate in each currency 

on the Business Day following the day to which the rate applies. The Clearing House 

rates payable on Original Margin are referred to as the ICE Deposit Rate (IDR). 

Payments of interest will be made to Clearing Members in respect of cash, assets and 

securities held by the Clearing House as Margin, Guaranty Fund Contributions or 

Permitted Cover. The rate of return may vary for different cash and asset classes and 

between types of cover. The IDR and accumulated interest over each month will be 

available to Clearing Members through the ECS-GUI. 

Interest will be calculated on a simple daily basis and will become available for 

payment to Clearing Members, subject to any required deduction or withholding tax, 

monthly, by the fourth Business Day after the end of each month. Once credited, the 

interest is available to meet Margin payments or may be withdrawn by Clearing 

Members. If used to meet Margin payments, the interest then itself becomes eligible 

to accrue interest. 

(v) Income (interest and collateral) and redemption 

The Clearing House will make payment to Clearing Members in respect of income 

and redemptions on non-cash assets transferred to the Clearing House as Margin, 

Guaranty Fund Contributions or Permitted Cover. Distributions will be executed 

direct to the Clearing Member by the relevant custodian pursuant to a standing 

instruction made by the Clearing House based on account information provided by 

the Clearing Member. Clearing Members are required to provide account details in 

relation to accounts in all applicable currencies to the Clearing House. Changes in 

account details must be notified at least five Business Days in advance. 

Payments in respect of income on non-cash assets will be paid to Clearing Members 

in the same currency as the income is distributed by the relevant issuer or payment 

agent to the Clearing House or the relevant custodian. Any required foreign 

exchange transaction following payment must be arranged by the Clearing Member 

and the costs of the same must be met by the Clearing Member. No currency 

exchange will be arranged by the Clearing House or its custodian. 

If there is a failed payment in respect of income or redemption (e.g. as a result of 

account details being unavailable or incorrect), income may be retained by the 

Clearing House or custodian but will not be treated by the Clearing House as 

Permitted Cover. The Clearing House makes no representation or warranty to 

Clearing Members in respect of the promptness of payment by any issuer or payment 

agent, the custodian or any of its sub-custodians or agents (save for any liability 

which by Applicable Law may not be excluded). 

(vi) Fees and rebates 

All Market fees, Clearing House fees, delivery fees and other fees payable to the 

Clearing House or a Market will be calculated and charged to each Clearing Member 

as such fees accrue (typically on a monthly basis). 

Rebates, fee discounts and incentive program payments which have been directed by 

the payee or beneficiary to be paid to the account of a Clearing Member will be 

calculated and credited to the relevant account of the Clearing Member as such 

rebates, fee discounts and incentive program payments accrue (typically on a 
SIDOCS01/117455.7 7 

monthly basis) and may include payments for which the payer is a Market, payments 

for which the payer is the Clearing House or both. 

The following additional provisions apply in respect of rebate, fee discount or 

incentive program payments except to the extent agreed or notified otherwise by the 

Clearing House from time to time. Terms, conditions and amounts of rebate, fee 

discount or incentive programs may be periodically modified by the Clearing House 

at its sole discretion. In certain circumstances, the Clearing House may make the 

availability of a rebate, fee discount or incentive program contingent on certain 

cleared volume levels. Rebate, fee discount and incentive programs may be 

withdrawn by the Clearing House or any relevant Market at any time. Persons may 

be required to meet participation criteria, conditions and obligations applicable to 

participants in this scheme as the same may be amended or added to from time to 

time, in order to be able to continue to participate in any such program. Where a 

rebate, fee discount or incentive program relates to a service for which both Market 

trading, clearing or other fees or Clearing House clearing fees are applicable, the 

payer of the rebate, fee discount or incentive program payment is the Clearing House 

as to the total amount of the Market and Clearing House rebate, fee discount or 

incentive program payments multiplied by the percentage that Clearing House fees 

represent of the sum of Clearing House and Market fees. The legal entity operating 

the relevant Market will be the payer of the remainder of the rebate, fee discount or 

incentive program payment. Where only Clearing House fees are charged for a 

rebate, fee discount or incentive program payment, the payer of the entire rebate, fee 

discount or incentive program payment is the Clearing House. The Clearing House 

or the operator of the relevant Market may arrange for one of its Affiliates or the 

Clearing House to make any payment in respect of rebates, fee discounts or incentive 

programs on the payer's behalf. The payee in respect of a rebate, fee discount or 

incentive program is the person who participates in the program, regardless of 

whether such person is or is not a Clearing Member or member or participant of the 

relevant Market. A qualifying participant in a rebate, fee discount or incentive 

program may from time to time direct that relevant payments be made directly to 

their account or to the account of their Clearing Member, exchange member, 

execution platform participant or any other third party. Any payment in accordance 

with such instructions shall constitute due and final payment by the Clearing House 

or Market to the account of the rebate, fee discount or incentive program participant. 

Rebate, fee discount or incentive program participants may direct changes to such 

payment arrangements from time to time by providing notice in writing to the 

Clearing House or the relevant Market. In the absence of any payment instructions, 

the Clearing House shall be entitled (but shall not be required) to make payment in 

respect of any rebate, fee discount or incentive program payment by crediting 

amounts to the Proprietary Account or Customer Account of the relevant Clearing 

Member and in doing so shall have made good discharge of its obligations and those 

of any Market in relation to the relevant rebate, fee discount or incentive program 

payment. 

Fee invoices will be made available via ECS by the sixth Business Day of each 

month. Fees and any applicable rebates, incentive payments or discounts will be 

included in the overnight call or return by the seventh Business Day after the end of 

each month. All fees are collected through a Clearing Member’s Nominated 

Proprietary Bank Account. Rebates, incentive payments or discounts may be 

credited to a Clearing Member's Nominated Proprietary Bank Account or Nominated 

Customer Bank Account, as instructed from time to time by the payee. 

Clearing Members that wish to query a fee invoice should contact the Clearing House 

Finance department on or before the 10th Business Day of the relevant month. Any 

required amendments will be reflected in the next billing cycle. 
SIDOCS01/117455.7 8 

(vii) Other Amounts 

Any amount payable by a Clearing Member to the Clearing House (or vice versa) 

pursuant to the Rules or any Contract may be included within an end-of-day or ad 

hoc payment. This may include settlement amounts, delivery-related payments (e.g. 

Buyer’s Security and Seller’s Security), fines, damages, amounts payable as a result 

of arbitration or disciplinary proceedings, dividends and coupons and other corporate 

action payments relating to Investments being delivered under Contracts and other 

amounts payable under the Rules. 

(viii) Currency Holidays and payments in other currencies 

Before the start of each calendar year, the Clearing House will publish a Circular 

setting out details of bank/public holidays relevant to the currencies supported by the 

Clearing House in different jurisdictions (each, a "Currency Holiday"). Transfer of 

funds in a currency will not take place on a Currency Holiday for that currency. 

If there is a Currency Holiday, the Clearing House will call and Clearing Members 

shall pay (or receive as applicable) Margin on the next Business Day which is not a 

Currency Holiday. 

Transactions in collateral on bank/public holidays in a relevant jurisdiction will not 

necessarily be rejected upon instruction but will be cancelled at the end of day and 

must be re-instructed by Clearing Members on a day which is not a bank/public 

holiday in the relevant jurisdiction. 

7. CUSTODY ACCOUNTS 

7.1 Pursuant to Rule 502, Original Margin, requirements are payable initially in cash but a Clearing 

Member may substitute such cash Original Margin with other Permitted Cover by delivery of the 

replacement Permitted Cover to the Clearing House. Such transfers must first be notified to the 

Clearing House by the relevant Clearing Member through ECS and will not be effective and may not 

be made until after the Clearing House has approved the proposed transaction in ECS. Guaranty Fund 

Contribution requirements may also be satisfied through non-cash assets to the extent allowed under 

the Rules and these Procedures. The Clearing House holds all non-cash assets provided to it as 

Permitted Cover with a third party custodian (which may in turn use sub-custodians). Non-cash assets 

transferred to the Clearing House by way of title transfer cease to belong to the Clearing Member upon 

transfer to the Clearing House but subject always to Part 5 of the Rules (including but not limited to 

Rule 504). The Clearing House will operate separate custody accounts in respect of each Clearing 

Member, one custody account in respect of and linked to each of its Accounts and in respect of its 

Guaranty Fund Contributions. In addition, the Clearing House will operate at least one custody 

account in respect of each Proprietary Account of each Clearing Member. Such accounts are labelled 

by the custodian with the name of the relevant Clearing Member, for administrative convenience only. 

Client accounts will not be maintained for Clearing Members undertaking only Proprietary Account 

business. This structure is intended to facilitate tax reporting and avoids unnecessary withholding of 

tax at source. Returns on Permitted Cover held in a Guaranty Fund Contribution custody account will 

be for the credit of the relevant Proprietary Account. 

7.2 In the event that a Clearing Member wishes to lodge U.S. Government securities as Permitted Cover, 

Clearing Members are required to complete and return a Form W-8BEN "Certificate of Foreign Status 

of Beneficial Owner for United States Tax Withholding" (non-U.S. entities) or a Form W-9 "Request 

for Taxpayer Identification Number and Certification" (U.S. entities). Clearing Members must inform 

the Clearing House of any changes in relevant tax status or the information provided in any such form. 

Late provision of information may result in unnecessary tax withholdings, deductions, penalties or 

costs. The Clearing House shall not be liable to Clearing Members for any such withholdings, 

deductions, penalties or costs. Where necessary, the Clearing House’s custodian will make available a 
SIDOCS01/117455.7 9 

tax certificate or other details which may be required for tax purposes from time to time. Declarations 

relating to ‘beneficial ownership’ on IRS Form W-8BEN or IRS Form W-9 are based upon U.S. tax 

law concepts and do not affect the transfer of title, pledge or property rights provided for under 

Clearing Membership Agreements, nor do they put the Clearing House on notice of any Encumbrance. 

8. PERMITTED COVER: SECURITIES 

8.1 The Clearing House will publish by Circular a list from time to time setting out all security classes 

acceptable as non-cash Permitted Cover, specifying any restrictions for such Permitted Cover 

applicable by way of class or status of Clearing Member, account or Contract. Applicable ‘haircuts’ 

will also be published and amended by Circular. The amount of recognised Permitted Cover at the 

Clearing House attributable to a particular security is the market value of the relevant security 

multiplied by the applicable haircut. Within ECS, details of international security identification 

numbers (ISINs) for all acceptable Permitted Cover will be provided. New issues are automatically 

added to the list and can be selected for settlement and coverage. The Clearing House is entitled to 

remove securities from the list of accepted Permitted Cover or to vary haircuts at any time. 

8.2 Clearing Members may suggest to the Clearing House’s risk department that a new class or series of 

permitted cover be included within the list of acceptable Permitted Cover. A request form to lodge new 

certificates of deposit is available on the member-only section of the Clearing House website. New 

classes will only be added after approval by the risk department. A limited sub-set of the acceptable 

securities are accepted by the Clearing House in respect of required Guaranty Fund Contributions. The 

Clearing House will set out and amend the list of acceptable Permitted Cover by a Circular. 

8.3 The Clearing House does not recognise any value for non-cash collateral as from the day falling one 

full Business Day prior to redemption or maturity. Clearing Members must arrange for substitute 

Permitted Cover on or prior to such time. The Clearing House will use endeavours (but shall not be 

required) to contact Clearing Members who have securities nearing maturity in order to assist with the 

timely lodgement of alternative Permitted Cover. 

8.4 Notwithstanding Paragraph 8.1, a Clearing Member may not use any financial instrument otherwise 

agreed by the Clearing House to be eligible as Permitted Cover where such financial instrument is 

issued by such Clearing Member or one of its Affiliates except in the case of a covered bond and only 

where the assets backing that bond are appropriately segregated within a robust legal framework which 

the Clearing House determines to satisfy applicable requirements under Applicable Law. 

9. [NOT USED.] 

10. [NOT USED.] 

11. SETTLEMENT PROCEDURES FOR NON-CASH COLLATERAL 

11.1 Instruction Type 

All transactions to deposit or withdraw from the Clearing House will be executed free of payment. 

11.2 Trade and Settlement Date 

(a) The Clearing House presumes that all trade dates and contractual settlement dates are equal to 

the date of entry of an instruction in ECS, because all relevant settlement systems and 

depositories for Permitted Cover support same-day settlement. Any deviation from this 

assumption must be notified to the Clearing House as it will result in a mismatch and 

non-settlement. 

(b) Settlements must take place during normal opening hours of the relevant settlement or 

depository system. The Clearing House will not give settlement instructions in extended 

settlement periods such as ‘daylight’ or ‘Real Time Settlement’ periods. 
SIDOCS01/117455.7 10 

11.3 Custody and Sub-custody 

(a) Settlement of a transfer of Permitted Cover from the Clearing House to a Clearing Member 

may only be effected when the relevant securities to be subject to settlement are under custody 

of the Clearing House’s custodian at the moment that settlement instructions are made. 

(b) Each settlement between the Clearing House and a Clearing Member must be effected 

pursuant to a transaction within the relevant settlement or depository system. 

11.4 Matching of Settlement Instructions 

The Clearing House will support the matching mechanism of at least one major settlement system or 

depository for securities acceptable as Permitted Cover. ECS requires only the minimum necessary 

information required by such systems and depositories in order for matching of a counterparty’s 

instruction. The Clearing House will notify Clearing Members of the relevant account details for 

matching. However, it is the responsibility of the Clearing Member to ensure that instructions entered 

into ECS are correctly matched. The Clearing House will not be liable for any losses of Clearing 

Members or third parties caused by non-settlement or a delay in settlement as a result of the actions or 

omissions of a settlement system, a depository or the Clearing Member (save for any liability which by 

law may not be excluded). 

Matching criteria per settlement institute (and ICE settlement details) will be set out by Circular. 

Direct accounts of the Clearing House at settlement systems may also be notified by the Clearing 

House to Clearing Members from time to time and must be used instead of any of the accounts 

referenced in any Circular issued by the Clearing House pursuant to the preceding paragraph, where the 

Clearing House and Clearing Member are able to do so. 

11.5 Settlement cancellations and unsettled transactions 

(a) Clearing Members may only cancel settlement instructions prior to the time when the Clearing 

House sends settlement instructions to its custodian. After the Clearing House has sent 

instructions to its custodian, the Clearing House and ECS will assume that the transaction has 

been executed and settled. 

(b) All unsettled transactions are automatically cancelled at the end of each day in ECS. In the 

event that the relevant settlement system or depositary does not support one-sided 

cancellations and the transaction settles after the contractual settlement date, relevant 

securities will not be taken into account as Permitted Cover. If same-day settlement does not 

occur but the Clearing Member still wishes to make settlement, it must cancel the instruction 

and re-enter that instruction. 

11.6 Settlement deadlines 

All settlements will be executed by the Clearing House with a request for same-day settlement. As 

deadlines for settlement systems or deadlines on particular days may vary, the Clearing House will 

provide details of normal deadlines for free-of-payment instructions for each supported settlement 

system by Circular. Deadlines for settlement systems will be set out and updated in Circulars. Any 

adjustments of deadlines will be published by Circular. Instructions received after a specified deadline 

will be rejected by ECS. 

11.7 Holidays affecting settlement systems 

(a) If a settlement system or depository is closed, it will not be possible to transfer securities 

within that system. Clearing Members are allowed to use alternative settlement systems or 

types of collateral to cover Margin requirements or Guaranty Fund Contribution requirements. 
SIDOCS01/117455.7 11 

Clearing Members wishing to deliver securities through such alternative settlement systems or 

types of collateral should contact the Clearing House’s Treasury department. 

11.8 Status settlement transaction 

The Clearing House will provide updated information on the settlement status of transactions through 

ECS. Clearing Members are responsible for monitoring the status of settlements. The status of a 

transaction as matched or not matched is not reported upon by the Clearing House and must be 

confirmed by Clearing Members directly with the relevant settlement system or depository. 

12. [NOT USED.] 

13. RISK MANAGEMENT 

13.1 Contacting Risk Management 

Clearing Members should contact the Clearing House’s risk department to discuss any special issues 

relating to Margin, Permitted Cover, Guaranty Fund Contributions, Exposure Limits or any unusual 

circumstances or events. 

13.2 Specific information request 

Clearing Members may be required from time to time to respond to an information request made by the 

Clearing House. Such a request may include (but shall not be limited to) information concerning: 

(a) the nature and extent of Open Contract Positions; 

(b) identification of a Customer or Customers for whom Open Contract Positions are held; 

(c) explanation of the commercial strategy or rationale relating to Open Contract Positions; 

(d) any economically similar positions at other Clearing Organisations or Exchanges or in 

over-the-counter instruments; and/or 

(e) details around plans to close out or reduce any Open Contract Positions. 

13.3 The Clearing House shall be entitled to require written responses and may make further or follow-up 

requests and visits and inspections. This Paragraph is without prejudice to the Clearing House’s rights 

under the Rules, including in relation to the provision of information, audit and disciplinary 

proceedings. 

13.4 Staff Availability 

Clearing Members may be required from time to time to make staff of suitable seniority available to 

attend meetings, called by the Clearing House at reasonable notice, in order to assess: 

(a) the Clearing Member’s compliance with the Rules and these Procedures; 

(b) risks to which the Clearing House, Clearing Member is exposed; or 

(c) any related purposes. 
SIDOCS01/117455.7 12 

13.5 Default Procedure 

In the case where the payment deadline is not met, the Clearing House may initiate a default procedure. 

Without prejudice to Part 9 of the Rules, the default procedure in general may use the following tools: 

(a) setting of final deadlines for the Clearing Member to meet requirements; 

(b) imposition of Exposure Limits; 

(c) additional Margin requirements; 

(d) restriction of trading (e.g. new trades only allowed to liquidate existing positions); 

(e) transfer of Open Contract Positions; 

(f) liquidation of Permitted Cover; 

(g) liquidation of Guaranty Fund Contributions; or 

(h) closure of Open Contract Positions. 

13.6 Margin Parameters 

The Clearing House monitors market volatilities on a daily basis. The Clearing House will review 

Original Margin rates on a periodic and ad hoc basis. Changes to Original Margin rates will be notified 

to Clearing Members by Circular. Ad hoc rate changes will become effective on the next Business 

Day. Routine rate changes will be implemented on the date given in the Circular announcing such 

changes, normally five Business Days after the date of the Circular. 

13.7 Haircuts 

The Clearing House will review haircuts applicable for Permitted Cover on a periodic and ad hoc basis. 

Changes to haircuts will be notified to Clearing Members by Circular. Ad hoc rate changes will 

become effective on the next Business Day. Routine rate changes will be implemented on the date 

given in the Circular announcing such changes, normally five Business Days after the date of the 

Circular. 

13.8 Permitted Capital Limits 

The Clearing House monitors the relationship between Capital and outstanding Original Margin 

obligations of Clearing Members. If, on aggregate, a Clearing Member’s Original Margin is greater 

than three times the Clearing Member’s Capital, the Clearing House may require that further Capital 

(or substitute Capital) be put in place by the Clearing Member. 

The Clearing House will endeavour to contact Clearing Members that may be required to put in place 

additional Capital in advance of such requirement becoming necessary, in order to agree steps to be 

taken by the Clearing Members. 

13.9 Concentrated Positions 

The Clearing House monitors Open Contract Positions on a daily basis. Where the Clearing House 

determines an Open Contract Position to be concentrated, as defined by its large positions policy, the 

Clearing House may, at its discretion, require that the Clearing Member do any of the following: 

(a) reduce an Open Contract Position; or 

(b) lodge additional Permitted Cover with the Clearing House; 
SIDOCS01/117455.7 13 

Positions will be subject to an extra Margin requirement in the case that a single Clearing Member 

holds more than 20% of the total Margin requirement in the margined product group. 

14. GUARANTY FUND PARAMETERS AND RESTRICTIONS 

14.1 Guaranty Fund 

The following parameters apply to the Guaranty Fund and Guaranty Fund Contributions, in addition to 

those parameters specified in the Rules (in the case of currencies save to the extent that the Clearing 

House notifies otherwise whether by Circular or to a particular Clearing Member or allows a different 

currency to be used to cover the relevant requirements in accordance with these Finance Procedures): 

(a) Guaranty Fund Contributions will be calculated and payable in USD; 

(b) minimum Guaranty Fund Contribution of USD 0.5 million; 

(c) minimum cash portion of Guaranty Fund Contribution is 50%; 

(d) in addition to the above requirement, first USD 10 million in cash (such that any Guaranty 

Fund Contribution of less than USD 10 million must be provided entirely as cash) unless 

agreed otherwise by the Clearing House; and 

(e) other Permitted Cover for Guaranty Fund Contributions must be USD denominated for 

Guaranty Fund Contributions. 

15. CLEARING HOUSE CONTRIBUTIONS 

15.1 Clearing House Initial Contributions 

(a) The Clearing House shall contribute 25% of the total amount of the Guaranty Fund, with 15% 

being by way of the Clearing House Initial Contribution and 10% being by way of the 

Clearing House GF Contribution; 

(b) [Not used.] 

(c) [Not used.] 

(d) [Not used.] 

(e) The Clearing House shall review the minimum sum of the Clearing House Initial Contribution 

and Clearing House GF Contribution on a yearly basis. 

(f) [Not used.] 

15.2 [Not used.] 

15.3 [Not used.] 

15.4 The Clearing House may substitute assets constituting Clearing House Contributions in the same way 

and to the same extent that assets constituting Guaranty Fund Contributions may be substituted by 

Clearing Members. 

15.5 Without prejudice to Applicable Laws relating to insolvency, the Clearing House shall have no 

obligation to contribute or allocate any additional Clearing House Contributions in any situation in 

which the final sentence of Rule 209(c)(iii) applies, except in respect of any due but unallocated 

amounts at the time of such occurrence. 
SIDOCS01/117455.7 14 

15.6 There shall not be any breach by the Clearing House of its obligations under this Paragraph 15 solely as 

a result of any temporary reduction to any Clearing House Contributions as a result of the application 

of any amount of Clearing House Contributions pursuant to Rule 1103. 
ICE CLEAR 

SINGAPORE 

S-1 SUPPLEMENT 

ANNEX A-5(iii)
ICE Clear Singaporesm

Membership Procedures 
SIDOCS01/117164.12 i 

Table of Contents 

1. Introduction.................................................................................................................................................. 1

2. Additional Definitions ................................................................................................................................. 1

3. Capital requirements .................................................................................................................................... 2

4. Financial Resource Requirements ............................................................................................................... 2

5. Additional Notification Requirements and Restrictions ............................................................................. 2

6. Application Process ..................................................................................................................................... 3

7. Resignation Process ..................................................................................................................................... 3

8. Matters Requiring Notification by Clearing Members ............................................................................... 4
SIDOCS01/117164.12 1 

1. INTRODUCTION 

1.1 These Membership Procedures are 'Procedures' as defined in the ICE Clear Singapore Pte. Ltd. rules 

(the "Rules") and are subject to the Rules, including, without limitation, Rules 101 and 102. These 

Membership Procedures, and all non-contractual obligations arising out of or in connection with them, 

are governed by and shall be construed in accordance with Singapore law and any Dispute under these 

Membership Procedures will be subject to arbitration under Rule 117. 

2. ADDITIONAL DEFINITIONS 

2.1 The term "Adjusted Net Head Office Funds" has the meaning given to the term "adjusted net head 

office funds" in Regulation 2 of the SF(FMR)R and shall be calculated in accordance with the 

SF(FMR)R. Where, pursuant to Paragraph 2.9, these Membership Procedures apply to a Clearing 

Member which is a Bank incorporated outside Singapore and which maintains adequate Net Head 

Office Funds in accordance with Paragraph 3.2, the Adjusted Net Head Office Funds shall be 

calculated without reference to any capital held by such Bank pursuant to applicable capital 

requirements under Applicable Laws for any of its business as a Bank. 

2.2 The term "Aggregate Indebtedness" has the meaning given to the term "aggregate indebtedness" in 

Regulation 2 of the SF(FMR)R. 

2.3 The term "Aggregate Resources" means a Clearing Member’s Financial Resources and Qualifying 

Letters of Credit (subject to the total amount payable under the Qualifying Letters of Credit not 

exceeding 50% of the Clearing Member’s Total Risk Requirement), less its Total Risk Requirement. 

2.4 The term "Base Capital" has the meaning given to the term "base capital" in Regulation 2 of the 

SF(FMR)R with references to a holder of a CMS Licence in the SF(FMR)R being construed as 

references to a Clearing Member, irrespective of whether such Clearing Member has a CMS Licence. 

2.5 The term "Financial Resources" has the meaning given to the term "financial resources" in Regulation 

2A of the SF(FMR)R and shall be calculated in accordance with the SF(FMR)R. Where, pursuant to 

Paragraph 2.9, these Membership Procedures apply to a Clearing Member which is a Bank 

incorporated in Singapore, references to a holder of a CMS Licence in the SF(FMR)R shall be 

construed as references to such a Clearing Member and Financial Resources shall be calculated without 

reference to any capital held by such Clearing Member pursuant to applicable capital requirements 

under Applicable Laws for any of its business as a Bank.

2.6 The term "Net Head Office Funds" has the meaning given to the term in Regulation 2 of the 

SF(FMR)R. 

2.7 The term "Qualifying Letter of Credit" has the meaning given to the term "qualifying letter of credit" 

in Regulation 2 of the SF(FMR)R. 

2.8 The term "Total Risk Requirement": 

(a) for a Clearing Member which is not a Bank, has the meaning given to the term "total risk 

requirement" in Regulation 2 of the SF(FMR)R; 

(b) for a Clearing Member which is: (i) a Bank incorporated in Singapore; or (ii) a Bank 

incorporated outside Singapore and which maintains adequate Net Head Office Funds in 

accordance with Paragraph 3.2, shall have the same meaning as in paragraph (a) provided that 

such Clearing Member shall compute the Total Risk Requirement for contract positions in: 

(y) any contracts traded on any Exchange (including Contracts); and (z) over-the-counter 

contracts novated or otherwise subject to clearing by a Clearing Organisation; and 
SIDOCS01/117164.12 2 

(c) for a Clearing Member which is a Bank incorporated outside Singapore which has deposited 

Permitted Cover in accordance with Paragraph 3.3 shall have the same meaning as in 

paragraph (a) provided that such Clearing Member shall only compute the Total Risk 

Requirement for contract positions in Contracts. 

2.9 Any provision or definition set out in the SF(FMR)R and referenced or used in the Rules shall be 

construed as applying to Clearing Members who are Banks where provided for in the Rules. 

3. CAPITAL REQUIREMENTS 

3.1 All Clearing Members incorporated in Singapore are subject to a minimum Base Capital requirement of 

SGD 10,000,000. Requirements may be satisfied in Singapore Dollars or in other currency 

equivalents, based on the exchange rates from time to time used by the Clearing House under 

Paragraph 2 of the Finance Procedures. Changes to the minimum capital requirements will be notified 

by Circular. 

3.2 A Clearing Member which is a Bank incorporated outside Singapore is subject to a minimum Net Head 

Office Fund requirement of SGD 10,000,000. 

3.3 The Net Head Office Fund requirement set out in Paragraph 3.2 above may be disapplied by the 

Clearing House where SGD 10,000,000 (by way of Permitted Cover) is deposited by such Clearing 

Member with the Clearing House or with such third party as the Clearing House may permit. For the 

avoidance of doubt, Permitted Cover deposited for the purposes of this Paragraph 3.3 shall not be offset 

or netted with, or used as a substitute for, Permitted Cover deposited as Margin or as a Guaranty Fund 

Contribution. 

3.4 Additional capital requirements may be imposed on particular Clearing Members pursuant to Rules 206 

and 602. 

4. FINANCIAL RESOURCE REQUIREMENTS 

4.1 In accordance with Regulation 16 of the SF(FMR)R, a Clearing Member with a CMS Licence shall not 

cause or permit its Aggregate Indebtedness to exceed 1,200% of its Aggregate Resources. 

4.2 A Clearing Member with a CMS Licence or which is a Bank incorporated in Singapore shall not cause 

or permit its Financial Resources to fall below its Total Risk Requirement. 

4.3 In accordance with Regulation 19 of the SF(FMR)R, a Clearing Member which is not a Bank and 

which has a CMS Licence shall maintain a reserve fund to which a sum of not less than 30% of the 

audited net profits of each year shall be transferred out of the net profits after due provision has been 

made for taxation, so long as its Base Capital, less unappropriated profits in the latest audited accounts, 

is less than SGD 5,000,000.

4.4 A Clearing Member which is a Bank incorporated outside Singapore shall not cause or permit its 

Adjusted Net Head Office Funds (or any deposit of Permitted Cover made pursuant to Paragraph 3.3) 

to fall below its Total Risk Requirement. 

4.5 Additional financial resource requirements may be imposed on particular Clearing Members pursuant 

to Rules 206 and 602. 

5. ADDITIONAL NOTIFICATION REQUIREMENTS AND RESTRICTIONS 

5.1 A Clearing Member with a CMS Licence shall notify the Clearing House immediately of any 

circumstances it is required to notify to the Clearing House pursuant to the SF(FMR)R, including, 

without limitation, pursuant to Regulations 4(2), 6(3), 7(1), 16(2), 17(1), 21(1), 21(2), 22(1), 

22(2)(b)(i) and 25(1). 
SIDOCS01/117164.12 3 

5.2 A Clearing Member with a CMS Licence shall, in accordance with Regulation 7(5) and 17(4) of the 

SF(FMR)R, submit such statements as the Clearing House may direct in accordance with Regulation 

7(3) and Regulation 17(2) of the SF(FMR)R.

5.3 As required pursuant to Regulation 22(2)(a)(i) of the SF(FMR)R, a Clearing Member with a CMS 

Licence shall not repay, whether in part or in full, any subordinated loan principal before the maturity 

date set out in the subordination loan agreement without the prior approval of the Clearing House.

5.4 As required pursuant to Regulation 23 of the SF(FMR)R, a Clearing Member with a CMS Licence 

shall not make any unsecured loan or advance, pay any dividend or director’s fees or increase any 

director’s remuneration if the circumstances set out in Regulation 23 of the SF(FMR)R apply, without 

the prior approval of the Clearing House. 

5.5 A Clearing Member incorporated in Singapore shall notify the Clearing House immediately if it causes 

or permits its Base Capital to fall below the Clearing House's minimum Base Capital requirement in 

Clause 3.1 below such other Base Capital requirement specified by the MAS pursuant to Regulation 

4(2) of the SF(FMR)R or below 150% of either such minimum Base Capital requirement. 

5.6 A Clearing Member which is a Bank incorporated outside Singapore shall notify the Clearing House 

immediately if it causes or permits its Net Head Office Funds to fall below the minimum Net Head 

Office Fund requirement imposed by the Clearing House, or below 150% of such minimum Net Head 

Office Fund requirement.

5.7 A Clearing Member incorporated in Singapore shall notify the Clearing House immediately if its 

Financial Resources falls below 150% of its Total Risk Requirement. 

5.8 A Clearing Member which is a Bank incorporated outside Singapore shall notify the Clearing House 

immediately if its Adjusted Net Head Office Funds (or any deposit of Permitted Cover made pursuant 

to Paragraph 3.3) falls below 150% of its Total Risk Requirement. 

6. APPLICATION PROCESS 

6.1 The membership criteria and certain aspects of the application process are set out in detail in Rule 201. 

An application for clearing membership must be made by completing an application form and 

delivering a Clearing Membership Agreement ("CMA") duly executed by duly authorised signatories 

of the Clearing Member (but not the Clearing House). The Clearing House will liaise with an applicant 

to ensure that the application form and supporting documentation is complete. 

6.2 On receipt of a completed application form, the Clearing House will undertake a due diligence and a 

review process. As part of its application, an applicant must have provided the information requested 

on the application form to the Clearing House. 

6.3 The Clearing House may grant approval to an applicant conditional upon satisfying certain 

requirements, provided that the applicant has expressed its intention to meet such requirements and 

provided evidence of its ability to do so. In such circumstances, the applicant must provide evidence of 

satisfaction of the additional requirements specified by the Clearing House in order to become a 

Clearing Member. Upon receipt of such evidence of satisfaction of such requirements as it considers to 

be acceptable, the Clearing House will confirm if an applicant has met these requirements before 

issuing its final approval. 

6.4 Clearing Members trading on particular Markets must also meet the membership criteria and any other 

applicable requirements of the relevant Markets. 

7. RESIGNATION PROCESS 

7.1 The membership termination process is set out in detail in Rule 209. 
SIDOCS01/117164.12 4 

8. MATTERS REQUIRING NOTIFICATION BY CLEARING MEMBERS 

8.1 In the table below, details are provided of notifications that should be made to the Clearing House. 

Notifications should be made at or before the time specified, in accordance with the Rules and these 

Procedures and including the required contents or on the required form. If no form is referred to in the 

Table below, notification should be made to the Clearing House in writing. 

8.2 In the Notification column in the table below, the items marked * require formal written notification 

under Rule 113(b). Other matters do not require follow-up notification in writing unless requested by 

the Clearing House. Matters notified or actioned electronically through the Clearing House's systems 

do not require formal notifications to be made to the Clearing House unless specified below. 

Notification Periodicity of 

Submission 

Requirements and form 

A Financial and Regulatory Notifications 

1. Annual audited 

financial statements 

including: profit and 

loss account, balance 

sheet and auditors 

report 

Rule 205(a)(i) 

Within 5 months of 

the end of the 

Clearing Member’s 

or relevant 

Controller’s fiscal 

year 

In original format. Sent to the attention of the Clearing 

House’s membership department. If any such material 

is other than a routine periodic return, statement or 

report required under Applicable Laws, a written 

statement is required setting out, to the extent known, 

the reasons why the Clearing Member or Controller is 

filing it must also be filed with the Clearing House. 

For Clearing Members who are CMS Licence-holders, 

the annual financial statements should consist of the 

documents in the form prescribed by the MAS, as 

required by section 107(1) of the SFA and Regulation 

27(8) and 27(9) of the SF(FMR)R. 

2. Quarterly financial 

statement including: 

management profit 

and loss accounts and 

balance sheet 

Rule 205(a)(ii) 

Within 14 days of 

the end of each 

quarter 

Drawn up in accordance with Applicable Laws and 

Accounting Standards or otherwise following the 

requirements of the Clearing House. 

For Clearing Members who are CMS Licence-holders, 

the quarterly financial statements should consist of the 

documents in the form prescribed by the MAS, as 

required by Regulation 27(1) of the SF(FMR)R. 

3. Copy of financial 

returns, reports, 

statements and 

notices provided to 

Regulatory Authority 

Rule 205(a)(iii)

As soon as provided 

to Regulatory 

Authority 

If any materials provided are not routine periodic 

financial returns, statements or reports, then the 

Clearing Member or relevant Controller must produce 

a written statement setting out the reasons for filing it. 

B Capital and Financial Resource Notifications 

1. Base Capital or Net 

Head Office Funds, as 

applicable, fall below 

SGD 5,000,000* 

Membership 

Procedures, 

Paragraph 5.1 

Immediately or as 

soon as the Clearing 

Member becomes 

aware that it will fail 

to hold at least SGD 

5,000,000 Base 

Capital or minimum 

Net Head Office 

In the form prescribed by the MAS under Regulation 

4(2) of the SF(FMR)R or otherwise following the 

requirements of the Clearing House 
SIDOCS01/117164.12 5 

Notification Periodicity of 

Submission 

Requirements and form 

Funds, as 

applicable. 

2. Financial Resources 

or Adjusted Net Head 

Office Funds (as the 

case may be) fall 

below Total Risk 

Requirement* 

Membership 

Procedures, 

Paragraph 5.1 

Immediately or as 

soon as the Clearing 

Member becomes 

aware that its 

Financial Resources 

or Adjusted Net 

Head Office Funds 

(as the case may be) 

will fall below its 

Total Risk 

Requirement 

In the form prescribed by the MAS under Regulation 

6(3) of the SF(FMR)R or otherwise following the 

requirements of the Clearing House 

3. Financial Resources 

or Adjusted Net Head 

Office Funds (as the 

case may be) fall 

below 120% of Total 

Risk Requirement 

Membership 

Procedures, 

Paragraph 5.1

Immediately In the form prescribed by the MAS under Regulation 

7(1) of the SF(FMR)R or otherwise following the 

requirements of the Clearing House 

4. Aggregate 

Indebtedness exceeds 

1,200% of its 

Aggregate 

Resources* 

Membership 

Procedures, 

Paragraph 5.1

Immediately or as 

soon as the Clearing 

Member becomes 

aware that its 

Aggregate 

Indebtedness will 

exceed 1,200% of 

its Aggregate 

Resources 

In the form prescribed by the MAS under Regulation 

16(2) of the SF(FMR)R or otherwise following the 

requirements of the Clearing House 

5. Aggregate 

Indebtedness exceeds 

600% of its 

Aggregate 

Resources* 

Membership 

Procedures, 

Paragraph 5.1

Immediately In the form prescribed by the MAS under Regulation 

17(1) of the SF(FMR)R or otherwise following the 

requirements of the Clearing House 

6. Issuance of 

preference shares 

Membership 

Procedures, 

Paragraph 5.1 

Prior to the date of 

issue of the 

preference share 

In the form prescribed by the MAS under Regulation 

21(1) of the SF(FMR)R or otherwise following the 

requirements of the Clearing House 

7. Repayment of 

preference share 

3 months before the 

proposed date of 

In the form prescribed by the MAS under Regulation 

21(2) of the SF(FMR)R or otherwise following the 
SIDOCS01/117164.12 6 

Notification Periodicity of 

Submission 

Requirements and form 

principal (other than 

any paid-up 

irredeemable and 

non-cumulative 

preference share 

capital) that is 

computed as part of 

its Financial 

Resources through 

repurchase or 

redemption 

Membership 

Procedures, 

Paragraph 5.1

repurchase or 

redemption 

requirements of the Clearing House 

8. Draw down of a 

qualifying 

subordinated loan 

(within the meaning 

of Regulation 2 of the 

SF(FMR)R) in 

accordance with 

Regulation 22(1) of 

the SF(FMR)R 

Membership 

Procedures, 

Paragraph 5.1

No later than the 

date of draw down 

In the form prescribed by the MAS under Regulation 

22(1) of the SF(FMR)R or otherwise following the 

requirements of the Clearing House 

9. Repayment of any 

subordinated loan 

principal that has 

matured in 

accordance with 

Regulation 22(2)(b)(i) 

of the SF(FMR)R 

Membership 

Procedures, 

Paragraph 5.1

At least one 

business day before 

date of repayment 

In the form prescribed by the MAS under Regulation 

22(2)(b)(i) of the SF(FMR)R or otherwise following 

the requirements of the Clearing House 

10. Customer account is 

under-margined by an 

amount which 

exceeds the 

Aggregate Resources 

of the relevant 

Clearing Member* 

Membership 

Procedures, 

Paragraph 5.1

Immediately In the form prescribed by the MAS under Regulation 

25(1) of the SF(FMR)R or otherwise following the 

requirements of the Clearing House 

11. Financial Resources 

or Adjusted Net Head 

Office Funds (as the 

case may be) fall 

below 120% of Total 

Risk Requirement for 

Not later than one 

business day after 

the end of the week 

and then on a 

weekly basis or not 

less than one 

In the form prescribed by the MAS under Regulations 

7(3) and 27(1) of the SF(FMR)R, signed by a director 

of the relevant Clearing Member or such other person 

as the MAS may allow under Regulation 7(5) of the 

SF(FMR)R, or otherwise following the requirements of 

the Clearing House 
SIDOCS01/117164.12 7 

Notification Periodicity of 

Submission 

Requirements and form 

5 consecutive 

business days or more 

and the Clearing 

Member is directed 

by the Clearing 

House to submit the 

documents required 

under Regulation 

27(1) of the 

SF(FMR)R* 

Membership 

Procedures, 

Paragraph 5.2

business day after 

the end of such 

other interval as 

may be determined 

by the Clearing 

House, until the 

Financial Resources 

or Adjusted Net 

Office Funds (as the 

case may be) are not 

less than 120% of 

the relevant 

Clearing Member's 

Total Risk 

Requirement for 8 

consecutive weeks 

or such other period 

as may be 

determined by the 

Clearing House 

12. Aggregate 

Indebtedness exceeds 

600% of its 

Aggregate Resources 

for 5 consecutive 

business days or more 

and the Clearing 

Member is directed 

by the Clearing 

House to submit the 

documents required 

under Regulation 

27(1) of the 

SF(FMR)R* 

Membership 

Procedures, 

Paragraph 5.2

Not later than one 

business day after 

the end of the week 

and then on a 

weekly basis or not 

less than one 

business day after 

the end of at such 

other interval as 

may be determined 

by the Clearing 

House, until the 

Aggregate 

Indebtedness is 

equal to or less than 

600% of the relevant 

Clearing Member's 

Aggregate 

Resources for 8 

consecutive weeks 

or such other period 

as may be 

determined by the 

Clearing House 

In the form prescribed by the MAS under Regulations 

17(2) and 27(1) of the SF(FMR)R, signed by a director 

of the relevant Clearing Member or such other person 

as the MAS may allow under Regulation 17(4) of the 

SF(FMR)R, or otherwise following requirements of the 

Clearing House 

13. Request for approval 

to repay any 

subordinated loan 

principal before the 

maturity date set out 

in the subordination 

loan agreement in 

accordance with 

Regulation 22(2)(a)(i) 

of the SF(FMR)R 

Membership 

Procedures, 

In advance In the form prescribed by the MAS under Regulation 

22(2)(a)(i) of the SF(FMR)R or otherwise following 

the requirements of the Clearing House 
SIDOCS01/117164.12 8 

Notification Periodicity of 

Submission 

Requirements and form 

Paragraph 5.3

14. Request for approval 

to make any 

unsecured loan or 

advance, pay any 

dividend or director’s 

fees or increase any 

director’s 

remuneration where 

the circumstances in 

rows 1, 3 or 5 also 

apply 

Membership 

Procedures, 

Paragraph 5.4

In advance In the form prescribed by the MAS under Regulation 

23 of the SF(FMR)R or otherwise following the 

requirements of the Clearing House 

15. Any other 

circumstance 

requiring notification 

to the Clearing House 

pursuant to the 

SF(FMR)R* 

Membership 

Procedures, 

Paragraph 5.1 

Immediately In the form prescribed by the MAS under the 

SF(FMR)R or otherwise following the requirements of 

the Clearing House 

16. Clearing Member 

causes or permit its 

Base Capital or Net 

Head Office Funds 

(as the case may be) 

to fall below SGD 

10,000,000* 

Membership 

Procedures, 

Paragraphs 5.4 and 

5.5

Immediately or as 

soon as the Clearing 

Member becomes 

aware that it will fail 

to comply with the 

Clearing House's 

minimum Base 

Capital or minimum 

Net Head Office 

Funds requirements, 

as applicable. 

Full particulars by email to 

icesingaporemembership@theice.com, followed by a 

telephone call via the Clearing House’s helpdesk at 

+65 6594 0160 and confirmation in writing. 

17. Clearing Member 

causes or permits its 

Base Capital or Net 

Head Office Funds 

(as the case may be) 

to fall below 150% of 

its Base Capital or 

Net Head Office 

Funds requirement (as 

the case may be). 

Membership 

Procedures, 

Paragraphs 5.4 and 

5.5. 

Immediately or as 

soon as the Clearing 

Member becomes 

aware that it will fail 

to comply with the 

Clearing House's 

minimum Base 

Capital or minimum 

Net Head Office 

Funds requirements, 

as applicable. 

Full particulars by email notification to 

icesingaporemembership@theice.com.

18. Financial Resources 

falls below 150% of 

Immediately Full particulars by email notification to 

icesingaporemembership@theice.com.
SIDOCS01/117164.12 9 

Notification Periodicity of 

Submission 

Requirements and form 

its Total Risk 

Requirement. 

Membership 

Procedures, 

Paragraphs 5.6 

19. Adjusted Net Head 

Office Funds (or any 

deposit of Permitted 

Cover made pursuant 

to Paragraph 3.3) falls 

below 150% of its 

Total Risk 

Requirement. 

Membership 

Procedures, 

Paragraphs 5.7 

Immediately Full particulars by email notification to 

icesingaporemembership@theice.com.

C Risk-related Disclosures

1. Failure to meet any 

obligation to transfer, 

deposit or pay any 

margin requirements 

of a Clearing 

Organisation* 

 

Rule 204(a)(vi) 

Immediately in this 

section in all cases 

Full particulars by email to 

icesingaporemembership@theice.com, followed by a 

telephone call via the Clearing House’s helpdesk at 

+65 6594 0160 and confirmation in writing. 

2. Failure to comply 

with any applicable 

financial 

requirements of any 

Governmental 

Authority, Regulatory 

Authority, Exchange, 

Clearing Organisation 

or Delivery Facility* 

Rule 204(a)(vii)

3. Insolvency* 

(affecting a Clearing 

Member or any of its 

Controllers or 

Affiliates) 

Rule 204(a)(viii)

 

4. Financial or 

commercial difficulty 

such as would give 

rise to a risk of an 

Event of Default 

occurring* 

Rule 204(a)(x) 

 

5. Force Majeure Event 

(occurrence and 

 
SIDOCS01/117164.12 10 

Notification Periodicity of 

Submission 

Requirements and form 

cessation) 

Rules 112(b)(i), 

112(b)(vi) and the 

Business Continuity 

Procedures 

6. Ceasing to have 

sufficient Capital* 

Rule 204(a)(iii) and 

Rule 206 

 

7. Reduction of Capital 

by more than 10% 

from latest financial 

statement or any 

reduction of Capital 

prior to any payment, 

loan, distribution or 

redemption of 

Capital* 

Rule 204(a)(iv) and 

Rule 204(a)(v) 

 

Note: for Clearing Members who hold a CMS Licence, notifications under Rule 204(a)(xiii) of any 

matter, circumstance or change of occurrence of previously furnished statements or information 

supplied in connection with the relevant Clearing Member's application shall only be required if a 

notification is also required to the MAS under MAS Requirements. 

Rule 204(b)(ii).

D Changes to Contact and Company Details 

1. Change of Legal 

Name* 

Within three 

Business Days of 

the change 

Any changes to company details should be notified as 

soon as practicable unless otherwise set out in these 

Membership Procedures to the Clearing House by 

email to: icesingaporemembership@theice.com and/or 

mailing it to the Clearing House registered address. 

Include copy of document from relevant Governmental 

Authority, where applicable. 

2. Change of Address 

(registered address, 

mailing/operations 

address or address for 

service in 

Singapore)* 

3. Change of contact 

details for Clearing 

Member (telephone 

number, fax number 

or website) 

 Where the change is time sensitive, this should be 

backed up by a telephone call via the Clearing House’s 

helpdesk at: +65 6594 0160. 

4. Change of contact 

details for key 

personnel or change 

of key personnel 

including the board of 

directors of a 

Clearing Member 

Immediately 

Allow two Business 

Days for changes to 

become effective 

5. Change to emergency Immediately 
SIDOCS01/117164.12 11 

Notification Periodicity of 

Submission 

Requirements and form 

contact details 

including the board of 

directors of a 

Clearing Member 

6. Change to e-mail 

address for the 

delivery of Circulars 

As soon as practical 

and as often as 

necessary. Allow 

two Business Days 

for changes to 

become effective 

7. Change to details for 

downloading monthly 

volumes from the 

Clearing House’s 

website 

Promptly and 

without delay. 

Allow two Business 

Days for changes to 

become effective 

8. Change of Approved 

Financial Institution 

for Nominated 

Customer Bank 

Accounts or 

Nominated 

Proprietary Bank 

Accounts* 

At least five 

Business Days’ 

advance notice 

9. Change to clearing 

activity or list of 

markets that the 

Clearing Member 

clears 

Immediately 

10. Change of Account 

number or other 

details* 

At least five 

Business Days’ 

advance notice 

11. Changes to "Eligible 

Persons" (e.g. 

exchange members 

that a Clearing 

Member clears for) 

including suspension 

of a clearing 

arrangement with an 

Eligible Person 

At least one week's 

advance written 

notice prior to the 

Business Day on 

which a Clearing 

Member proposes to 

begin or cease 

providing such 

clearing services to 

an Eligible Person 

Any changes to Eligible Persons should be notified to 

the Clearing House by completing the relevant 

“Supplementary Eligible Persons Form” or 

“Termination Letter”, as appropriate, and emailing it 

to: icesingaporemembership@theice.com and/or 

mailing it to the Clearing House registered address. 

E Changes to Corporate Details 

1. Change of legal status 

or registered number* 

14 days in advance, 

where possible. At 

latest, within three 

Business Days of 

change 

Any changes to company details should be notified to 

the Clearing House by email to: 

icesingaporemembership@theice.com and/or mailing it 

to the Clearing House registered address. 

Where the change is time sensitive, this should be 

backed up by a telephone call via the Clearing House’s 

helpdesk at: +65 6594 0160. 

2. Changes to 

constitutive 

Immediately 
SIDOCS01/117164.12 12 

Notification Periodicity of 

Submission 

Requirements and form 

documents* (e.g. 

Memorandum and 

Articles of 

Association) 

3. Change to regulatory 

or authorised status* 

(e.g. name of the lead 

regulator, contact 

name at regulator, 

status, regulator’s 

identification 

code/number) 

Immediately 

5. Change to the GST or 

other tax status or 

GST number* 

Immediately 

6. Change to the nature 

of the Clearing 

Member’s business* 

including any 

Insolvency of the 

Clearing Member or 

its shareholders or 

any death of a 

substantial 

shareholder. 

Immediately 

7. Change to authorised 

signatories 

As soon and as often 

as practicable 

Allow two Business 

Days for change to 

become effective 

8. Change to power of 

attorney, appointment 

of any agent or 

Representative or 

other authorisation 

including the board of 

directors of a 

Clearing Member * 

Rule 202(a)(xv) 

Original terms will 

bind the Clearing 

Member until not 

less than five 

Business Days after 

written notice of the 

change has been 

received. 

9. Proposed changes of 

control* 

Rule 204(a)(i) 

As soon as possible 

10. Changes of Control, 

substantial (5%) 

shareholders or group 

organisational 

structure* 

Rule 204(a)(i) 

In advance of the 

change. Where 

detailed advanced 

notice is impossible, 

where possible, the 

Clearing House 

should be contacted 

in advance and 

informed of the 

nature of the 

impending change 

11. Change to internal 

organisational chart 
SIDOCS01/117164.12 13 

Notification Periodicity of 

Submission 

Requirements and form 

12. Change to corporate 

authority or powers to 

enter into and 

perform the 

obligations of a 

Clearing Member 

including changes to 

the board of directors 

of a Clearing Member 

Immediately 

13. Changes to 

membership of 

futures and/or 

options, securities or 

commodities 

exchange or clearing 

house* 

Immediately 

Note: for Clearing Members who are CMS Licence holders, notifications under Rule 204(a)(i) of 

any proposed change in Control, notification shall only be required if a notification is also 

required to the MAS under MAS Requirements. In such cases, the relevant Clearing Member 

should provide the Clearing House contemporaneously with a copy of all submissions sent to the 

MAS in respect of that change of Control 

Rule 204(b)(i) 

F Ad Hoc Legal Notifications 

1. Breach of Clearing 

House Rules 

Rule 204(a)(xii) 

As soon as 

identified 

Any changes should be notified to the Clearing House 

by email to: 

icesingaporemembership@theice.com and/or mailing it 

to the Clearing House registered address. 

2. Termination of 

Clearing Membership 

Agreement or of 

membership as a 

Clearing Member* 

Rule 209(c)(i) 

No less than 30 

Business Days 

advance notice, if 

termination is not 

for cause. 

Otherwise, as 

specified in and 

allowed pursuant to 

the Rules 

Where the change is time sensitive, this should be 

backed up by a telephone call via the Clearing House’s 

helpdesk at: +65 6594 0160. 

3. Rejection upon 

application or 

suspension or 

expulsion from any 

futures and or 

options, securities or 

commodities 

exchange or clearing 

house 

As soon as 

identified and 

detailing the full 

particulars of the 

breach 

4. Disciplinary matters 

or events in any 

Markets cleared by 

the Clearing House* 

Immediately 

5. Any loss, liability, 

damage, injury, delay, 

cost or expense 

Within seven 

Business Days of 

either the day on 
SIDOCS01/117164.12 14 

Notification Periodicity of 

Submission 

Requirements and form 

incurred under the 

terms of the Contract 

in relation to tender, 

delivery or physical 

settlement* 

Rule 111(c)(xiii)(D) 

which documents 

must be taken up 

and paid for by the 

Buyer or the Buyer 

must take delivery 

of the Deliverable or 

Investment, 

whichever is the 

earlier 

6. Any positions carried 

by another Clearing 

Member (Position 

Holder)* 

Rule 407 

The Business Day 

following the 

Business Day on 

which a position 

was carried by the 

Position Holder 

7. Breach of Position 

Limit 

Rule 204(a)(ii) and 

Rule 602(a)(i)

Immediately 

8. Event of Default or 

any financial or 

commercial difficulty 

giving rise to the risk 

of an Event of 

Default* 

Rule 204(a)(ix) and 

Rule 204(a)(x) 

Immediately 

9. Breach of Applicable 

Law* 

Rule 204(a)(xii) 

Without delay 

10. Any possible action, 

suit or proceeding 

against the Clearing 

House* 

Rule 111(d) 

As soon as 

reasonably 

practicable 
SIDOCS01/117164.12 15 

Notification Periodicity of 

Submission 

Requirements and form 

11. Anything relating to 

the Clearing Member 

of which the Clearing 

House would 

reasonably expect 

notice, including any 

matter, circumstance, 

change or occurrence 

which would cause a 

statement previously 

furnished pursuant to 

Rule 204 or any 

information supplied 

in connection with the 

Clearing Member’s 

application for 

membership or 

otherwise to be 

inaccurate, 

incomplete or 

superseded* 

Rule 204(a)(xiii) 

Without delay 

G Clearing Procedures 

1. Any event, systemrelated issue or 

anything else that 

would prevent the 

Clearing Member 

from operating timely 

and accurately on the 

Markets cleared. 

Clearing Procedures 

Paragraph 1.4. 

Immediately Clearing Members should contact the Clearing House 

by email at: icesingaporemembership@theice.com, or 

by a telephone call via the Clearing House’s helpdesk 

at: +65 6594 0160. 

2. Notification of system 

errors or processing 

errors in relation to 

ICE Systems. 

Clearing Procedures 

Paragraph 2.2(g) & 

(h). 

 Clearing Members should contact the Clearing House’s 

operations department. 

H Complaint Resolution Procedures 

1. Any complaint must 

be notified to the 

Clearing House. 

Complaint Resolution 

Procedures 

Paragraphs 2 & 3. 

Within 12 months 

from the date on 

which the 

Complainant 

becomes 

aware of the 

circumstances 

giving rise to the 

A Complaint should be made in writing, signed on 

behalf of the Complainant, marked “Complaints 

Resolution Procedure” and sent to the complaints 

handling officer at the Clearing House or by e-mail to 

icesingaporemembership@theice.com. 
SIDOCS01/117164.12 16 

Notification Periodicity of 

Submission 

Requirements and form 

Complaint unless 

the Complainant can 

show 

reasonable grounds 

for delay 

2. Complainant must 

notify the Clearing 

House in writing 

whether it accepts the 

proposals or requires 

that the Complaint be 

referred to the 

Commissioner. 

Complaint Resolution 

Procedures 

Paragraph 6.

Within fifteen days 

of receipt of notice 

of the outcome of 

the Clearing House 

Investigation 

I Business Continuity Procedures 

1. Clearing Member is 

affected by a 

Business Continuity 

Event. 

Business Continuity 

Procedures 

Paragraphs 2.1 & 

2.2. 

Immediately The Clearing House must be contacted either by the 

Help Desk on +65 6594 0160 or 

icesingaporemembership@theice.com. 

The Clearing Member must provide the following 

information: 

(a) the name of Clearing Member; 

(b) the name and contact details of person at the 

Clearing Member who is authorised to take action and 

decisions on its behalf; 

(c) details of nature of the problem; 

(d) expected time when the problem is expected to be 

over or mitigated; and 

(e) any assistance or forbearance requested of the 

Clearing House. 

2. Member ceases to be 

affected by a 

Business Continuity 

Event. 

Business Continuity 

Procedures 

Paragraph 2.3. 

 
ICE Clear Singaporesm

Delivery Procedures
DELIVERY PROCEDURES

INDEX

1. General.................................................................................................................................................. 3

2. Delivery of Documentation .................................................................................................................. 3

3. Authorised Signatories.......................................................................................................................... 3

4. Clearing Member Accounts.................................................................................................................. 4

5. Transferors and Transferees.................................................................................................................. 4

6. [Not in use.] .......................................................................................................................................... 4

7. [Not in use.] .......................................................................................................................................... 4

8. [Not in use.] .......................................................................................................................................... 4

9. Alternative Delivery Procedures........................................................................................................... 4

10. [Not in use.] .......................................................................................................................................... 4

11. [Not in use.] .......................................................................................................................................... 4

12. Similar Obligations Under Different Contracts .................................................................................... 4

13. Interpretation ........................................................................................................................................ 5

14. Reports and Notifications ..................................................................................................................... 5

15. Liability, Margin, Default and Disciplinary.......................................................................................... 5

16. Payments............................................................................................................................................... 5

17. Guardian ............................................................................................................................................... 6

PART A: ICE FUTURES SINGAPORE 1 KILO GOLD FUTURES CONTRACT

1. Definitions............................................................................................................................................ 7

2. Delivery Specification .......................................................................................................................... 7

3. Delivery Timetable ............................................................................................................................. 11

4. Delivery Documentation Summary .................................................................................................... 12

PART B: ICE FUTURES SINGAPORE MINI OFFSHORE RENMINBI FUTURES CONTRACT

1. Definitions.......................................................................................................................................... 13

2. Settlement of ICE CNH Contracts...................................................................................................... 13

3. Delivery Timetable ............................................................................................................................. 13
PART C: ICE FUTURES SINGAPORE US DOLLAR/SINGAPORE DOLLAR FUTURES CONTRACT

1. Definitions.......................................................................................................................................... 15

2. Settlement of ICE USD/SGD Contracts ............................................................................................. 15

3. Delivery Timetable ............................................................................................................................. 15
3

1. GENERAL

1.1 These Delivery Procedures are 'Procedures' as defined in the ICE Clear Singapore rules (the "Rules") 

and are subject to the Rules, including, without limitation, Rule 102. These Delivery Procedures, and 

all non-contractual obligations arising out of or in connection with them, are governed by and shall be 

construed in accordance with Singapore law and any Dispute arising under these Delivery Procedures 

will be subject to arbitration under Rule 117 save as provided in Market Rules. 

1.2 With regard to all open Contracts, which, pursuant to the Contract Terms, give rise to delivery 

obligations:

(a) Clearing Members with Open Contract Positions at cessation of trading or auctioning are 

obliged to make or take delivery (as applicable);

(b) Clearing Members must make themselves fully aware of their delivery obligations under each 

relevant Contract; and

(c) these Delivery Procedures form part of the terms of the relevant Contract if such Contract 

becomes deliverable and should be read in conjunction with the Rules, particularly Part 7, and 

the relevant Market Rules.

1.3 Any enquiries concerning these Delivery Procedures should be directed to the clearing operations 

department of the Clearing House.

1.4 The following definitions apply to these Delivery Procedures:

(a) The term "Clearing Day" means a day on which the Clearing House is open for business.

(b) The term "Business Day" means a Clearing Day that is not a public holiday in Singapore.

(c) The term "Delivery Period" means a period during which delivery and settlement occurs in 

accordance with these Delivery Procedures and applicable Market Rules.

(d) The term "Non-Clearing Day" means each Saturday and Sunday where the Clearing House 

and the relevant Exchange are closed and any other day that is not a Clearing Day, as 

determined by the Clearing House from time to time.

(e) The term "Tender" means a notice given pursuant to these Delivery Procedures and/or Market 

Rules, of an intention to make or take delivery of a Deliverable.

2. DELIVERY OF DOCUMENTATION

Clearing Members must submit the required delivery documentation to the Clearing House by email to 

iceclearsingaporeoperations@theice.com marked "URGENT: for the attention of the Deliveries 

Department" or by courier to the Clearing House's registered office.

3. AUTHORISED SIGNATORIES

Clearing Members, or their Transferor(s) or Transferee(s), must ensure that all delivery documents are 

signed by a director or officer who is properly authorised to sign such documentation on behalf of the 

Clearing Member. The Clearing House is entitled to rely upon the information specified in all forms 

and documents submitted by Buyers, Sellers, Transferors and Transferees without making any enquiry, 

investigation or check as to the accuracy of the information or whether the signatory is authorised to 

sign or submit the form or document to the Clearing House.
4

4. CLEARING MEMBER ACCOUNTS

No offset is allowed for either physical delivery or financial settlement between Clearing Members' 

Proprietary Account and Customer Account. Separate delivery documentation is required for each 

such Account.

5. TRANSFERORS AND TRANSFEREES

5.1 Each Contract, of a kind specified by the Clearing House from time to time, subject to delivery 

obligations may allow Sellers and Buyers to nominate Transferors and Transferees respectively. A 

Transferor or Transferee may be a Seller or Buyer, respectively, itself. Transferors and Transferees are 

permitted to make or take delivery to or from the Clearing House by the prescribed delivery method. 

The Clearing House permits the nomination of Transferors or Transferees for reasons of convenience 

of Clearing Members only. Notwithstanding the appointment of a Transferor or Transferee, the 

relevant Clearing Member remains at all times fully responsible for meeting all of its obligations and 

liabilities to the Clearing House.

5.2 A Clearing Member may appoint a Representative (which may be another Clearing Member) to 

undertake delivery administration or obligations.

5.3 A person who is not the Buyer, Seller or the Clearing House shall have no right under the Contracts 

(Rights of Third Parties) Act (Chapter 53B of Singapore) to enforce any provision of a Contract 

(including any requirement of these Delivery Procedures). As further described in Rule 111, the 

Clearing House is not liable to or for Transferors or Transferees.

5.4 Where separate procedures apply to a Transferor/Transferee who is not the Seller/Buyer, this is 

indicated in these Delivery Procedures. Any form to be completed and submitted to the Clearing 

House by a Transferor/Transferee shall be signed by an authorised signatory of the 

Transferor/Transferee. The Clearing House is entitled to rely upon the information specified in the 

form without making any enquiry, investigation or checks as to the accuracy of such information or 

whether the signatory on the form has been authorised by the Transferor/Transferee. Each Clearing 

Member acknowledges and agrees that it is responsible for ensuring the accuracy of the information on 

each form submitted by a Transferor/Transferee and that the form is signed by an authorised signatory

of such Transferor/Transferee. 

6. [NOT IN USE.]

7. [NOT IN USE.]

8. [NOT IN USE.]

9. ALTERNATIVE DELIVERY PROCEDURES 

Clearing Members may not agree alternative delivery procedures for any Contract subject to a delivery 

from time to time for which no specific alternative delivery procedure applies, save where a 

Governmental Authority of competent jurisdiction orders or requires or Applicable Law so requires or 

the Clearing House provides its consent in writing.

10. [NOT IN USE.]

11. [NOT IN USE.]

12. SIMILAR OBLIGATIONS UNDER DIFFERENT CONTRACTS

Where a Seller or a Buyer has delivery obligations under one or more Contracts that are not of the same 

Set but which result in a delivery obligation in respect of the same Deliverable at the same time, the 

Clearing House may notify the Seller (and its Transferor, if applicable) and the Buyer (and its 

Transferee, if applicable) of their aggregated delivery obligations under the affected Contracts and, 
5

upon such notification, the Seller and Buyer shall be required to make and take delivery in respect of 

such aggregated delivery obligations instead of such other obligations as may otherwise have been 

required.

13. INTERPRETATION

Words and phrases defined in the Rules or these Delivery Procedures bear the same meanings when 

used in any form or other document delivered pursuant to these Delivery Procedures.

The Clearing House may, from time to time, enter into clearing services arrangements with ICE 

Futures Singapore in respect of Contracts, pursuant to which the functions of the Clearing House (as 

designated in these Delivery Procedures) may be performed by ICE Futures Singapore, and vice versa. 

Accordingly, references in these Delivery Procedures to the Clearing House may be interpreted as 

references to ICE Futures Singapore in respect of such Contracts, and vice versa, as circumstances 

require.

14. REPORTS AND NOTIFICATIONS

Unless otherwise specified, the Clearing House will make the reports and confirmations it issues as part 

of the delivery processes available to the Clearing Members electronically, both via email and via the 

Clearing House Web Reporting Service (described in the Clearing House User Guide).

15. LIABILITY, MARGIN, DEFAULT AND DISCIPLINARY

15.1 The requirements relating to liability set out in the Rules apply equally in relation to deliveries. 

Without prejudice to the generality of, and subject to, the provisions of the Rules relating to liability:

(a) it is the responsibility of Clearing Members to ensure that all forms are in place at the relevant 

time, and any failure or omission to ensure that they are in place that causes or contributes to 

the failure of any delivery may itself constitute a failure to deliver by the Clearing Member; 

and

(b) upon any such failure or omission, the Clearing Member will be liable to the Clearing House 

for any cost, loss or expense of the Clearing House arising as a result of such failure or 

omission, which may include any delivery failure costs.

15.2 The Clearing House may at any time make an additional Margin call as a result of any event or 

circumstance occurring in relation to a delivery.

15.3 Notwithstanding the availability of any possible alternative or late delivery procedure, failure to 

comply with any requirement of these Delivery Procedures may constitute an Event of Default.

15.4 Nothing in these Delivery Procedures shall preclude the Clearing House, in its discretion, from 

bringing disciplinary proceedings or levying a fine against a Clearing Member, including (without 

limitation) in respect of late or failed delivery.

15.5 Clearing Members are referred to Rules I.19 to I.21 of the ICE Futures Singapore Rules which 

provisions are, to the extent relevant to the Rules, incorporated herein.

15.6 Nothing in these Delivery Procedures shall exclude any liability for fraud, death, personal injury or any 

liability which under Applicable Laws may not be excluded.

16. PAYMENTS

All payments to and from Clearing Members pursuant to these Delivery Procedures shall take place to 

and from relevant Nominated Accounts as described in the Finance Procedures. Amounts due in 

respect of delivery obligations may be set off against or aggregated with other amounts due under the 

Rules, as described in the Finance Procedures.
6

17. GUARDIAN

Guardian is an electronic grading and delivery system which is used in the process of making and 

taking delivery of certain Deliverables as specified in these Delivery Procedures.
7

PART A: ICE FUTURES SINGAPORE 1 KILO GOLD FUTURES CONTRACT

This part applies to deliveries of ICE Futures Singapore 1 Kilo Gold Futures Contract as traded under the ICE 

Futures Singapore Rules. 

1. DEFINITIONS

1.1 The following definitions apply to this part of the Delivery Procedures:

(a) The term "Assayer" means an assayer listed by ICE Futures Singapore from time to time as an 

assayer pursuant to which Gold may be assayed in accordance with the Rules and the ICE 

Futures Singapore Rules.

(b) The term "Gold" means gold meeting the specifications set out in an ICE Gold Contract and 

Paragraph 2.3(a) and held in a Regular Vault, including any specifications as to markings or 

branding.

(c) The term "ICE Gold Contract" means a physically deliverable ICE Futures Singapore 1 Kilo 

Gold Futures Contract.

(d) The term "Refinery" means a refinery listed by ICE Futures Singapore from time to time as a 

refinery pursuant to which Gold may be refined in accordance with the Rules and the ICE 

Futures Singapore Rules.

(e) The term "Regular Vault" means a vault operated by a Regular Vault Operator listed by ICE 

Futures Singapore from time to time as a vault pursuant to which Gold may be imported, 

exported and stored.

(f) The term "Regular Vault Operator" means a vault operator listed by ICE Futures Singapore 

from time to time as an operator of at least one Regular Vault.

(g) The term "Last Trading Day" means the last trading day for a Set of ICE Gold Contracts, as 

specified in the ICE Futures Singapore Contract Terms and Procedures or ICE Futures 

Singapore Rules, and, where not so specified, is the first Business Day of the delivery month.

(h) The term "Warrant" means a warrant issued in Guardian by a Regular Vault Operator (as 

amended from time to time in accordance with these Delivery Procedures) which specifically 

acknowledges that the Regular Vault Operator holds the relevant Gold which is the subject of 

the Warrant, on behalf of the relevant Clearing Member named on the warrant in accordance 

with the Rules.

2. DELIVERY SPECIFICATION

2.1 Relationship with Regular Vault Operator

(a) ICE Futures Singapore appoints each Regular Vault Operator to operate Regular Vaults to 

facilitate the satisfaction of delivery obligations in ICE Gold Contracts. Subject to paragraph 

(c) below, Clearing Members are responsible for making their own arrangements with a 

Regular Vault Operator to import, export or store Gold from a Regular Vault, irrespective of 

whether a Warrant has been issued or has been revoked. Neither ICE Futures Singapore nor 

the Clearing House has any duty of care to any Person in respect of the Regular Vault 

Operator and neither shall be liable to any Clearing Member, any member of ICE Futures 

Singapore or any other Person for any act or omission of a Regular Vault Operator. 

(b) In the event of any discrepancy or inconsistency between any instruction given to a Regular 

Vault Operator in relation to the import, export or storage of Gold for delivery in satisfaction 

of an ICE Gold Contract by a Clearing Member, ICE Futures Singapore or the Clearing 

House, the instructions given by ICE Futures Singapore shall prevail in the first instance, 
8

followed by those of the Clearing House and then those of the relevant Clearing Member. 

Any Dispute relating to such instructions shall be subject to applicable ICE Futures Singapore 

Rules and the Rules.

(c) For as long as a Warrant is issued in respect of Gold, ICE Futures Singapore shall pay to the 

Regular Vault Operator any applicable storage fees on behalf of Clearing Members. Such fees 

may be collected by the Clearing House for the account of ICE Futures Singapore pursuant to 

Rule 301(b). For the avoidance of doubt, as between the Clearing House and Clearing 

Members, the payer for such fees when collected by the Clearing House is the Clearing 

Member acting as Seller or Buyer as applicable, notwithstanding that the Warrant may be in 

the name of a Transferor or Transferee. The payee of such fees is the Clearing House at all 

times. 

(d) If Gold is not continuously stored in, or under the custody or possession of, a Regular Vault

Operator, the Clearing House reserves the right to request ICE Futures Singapore or the 

Regular Vault Operator to revoke any existing Warrant and issue another Warrant in its stead. 

The Clearing House reserves the right to revoke Warrants relating to Gold which has already 

been delivered under an ICE Gold Contract subject to consultation with the relevant Clearing 

Members and the relevant Regular Vault Operator. 

2.2 Delivery

(a) Where a Clearing Member acts as Seller, its delivery obligation under an ICE Gold Contract 

will be satisfied by the transfer of a Warrant in its name, or in the name of its Transferor, to a 

Clearing Member acting as Buyer, or its Transferee, under a corresponding ICE Gold Contract 

allocated by the Clearing House. Where the Clearing House acts as Seller, its delivery 

obligation under an ICE Gold Contract will be satisfied by the transfer, to the Buyer, or its 

Transferee, of a Warrant in the name of a Clearing Member acting as Seller (or its Transferor) 

under a corresponding ICE Gold Contract allocated by the Clearing House. Transferors or 

Transferees may only be Clearing Members.

(b) Transfers of Warrants shall occur by changing the underlying name of the Clearing Member

entitled to Gold under a Warrant by electronic book entry in Guardian. All risks in, and legal 

and beneficial title to, Gold Tendered for delivery under a Warrant shall transfer to such 

Clearing Member at the moment of such book entry transfer. 

(c) The submission of a Delivery Notice (as described in part 4 of the Delivery Timetable) in 

accordance with the Delivery Timetable shall constitute each Seller’s (and Transferor’s where 

applicable) consent and authorisation for the Clearing House to effect the electronic book 

entry transfer described in Paragraph 2.2(b) above so as to deliver such lots of Gold (which is 

the subject matter of a specified Warrant in the name of that Seller or its Transferor) to such 

Buyer or Transferee as the Clearing House may allocate. 

(d) For the avoidance of doubt, the Regular Vault Operator acknowledges that it holds the 

relevant Gold which is the subject of a Warrant as bailee on behalf of the Clearing Member 

named on the Warrant as bailor.

(e) The electronic registry of the Warrants in Guardian shall be made accessible to the Buyer, 

Seller and Regular Vault Operator. Accordingly, the electronic book entry transfer of 

Warrants set out in Paragraphs 2.2(a) and 2.2(b) shall: 

(i) constitute notice to the Seller (and its Transferor, where applicable), the Buyer (or its 

Transferee, where applicable) and the Regular Vault Operator of such transfer;

(ii) constitute acknowledgement by the relevant Regular Vault Operator, that the 

underlying Gold referenced in the Warrant is now held by it, as bailee, for the newly 

named Clearing Member referenced in the Warrant, as bailor, in lieu of the prevously 

named Clearing Member. 
9

(iii) constitute notice to the Buyer (or its Transferee, where applicable) of the Regular 

Vault Operator's acknowledgement under paragraph (ii). 

(f) Once a Seller has submitted the Delivery Notice to Guardian in accordance with the Delivery 

Timetable, the Delivery Notice will be deemed to be the final and binding instructions of such

Seller, subject to any other provision of the Rules, or ICE Futures Singapore Rules, enabling 

the amendment or revocation of a Delivery Notice. 

(g) A Delivery Notice, and other instructions sent by or on behalf of the Clearing Member, shall 

be deemed to have been submitted to, and received by, the Clearing House when such 

Delivery Notice or instruction can be viewed and retrieved by the Clearing House on 

Guardian. The Seller accepts full responsibility for the authenticity and accuracy of all 

Delivery Notices and instructions sent by it or on its behalf and acknowledges and agrees that 

each of the Clearing House and the Regular Vault Operator shall be entitled to assume that all 

Delivery Notices and instructions retrieved from Guardian have in fact been input by the 

relevant Clearing Members. A Seller or its Transferee, where applicable, must notify the 

Clearing House immediately upon discovery of any Delivery Notice being submitted on its 

behalf pursuant to any unauthorised access or fraudulent use. 

(h) In the event of any inconsistency between a Warrant and any non-electronic copy or other 

document referencing the same Gold, the details set out in the Warrant shall prevail, subject to 

any other provision of the Rules or ICE Futures Singapore Rules. The Clearing Member 

acknowledges and agrees that such Warrants are admissible in a court of law under Applicable 

Law, including the Evidence Act (Chapter 97 of Singapore), the Evidence (Computer Output) 

Regulations and associated Schedules to the same, without further requirement of proof of 

authenticity or accuracy.

(i) There is no cash settlement option except as provided for under the Rules or the ICE Futures 

Singapore Rules, including pursuant to an allowed alternative delivery process under 

Paragraph 9 of the main body of these Delivery Procedures.

(j) Sellers should ensure that they are entitled to sufficient Gold at Regular Vaults to enable 

satisfaction of their delivery obligations. Without prejudice to the Clearing House’s rights and 

powers under the Rules (including disciplinary measures or declaration of an Event of 

Default), failure to meet delivery obligations will result in referral to ICE Futures Singapore

for potential action under the ICE Futures Singapore Rules.

(k) Each Seller represents and warrants to the Clearing House that it (or its Transferor as the case 

may be, in which case the Transferor also represents and warrants the same) has good title to 

any Gold delivered to a Regular Vault to satisfy a delivery obligation under an ICE Gold 

Contract and that such Gold is free from any and all Encumbrances, subject only to the 

Regular Vault Operator being a bailee of the Gold in accordance with the terms agreed 

between the Regular Vault Operator and ICE Futures Singapore. Each Seller represents and 

warrants to the Clearing House that the details included in any Warrant issued in its name (or 

in the name of its Transferor as the case may be, in which case the Transferor also represents 

and warrants the same) are true, complete and accurate and each Seller and Transferor shall 

notify the Clearing House and the relevant Regular Vault Operator without delay in the event 

that it identifies or comes to know of any information on a Warrant which is untrue, 

incomplete, inaccurate or misleading. 

(l) Transfers of Warrants shall occur during the relevant Delivery Period for the relevant ICE 

Gold Contract in accordance with ICE Futures Singapore Rules.

(m) Original Margin shall continue to be called and payable to the Clearing House in relation to 

any ICE Gold Contract until such time as settlement of such ICE Gold Contract actually 

occurs. Contingent Variation Margin shall be payable in accordance with the Delivery 

Timetable. 
10

2.3 Quality

(a) Only Gold meeting the specifications set out in the applicable ICE Futures Singapore Contract 

Terms, and the list published by ICE Futures Singapore, of brands approved for delivery under 

an ICE Gold Contract are eligible for delivery under an ICE Gold Contract.

(b) Without prejudice to a Regular Vault’s rights under its own procedures to refuse acceptance of 

Gold, Gold must be brought to a Regular Vault from an approved source listed by ICE Futures 

Singapore from time to time or from another Regular Vault, in each case by way of insured or 

bonded delivery at the expense of the relevant Seller. 

(c) Without prejudice to their right to be delivered Gold which meets the relevant specification 

under an ICE Gold Contract, any Clearing Member acting as Buyer may request, by notice to 

the Clearing House, that Gold delivered to it be assayed or refined, at their own expense and 

under insurance or bond, by an Assayer or Refinery respectively. Clearing Members must 

make their own arrangements with the Regular Vault Operator and any Assayer or Refinery 

for any such assay or refining process. ICE Futures Singapore or the Clearing House may by 

Circular restrict the types of assay or refining available to Clearing Members. Any dispute as 

to delivery or the specifications of Gold shall be subject to ICE Futures Singapore Rules and 

the Clearing House shall be entitled to enjoin or instigate proceedings against Sellers or 

Buyers under corresponding ICE Gold Contracts in accordance with ICE Futures Singapore 

Rules and the Rules. Neither ICE Futures Singapore nor the Clearing House shall be liable for 

any act or omission of an Assayer or Refinery. 

(d) The Clearing House and ICE Futures Singapore may, at their own expense and under 

insurance or bond, arrange, or direct a Clearing Member to arrange, for the assaying or 

refinement of Gold by an Assayer or Refinery respectively. Relevant Clearing Members shall 

be required to cooperate at all times with any such directed assay or refinement process, 

including executing and providing any relevant documents and undergoing any standard know 

your client processes with such Assayer or Refinery. 

2.4 Price

The price at which the Gold is delivered is the Exchange Delivery Settlement Price of the Business Day 

immediately preceding the day of Tender, adjusted in accordance with ICE Futures Singapore Rules.

2.5 Cessation of Trading

Unless otherwise specified by ICE Futures Singapore Rules, a Set of ICE Gold Contracts shall cease 

trading at 15:00 (Singapore time) on the Last Trading Day.
11

3. DELIVERY TIMETABLE

TIME ACTION

Tender Day 

other than Last 

Tender Day

Tender Day other than Last Tender Day

By 19:30 

(Singapore time)

Sellers who wish to Tender input Delivery Notices via Guardian 

with the details of the lots to be Tendered.

A Delivery Notice may be deleted by Clearing Members up to 

the deadline on the relevant Business Day.

Clearing Members must ensure that all Delivery Notices are 

completed in Guardian by the 19:30 deadline.

Last Tender 

Day (the Last 

Trading Day)

Last Tender Day

15:00 on Last

Tender Day

The ICE Gold Contract ceases trading.

All Clearing Members' remaining Open Contract Positions 

automatically become subject to delivery obligations.

Sellers holding Open Contract Positions must submit Delivery 

Notices via Guardian setting out the details of the lots to be 

Tendered.

Delivery Notices may be modified by Clearing Members up to 

the deadline.

Clearing Members must ensure that all Delivery Notices are 

completed in Guardian by the 15:00 deadline. 

T+1 Allocation Tender Day or Last Tender Day ("T") + 1

Gold allocated to Buyers on a pro rata basis subject to the 

Clearing House’s discretion to allocate any non-divisible bar to 

any Buyer.

Delivery Notices become available on Guardian informing 

Buyers of the number of lots allocated to them.

The following are made available to Buyers via Guardian:

- invoice report.

- Delivery Notice.

The following Notice made available to Sellers via Guardian:

- account sale report.

- Delivery Notice.

T+2 Settlement Settlement (T+ 2)

By 10:00 The Clearing House debits Buyers, as detailed on the invoice 

report referred to above.

After 10:00 The Clearing House credits Sellers, as detailed on the account 

sales report referred to above.

The Clearing House transfers Warrants to Buyers via Guardian.

Original Margin and contingent Variation Margin released to 
12

TIME ACTION

Buyers and Sellers.

4. DELIVERY DOCUMENTATION SUMMARY

Sellers and Buyers should ensure that relevant Delivery Documentation is completed in full, including 

standard details such as Clearing Member name, mnemonic, etc.

Name of Delivery Document Explanation Timing

Delivery Notice Sellers input Delivery Notices via Guardian 

with the details of the lots to be Tendered.

By 19:30 on each 

Tender Day and by 

15:00 on the Last 

Tender Day.

ICSG 1 Kilo Gold: Buyer's Invoice Buyers are provided with invoice reports via 

Guardian.

T + 1

ICSG 1 Kilo Gold : Seller's 

Account Sales

Sellers are provided with account sales reports 

via Guardian.
13

PART B: ICE FUTURES SINGAPORE MINI OFFSHORE RENMINBI FUTURES CONTRACT

1. DEFINITIONS

1.1 The following definitions apply to this part of the Delivery Procedures:

(a) The term "ICE CNH Contract" means a physically deliverable ICE Futures Singapore Mini 

Offshore Renminbi Futures Contract;

(b) The term "Last Trading Day" means the last trading day for a Set of ICE CNH Contracts, as 

specified in the ICE Futures Singapore Contract Terms and Procedures or ICE Futures 

Singapore Rules, and, where not so specified, is two Hong Kong business days prior to the 

third Wednesday of the delivery month.

1.2 Any reference in this part to a Buyer or Seller shall exclude the Clearing House.

1.3 Neither Buyers nor Sellers are permitted to appoint Transferees or Transferors to effect settlement of 

delivery obligations arising out of an ICE CNH Contract. 

2. SETTLEMENT OF ICE CNH CONTRACTS

2.1 Parts 3 and 5 of the Rules and the Finance Procedures apply in respect of payments and Margin 

obligations arising from settlement obligations for an ICE CNH Contract in the same way as they apply 

to other payments to and from the Clearing House. Settlement amounts payable by Clearing Members

shall become due and payable pursuant to the overnight payment call referred to in Rule 302 and

Paragraphs 6.1(g) and 6.1(i)(vii) of the Finance Procedures. 

2.2 For the purposes of Rule 703 and the Rules, the Deliverable under an ICE CNH Contract is USD and 

the corresponding cash payment for the Deliverable is CNH. 

2.3 Original Margin shall continue to be called and payable to the Clearing House in relation to any ICE 

CNH Contract until such time as settlement of such ICE CNH Contract actually occurs. Contingent 

Variation Margin shall be payable in accordance with the Delivery Timetable. 

3. DELIVERY TIMETABLE

TIME ACTION

Last Trading 

Day Last Trading Day ("LTD")

At the end of LTD, all Clearing Members' remaining Open Contract 

Positions automatically become subject to delivery obligations.

LTD+1

LTD+1

During LTD+1 

and up to 04.30 

on LTD +2

Settlement obligations (and any contingent Variation Margin obligations) 

of Seller and Buyer are automatically incorporated into the overnight 

payment call issued by the Clearing House. 

T+2 Settlement T+2

By 10:00 Sellers and Buyers must have transferred settlement amounts via ECS by 

this deadline.
14

TIME ACTION

After 10:00 Clearing House pays out settlement amounts via ECS (CNH to Sellers

and USD to Buyers). 

Original Margin and contingent Variation Margin released to Buyers and 

Sellers.
15

PART C: ICE FUTURES SINGAPORE US DOLLAR/SINGAPORE DOLLAR FUTURES

CONTRACT

1. DEFINITIONS

1.1 The following definitions apply to this part of the Delivery Procedures:

(a) The term "ICE USD/SGD Contract" means a physically deliverable ICE Futures Singapore 

US Dollar/Singapore Dollar Futures Contract;

(b) The term "Last Trading Day" means the last trading day for a Set of ICE USD/SGD

Contracts, as specified in the ICE Futures Singapore Contract Terms and Procedures or ICE 

Futures Singapore Rules, and, where not so specified, is two Business Days prior to the third 

Wednesday of the delivery month.

1.2 Any reference in this part to a Buyer or Seller shall exclude the Clearing House.

1.3 Neither Buyers nor Sellers are permitted to appoint Transferees or Transferors to effect settlement of 

delivery obligations arising out of an ICE USD/SGD Contract. 

2. SETTLEMENT OF ICE USD/SGD CONTRACTS

2.1 Parts 3 and 5 of the Rules and the Finance Procedures apply in respect of payments and Margin 

obligations arising from settlement obligations for an ICE USD/SGD Contract in the same way as they 

apply to other payments to and from the Clearing House. Settlement amounts payable by Clearing 

Members shall become due and payable pursuant to the overnight payment call referred to in Rule 302 

and Paragraphs 6.1(g) and 6.1(i)(vii) of the Finance Procedures. 

2.2 For the purposes of Rule 703 and the Rules, the Deliverable under an ICE USD/SGD Contract is USD 

and the corresponding cash payment for the Deliverable is SGD. 

2.3 Original Margin shall continue to be called and payable to the Clearing House in relation to any ICE 

USD/SGD Contract until such time as settlement of such ICE USD/SGD Contract actually occurs. 

Contingent Variation Margin shall be payable in accordance with the Delivery Timetable. 

3. DELIVERY TIMETABLE

TIME ACTION

Last Trading 

Day Last Trading Day ("LTD")

At the end of LTD, Clearing Members' remaining Open Contract 

Positions automatically become subject to delivery obligations.

LTD+1

LTD+1

During LTD+1 

and up to 04.30 

on LTD +2

Settlement obligations (and any contingent Variation Margin obligations) 

of Seller and Buyer are automatically incorporated into the overnight 

payment call issued by the Clearing House. 

T+2 Settlement T+2

By 10:00 Sellers and Buyers must have transferred settlement amounts via ECS by

this deadline.
16

TIME ACTION

After 10:00 Clearing House pays out settlement amounts via ECS (SGD to Sellers

and USD to Buyers). 

Original Margin and contingent Variation Margin released to Buyers and 

Sellers.
ICE Clear Singaporesm

Clearing Procedures
i

Table of Contents

1. Systems .................................................................................................................................................... 1

2. Trade Clearing and Position Management ............................................................................................... 1

3. Financial Accounts................................................................................................................................... 4

4. Margin Procedures ................................................................................................................................... 5

5. [Not used.]................................................................................................................................................ 7

6. Customer Clearing.................................................................................................................................... 7

7. Terms Applicable to Position Transfers................................................................................................. 10
1

1. SYSTEMS

1.1 These Clearing Procedures are "Procedures" as defined in the ICE Clear Singapore Pte. Ltd. rules (the 

"Rules") and are subject to the Rules, including, without limitation, Rule 102. These Clearing 

Procedures, and all non-contractual obligations arising out of or in connection with them, are governed 

by and shall be construed in accordance with Singapore law and any Dispute arising under these 

Clearing Procedures will be subject to arbitration under Rule 117. 

1.2 The Clearing House’s primary systems, to which Clearing Members require interfaces, consist of:

(a) Post-trade administration/clearing and settlement processing: ICE clearing systems including 

ICE Clear Singapore’s Extensible Clearing System ("ECS"), Assured Payment System 

("APS"), Post Trade Management System ("PTMS"), Allocation and Claim Transaction 

System ("ACT"), and Guardian (the "ICE Post Trade and Clearing Systems" or the "ICE 

Systems");

(b) Risk management: the ICE Systems and SPAN®*;

(c) Banking: ECS;

(d) Deliveries: Guardian; and

(e) Billing: ICE in-house system.

1.3 These Clearing Procedures deal primarily with matters relating to post-trade administration, clearing 

and settlement and risk management. Details relating to finance and deliveries are set out in the 

Finance Procedures and Delivery Procedures respectively.

1.4 Clearing Members should immediately inform the Clearing House of any event, system-related or 

otherwise, that would prevent them from operating timely and accurately on the Markets cleared by the 

Clearing House. Clearing Members must, at all times, ensure that they are able to continuously 

monitor communication facilities for receipt of communications from the Clearing House.

2. TRADE CLEARING AND POSITION MANAGEMENT

2.1 The Clearing Systems

(a) The components of the ICE Systems are licensed to, and supplied and maintained for the 

benefit of, the Clearing House. The ICE Systems are integrated trade registration and clearing 

processing systems used for the clearing of the relevant Market. 

(b) The ICE Systems work together to process transactions from the time of trading and entry into 

the system, through the maintenance and settlement of Open Contract Positions, the 

calculation of Margin, and the delivery/expiry of Contracts.

2.2 Trade registration and clearing process

(a) The instant a Contract arises pursuant to Rule 401, the Clearing House becomes the buyer to 

the Selling Counterparty and the seller to the Buying Counterparty.

(b) Data in relation to matched trades will automatically pass to the ICE Systems.

 

*

SPAN is a registered trademark of Chicago Mercantile Exchange Inc., used herein under license. Chicago 

Mercantile Exchange Inc. assumes no responsibility in connection with the use of SPAN by any person or entity. 

SPAN is a risk evaluation and margin framework algorithm.
2

(c) The ICE Systems receive details of trades in real-time from the relevant Market. It allows 

Clearing Members and their Representatives to perform the following functions, among 

others:

(i) assign trades to one of various accounts described below;

(ii) allocate trades to other Clearing Members as allowed under Rule 408(a)(ii) and

Market Rules or between position keeping accounts;

(iii) accept trades allocated or split by other Clearing Members as allowed under 

Rule 408(a)(ii) and Market Rules;

(iv) allocate or split trades between different position keeping accounts;

(v) enter position settlement instructions;

(vi) input consolidation crosses in order to consolidate trades at various prices into 

average prices; and

(vii) view trading history and status of trades.

(d) Clearing Members should refer to the ICE Systems user guides for more detailed information 

concerning the ICE Systems’ functionality.

(e) The ICE Systems will allow Clearing Members and their Representatives to perform the 

following functions, among others:

(i) monitor Open Contract Positions;

(ii) close out open Contracts by netting off equal and opposite Contracts in its Customer 

Account;

(iii) process physical delivery of Deliverables pursuant to Futures Contracts; and

(iv) review Margin requirements.

(f) A number of reports are available in the ICE Systems, the list and details of which are 

available in the ICE Systems user guide.

(g) In the event of any system errors or other systemic issues connected with the ICE Systems, 

Clearing Members should contact the Clearing House’s operations department.

(h) In the event of any processing errors or error in communications with the Clearing House, 

Clearing Members should contact the Clearing House’s operations department.

2.3 Position keeping

(a) Position-keeping activities are governed by Market Rules. In the event of any conflict 

between these Clearing Procedures and Market Rules in relation to position-keeping, Market 

Rules shall prevail.

(b) Open Contract Positions can be maintained in several accounts within the ICE Systems, 

identified in the ICE Systems by one letter as follows:

Accounts linked to a Proprietary Account for purposes of the Rules:

(i) H – House;
3

(ii) [Not used.];

(iii) [Not used.];

(iv) D - Default (trades not assigned to a specific account or sought to be allocated but 

left unclaimed by another Clearing Member will automatically clear in the default 

account);

(v) T – Segregated (shall be used by Clearing Members for transactions entered into for 

the account of their Affiliates);

(vi) U – Unallocated (for intra-day usage only); and

(vii) [Not used.]

(viii) such other accounts as are made available to Clearing Members for Proprietary 

Accounts by the Clearing House.

Account linked to a Customer Account:

(ix) S - Segregated Customer - maps to a Customer Account.

(x) [Not used.]

(xi) [Not used.]

(c) Clearing Members may maintain separate position-keeping accounts for each Exchange

member for whom they provide clearing services.

(d) Where a Clearing Member holds accounts of Exchange members who are not Clearing 

Members, the mapping of these accounts to a Customer Account or Proprietary Account will 

be determined by the Clearing Member in conjunction with the relevant Market and in 

accordance with Applicable Laws. 

2.4 Open Contract Positions and Close-outs

(a) The House (H) will only reflect net Open Contract Positions. 

(b) The Default (D), Segregated (T) and Customer Account (S) hold gross Contracts, showing all 

sell and all buy positions that have not been netted or closed out (in the case of positionkeeping accounts linked to a Customer Account, to the extent that there is more than one 

Customer interested in the Account, and in the case of the Segregated (T) account, to the 

extent that there are Contracts recorded for the account of more than one Affiliate). The ICE 

Systems and Rule 406 allow Clearing Members to close out opposite Contracts that are held 

gross in certain circumstances. In order to ensure a true representation of Open Contract 

Positions, Clearing Members may be required to perform manual close-outs (netting) in the 

accounts where gross Open Contract Positions are maintained, in accordance with the Rules. 

Clearing Members are responsible for inputting any required manual netting or close-out 

instructions in relation to such accounts.

(c) Any close-outs should be performed in a fashion and at a time in accordance with Market

Rules. Position transfers between accounts in the ICE Systems must be complete at or before 

the time specified by the relevant Market from time to time in order to be reflected in Open 

Contract Positions.

(d) For Clearing Members, Customer-CM Transactions arise only in respect of transactions 

recorded in a position-keeping account linked to a Customer Account.
4

2.5 Invoicing Back, Void Contracts, etc.

(a) Any Contracts that are subject to Invoicing Back will be reflected by the entry into by the 

Clearing House through the ICE Systems of a new Contract of opposite effect to the original 

Contract (or pursuant to such other terms or prices as are determined by the Clearing House 

pursuant to the Rules). Clearing Members will be notified of Contracts subject to Invoicing 

Back or amendment by the Clearing House’s operations department. Each such event will be 

confirmed in writing.

(b) Any Contracts that are void or voided will be deleted from the ICE Systems by the Clearing 

House. Clearing Members will be notified of Contracts which are void or voided by the 

Clearing House’s operations department. Each such event will be confirmed in writing.

(c) The Clearing House may make other trade or Open Contract Position adjustments as directed 

by the relevant Market. In each such event, the Clearing House’s operations department will 

contact the Clearing Member and confirm such adjustment in writing.

3. FINANCIAL ACCOUNTS

3.1 Margining accounts

(a) While Open Contract Positions are held in several different accounts through the ICE 

Systems, the margining of Open Contract Positions will take place as follows:

(i) H, D, U and any other accounts established pursuant to Paragraph 2.3(b)(viii) will be 

margined on a net basis together via the House (H) account (referred to as a

"Proprietary Account" under the Rules); 

(ii) T, whilst also a sub-account of the "Proprietary Account" under the Rules, will be 

margined separately on a gross basis to the extent Open Contract Positions are 

referable to more than one Affiliate; and

(iii) S will be margined on a gross basis via a Customer Account.

(b) Each separate Proprietary Account and Customer Account will be subject to calculations and 

calls for Margin separately. Transfers or offsets between any two such accounts will not be 

possible. These accounts are also all treated separately following any Event of Default, under 

Part 9 of the Rules. 

(c) Records of all financial information including, but not limited to, Margin requirements, cash 

balances, collateral, contingent Margin, Buyer’s security and Seller’s security will be held in 

ECS within the ICE Systems. The naming convention for the accounts in ECS used for 

Contracts will be the Clearing Member’s three letter mnemonic followed by the account type 

(e.g. XXXH for a Proprietary Account). 

(d) Clearing Members can find more information about ECS functions and facilities in the ICE 

Systems user guide.
5

3.2 [Not used.]

Table A: Summary of Account Codes

Position 

Account

ICE Systems 

Term

ECS Term ECS Account 

name

Rulebook

H

U

D

T

House

Unallocated

Default

Segregated

House Account (H)

Segregated Account 

(T)

XXXH (may also

be referred to as 

HOUSE 

segregation)

XXXT (may also be 

referred to as 

Segregated T)

Proprietary Account

S Segregated 

Customer

General 

Client Account (S)

XXXC (may also 

be referred to as 

CSEG segregation)

Customer Account 

4. MARGIN PROCEDURES

4.1 General

The matters described in this Paragraph 4 will be recorded through ECS and will form part of the 

Clearing House’s daily Margin processes. Margin requirements will determine whether funds are 

needed to be paid to, or received from, the relevant Clearing Member. Any required payments will be 

effected through Approved Financial Institutions that participate in the APS, as described in the 

Finance Procedures. 

4.2 Original Margin

(a) Original Margin calculations are made separately in respect of each of a Clearing Member’s 

Proprietary Account and Customer Account. No Margin offset is possible between any of 

these accounts. Original Margin calculations for a Proprietary Account will be based on the

net positions for a Set where only one position-keeping account is used or the sum of the gross 

positions for a Set where Contracts are recorded in separate position-keeping accounts. 

Original Margin requirements for a Customer Account will be based on the net positions for a 

Set of each underlying Customer where reported to the Clearing House or the sum of the gross 

positions for a Set where individual Customer positions are not reported to the Clearing House

under Rule 401 and in the way set out in Paragraph 2.3(b).

(b) Original Margin parameters are set by the Clearing House within the framework of the policy 

reviewed by the Clearing House’s Risk Committee. 

(c) The Clearing House will notify Clearing Members of any change to Original Margin

parameters by Circular no later than the day before calls are made based on the new 

parameters. For routine changes, the Clearing House will provide five Business Days’

advance notice of changes to Margin parameters, unless another period is specified in the 

relevant Circular.

(d) Original Margin requirements will be calculated overnight at a time notified to Clearing 

Members on a daily basis, for both Proprietary Accounts and Customer Accounts, using the 

SPAN® algorithm.

4.3 Variation Margin
6

All open Contracts are marked to market daily in accordance with the Contract Terms (which includes

any applicable Market Rules). Profits and losses are credited to or debited from the relevant 

Nominated Customer Bank Account or Nominated Proprietary Bank Account of each Clearing 

Member as set out in the Finance Procedures.

4.4 [Not used.]

4.5 Cash Settlement

(a) When it reaches maturity, a Contract can give rise either to cash settlement (if determined by 

the Contract Terms or, where permitted by the Contract Terms, if the Clearing Member opts 

out of the delivery via EFP) or delivery obligations.

(b) Cash settlement for Contracts will be determined by the difference between the Exchange 

Delivery Settlement Price and the previous day’s Exchange Delivery Settlement Price, as 

determined in accordance with Part 7 of the Rules.

(c) Details relating to deliveries for Contracts are set out in the Delivery Procedures.

4.6 Contingent Variation Margin 

(a) A contingent Variation Margin amount will be calculated and called daily for Contracts under 

tender as notified by Circular. This contingent Variation Margin will result from the difference 

between the Exchange Delivery Settlement Price for the Contract under tender and the 

Exchange Delivery Settlement Price for the next maturing Contract Set of otherwise 

equivalent specifications.

(b) Clearing Members will not receive repayment in respect of any contingent Variation Margin 

in cash. However, they will be able to use any excess against Margin requirements on the 

Contracts in respect of which contingent Variation Margin is called and other Contracts. If 

contingent Variation Margin is a debit, it will be possible for Clearing Members to use assets, 

as permitted by these Procedures and updated by Circular, as Permitted Cover.

(c) Contingent Variation Margin will be released:

(i) for the Buyer, on payment of the Buyer's security; and

(ii) for the Seller, once all relevant deliveries are completed,

as detailed or otherwise specified in the Delivery Procedures.

4.7 [Not used.]

4.8 Buyer's security and Seller's security

In accordance with Market Rules and where specified in the Delivery Procedures, Clearing Members 

will be liable for Buyer's security and Seller's security in respect of Contracts undergoing deliveries. 

Such amounts will be included in the Margin call process.

4.9 Intra-day or ad hoc margin calls

If market conditions dictate, the Clearing House may decide to proceed to an intra-day or ad hoc

Margin call for certain, or all, Contract Sets or for all or particular Clearing Members. In the event of 

an intra-day or ad hoc call applying, any increased Margin requirements will be reflected in ECS. If 

there is a shortfall, ECS will generate a call which must be met in accordance with the Finance 

Procedures. Affected Clearing Members will be informed of the call by the Clearing House and such 

call will be confirmed by email to a designated e-mail account of each affected Clearing Member.
7

4.10 Contingency Holidays

If there is a bank holiday in the country of a particular currency, the Clearing House will call cash on 

the next Business Day which is not a bank holiday in the country of such particular currency, as 

described in the Finance Procedures

5. [NOT USED.]

6. CUSTOMER CLEARING 

6.1 Open Contract Positions and accounts:

(a) Provided that no Event of Default has been declared with respect to the Clearing Member, in 

the event of the termination of a Customer-CM Transaction (including but not limited to as a 

result of a default by a segregated Customer under the terms of a Cleared Transactions Master 

Agreement), the Clearing Member may, to the extent permitted under Applicable Law:

(i) request of the Clearing House that a Customer Account Position or any part thereof 

be transferred into a Contract in its Proprietary Account (in which case, for the 

avoidance of doubt, the Proprietary Position Account will reflect, and Rule 406 will 

apply to, such transferred Contracts); or

(ii) submit to the Clearing House particulars in respect of offsetting Transactions, one leg 

of which is to be recorded in a Customer Position Account (in which case, for the 

avoidance of doubt, the resultant Contract may be offset against Contracts in the 

same sub-account which relate to such Customer, pursuant to Rule 406).

For the avoidance of doubt, Rule 302 and the Finance Procedures apply in relation to the 

return of any Surplus Collateral at the Clearing House resulting from the termination of any 

Contract.

6.2 Transfer of Contracts absent an Event of Default:

(a) Each Clearing Member (other than a Defaulter) with a Customer Account (the "Transferor 

Clearing Member") shall be required, upon request of a Customer to transfer such Clearing 

Member’s rights and obligations with respect to Contracts recorded in its Customer Account

(and any related Customer-CM Transactions) to one or more other Clearing Member (the 

"Transferee Clearing Member") designated by such Customer subject to the provisions of

this Paragraph 6.2 and, to the extent not inconsistent with this Paragraph 6.2, to any terms 

agreed between the Transferor Clearing Member and Customer. Such transfer shall be 

effected as soon as practicable following satisfaction of the conditions set forth in paragraph 

6.2(b). 

(b) A transfer pursuant to Paragraph 6.2(a) shall be subject to the following conditions:

(i) the Transferor Clearing Member shall have no obligation to locate or identify a 

Transferee Clearing Member (which shall be the responsibility of the Customer);

(ii) the transfer must be in accordance with Applicable Laws, including any applicable 

Market Rules, and, to the extent permitted thereunder, any applicable agreement 

between the Transferor Clearing Member and Customer;

(iii) the Transferor Clearing Member, Transferee Clearing Member and Customer shall, 

through an Exchange or the ICE Systems, have agreed and executed and submitted to 

the Clearing House an electronic transfer confirmation (the "Transfer 

Confirmation") in a form approved by the Clearing House (which may be written or 

electronic) which may include the following:
8

(A) the relevant Contracts to be transferred (the "Transferred Contracts") and 

the corresponding Customer-CM Transactions, if any, to be transferred;

(B) the proposed transfer date (the "Transfer Date"), which shall be no earlier 

than the Business Day of submission of the Transfer Confirmation to the 

Clearing House and shall be a Business Day; 

(C) whether relevant Original Margin of the Transferor Clearing Member 

recorded in the relevant Margin Account in respect of the Transferred 

Contracts is to be transferred to or to the account of the Transferee Clearing 

Member or returned to the Transferor Clearing Member for distribution to 

the Customer or to its account or order;

(D) the amount of such Original Margin, if any, to be so transferred or returned 

in respect of the Transferred Contracts; and

(E) such other matters as the Clearing House may specify;

(iv) prior to the applicable transfer time determined by the Clearing House on the 

Transfer Date (such time, the "Transfer Time"), if required by the Clearing House, 

each of the Transferor Clearing Member and the Transferee Clearing Member shall 

have transferred additional Margin in the amount specified by the Clearing House to 

satisfy any additional Margin requirements as a result of the proposed adjustments in 

Open Contract Positions in relevant Accounts resulting from the proposed transfer; 

and

(v) the Clearing House has accepted such Transfer Confirmation, and the Transferor 

Clearing Member and Transferee Clearing Member have satisfied such other 

conditions as the Clearing House may have specified.

(c) If such conditions are satisfied, then as of the Transfer Time, the transfer shall occur as set 

forth in the Transfer Confirmation in relation to the Transferred Contracts and corresponding 

Customer Transactions, if any, and Rule 408(a)(i), and the Clearing House shall:

(i) adjust the records of the Open Contract Positions in the relevant Account of the 

Transferor Clearing Member so as to reflect the transfer of the Transferred Contracts; 

(ii) adjust the records of the Open Contract Positions in the relevant Account of the 

Transferee Clearing Member so as to reflect the transfer of the Transferred Contracts; 

(iii) adjust the Margin requirements of relevant Accounts to reflect such adjustments of 

Open Contract Positions; and 

(iv) record the transfer of any Margin to be transferred from an Account of the Transferor 

Clearing Member to an Account of the Transferee Clearing Member or return such 

Margin to the Transferor Clearing Member for distribution to the relevant Customer 

or to its account or order, as specified in the Transfer Confirmation.

(d) Notwithstanding anything to the contrary herein, no Clearing Member shall be required to 

accept a transfer of any Transferred Contracts as a Transferee Clearing Member without such 

Clearing Member’s consent. 

(e) [Not used.]

(f) Notwithstanding anything to the contrary herein or in any Transfer Confirmation, if an Event 

of Default occurs with respect to a Transferor Clearing Member prior to the transfer becoming 

irrevocable pursuant to Part 12 of the Rules, such transfer (and any related Transfer 
9

Confirmation) will be cancelled and of no effect and the Clearing House will not adjust the 

related Open Contract Positions pursuant to this Paragraph 6.2.

(g) Unless otherwise agreed between the Transferor Clearing Member and the Customer and 

subject to any applicable legal or regulatory requirements, the Customer must satisfy in full, at 

or prior to the proposed Transfer Time, any margin requirements ("Pre-Transfer Margin 

Requirements") imposed by the Transferor Clearing Member with respect to:

(i) any remaining Customer-CM Transactions; and 

(ii) if the Customer and Transferor Clearing Member have expressly agreed (whether 

orally or in writing) to determine the margin requirements for contracts, transactions 

or positions of that Customer other than Customer-CM Transactions or Contracts 

(collectively, "Non-cleared Positions") by taking into account the margin 

requirements for the Customer-CM Transactions being transferred, such Non-cleared 

Positions; 

in each case calculated after giving effect to such transfer. If there is an express agreement 

(whether written or oral) between the Transferor Clearing Member and the Customer with 

respect to the margining that will be imposed on Customer Transactions or Non-cleared 

Positions, the Transferor Clearing Member shall determine the Pre-Transfer Margin 

Requirements in accordance with the terms of such agreement. So long as: (x) the PreTransfer Margin Requirements specified in this Paragraph 6.2(g) are satisfied; and (y) no 

event of default has occurred with respect to the Customer under the applicable Cleared 

Transactions Master Agreement, no consent of the Transferor Clearing Member shall be 

required for such transfer.

6.3 Margin

(a) If Customer-CM Collateral is not in the form of Permitted Cover, the relevant Clearing 

Member shall remain obliged to transfer only Permitted Cover to the Clearing House and to 

account accordingly for any transformation of assets with its Customer (without prejudice to 

arrangements under which fees or rates of return may be determined) in accordance with the

relevant Standard Terms.

(b) Any additional Customer-CM Collateral (beyond the Clearing House’s requirement) required 

by a Clearing Member of a Customer may be held in any lawful manner as agreed between a

Customer and Clearing Member. Subject to such agreement, such collateral may, but is not 

required hereunder to, be transferred to a Customer Margin Account of the Clearing Member 

and will, if so transferred, be treated as Surplus Collateral to the extent that a greater value of 

Permitted Cover is credited to the relevant Customer Margin Account than the Margin 

requirement for that Customer Margin Account.

6.4 Data in relation to Customer Clearing

(a) Each Clearing Member shall keep and maintain written or electronic records showing, with 

respect to its Customer Account:

(i) the identity of each of its Customers;

(ii) all Default Portability Preferences of each of its Customers; and

(iii) such other information as may be requested by the Clearing House in accordance 

with the Rules or these Clearing Procedures from time to time.

(b) Each Clearing Member shall provide any data of a nature described in Paragraph 6.4(a) to the 

Clearing House promptly upon demand. Data relating to the identity of Customers or Default 
10

Portability Preferences may be requested by the Clearing House with reference to anonymous 

customer serial codes. Each Clearing Member shall provide accurate information to any 

Exchange for purposes of identifying its Customers. Each Clearing Member and Customer 

consents to an Exchange providing all such information as is referred to in Paragraph 6.4(a) to

the Clearing House.

(c) Each Clearing Member that has a Customer Account shall request each of its Customers to 

specify a Default Portability Preference or confirm that it has not specified a Default 

Portability Preference. Clearing Members and the Clearing House acknowledge that a 

Customer may designate permitted Transferee Clearing Members at any time prior to or after 

an Event of Default being declared in relation to a Clearing Member. 

7. TERMS APPLICABLE TO POSITION TRANSFERS

7.1 Additional defined terms

In this Paragraph 7 only:

(a) The term "Novation" or "Position Transfer" means a transfer by way of novation of 

Novating Contracts from a Position Transferor to a Position Transferee pursuant to Rule 

408(a)(i), Part 12 of the Rules or Paragraph 6 of these Clearing Procedures and this 

Paragraph 7 of the Clearing Procedures.

(b) The term "Novation Time" means the novation time specified by the Clearing House for a 

Novation of particular Novating Contracts which will be communicated to the Position 

Transferor and Position Transferee by the Clearing House.

(c) The term "Novating Contract" means a Contract between a Position Transferor and the 

Clearing House which is open immediately prior to the Novation Time and which has not, as 

at the Novation Time, been cash settled or otherwise performed, discharged or closed out, 

void, voided, terminated or rescinded in full, and which is to be subject to a Novation, or a 

Contract between a Position Transferee and the Clearing House arising as a result of the same 

Novation (as applicable).

(d) The term "Position Transferee" means a Clearing Member which is party to a Position 

Transfer as transferee.

(e) The term "Position Transferor" means a Clearing Member which is party to a Position 

Transfer as transferor.

7.2 General

(a) Rules 408(a)(i) and Part 12 of the Rules set out various provisions applicable to the transfer or 

novation of Contracts between Position Transferors and Position Transferees and to Position 

Transfer Orders. This Paragraph 7 sets out the terms of the novation and transfer under which

all Position Transfers will take place. 

(b) Each Position Transferor and Position Transferee will be deemed to agree to the application of 

the terms set out in this Paragraph 7 in respect of each Position Transfer to which it is a party.

(c) Each Position Transferor and Position Transferee shall ensure that immediately prior to the 

time at which any Position Transfer Order becomes irrevocable:

(i) it has made all due payments to the Clearing House in respect of Margin, including,

if it is a Position Transferee, any additional pre-funded Margin required by the 

Clearing House in respect of the Contracts expected to arise as a result of the 

Novation, or if it is a Position Transferor, any additional pre-funded Margin required 
11

by the Clearing House arising from the proposed termination of the Novating 

Contracts recorded in its accounts; and

(ii) legally binding and enforceable agreements are in place to the extent necessary with 

all third parties that are affected by the Position Transfer and all necessary notices 

have been served on such third parties in order for the Position Transfer to take place 

at the Novation Time in accordance with the Rules and this Paragraph 7.

7.3 Novation Terms

(a) On and as from the Novation Time, the following shall take place by operation of this 

provision:

(i) the Position Transferor releases and discharges the Clearing House from all

covenants, undertakings, warranties and other obligations of the Clearing House

pursuant to each of the Novating Contracts and (subject to Paragraph 7.3(a)(vii)) 

from all claims and demands whatsoever or howsoever arising out of or in respect of 

each of the Novating Contracts whether arising prior to, on or subsequent to the 

Novation Time;

(ii) the Clearing House releases and discharges the Position Transferor from all

covenants, undertakings, warranties and other obligations of the Position Transferor 

pursuant to each of the Novating Contracts and (subject to Paragraph 7.3(a)(viii)) 

from all claims and demands whatsoever or howsoever arising out of or in respect of 

each of the Novating Contracts whether arising prior to, on or subsequent to the 

Novation Time;

(iii) the Position Transferee assumes in favour of the Clearing House and shall be vested 

with all the liabilities of the Position Transferor to the Clearing House whatsoever 

arising out of or under each of the Novating Contracts whether arising prior to, on or 

subsequent to the Novation Time, agrees to perform all the duties and to discharge all 

the obligations of the Position Transferor under each of the Novating Contracts 

whether arising prior to, on or subsequent to the Novation Time and agrees to be 

bound by all the terms and conditions of the Novating Contracts in every way as if 

the Position Transferee had been party to each of the Novating Contracts from 

inception instead of the Position Transferor;

(iv) the Clearing House agrees to perform all its duties and discharge all its obligations 

under the Novating Contracts and to be bound by all the terms and conditions of the 

Novating Contracts in every way as if the Position Transferee had been party to each 

of the Novating Contracts from inception instead of the Position Transferor;

(v) subject to Paragraphs 7.3(a)(vii) and (viii), the Position Transferor and the Position 

Transferee shall be deemed to acknowledge and agree that the Clearing House shall 

on and as from the Novation Time have the right to enforce each of the Novating 

Contracts and pursue all claims and demands whatsoever or howsoever arising out of 

or in respect of each of the Novating Contracts whether arising prior to, on or 

subsequent to the Novation Time as if the Position Transferee had been party to each 

of the Novating Contracts from inception instead of the Position Transferor;

(vi) subject to Paragraphs 7.3(a)(vii) and (viii), the Clearing House and the Position 

Transferor shall be deemed to acknowledge and agree that the Position Transferee 

shall on and as from the Novation Time have the right to enforce all of the Novating 

Contracts and pursue all claims and demands whatsoever or howsoever arising out of 

or in respect of the Novating Contracts whether arising prior to, on or subsequent to 
12

the Novation Time as if the Position Transferee had been party to the Novating 

Contracts from inception instead of the Position Transferor; 

(vii) the Novation shall not affect any complaints made prior to the Novation Time or to 

be made by the Position Transferor against the Clearing House in relation to any 

matter or event occurring or circumstance arising prior to the Novation Time or any 

Dispute relating to any matter or event occurring or circumstance arising prior to the 

Novation Time, other than a claim or demand for payment of an amount due but 

unpaid at the Novation Time pursuant to the terms of a Novating Contract;

(viii) the Novation shall not affect any disciplinary, legal or other proceedings commenced 

against the Position Transferor by the Clearing House prior to the Novation Time or 

the right of the Clearing House to bring disciplinary, legal or other proceedings 

against the Position Transferor in relation to any matter or event occurring or 

circumstance arising (in whole or in part) prior to the Novation Time or any Dispute 

relating to any matter or event occurring or circumstance arising (in whole or in part) 

prior to the Novation Time, other than a claim or demand for payment of an amount 

due but unpaid at the Novation Time pursuant to the terms of a Novating Contract; 

and

(ix) the Clearing House, Position Transferor and Position Transferee shall each be 

deemed to agree that all materials, communications and instructions (whether written, 

electronic or oral) relating to or made in connection with any Novating Contract 

produced or used by any of them and all references in any Novating Contract to such 

contract shall be construed as a reference to the relevant Novating Contract after the 

Novation.

(b) Subject to Paragraphs 7.3(a)(vii) and (viii), the Clearing House, Position Transferor and 

Position Transferee each shall be deemed hereby to agree and acknowledge that, as between 

them, each Novating Contract shall be construed for all purposes on and after the Novation 

Time as if it had, from its inception, always been the subject of the Novation and the 

amendments given effect to pursuant to this Paragraph 7, regardless of the date on which any 

event, matter, notice, circumstance, dispute or difference under the Novating Contract 

occurred or arose or was or is deemed to occur or arise.

(c) The Position Transferor and the Clearing House, and the Position Transferee and the Clearing 

House shall each hereby be deemed to agree and acknowledge to each other that, at the 

Novation Time and without the need for any further act on behalf of either of them, any and 

all requirements of the Rules or Applicable Law and all requirements for notices and other 

formalities in relation to the Novation of the Novating Contracts pursuant to this Paragraph 7

under the terms of such Novating Contracts have been satisfied or, to the extent not satisfied, 

are hereby waived. As from the time at which the Position Transfer Order becomes 

irrevocable, the Clearing House shall be deemed to have provided its consent to the Novation 

for purposes of Rule 408(a)(i).

(d) The Position Transferor shall make available to the Clearing House such data relating to the 

Novation and Novating Contracts that is in the Position Transferor’s control as the Clearing 

House may reasonably request in order to give effect expeditiously to the Novation or to carry 

out its obligations under the Rules or Applicable Law. 

(e) Notwithstanding any communication that the Position Transferor or Position Transferee may 

have had with any other party, each of the Position Transferor and Position Transferee shall 

hereby be deemed to represent and warrant to the Clearing House as at the Novation Time 

that:
13

(i) it is not relying upon any representation or warranty of the Clearing House or any 

other Clearing Member except any representation or warranty expressly set out in the 

Rules or Procedures;

(ii) it has consulted with its own legal, regulatory, tax, business, financial and accounting 

advisers to the extent that it has deemed necessary and agrees to the Novation based 

upon its own judgment and upon any advice from its advisors as it has deemed 

necessary and not upon any view or advice expressed by the Clearing House;

(iii) it is entering into the Novation with a full understanding of the terms and conditions 

and risks thereof and it is capable of and willing to assume those risks.

(iv) it has the power to execute and effect the Novation and any documents that may be 

required to effect the Novation, and to perform its obligations under the Rules, all 

Contracts to which it is party and this Paragraph 7 and all necessary action to 

authorise such execution, delivery and performance has been taken;

(v) the execution, delivery and performance of the Novation do not violate or conflict 

with any Applicable Law applicable to it, any provision of its constitutional 

documents, any order or judgment of any court or Governmental Authority 

applicable to it or any of its assets or any contractual restriction binding on or 

affecting any of its assets; and

(vi) all consents of any Governmental Authority or other Person that are required to have 

been obtained by it with respect to the Novation have been obtained and are in full 

force and effect and all conditions of any such consents have been complied with.
ICE CLEAR 

SINGAPORE 

S-1 SUPPLEMENT 

ANNEX A-5(vi)
ICE Clear Singaporesm

Complaint Resolution Procedures 
SIDOCS01/117104.8 i 

Table of Contents 

1. General introduction ....................................................................................................................................... 1

2. Eligible Complaints ........................................................................................................................................ 2

3. Making a Complaint ....................................................................................................................................... 2

4. Investigation of Complaints by the Clearing House ...................................................................................... 3

5. Result of the Investigation .............................................................................................................................. 3

6. Referral to the Commissioner......................................................................................................................... 4

7. The Commissioner’s Investigation ................................................................................................................ 4

8. Result of the Investigation .............................................................................................................................. 5

9. Record-keeping ............................................................................................................................................... 6

10. Exclusion of liability ...................................................................................................................................... 6

11. Confidentiality ................................................................................................................................................ 6
SIDOCS01/117104.8 1 

1. GENERAL INTRODUCTION 

1.1 These Complaint Resolution Procedures are 'Procedures' as defined in the ICE Clear Singapore Pte. 

Ltd. rules (the "Rules") and are subject to the Rules, including, without limitation, Rule 102. These 

Complaint Resolution Procedures, and all non-contractual obligations arising out of or in connection 

with them, are governed by and shall be construed in accordance with Singapore law and any Dispute 

arising under these Complaint Resolution Procedures will be subject to arbitration under Rule 117. 

1.2 These Complaint Resolution Procedures establish arrangements and adequate procedures for the 

recording, monitoring, investigation and resolution of complaints arising in connection with the 

performance of, or failure to perform, any of its regulatory functions (any such matter, a "Complaint"). 

Steps will be taken by the Clearing House to ensure that Complaints are handled fairly, consistently 

and promptly. These arrangements include procedures for a Complaint to be fairly and impartially 

investigated by an Independent Complaints Commissioner and for that person to report on the result of 

his investigation to both the Clearing House and the person making the Complaint ("Complainant"). 

The arrangements must also confer on the person the power to recommend, if appropriate, that the 

Clearing House: (i) makes a compensatory payment to the Complainant; and/or (ii) remedies the matter 

complained of. The Clearing House should also take prompt action to rectify systems and controls 

weaknesses highlighted by any Complaint. 

1.3 The Clearing House has adopted these Complaint Resolution Procedures. A Complaint which runs its 

full course will consist of the following key stages: 

(a) an Eligible Complaint (as defined in Paragraph 2.1) must be submitted in writing; 

(b) at first instance, the Clearing House will investigate the Complaint and attempt to resolve it. If 

the Complainant is dissatisfied with the Clearing House’s response or proposals to redress the 

Complaint, the Complainant may refer the Complaint to an Independent Complaints 

Commissioner (the "Commissioner") or request that the Clearing House refers the Complaint 

to the Commissioner; 

(c) the Commissioner, if he determines that the referral is an Eligible Complaint, will investigate 

the matter as appropriate; 

(d) following due consideration, the Commissioner will produce a report outlining his 

recommendations which will be copied to the Clearing House and the Complainant; and 

(e) if the Commissioner recommends a compensatory payment and/or remedial action, the 

Clearing House will consider and may act upon such recommendation. 

1.4 There is no restriction on who can bring a Complaint, although a Complaint must be an Eligible 

Complaint in order to be capable of being handled in accordance with these Complaint Resolution 

Procedures. These Complaint Resolution Procedures do not limit the Clearing House from considering 

or refraining from considering any Complaint which is not an Eligible Complaint pursuant to such 

procedures as it may determine. 

1.5 In referring any Eligible Complaint (or by asking the Clearing House to refer such a Complaint) to the 

Commissioner, the Complainant shall be deemed to agree to be bound by and be subject to these 

Complaint Resolution Procedures and, as a result, accepts that any recommendation made by the 

Commissioner to the Clearing House, if adopted by the Clearing House, shall be in full and final 

resolution and settlement of the Complaint and all associated rights and claims. 

1.6 Without prejudice to the ability of any other Person to act as a Complainant, these Complaint 

Resolution Procedures apply in relation to all Clearing Members. 
SIDOCS01/117104.8 2 

2. ELIGIBLE COMPLAINTS 

2.1 "Eligible Complaints" are Complaints against the Clearing House arising in connection with the 

performance of, or its failure to perform, any of its regulatory functions. 

2.2 A Complaint will not be an Eligible Complaint if it: 

(a) relates to: 

(i) the Clearing House’s relationship with its Directors, officers, employees, committees 

or any individual committee member; 

(ii) the content of the Clearing House’s Rules; or 

(iii) a decision against which the Complainant has the right to appeal under Part 10 of the 

Rules; 

(b) is connected with a contractual or commercial dispute involving the Clearing House and is not 

connected in any way with the Clearing House’s regulatory functions; 

(c) is made outside the period of 12 months from the date on which the Complainant becomes 

aware of the circumstances giving rise to the Complaint unless the Complainant can show 

reasonable grounds for delay; or 

(d) is of a frivolous or vexatious nature or amounts to an abuse of process. 

2.3 A Complaint connected with, or which arises from, any form of continuing action by the Clearing 

House under Part 10 of the Rules or in relation to an Event of Default will not normally be investigated 

by the Commissioner until the action has been completed. 

3. MAKING A COMPLAINT 

3.1 A Complaint should be made in writing, marked "Complaint for Resolution under ICE Clear Singapore 

Complaint Resolution Procedure" and sent to: 

Chief Regulatory Officer 

ICE Clear Singapore Pte. Ltd. 

6 Battery Road #36-01 

Singapore 049909 or by e-mail to: icesingapore-complaints@theice.com

3.2 The Complaint should be signed on behalf of the Complainant, and in any case where it is made by a 

company, partnership or other body corporate, should be signed by a director or equivalent officer with 

appropriate authority. 

3.3 If a Complaint is made orally, the Complainant will be asked to confirm its Complaint in writing. The 

Clearing House shall not be obliged to investigate any Complaint unless and until the Complainant has 

submitted a written Complaint in accordance with these Complaint Resolution Procedures. 

3.4 The written Complaint should include sufficient information to allow the Clearing House to properly 

identify the Contracts or other matters to which the Complaint relates, the activities complained of, and 

the basis for any alleged loss or other detriment of the Complainant. If insufficient information is 

provided, the Clearing House may request further information and the Complaint may not be 

investigated further until such information is provided. 

3.5 The Clearing House will not impose any charge to Complainants in relation to any Complaint. The 

Clearing House’s and Commissioner’s costs and expenses in relation to any Complaint will be paid by 

the Clearing House. 
SIDOCS01/117104.8 3 

4. INVESTIGATION OF COMPLAINTS BY THE CLEARING HOUSE 

4.1 At the first instance, an investigation into the Complaint will be conducted by a suitably senior member 

of staff who has not previously been involved in the matter and who is not the subject of the 

Complaint. 

4.2 The Clearing House will acknowledge the Complaint within five Business Days of receipt, giving the 

name and job title of the individual handling the Complaint and including a copy of these Complaint 

Resolution Procedures. 

4.3 Within 15 days of receiving any Complaint which the Clearing House considers to be ineligible, the 

Clearing House will inform the Complainant that it proposes not to investigate the Complaint for the 

reason specified. Within 15 days of receiving such notice, the Complainant may refer the Complaint to 

the Commissioner or ask the Clearing House to refer the Complaint to the Commissioner. The 

Commissioner may ask the Clearing House to investigate the matter if he deems it appropriate. 

4.4 The Clearing House will seek to resolve any Eligible Complaint as quickly as possible. In most cases, 

the Clearing House will produce a final response to the Complaint within eight weeks from the date of 

receipt of the Complaint by the Clearing House. However, where the scope of the Complaint 

reasonably demands further investigation, after eight weeks the Clearing House will write to the 

Complainant explaining why the matter has not been resolved, indicating when a final response is 

likely to be made. 

4.5 If the matter has not been resolved within 12 weeks, the Complainant will have the right to refer the 

Complaint to the Commissioner. In such cases, the Commissioner will be entitled to decline to consider 

the Complaint for a defined period notified to the Complainant in order to allow the Clearing House to 

complete its investigation, if: (i) it arises from any form of continuing action by the Clearing House 

under Part 10 of the Clearing House’s Rules; (ii) it relates to an Event of Default; or (iii) it shares its 

subject matter with an investigation, arbitration or disciplinary proceeding on which the outcome of the 

Complaint would impinge or otherwise depend. 

4.6 Where, in the opinion of the Clearing House, any Eligible Complaint is connected with or arises out of 

the same or similar facts or circumstances in respect of which an outstanding or otherwise unresolved 

Complaint has been made under these Complaint Resolution Procedures, the Clearing House may, in 

its absolute discretion and upon giving notice in writing to any Complainant or Complainants so 

concerned, join such Eligible Complaints so that they may be addressed in the same investigation 

and/or any final response. The Clearing House shall not in such circumstances be obliged to disclose 

the identity of a Complainant or facts that in its opinion would be likely to reveal such identity when 

notifying any individual Complainant of such a joinder or in its drafting of a final response. 

4.7 The Clearing House may obtain professional advice as appropriate.

5. RESULT OF THE INVESTIGATION 

5.1 The Clearing House will inform the Complainant of the outcome of the investigation, together with any 

proposed remedial action. The remedial action taken may include, but will not be limited to, offering an 

apology, taking steps to rectify the error, the offer of a compensatory payment on an ex gratia basis, or 

a combination of the above. If a Complaint is rejected, the Clearing House will give its reason for doing 

so. 

5.2 The Clearing House may, where it deems it necessary, itself refer the Complaint to the Commissioner 

for investigation. 
SIDOCS01/117104.8 4 

6. REFERRAL TO THE COMMISSIONER 

Within 15 days of the receipt of notice of the outcome of the Clearing House’s investigation, the 

Complainant must notify the Clearing House in writing whether it accepts the proposals or requires that 

the Complaint be referred to the Commissioner. If the Complainant wishes to refer the Complaint to the 

Commissioner, the Complainant should state the reason for its continued dissatisfaction. Failure by the 

Complainant to make such notification to the Clearing House within 15 days will result in the 

Complaint not being referable to the Commissioner and ceasing to be an Eligible Complaint. 

7. THE COMMISSIONER’S INVESTIGATION 

7.1 The Commissioner will acknowledge any Complaint referred to him within 10 Business Days of 

receipt, giving a proposed timetable for the completion of various stages in the investigation. 

7.2 If the Commissioner determines at any time that a Complaint he is investigating is not an Eligible 

Complaint, he must cease conducting his investigations forthwith and give notice to the Complainant(s) 

and the Clearing House of his determination. 

7.3 The Commissioner will seek to resolve Eligible Complaints as quickly as possible. The Commissioner 

will use reasonable endeavours in all cases to produce a final response to the Complaint within eight 

weeks from the date of his acknowledgment letter. However, where the scope of the Complaint 

reasonably demands further investigation, the Commissioner will instead explain why the matter has 

not been resolved and indicate when he is likely to produce a final response. The Commissioner will 

make every effort to resolve all Complaints within 12 weeks from the date of referral to the 

Commissioner but will otherwise inform the Complainant if this is not possible. 

7.4 In considering whether a Complaint made against the Clearing House is justified or substantiated, the 

Commissioner must consider whether the Clearing House’s conduct, in relation to its regulatory 

functions, amounted to, inter alia: 

(a) a failure to act fairly; 

(b) a failure to perform its regulatory functions having regard to all the circumstances of the case; 

(c) a lack of care or a mistake; or 

(d) an act of fraud, bad faith or negligence. 

7.5 Where, in the opinion of the Commissioner, any Eligible Complaint is connected with or arises out of 

the same or similar facts or circumstances as another Eligible Complaint already referred to him, he 

may, in his absolute discretion and upon giving notice in writing to any Complainant or Complainants 

so concerned, join such Eligible Complaints so that they may be addressed in the same investigation 

and/or any final response. The Commissioner shall not in such circumstances be obliged to disclose the 

identity of a Complainant or facts that in his opinion would be likely to reveal such identity when 

notifying any individual Complainant of such a joinder or in his drafting of a final response. 

7.6 The Clearing House and the Complainant shall each make every effort to afford the Commissioner all 

reasonable cooperation, including access to its staff, documents, records and information. However, the 

Clearing House and Commissioner will have regard to the confidentiality of certain information (such 

as that given to the Clearing House under confidentiality arrangements) as outlined in Paragraph 11. 

7.7 The Clearing House is not prevented from taking or continuing to take such action, or further action, as 

it considers appropriate during the investigation in relation to any matter which is related to a 

Complaint or Complainant. 
SIDOCS01/117104.8 5 

7.8 If the appointed Commissioner is unable to consider the Complaint due to a conflict of interest, illness 

or other unavoidable commitments, the Commissioner must nominate an alternate, appointment of 

which alternate Commissioner is subject to the Clearing House’s prior written approval. The 

Complainant will be subsequently informed of any such appointment. 

7.9 Any alternate Commissioner must himself meet the requirements for being the Commissioner and shall 

be required to be bound by these Complaint Resolution Procedures and to conduct the investigation on 

behalf of the Commissioner. The alternate Commissioner will have the same powers and rights as the 

Commissioner and must conduct the investigation in accordance with these Complaint Resolution 

Procedures. 

7.10 During the course of his investigation, the Commissioner may: 

(a) permit and/or request both the Complainant and the Clearing House to provide appropriate 

documentation, evidence or oral or written submissions in relation to any specific matters that 

arise in relation to the Complaint; 

(b) make further requests of all relevant parties and/or take whatever action is considered 

appropriate which might assist in considering the Complaint and confirming its factual 

accuracy including, where reasonable and at the Clearing House’s expense, appointing or 

seeking the advice of independent external advisers or experts; 

(c) require the parties to co-operate; and 

(d) otherwise, conduct the investigation as he sees fit. 

7.11 The Commissioner may appoint a person to conduct any part of an investigation on his behalf, but 

subject to his direction. That person must be independent of the Clearing House and Complainant. 

7.12 The Commissioner will ensure that, before he concludes an investigation and makes a report, any 

person who may be the subject of criticism in it is given notice of, and the opportunity to respond to, 

that criticism within a reasonable period. 

8. RESULT OF THE INVESTIGATION 

8.1 The Commissioner must report on the result of his investigation to both the Clearing House and the 

Complainant, giving reasons for any recommendations made. The Commissioner can recommend that 

the Clearing House takes remedial action including, but not limited to, offering an apology, taking 

steps to rectify the error, the offer of a compensatory payment on an ex gratia basis, or a combination 

of the above. The Clearing House may, where appropriate, also be required by the Commissioner to 

inform the Commissioner and the Complainant of such steps which it proposes to take in response to 

the report. 

8.2 The Commissioner may, where appropriate, require the Clearing House to publish the Commissioner’s 

report (or any part thereof), either publicly or to all Clearing Members, if the Commissioner considers 

that such report should be brought to the attention of the public or Clearing Members generally. 

Further, the Commissioner must ensure that his report, apart from identifying the Clearing House, does 

not mention the name of any other person or contain particulars which are likely to identify any other 

person unless: 

(a) in the opinion of the Commissioner the omission of such particulars would be likely to impair 

the effectiveness of the report; 

(b) taking into account the public interest and the persons involved, the Commissioner considers it 

necessary to mention the name of that person or to include in the report those particulars; 

(c) the consent of the person involved is given to such publication; or 
SIDOCS01/117104.8 6 

(d) the information is otherwise already public knowledge. 

8.3 The Clearing House may, where it considers appropriate to do so, disclose to third parties, such as other 

Regulatory Authorities, any information which is received with the Complaint or which is obtained 

from the Complainant in the course of a subsequent investigation. Such disclosures are subject to 

Rule 106. 

8.4 The Clearing House may instigate disciplinary proceedings at any time as a result of the Clearing 

House’s investigation or matters surrounding any Complaint. 

9. RECORD-KEEPING 

A copy of all documents and materials relating to Complaints should be sent to the Clearing House. 

The Clearing House will retain such documents and materials for a minimum of seven years. 

10. EXCLUSION OF LIABILITY 

The Commissioner shall not be liable to the Clearing House or any Complainant for any loss (direct or 

otherwise), damage or injury arising from any act, omission or negligence on his part, save in the case 

of fraud, death, personal injury or any other liability which by law cannot be excluded. 

11. CONFIDENTIALITY 

The Commissioner, the Clearing House and any Complainant must each observe the strict 

confidentiality of the investigation of any Complaint, all information provided (to the extent it has not 

been made public in the Commissioner’s report) and all communications made for the purpose of the 

investigation subject to Rule 106. 
ICE CLEAR 

SINGAPORE 

S-1 SUPPLEMENT 

ANNEX A-5(vii)
ICE Clear Singaporesm

Business Continuity Procedures 
SIDOCS01/117103.6 i 

Table of Contents 

1. General ....................................................................................................................................................... 1

2. Business Continuity Events Affecting A Clearing Member .................................................................... 1

3. Business Continuity Events Affecting the Clearing House ...................................................................... 1

4. Effects of a Business Continuity Event..................................................................................................... 2
SIDOCS01/117103.6 1 

1. GENERAL 

1.1 These Business Continuity Procedures are 'Procedures' as defined in the ICE Clear Singapore Pte. Ltd. 

rules (the "Rules") and are subject to the Rules, including, without limitation, Rule 102. These 

Business Continuity Procedures, and all non-contractual obligations arising out of or in connection 

with them, are governed by and shall be construed in accordance with Singapore law and any Dispute 

arising under these Business Continuity Procedures will be subject to arbitration under Rule 117. 

1.2 These Business Continuity Procedures are intended to provide Clearing Members with an outline of 

possible steps that can be taken in the event of a Force Majeure Event or other business continuity 

event or the Clearing House or a Clearing Member being unable to access, or being evacuated from, a 

place of business material to its clearing operations ("Business Continuity Event"). Business 

Continuity Events are by their nature unpredictable. The Clearing House reserves the right to take any 

other action or not to take action prescribed herein upon a Business Continuity Event occurring. 

2. BUSINESS CONTINUITY EVENTS AFFECTING A CLEARING MEMBER 

2.1 Clearing Members affected by a Business Continuity Event should contact the Clearing House by 

at least one of the following methods: 

(a) The Clearing House’s Help Desk on +65 6505 0455 or 

iceclearsingaporeoperations@theice.com. 

(b) The Help Desk in Atlanta on +1 770 738 2101 or icehd@theice.com. 

2.2 A Clearing Member affected by a Business Continuity Event must contact the Clearing House 

immediately and provide the Clearing House with the following information: 

(a) name of Clearing Member; 

(b) name and contact details of person at Clearing Member authorised to take action and decisions 

on its behalf; 

(c) details of nature of the problem; 

(d) expected time when problem is expected to be over or mitigated; and 

(e) any assistance or forebearance requested of the Clearing House. 

2.3 When a Clearing Member ceases to be affected by a Business Continuity Event, it must notify the 

Clearing House of the same. 

2.4 The Clearing House shall not be obliged to provide any assistance or give any forebearance to a 

Clearing Member affected by a Business Continuity Event. 

3. BUSINESS CONTINUITY EVENTS AFFECTING THE CLEARING HOUSE 

3.1 If the Clearing House is affected by a Business Continuity Event, the same will be classed as either a 

"Partial Business Continuity Event", "Full Business Continuity Event" or "Evacuation". 

3.2 If the Clearing House is affected by a Business Continuity Event, it will use reasonable endeavours to 

inform Clearing Members of the same through one or more of the following media: 

(a) an announcement on its website www.theice.com; 

(b) a Circular; 
SIDOCS01/117103.6 2 

(c) [Not used.] 

(d) messages sent through ECS; and 

(e) faxes, emails, telephone calls or other communications to Clearing Members at the emergency 

contact details notified to the Clearing House. 

3.3 If a Partial Business Continuity Event is declared, the communication made by the Clearing House will 

as a minimum state that: 

"A Partial Business Continuity Event has occurred affecting ICE Clear Singapore's [specify 

systems / locations]. Clearing Members should refer to the Business Continuity Procedures."

3.4 If a Full Business Continuity Event is declared, the communication made by the Clearing House will as 

a minimum state that: 

"A Full Business Continuity Event has occurred affecting ICE Clear Singapore. Clearing 

Members should refer to the Business Continuity Procedures."

3.5 If an Evacuation is declared, the communication made by the Clearing House will as a minimum state 

that: 

"ICE Clear Singapore's premises have been subject to an Evacuation. Clearing Members 

should refer to the Business Continuity Procedures."

3.6 Upon the Business Continuity Event ceasing to apply, the communication made by the Clearing House 

will, as a minimum state, that: 

"The [Business Continuity Event / Evacuation] previously notified to Clearing Members is 

over. Clearing Members should refer to the Business Continuity Procedures."

4. EFFECTS OF A BUSINESS CONTINUITY EVENT 

4.1 Provisions of the Rules and Contract Terms relating to Force Majeure Events and Events of Default 

may apply as a result of a Business Continuity Event. These Business Continuity Procedures are 

without prejudice to the provisions of the Rules, all Contract Terms and any discretions of the Clearing 

House under the Rules. 

4.2 At the discretion of the Clearing House, any procedure or practice of the Clearing House or Clearing 

Members may be amended or deferred and Contract Terms may be amended following a Business 

Continuity Event provided that, in any such case, the requirements of Regulation 30 of the SF(CF)R 

would not prevent such amendment or deferment from being made. Without prejudice to the generality 

of the foregoing: 

(a) deadlines and procedures set out in the Delivery Procedures may be extended or amended; 

(b) [Not used]; 

(c) financial procedures and calls may be amended, suspended or delayed; 

(d) intra-day or ad hoc calls for Margin may be made; 

(e) the time at which Contracts arise under Part 4 of the Rules may be deferred; 

(f) the time at which a payment transfer order arises, becomes irrevocable or terminates under 

Part 12 of the Rules may be deferred; and 
SIDOCS01/117103.6 3 

(g) addresses and contact details for the service of notices may be amended. 

4.3 The Clearing House operates a number of back-up facilities. The Clearing House's systems may 

become temporarily unavailable whilst processing is transferred to back-up facilities. 
ICE CLEAR 

SINGAPORE 

S-1 SUPPLEMENT 

ANNEX A-5(viii)
ICE Clear Singaporesm

Default Auction Procedures 
 i 

SIDOCS01/116966.11

Table of Contents 

1. Introduction ..................................................................................................................................................... 1

2. The Auction Process ........................................................................................................................................ 1

3. The Bidding Process ........................................................................................................................................ 3

4. Participation by Customers in the Auction ...................................................................................................... 4

5. Selection of the Winning Bid .......................................................................................................................... 5

6. Post-Bid Procedure .......................................................................................................................................... 8

7. Application of Assets after an Auction ........................................................................................................... 8

8. Other Terms .................................................................................................................................................... 9

Annex A Auction Specifications .............................................................................................................................. 11

Annex B Form of Notice of Minimum Bid Requirement ......................................................................................... 14
 1 

SIDOCS01/116966.11

1. INTRODUCTION 

1.1 These Default Auction Procedures (the "Auction Terms") govern the auctioning of a lot representing a 

Contract or number of Contracts ("Contracts") to which a Defaulter is or was a party, where such auction 

(an "Auction") is administered by the Clearing House pursuant to Part 9 of the ICE Clear Singapore Rules 

(the "Rules"). These Auction Terms are 'Procedures' as defined in the Rules and are subject to the Rules, 

including, without limitation, Rule 102. 

1.2 These Auction Terms shall apply to every Auction conducted by the Clearing House pursuant to Part 9 of 

the Rules. However, they may be modified or supplemented for any particular Auction pursuant to the 

relevant Auction Specifications as set out in Paragraph 2.6. 

1.3 The Clearing House will conduct Auctions in accordance with its default policies. In the event of a conflict 

between the terms of such default policies and these Auction Terms (as modified or supplemented by any 

applicable Auction Specification as set out in Paragraph 2.6), these Auction Terms shall prevail. 

1.4 These Auction Terms, and all non-contractual obligations arising out of or in connection with them, are 

governed by and shall be construed in accordance with the laws of the Republic of Singapore and any 

Dispute under these Auction Terms will be subject to arbitration under Rule 117. 

1.5 These Auction Terms are intended to constitute 'default rules' for purposes of Part III of the SFA and the 

CFR and any action taken by the Clearing House pursuant to these Auction Terms is intended to constitute 

"default proceedings" for purposes of Part III of the SFA and the CFR. In addition to these Auction Terms 

and the Rules, the Clearing House relies on its legal rights under Applicable Laws in handling Events of 

Default. 

2. THE AUCTION PROCESS 

2.1 Any Auctions of Contracts to which a Defaulter is or was party will take place after the Clearing House has 

issued a Circular in relation to the Event of Default in accordance with Rules 901 and 902 specifying that 

an auction or auctions are to take place (such Circular, the "Auction Announcement Circular"). 

2.2 Each Clearing Member is required to bid in every Auction regardless of whether such Clearing Member is 

at the time of the Auction a party to any Contract, has served a notice of termination for which the 

Termination Date has not yet passed or is in a Cooling-off Period. For these Auction Terms the term 

'Clearing Member' shall be construed to exclude any Clearing Member that is a Defaulter. Subject to 

Paragraph 2.4 below, with respect to a lot, all Clearing Members are required to bid for a minimum of 

Contracts in each lot as determined by the Clearing House (the "Minimum Bid Requirement"). Each 

Clearing Member will be allocated a Minimum Bid Requirement, subject to Paragraphs 2.4 and 5.6 below. 

The sum total of the Minimum Bid Requirements may be set to an amount greater than 100% (but no 

greater than 150%) of the Contracts in the relevant lot as may be determined by the Clearing House from 

time to time, in consultation with the default management committee established by the Clearing House. 

No Auction Participants other than Clearing Members are subject to any minimum bid requirement. 

2.3 Clearing Members shall be deemed to have confirmed to the Clearing House their intention to bid in a 

particular Auction prior to the time window for bidding. A Clearing Member may bid for the account of a 

Customer, subject to Paragraph 3.2 below. A bid for its Proprietary Account or Customer Account will 

count towards its Minimum Bid Requirement. 

2.4 Each Clearing Member's Minimum Bid Requirement shall be communicated to it individually by the 

Clearing House prior to the relevant Auction in the format of the template notification set out in Annex B to 

these Auction Terms. A Minimum Bid Requirement shall not apply to a Clearing Member: (a) to the extent 
 2 

SIDOCS01/116966.11

such a Minimum Bid Requirement would be in breach of Applicable Law or the Rules; or (b) where the 

Clearing House, after being notified in writing by the relevant Clearing Member that a Minimum Bid 

Requirement is inappropriate in the current circumstances, reasonably determines that the Minimum Bid 

Requirement does not apply. A Clearing Member will notify the Clearing House promptly and in any 

event at least 12 hours prior to the opening of the relevant Auction, in writing, if it reasonably considers 

that this Paragraph 2.4 applies or should apply. Affiliated Clearing Members may transfer, outsource or 

aggregate their Minimum Bid Requirements to apply to a single one of them subject to notifying the 

Clearing House prior to an Auction. A Clearing Member that so transfers or outsources its Minimum Bid 

Requirement to an Affiliate remains liable for any breach by its Affiliate of these Auction Terms or the 

Auction Specifications in respect of such Clearing Member’s Minimum Bid Requirement (in addition to 

the liability on the part of its Affiliate for such breach). 

2.5 The Clearing House may divide the portfolio of a Defaulter into discrete Auctions or different lots as it 

considers appropriate. The Clearing House may at its discretion determine which particular Contracts or 

packages of Contracts are to be the subjects of a particular Auction lot and may establish Auction lots by 

selecting by way of Contract Set or generic type (e.g. by commodities, indices). The Clearing House may 

combine contracts with different currencies in the same lot. In these circumstances, Auction Participants 

must still provide bids in a single currency, being that specified in the relevant Auction Specifications. 

Payment obligations resulting from the Auction will be in the specified currency. In creating any such lots, 

the Clearing House will consider if Contracts that provide margin offsets for one another in the normal 

margining methodology of the Clearing House should be retained in the same lot. The Clearing House may 

auction lots in such order as it considers appropriate. Prior to the publication of an Auction Announcement 

Circular or the circulation of the Auction Specifications, the Clearing House may have engaged in close-out 

or hedging trades or other transactions in respect of the portfolio of a Defaulter. In exercising its discretion 

under this Paragraph 2.5, the Clearing House, in consultation with the default management committee 

established by the Clearing House, shall consider, wherever possible, taking into account the Clearing 

House’s margining methodology, including within each lot of Contracts, any Contracts which have been 

offset for the purposes of calculating the Defaulter’s margin requirements. 

2.6 In respect of each lot, the Clearing House will provide each Clearing Member (and any other Person invited 

by the Clearing House to participate in the auction whose Clearing Member has confirmed its willingness 

to clear resulting transactions) (such Clearing Member or Customer, an "Auction Participant") in advance 

with information about Contracts to be auctioned, timing for the bidding process, participation criteria, in 

the case of Clearing Members, any applicable Minimum Bid Requirements and other matters in writing in 

the format of the template Auction Specifications set out in Annex A to these Auction Terms (such 

document, the "Auction Specifications"). The Auction Specifications may include amendments or 

additions to any provision of these Auction Terms or may disapply any provision of these Auction Terms. 

In the event of any conflict between the Auction Specifications and these Auction Terms in respect of any 

particular lot, the Auction Specifications shall prevail. If any Person which has been provided a copy of 

any Auction Specifications believes that he does not satisfy any of the specified participation criteria, he 

should contact the Clearing House immediately, and, if the Clearing House agrees that such Person does 

not satisfy the criteria, he shall refrain from bidding for the relevant lot. The Clearing House may restrict 

any such Person's access to Auctions if it determines that a Person does not satisfy the specified 

participation criteria. The Clearing House may update or correct any details in the Auction Specifications 

at any time prior to the commencement of bidding in the relevant Auction. 

2.7 Auction Participants shall be treated equally as regards the provision of information relating to Auctions by 

the Clearing House. Any Person who receives any information in connection with an Auction or possible 

Auction shall hold such information in confidence and in accordance with the Rules, and shall not disclose 

it to any other Person except where such disclosure is made: (i) with the prior written consent of the 

Clearing House; (ii) to a Regulatory Authority or Governmental Authority where a request is formally 

made to the Person by or on behalf of the same or pursuant to Applicable Laws in writing, provided that the 
 3 

SIDOCS01/116966.11

Person making such disclosure notifies the Clearing House of its disclosure where it is lawful to do so; 

(iii) pursuant to an order of a competent court or other Governmental Authority or otherwise to such other 

Persons, at such times and in such manner as may be required by Applicable Laws, provided that the 

Person making such disclosure notifies the Clearing House of its disclosure where it is lawful to do so; or 

(iv) to a Customer where such Customer has expressed his interest in participating in the Auction and is 

subject to a duty of confidentiality similar to that set out in this Paragraph 2.7. 

2.8 All bids must be made by submitting a bid form ("Bid Form") via ICE's file transfer server or otherwise in 

the format and manner specified by the Clearing House in the Auction Specifications. Bids must be 

received during the time window and prior to the Closing Time (as defined below) specified by the 

Clearing House in the relevant Auction Specifications. Auction Participants (or their Clearing Members) 

may be required by the Clearing House to post additional Margin as a condition of the Auction Participant 

being entitled to submit a valid bid. 

2.9 The Auction will proceed pursuant to a 'sealed bid' process whereby the relevant Auction Participants will 

be asked to submit bids for the lot or a particular percentage of the lot in the appropriate Bid Form. The 

Auction Specifications may specify a minimum bid size. Any bid below any specified minimum bid size 

will be null and void unless the Clearing House, in its absolute discretion, determines otherwise. 

Successful bids will be determined in accordance with Paragraph 5.3. 

2.10 A Bid Form will be treated as invalid and void if it is illegible, spoiled or is incomplete, as applicable. 

2.11 During such period after the Closing Time as is specified in the Auction Specifications, the Clearing House 

will notify Auction Participants to inform them either: (i) that there were successful bidders and that such 

bidders have been notified; or (ii) that no bids were successful as determined in accordance with 

Paragraphs 5.1 and/or 5.3. 

2.12 A successful bidder (or its Clearing Member, if applicable) may be required to post additional Margin after 

the Closing Time. 

3. THE BIDDING PROCESS 

3.1 Clearing Members will make bids which, as a minimum, comply with any Minimum Bid Requirement 

notified to it. Any failure to comply with an applicable Minimum Bid Requirement shall be a breach of the 

Rules. The Clearing House is not obliged to solicit bids from Clearing Members other than notifying 

Clearing Members of any applicable Minimum Bid Requirement. 

3.2 An Auction Participant may submit multiple bids for each lot, or a percentage of each lot, in a particular lot 

on its own account or for the account of a Customer, as the case may be, provided that such Auction 

Participant ensures that all of its bids, whether for its account or for the account of its Customers, as the 

case may be, are submitted in the same Bid Form or otherwise as specified in the Auction Specifications. 

A bid made by an Auction Participant by, for, or on behalf of a Customer shall be identified as such and 

such bid shall be treated as a bid for the relevant Customer Account. A Clearing Member can satisfy its 

Minimum Bid Requirement by submitting multiple bids with differing bid prices and bid sizes provided 

that, in aggregate, its submitted bids equals or exceeds the Minimum Bid Requirement and any individual 

bid is larger than any applicable minimum bid size. Successful bidders will be determined in accordance 

with Paragraph 5.3. 

3.3 All the requirements of the Rules concerning the provision of information to the Clearing House apply in 

respect of the submission of bids by an Auction Participant. 
 4 

SIDOCS01/116966.11

3.4 Bids can only be submitted during the time window specified by the Clearing House in the Auction 

Specifications. The time period for submission will end at the closing time specified by the Clearing House 

for the relevant Auction in the Auction Specifications ("Closing Time"). The Closing Time may be 

postponed for up to one hour by the Clearing House giving notice of such postponement to all Auction 

Participants, following consultation to the extent practicable with the default management committee 

established by the Clearing House and the term Closing Time shall be construed accordingly. 

3.5 A bid must be in respect of all Contracts or a percentage of all Contracts in the relevant lot. Any partial 

bids, such as bids which specify a particular Contract, will be invalid and void. With respect to a particular 

lot, no Auction Participant is permitted to bid, in aggregate, in excess of the number of Contracts being 

auctioned in such lot. 

3.6 No Auction Participant may make a referential bid (for example a bid which purports to be a bid which is 

$1 higher or lower than the highest or lowest bidder) or make a bid that is subject to conditions. Any such 

bid will be treated as invalid and void. 

3.7 An Auction Participant may amend or modify a submitted bid by resubmitting its entire Bid Form. In the 

event a Bid Form is resubmitted with any amendments or modifications the Clearing House will disregard 

any previous Bid Form submitted by such Auction Participant and any such previous Bid Form will be null 

and void. After the Closing Time, all submitted Bid Forms are irrevocable provided that if the Clearing 

House is satisfied, upon the request of an Auction Participant, that a genuine mistake has been made in the 

submission of a bid, the Clearing House may, at its own discretion, withdraw the bid and permit the 

Auction Participant to submit a corrected bid before the Auction Clearing Price is determined. If such 

erroneous bid is so withdrawn but not corrected by such time, it will be deemed not to have been submitted 

for purposes of these Auction Terms. 

3.8 Each bid will be deemed to have been submitted at the time it is recorded as being received by the Clearing 

House. Any bid received after the Closing Time will be treated as invalid and void. 

3.9 Any bid that does not comply with the requirements of these Auction Terms or the Auction Specifications 

will be treated as invalid and void. 

4. PARTICIPATION BY CUSTOMERS IN THE AUCTION 

4.1 A Clearing Member may make an unlimited number of separate bids in respect of its Customers (in 

addition to any bids for its Proprietary Account), in accordance with Paragraph 3.2 above. A Clearing 

Member must have all due approval, consent or authorisation from its Customer to make the relevant bid. 

4.2 A Clearing Member shall become liable for the bids made on behalf of a Customer and for the entry into of 

Contracts in the same way as it is liable for and becomes party to other Contracts entered into for its 

Proprietary Account or a Customer Account (as applicable) or otherwise for Customers pursuant to the 

Rules. 

4.3 Except as otherwise set out in these Auction Terms and as provided for in the Rules, each Auction 

Participant that is not a Clearing Member is hereby deemed to have agreed to become bound by these 

Auction Terms and by the Rules as if it were a Clearing Member in respect of its conduct in relation to an 

Auction. 

4.4 The Clearing House reserves the right to verify any bid to ensure such bid will be cleared by a Clearing 

Member and reserves the right to invalidate a bid where the Clearing House reasonably believes that such 

bid, if accepted, would not be cleared by a Clearing Member (notwithstanding Paragraph 4.2) or that such 

bid would be in breach of any Exposure Limits or other risk policies implemented by the Clearing House 
 5 

SIDOCS01/116966.11

pursuant to the Rules. Any such invalidation will be made prior to the Closing Time. Bids so invalidated 

will not be counted toward a Clearing Member's Minimum Bid Requirement. 

5. SELECTION OF THE WINNING BID 

5.1 The Clearing House may at its discretion set any reserve price and/or any maximum price (which in either 

case will not be disclosed to any bidders). If no bids exceed the reserve price (if any) and are less than the 

maximum price, (if any) then, subject to Paragraph 5.10, there will be no successful bidder for the lot 

subject to the Auction in question and the Auction for that lot shall be treated as a failed Auction. 

5.2 The Clearing House may at its discretion withdraw a lot prior to the Closing Time. 

5.3 Promptly after the Closing Time, the Clearing House will sort bids submitted to it in the order of the price 

bid. The bids will be ordered sequentially, starting with the highest bid price, and ending with the lowest 

price. The price of the bid at which the sum of the number of Contracts of bids equal to or greater than the 

price in question matches or exceeds the number of Contracts being auctioned shall be the auction clearing 

price (the "Auction Clearing Price") such price being either payable by the Clearing House to the Auction 

Participant or its Clearing Member or to the Clearing House by the Auction Participant or its Clearing 

Member, as applicable. In the event that a bid is invalid or void or no Contract can be or is established with 

the Auction Participant (or its Clearing Member, as applicable) for any reason, such bid will not be 

accepted for the purpose of calculating the Auction Clearing Price. 

 Examples of how the Auction Clearing Price is calculated is set out below, for illustrative purposes 

 only: 

Example 1 

Note in these examples a negative bid indicates a payment by the Clearing House 

Ranking Cash Bid % of Portfolio Cash/1% Allocation % of 

Portfolio 

1 $20,000 20% $1,000 20% 

2 $0 30% $0 30% 

3 -$2,500,000 25% -$100,000 25% 

4 -$3,000,000 25% -$120,000 25% 

5 -$3,900,000 30% -$130,000 0% 

6 -$6,000,000 40% -$150,000 0% 

7 -$7,750,000 50% -$155,000 0% 

8 -$6,400,000 40% -$160,000 0% 

9 -$3,300,000 20% -$165,000 0% 

10 -$43,000,000 20% -$2,150,000 0% 

Unless Paragraph 5.5 

applies, the Auction 

Clearing Price will be -

$120,000/1%. Portfolio 

will be allocated in full 

to bids above the 

Auction Clearing Price. 
 6 

SIDOCS01/116966.11

Example 2 

Ranking Cash Bid % of Portfolio Cash/1% Allocation % of 

Portfolio 

1 $20,000 20% $1,000 20% 

2 $0 30% $0 30% 

3 -$2,500,000 25% -$100,000 25% 

4 -$3,000,000 30% -$120,000 25% 

5 -$3,900,000 30% -$130,000 0% 

6 -$5,250,000 35% -$150,000 0% 

7 -$7,750,000 50% -$155,000 0% 

8 -$6,400,000 40% -$160,000 0% 

9 -$3,300,000 20% -$165,000 0% 

10 -$43,000,000 20% -$2,150,000 0% 

Example 3 

Ranking Cash Bid % of Portfolio Cash/1% Allocation % of 

Portfolio 

1 $20,000 20% $1,000 20% 

2 $0 30% $0 30% 

3 -$2,500,000 25% -$100,000 25% 

4 (1) -$3,000,000 30% -$120,000 12.5% 

4 (2) -$3,000,000 30% -$120,000 12.5% 

6 -$3,900,000 30% -$130,000 0% 

7 -$5,250,000 35% -$150,000 0% 

8 -$7,750,000 50% -$155,000 0% 

9 -$6,400,000 40% -$160,000 0% 

10 -$3,300,000 20% -$165,000 0% 

Unless Paragraph 5.5 

applies, the Auction 

Clearing Price will be -

$120,000/1%. Portfolio 

will be allocated in full to 

bids 1,2 and 3 and 

allocated in part to bid 4. 

Unless Paragraph 5.5 

applies, the Auction 

Clearing Price will be -

$120,000/1%. Portfolio 

will be allocated in full 

to bids 1,2 and 3. Bids 

4(1) and 4(2) will 

receive a pro rata share 

of the remaining 

portfolio. 
 7 

SIDOCS01/116966.11

5.4 All Contracts shall be allocated to winning Auction Participants at the Auction Clearing Price in a fair and 

consistent manner and in accordance with the bid size used in the calculation of the Auction Clearing Price. 

In the event that there are multiple bids at the Auction Clearing Price, to the extent there is a shortfall of 

Contracts being available, Contracts shall be allocated pro rata according to the number of Contracts the 

relevant Auction Participants bid for at the relevant price. Bids below any applicable reserve price, above 

any applicable maximum price, or invalidated pursuant to Paragraph 4.4, may, at the discretion of the 

Clearing House be excluded for the purposes of calculating the Auction Clearing Price or allocating sizes at 

the Auction Clearing Price. 

5.5 The Clearing House may, in any given Auction (the "First Auction") at its discretion, determine the 

Auction Clearing Price for less than 100% of the Contracts if in the reasonable determination of the 

Clearing House, a material impact on the amounts payable or receivable by the Clearing House would 

result if 100% of the Contracts were awarded in the Auction. In such circumstances the Clearing House 

would call a second Auction (a "Second Auction") to auction off any remaining lots. The Clearing House 

may also hold a Second Auction in the event that there is a failed Auction or not all Contracts are allocated, 

whether due to Clearing Members failing to meet any applicable Minimum Bid Requirements, any 

minimum bid size, any reserve price or maximum price or otherwise. 

 An example of how this Paragraph 5.5 would apply is set out below, for illustrative purposes only: 

Ranking Cash Bid % of Portfolio Cash/1% 

1 $20,000 20% $1,000 

2 $0 30% $0 

3 -$3,000,000 30% -$100,000 

4 -$2,400,000 20% -$120,000 

5 -$3,900,000 30% -$130,000 

6 -$6,000,000 40% -$150,000 

7 -$7,750,000 50% -$155,000 

8 -$6,400,000 40% -$160,000 

9 -$3,300,000 20% -$165,000 

10 -$43,000,000 20% -$2,150,000 

5.6 Any Second Auction shall be announced pursuant to a further Auction Announcement Circular and shall be 

held in accordance with these Auction Terms. The Clearing House shall circulate an Auction Specification 

for a Second Auction. An Auction Participant for the First Auction shall be deemed to be an Auction 

Participant for the Second Auction. The Clearing House may at its discretion withdraw a lot in the Second 

Auction prior to the relevant Closing Time. The Minimum Bid Requirement applicable to each Clearing 

Member shall be reduced by any Contracts actually won by such Clearing Member (including any bids won 

The Auction Clearing 

Price for 80% of the 

portfolio shall be -

$100,000/1% 

Price of remaining 

20% will be 

determined in a 

Second Auction 
 8 

SIDOCS01/116966.11

by, for, or on behalf of, such Clearing Member's Customers at the Auction Clearing Price pursuant to the 

First Auction. Any such reductions in Clearing Members' Minimum Bid Requirements will be shared pro 

rata as an increased Minimum Bid Requirement for all Clearing Members who did not have any Contracts 

allocated to them at the Auction Clearing Price pursuant to the First Auction. 

5.7 In the case of a bid which results in the entry into a Contract or Contracts at the Auction Clearing Price, the 

"Winning Bidder" will be the relevant Clearing Member. 

5.8 Each bid constitutes an offer to the Clearing House to enter into Contracts, such offer being made by the 

relevant Clearing Member. The Clearing House shall use reasonable endeavours to notify Winning Bidders 

within 15 minutes after the Closing Time of either the First Auction or the Second Auction, as the case may 

be. Immediately upon notification by the Clearing House to a bidder that it has a winning bid by e-mail, 

telephone, in writing or otherwise and without the need for any further step, this shall constitute acceptance 

of the offer by the Clearing House and resulting Contracts shall be entered into between the Clearing House 

and the Winning Bidder in accordance with the Rules, on economically identical terms to the Contracts that 

are the subject of the lot in the relevant Auction. 

5.9 The Clearing House may abandon or alter the procedure for any Auction, including conducting subsequent 

Auctions, at any time prior to the entry into of Contracts with Winning Bidders, taking into account such 

considerations as it deems necessary or desirable to protect the financial integrity of the Clearing House, 

the Clearing Members generally or the marketplace for any instruments cleared by the Clearing House, and 

such other matters as it may deem appropriate. 

5.10 In the event of a failed Auction for whatever reason, the Clearing House may either run a new Auction and 

shall do so in accordance with Paragraph 5.6 or withdraw the lot. There shall be no limit to the number of 

repeated Auctions under this provision. If the Auction Clearing Price falls below any reserve price or 

above any maximum price, the Clearing House may at its discretion nonetheless accept bids at such 

Auction Clearing Price. 

6. POST-BID PROCEDURE 

6.1 A Winning Bidder will become a party to new Contracts with the Clearing House on economically 

identical terms to the Contracts that are the subject of the lot in the Auction. Contracts will be established 

with each Winning Bidder pursuant to a termination of Contracts between the Defaulter and the Clearing 

House and the establishment of new, economically identical Contracts between the Clearing House and 

each Winning Bidder pursuant to Rule 904. Each Winning Bidder will be treated as if it were a "Transferee 

Clearing Member" for purposes of Part 9 of the Rules provided that the provisions of Part 9 to the extent 

relating to Customers shall not apply. 

7. APPLICATION OF ASSETS AFTER AN AUCTION 

7.1 Pursuant to Rule 908(i), if any Clearing Member does not comply with any of its obligations under these 

Auction Terms or any Auction Specifications or chooses not to participate in any Auction (except as 

provided for in these Auction Terms), then the Guaranty Fund Contributions and Assessment Contributions 

of that Clearing Member shall be applied pro rata to meet any shortfall, loss or liability in full, prior to the 

Guaranty Fund Contributions or Assessment Contributions (as applicable) of any other Clearing Member or 

Clearing House GF Contributions which, but for this Paragraph 7.1, would have ranked equally with such 

Guaranty Fund Contributions being so applied. 

7.2 Further pursuant to Rule 908(i), after applying any Guaranty Fund Contributions or Assessment 

Contributions of Clearing Members in accordance with the previous paragraph, in the event of an Auction 

having taken place, the Guaranty Fund Contributions and Assessment Contributions of Clearing Members 
 9 

SIDOCS01/116966.11

other than Winning Bidders in the relevant Auction or Clearing Members who (in accordance with, and as 

provided for, in these Auction Terms) did not submit any bids in the relevant Auction (required to be 

applied in respect of the Event of Default which resulted in the Auction) shall not be applied pro rata, but 

instead shall be applied in sequence, with such Clearing Members with less competitive bids in the Auction 

having their Guaranty Fund Contributions and Assessment Contributions applied prior to Clearing 

Members with more competitive bids. The competitiveness of bids shall be determined based on the 

weighted average price per unit of each Clearing Member's bids, according to the following formula: 

Weighted average price per unit = ∑ (Price Sign x Unsigned Price) / ∑Size. 

7.3 Any Clearing Member with the same weighted average price per unit as another Clearing Member will 

have their Guaranty Fund Contributions and Assessment Contributions applied on a pro rata basis as 

between such Clearing Members within such sequence. After applying any such Guaranty Fund 

Contributions or Assessment Contributions of losing bidders, in the event of an Auction having taken place, 

the Guaranty Fund Contributions and Assessment Contributions of the Clearing Members that are Winning 

Bidders in the relevant Auction and Clearing Members who, in accordance with (and as provided for) in 

these Auction Terms, did not submit any bids and the Clearing House GF Contribution (if required to be 

applied in respect of the Event of Default which resulted in the Auction) shall be applied pro rata. 

7.4 Nothing in this Paragraph 7 is intended to result in any Assessment Contribution being applied prior to any 

Guaranty Fund Contribution of any Clearing Member or Clearing House Contribution, nor shall affect the 

order of application of any Clearing House Initial Contribution. 

8. OTHER TERMS 

8.1 Neither the Clearing House nor any of its Affiliates makes any representation or warranty as to the 

accuracy of any records of the Defaulter or any of its Affiliates. In particular, the Clearing House makes no 

representation or warranty as to whether any Contract recorded in the Proprietary Account or the Customer 

Account of the Defaulter is correctly recorded in such account or as to whether any consent of any 

Customer or Affiliate of the Defaulter is required to any Auction or the termination of Contracts to which a 

Defaulter is party. The Clearing House makes no warranty, whether express or implied, as to quality, 

appropriateness or in respect of the merits of any investment decision relating to any lot. The Clearing 

House does not provide, and is not responsible or liable for, any investment advice in relation to any 

Auction. 

8.2 Although the information provided by the Clearing House is believed to be accurate subject to the 

qualifications in Paragraph 8.1 above, neither the Clearing House nor any of its Affiliates, nor any of their 

respective agents, officers, Directors or directors (as the case may be), committee members, employees, or 

advisers makes any representation or warranty, express or implied, as to the accuracy or completeness of 

such information, including but not limited to the value or marketability of any Contracts or Open Contract 

Positions. Each Auction Participant is responsible for making its own determination as to whether to 

proceed with or without further investigation or as to its bidding on any lot. 

8.3 The Clearing House is under no obligation to enforce these Auction Terms against a bidder at the request of 

any other bidder. 

8.4 All Auction Participants are hereby on notice that the Clearing House is not a member of any professional 

or other association, society, institution or organisation of auctioneers or agents and is not therefore bound 

by the rules or practices of any such association, society, institution or organisation. The conduct of 

Auctions may be carried out only to manage an Event of Default in accordance with the Rules and does not 

constitute the ordinary day-to-day business of the Clearing House. Any standard rules, customs, good 

practice guidelines or guidance or other industry practices relating to auctions or agency sales are hereby 
 10 

SIDOCS01/116966.11

disapplied and disclaimed. All and any rights of any Person bound by these Auction Terms which may 

arise as a result of a liability of the Clearing House pursuant to common law duties applicable to 

auctioneers or selling agents are hereby expressly waived by all Auction Participants to the fullest extent 

permitted by Applicable Laws. Any implied term of care and skill of an auctioneer is hereby expressly 

excluded in respect of the conduct of any Auction by the Clearing House. The Clearing House expressly 

disclaims any duty of care or skill in respect of the conduct of any Auction by the Clearing House arising 

other than expressly pursuant to these Auction Terms. The Clearing House will not provide and has not 

provided any valuation services in connection with any Auction. 

8.5 The time and date at which bids are due, the time and date for the establishment of Contracts or calling of 

Permitted Cover or the Closing Time (subject to Paragraph 3.4) may be delayed beyond the times and dates 

set forth in these Auction Terms or specified in the Auction Specifications if the Clearing House, in its 

discretion, considers this to be necessary or appropriate. Notwithstanding anything to the contrary in these 

Auction Terms, to the fullest extent lawfully permissible, the Clearing House may postpone, cancel, 

adjourn or terminate an Auction at any time, and may withdraw all or any portion of the Contracts from any 

Auction lot. 

8.6 In respect of any Auction, each Auction Participant: (i) agrees and acknowledges that copies of any 

information that is required by Applicable Laws to have been made available to it for the duration of the 

Auction has been provided and that it has received any other notices required to be provided to it under 

Applicable Laws; (ii) agrees and acknowledges that it has received sufficient information concerning the 

identity of the persons conducting the auction on behalf of the Clearing House; and (iii) waives any right to 

make any claim that it has not received any information or documentation of a nature referred to in this 

Paragraph 8.6 and agrees in favour of the Clearing House not to make any statement to the contrary to any 

third party. 

8.7 Without limiting the obligations of Clearing Members and Customers under the Rules, all Auction 

Participants shall comply with Rule 203 and Applicable Laws (including, without limitation, complying 

with their obligation not to commit any act of fraud or to engage in any behaviour which amounts to market 

abuse, insider dealing, market manipulation, money laundering or which is in breach of any similar 

Applicable Laws). 

8.8 It is the responsibility of each Winning Bidder to make any transaction or other reports or notifications to 

any Regulatory Authority or Governmental Authority (including, without limitation, any transaction 

reports) that it is required to make pursuant to Applicable Laws. 
 11 

SIDOCS01/116966.11

Annex A 

ICE Clear Singapore Pte. Ltd. 

Auction Specifications 

Lot [1]: [general description of lot] – [Name of Defaulter] 

ICE Clear Singapore Pte. Ltd. (the "Clearing House") is conducting an auction of certain open positions in 

contracts, presently held in respect of [Name of Defaulter], and in that connection ICE Clear Singapore Pte. Ltd. is 

requesting bids from Auction Participants for certain lots. This document constitutes Auction Specifications for 

purposes of the Clearing House's Auction Terms for Default Actions (the " Auction Terms"). The Auction Terms 

apply in full to this auction lot, save to the extent expressly modified in Paragraph 5. 

1. Participation Criteria 

[State any conditions and criteria if there are to be any restrictions on the categories of Persons who may be 

Auction Participants]

If any Person which has been provided with these Auction Specifications is for any reason unable to meet a 

Minimum Bid Requirement applicable to him, he should contact the Clearing House immediately and refrain from 

bidding in the Auction unless otherwise directed by the Clearing House. The Clearing House may restrict any such 

Person's access to Auctions if it determines that a Person does not satisfy the specified participation criteria. 

2. Subject matter of the lot 

The lot comprises [details of Contracts]. 

All Contracts will be transferred to the relevant Clearing Member at the Auction Clearing Price, for close of 

business on [date]. 

3. Bid Form 

All bids for this lot must be submitted on the Bid Form in the schedule to this document by e-mail to [email 

address]. Any Bid Form which is illegible, spoiled or incomplete will be rejected and treated as void and invalid: 

see the Auction Terms for further information. Each Bid Form must specify the amount of consideration (in 

[currency]) that the bidder will pay the Clearing House or will be prepared to be paid by the Clearing House (as 

applicable) in consideration for the entry into of all the Contracts which are the subject matter of the lot. 

All Bid Forms and any other communication relating to this Auction lot should be sent to: [email address]. 

4. Timing 

[Further details of the Contracts included in this lot will be disclosed to all Auction Participants at [time] on [date] 

(the "Starting Time").] 

The Closing Time (deadline for receipt of bids) is [time] on [date]. 

The winner of the lot will be notified of his winning bid by the Clearing House between [times]. 

A conference call will be open from [times] on [date], during which time Auction Participants will be notified by the 

Clearing House: (i) that the Winning Bidder has been notified of the fact that it has won; or (ii) that no bid falling 

between the reserve price and any maximum price has been submitted. Dial-in details are as follows: 
 12 

SIDOCS01/116966.11

[Call details] 

The Clearing House will confirm whether each bid has been accepted by e-mail. 

The winner of the Auction will become party to new Contracts immediately upon notification that it is the winner, 

pursuant to the Auction Terms. 

5. [Minimum bid size] 

[Bids may only be for lot sizes which are at least [25%] of [the Contract size of a particular lot] 

6. [Currency] 

[All bids to be made in the specified currency] 

7. Modifications to Auction Terms 

[Specify any] / [None.] 
 13 

SIDOCS01/116966.11

BID FORM 

for Auction Lots related to [Name of Defaulter] 

made pursuant to the Auction Terms of ICE Clear Singapore 

and the relevant Auction Specifications 

[Specify by inserting the amount and checking the appropriate box] 

Clearing Member name 

Auction Lot Number 

Percentage of lot 

Cash Amount (always a positive number) (SGD) 

Member Pay or Receive 

Clearing Participant Number 

Desk (Hub) Account 

Contact Prop. Account 

Customer AccoClearing Memb

[●] 1 [●]% [●] [Pay] [●] [●] [●] [●] [●] 1 [●]% [●] [Receive] [●] [●] [●] [●] [●] 2 [●]% [●] [Pay] [●] [●] [●] [●] [●] 2 [●]% [●] [Receive] [●] [●] [●] [●] [●] 3 [●]% [●] [Pay] [●] [●] [●] [●] etc. etc. etc. etc. etc. etc. etc. etc. etc.

Signed by: _______________________ Authorised Signatory of Auction Participant State full legal name of Auction Participant: ___________________________ 
14 

SIDOCS01/116966.11

Annex B 

Form of Notice of Minimum Bid Requirement 

[ICE Clear Singapore Pte. Ltd. Letterhead] 

[Name of Clearing Member] 

[Email Address] 

[Date] 

 Default Auction - Notification of Minimum Bid Requirement 

Further to [reference to Auction Announcement Circular] (the "Circular"), the Clearing House hereby notifies you 

of the Minimum Bid Requirement (as defined in the Clearing House's Auction Terms for Default Auctions (the 

"Auction Terms")) applicable to you in respect of the default auctions to be held in accordance with the Auction 

Terms, the Circular and the applicable auction specifications. 

[Set out Minimum Bid Requirement] 

 Clearing Members are referred to the Auction Terms for further information on the Minimum Bid Requirement 

(and in particular Paragraphs 2.4, 3.1, 3.2 and 7 of the Auction Terms). 

Signed 

[Name] 

[Title] 
ICE CLEAR 

SINGAPORE 

S-1 SUPPLEMENT 

ANNEX A-5(ix)
ICE Clear Singaporesm

Contract Terms Procedures 
SIDOCS01/117106.5 i 

Table of Contents 

PART I: General Contract Terms .............................................................................................................................. 1

1. Interpretation ............................................................................................................................................... 1

2. Economic Terms .......................................................................................................................................... 1

3. Standard Terms ............................................................................................................................................ 1
SIDOCS01/117106.5 1 

INTRODUCTION 

These Contract Terms Procedures are 'Procedures' as defined in the ICE Clear Singapore Pte. Ltd. rules (the 

"Rules") and are subject to the Rules, including, without limitation, Rule 102. These Contract Terms 

Procedures, and all non-contractual obligations arising out of or in connection with them, are governed by and 

shall be construed in accordance with Singapore law and any Dispute arising under these Contract Terms 

Procedures will be subject to arbitration under Rule 117. 

These Contract Terms Procedures set out certain terms and conditions of Contracts. The terms described in 

Part I (General Contract Terms) below apply to Contracts as part of their Contract Terms. Part I of these 

Contract Terms Procedures applies in relation to all Contracts. 

Certain other Contract Terms for ICE Futures Singapore Contracts are set out in the ICE Futures Singapore 

Rules. See the definition of "Contract Terms" for further details. 

PART I: GENERAL CONTRACT TERMS 

1. INTERPRETATION 

1.1 Words and expressions used in this Part shall have the same meaning as in the Rules, unless otherwise 

expressly defined in this Part. 

2. ECONOMIC TERMS 

2.1 The economic terms of a Contract ("Economic Terms") shall be derived from the information 

presented to the Clearing House in relation to the corresponding Transaction in accordance with the 

Rules. 

2.2 The Economic Terms comprise: 

(a) proposed Selling Clearing Member (but excluding the identity of the Clearing House as Seller 

pursuant to any Contract) or proposed Buying Clearing Member (but excluding the identity of 

the Clearing House as Buyer pursuant to any Contract); 

(b) Contract Set; 

(c) quantity; 

(d) delivery date or period (where applicable); 

(e) settlement date (where applicable); 

(f) exercise date (where applicable); and 

(g) traded price (where applicable). 

2.3 The Clearing House and Clearing Member shall pay when due all amounts that fall due for payment 

pursuant to the Economic Terms or otherwise pursuant to the Contract Terms. 

3. STANDARD TERMS 

3.1 The following standard terms ("Standard Terms") shall apply to all Contracts: 

(a) Payment of stamp duty and other taxes 

(i) All payments due under a Contract shall be made by the Clearing Member free and 

clear and without deduction or withholding for or on account of any tax, unless 
SIDOCS01/117106.5 2 

required by Applicable Law. If such a deduction or withholding is required by 

Applicable Law to be made by a Clearing Member, the amount due from the 

Clearing Member shall be increased to an amount which (after making such 

deduction or withholding) leaves an amount equal to the payment which would have 

been due had no deduction or withholding been required. 

(ii) The Clearing Member will be responsible for ensuring that any stamp duty or other 

similar tax levied or imposed upon it or its Customer in respect of any Contract to 

which it is a party that is applicable in any jurisdiction is duly paid. 

(iii) The Clearing House shall make any payments due to a Clearing Member net of any 

deduction or withholding for or on account of any tax it is required to make from 

such payments. 

(iv) The Clearing Member shall indemnify the Clearing House against any stamp duty or 

other tax levied or imposed upon the Clearing House in any jurisdiction in respect of 

the Clearing House’s entry into, execution or performance of, or payment or delivery 

pursuant to, any Contract. 

(b) Payments

(i) The Clearing House shall effect daily settlement to market of Contracts and shall 

calculate Open Contract Positions in accordance with the Rules. The Exchange 

Delivery Settlement Price and Reference Price and other reference prices (where 

applicable) shall be determined in accordance with the Rules and Market Rules. 

(ii) Payments under, and in respect of, each Contract shall be calculated by the Clearing 

House and shall be made by, or to, the Clearing Member in accordance with the 

Rules. 

(iii) Each instruction made by the Clearing House to an Approved Financial Institution 

pursuant to Rule 302 shall be deemed to be made pursuant to the Contract Terms for 

each Contract of a Set for which a Clearing Member has an Open Contract Position. 

In respect of each Contract and instruction under Rule 302, the Clearing Member 

shall be deemed to make instructions to the Clearing House to place at the disposal of 

the Clearing House, by way of book entry on the accounts of the Clearing House or 

an Approved Financial Institution, all amounts as are or become payable pursuant to 

the Contract, all amounts due in respect of Margin for Contracts of the relevant Set 

and all amounts as are instructed by the Clearing House in connection with the 

Contract or Contract Set pursuant to Rule 302. 

(c) Rules

(i) Each Contract shall be subject to the Rules, which shall form a part of and be 

incorporated by reference into, the Contract Terms. In the event of any conflict 

between the Contract Terms and the Rules or any other document, Rule 102(f) shall 

apply.

(ii) In particular, in respect of each Contract, the Clearing Member and Clearing House 

shall: 

(A) observe, comply with and be bound by the Rules (as amended in accordance 

with the Rules from time to time); 

(B) be subject to and bound by all of the provisions, dispositions, transfers and 

requirements of the Rules in relation to payment, title, rights, obligations, 

liabilities, property (whether tangible or intangible) and Margin; 
SIDOCS01/117106.5 3 

(C) be subject to and bound by all representations, warranties, agreements and 

acknowledgements that arise pursuant to the Rules from time to time; 

(D) be subject to any requirement imposed as a result of a request, decision, 

determination, direction, sanction, requirement, award or discretion that the 

Clearing House is entitled to make, exercise or impose pursuant to the 

Rules; 

(E) be responsible for the actions and omissions of its Representatives as set out 

in the Rules; and 

(F) if an Event of Default is declared in respect of it, to be bound by the Rules 

as a Defaulter. 

(d) Customers and Third Party Rights

(i) Each party will act as principal and not as agent in respect of each Contract (in the 

case of the Clearing Member, whether such Contract is for the Clearing Member’s 

own account or is undertaken as a result of an order from another member of a 

Market or from a Customer or from any other person or arises as a result of a 

pre-existing contract of, or obligation of the Clearing Member towards, any third 

party). 

(ii) Clearing Member represents and warrants that a contractually binding agreement is 

in place with any Customer in respect of whom it acts as Clearing Member in relation 

to any Contract, pursuant to which such Customer agrees that: (i) the Clearing 

Member acts as principal in respect of the Contract; and (ii) except as provided under 

Applicable Laws, the Customer has no recourse, whether under contract, tort or 

otherwise under Applicable Laws, against the Clearing House in respect of the 

Contract or pursuant to the Rules. 

(iii) The Clearing Member acknowledges and agrees that the Clearing House does not 

have any obligations to Persons other than Clearing Members, as set out further in 

Rule 111. Contractual and other provision for any consequences for a Customer or 

counterparty (other than the Clearing House) of the Clearing Member of any Contract 

arising, existing or being settled or subject to delivery between the Clearing House 

and the Clearing Member (including, without limitation, effective and enforceable 

arrangements for any Corresponding Contract or Agency Relationship with any 

Customer and Transferor/Transferee arrangements) shall not be the responsibility of 

the Clearing House. 

(iv) A person who is not a party to a Contract shall have no rights under or in respect of 

such Contract. Rights of third parties to enforce any term of any Contract pursuant to 

the Contracts (Rights of Third Parties) Act (Chapter 53B of Singapore) or otherwise 

are expressly excluded. 

(e) Offer, Acceptance and Formalities

(i) The parties agree that each Contract that is not void ab initio shall be deemed to have 

been subject to an offer by the Clearing House accepted by the Clearing Member 

immediately upon its formation pursuant to the Rules. No Contract shall require any 

written instrument or document be signed, delivered or executed or electronic or 

other entry to be made in any record or book in order for it to arise and become 

binding on the parties, save as specified in Part 4 of the Rules. 
SIDOCS01/117106.5 4 

(ii) Notwithstanding (i) above, if at any time, it is necessary or desirable to better 

implement or protect the rights and obligations of any party to a Contract, each party 

shall, at its own expense, use all reasonable endeavours to enter into and execute all 

documents reasonably required to so implement or protect. In such circumstances, 

each party shall also procure that any necessary third party shall promptly execute 

and deliver such documents and perform such acts as may reasonably be required for 

the purpose of giving full effect to any Contract. 

(f) Warranties

The Clearing Member represents and warrants that: 

(i) neither the execution nor performance of the Contract by or on behalf of the Clearing 

Member or the Clearing House will breach or conflict with any provision of the 

memorandum of incorporation, articles of association, by-laws, partnership 

agreement, limited liability company agreement or any other organisational 

document of the Clearing Member, or with any agreement or Applicable Law which 

is binding upon or affects the Clearing Member; 

(ii) the Clearing Member and signatories acting on its behalf each have full power and all 

necessary authority to enter into the Contract and perform any act that may be 

required pursuant to the Contract and pursuant to the Rules in respect of the Contract; 

and 

(iii) the Clearing Member has complied with its obligations as a Clearing Member, is duly 

organised and validly existing under Applicable Laws of the jurisdiction of its 

incorporation and is in good standing under such Applicable Laws. 

The Clearing Member acknowledges that the Clearing House will not review nor be 

responsible for reviewing any provision of the Clearing Member’s memorandum of 

incorporation, articles of association, by-laws, partnership agreement, limited liability 

company agreement or any other organisational document of the Clearing Member, any 

agreement to which the Clearing Member is party or any Applicable Law which is binding 

upon or affects the Clearing Member with a view to determining the authority of the Clearing 

Member to enter into any Contract. 

(g) Assignment and transfer

No Clearing Member may, at any time, assign any of its rights or transfer by novation any of 

its rights and obligations under any Contract to a third party unless: (i) such transfer occurs 

pursuant to the Rules; or (ii) the Clearing House provides its prior written consent. Each 

Contract shall bind, and enure to the benefit of, the parties and their authorised successors and 

assignees. 

(h) Default Interest

Interest shall be charged to the Clearing Member on any unpaid but due amount from the date 

on which the amount becomes due and payable until the date of payment at 1% above the rate 

per annum which is the cost (without proof or evidence of any actual cost) to the Clearing 

House if it were to fund or itself funded the relevant amount, compounded daily. 

(i) No Partnership or Agency

Nothing in this Agreement is intended to, or shall be deemed to, establish any partnership or 

joint venture between any of the parties, constitute any party the agent or principal of another 

party, nor authorise any party to make or enter into any commitments for or on behalf of any 

other party. 
SIDOCS01/117106.5 5 

(j) Severance

If any provision of a Contract (or part of any provision) is found by any Court or other 

Governmental Authority to be invalid, illegal or unenforceable, that provision or 

part-provision shall, to the extent required, be deemed not to form part of that Contact, and the 

validity and enforceability of the other provisions of that Contract shall not be affected. 

(k) Liability

The Clearing Member shall indemnify and hold harmless the Clearing House in respect of any 

Contract in accordance with the provisions of the Rules relating to indemnity and liability. 

The liability of the Clearing House and its Representatives under any Contract shall be subject 

to all the exclusions on liability set out in the Rules. 

(l) Disputes

Any and all disputes arising out of or in connection with a Contract, including any dispute as 

to the existence, validity or termination of any Contract, shall be resolved pursuant to the 

dispute resolution procedures set out in Rule 117. In the event of any conflict between a 

provision of these Contract Terms Procedures and Rule 117, the provisions of Rule 117 shall 

prevail. 

(m) Termination

The Contract shall terminate automatically, and Rule 209(c) shall apply, upon the Insolvency 

of the Clearing House. In the event of Rule 209(c) applying, the price at which Contracts are 

terminated for purposes of Rule 912 shall be the same price for all Contracts of the same Set. 

(n) Governing Law

These Contract Terms Procedures, and all non-contractual obligations arising out of or in 

connection with them, are governed by and shall be construed in accordance with Singapore 

law and any Dispute under these Contract Terms Procedures will be subject to arbitration 

under Rule 117. 
ICE CLEAR 

SINGAPORE 

S-1 SUPPLEMENT 

ANNEX B(1) 
1

ICE CLEAR SINGAPORE

CUSTOMER-CM TRANSACTIONS STANDARD TERMS 

BACKGROUND:

In respect of a Clearing Member and Customer using a Customer Account:

(1) Clearing Member is a Clearing Member, as defined in the rules (together with the 

procedures, as interpreted in accordance with guidance and circulars thereunder, the 

"Rules") of ICE Clear Singapore Pte. Ltd. (the "Clearing House") and is thereby 

permitted to submit certain Transactions which result in a cleared Contract arising in 

accordance with the Rules and the Procedures of the Clearing House.

(2) Clearing Member and Customer are or intend to become party to one or more 

Customer-CM Transactions, where related cleared Contracts are requested or are to be 

requested by the Clearing Member to be recorded in a Customer Position Account in 

which Contracts may be recorded. They further desire to agree to the operation of the 

Rules and the Procedures in relation to any Customer-CM Transactions that may arise 

following the submission of the related Transactions, as further provided for in these 

Customer-CM Transactions Standard Terms (these "Standard Terms").

(3) Clearing Member and Customer have established a "master" futures account, clearing 

agreement or other master agreement (the "Cleared Transactions Master 

Agreement", as amended from time to time) and, if applicable, a related collateral 

arrangement, whether contained in the same or another agreement with respect to 

cleared transactions, including such Customer-CM Transactions (which Cleared 

Transactions Master Agreement may be supplemented by a cleared derivatives 

addendum, or similar document, as agreed by Clearing Member and Customer 

(together, the "Customer-Clearing Member Agreement") and as amended and 

supplemented by these Standard Terms).

STANDARD TERMS:

1. Defined Terms. Terms used but not otherwise defined in these Standard Terms shall 

have the meaning set forth in the Rules or the Procedures, as applicable.

2. Exhibit to Rules. These Standard Terms are published by the Clearing House as an 

Exhibit to the Rules but do not form part of the Rules. Clearing Member and 

Customer agree that any amendments, modifications, restatements or supplements in 

respect of such Exhibit to the Rules (including the withdrawal of any part of these 

Standard Terms) may be effective if made by the Clearing House pursuant to the 

provisions of Rule 109 as if the Exhibit were Rules and as if Rule 109 applied to 

Customers in addition to, and in the same way as it applies to, Clearing Members. At 

the request of Clearing Member or the Clearing House, Customer will enter into a 

written confirmation of the terms of any such amendment, modification, supplement 

or restatement.
2

3. Cleared Transactions.

(a) Clearing Member may designate, by specifying that certain Transactions 

submitted to the Clearing House are to be recorded in a Customer Position 

Account, that certain transactions between Clearing Member and Customer 

shall arise at the same time as related Contracts and shall constitute 

Customer-CM Transactions.

(b) Clearing Member and Customer agree that a Customer-CM Transaction shall 

arise automatically and without further action on the part of Clearing Member 

or Customer as set out in Part 4 of the Rules in respect of the related Contract.

(c) The terms of any Customer-CM Transaction shall, save as contemplated by 

these Standard Terms, be identical to those of the related Contract between 

Clearing Member and the Clearing House (as such Contract may be amended 

from time to time in accordance with the Rules and/or Procedures), except 

that:

(i) if the Clearing Member is the seller under the Contract it shall be the 

buyer under the Customer-CM Transaction and vice versa;

(ii) Customer's recourse against Clearing Member shall be limited and 

Clearing Member's obligations to Customer shall be conditional as 

provided for in Section 8(c) below;

(iii) Customer-CM Transactions shall also be subject to these Standard 

Terms and the terms of the Customer-Clearing Member Agreement; 

and

(iv) except where a Customer-Clearing Member Agreement provides for 

specific timings in respect of the performance of obligations:

(1) any obligation of the Clearing Member to the Customer shall 

not be required to be performed until a reasonable period has 

passed after the Clearing Member has received equivalent 

performance from the Clearing House; and

(2) any obligation of the Customer to the Clearing Member may be 

required by the Clearing Member to be performed a reasonable 

period in advance of the Clearing Member becoming obliged to 

the Clearing House in respect of an equivalent obligation.

(d) If any Customer-CM Transactions are governed by a Customer-Clearing 

Member Agreement which is not a separate agreement from any master 

agreement applicable to transactions between Clearing Member and Customer 

other than Customer-CM Transactions ("Non-Cleared Transactions"), 

Clearing Member and Customer shall distinguish in their books and records 

Customer-CM Transactions from Non-Cleared Transactions to the extent 

required to enable them to comply with the Rules, the Procedures and these 

Standard Terms.
3

(e) For purposes of the Customer-Clearing Member Agreement, in the event of 

any inconsistency among or between the Customer-Clearing Member 

Agreement, these Standard Terms, the Rules and the Procedures with respect 

to Customer-CM Transactions the following provisions shall prevail in the 

following order: (i) first, the Rules from time to time; (ii) second, subject to 

(m) below, the Procedures from time to time; (iii) third, these Standard Terms 

from time to time; and (iv) fourth, the Customer-Clearing Member Agreement.

(f) Customer agrees with Clearing Member that Customer-CM Transactions shall 

be subject to the provisions of the Rules and the Procedures applicable to 

Customer-CM Transactions as such Rules or Procedures are amended, 

modified, supplemented or restated from time to time. In particular but 

without limitation, Customer hereby agrees that it shall be bound by, shall 

comply with and shall facilitate compliance by Clearing Member with the 

terms and conditions set forth in Parts 5 and 9 of the Rules and Rule 202 in so 

far as they relate to Customer-CM Transactions.

(g) Customer agrees that publication of a Circular by the Clearing House shall 

constitute valid notice by the Clearing House of any matter under or relating to 

the Rules, the Procedures, Customer-CM Transactions or these Standard 

Terms.

(h) Clearing Member and Customer agree that, save in the circumstances 

contemplated by these Standard Terms and as provided for in any 

Customer-Clearing Member Agreement or other agreement between Clearing 

Member and Customer, each Customer-CM Transaction is intended to reflect 

exactly the operation of the related Contract. In any circumstances in which a 

Contract is netted (in whole or in part), terminated or voided under the Rules, 

the related Customer-CM Transaction will also be netted (in whole or in part), 

terminate or be voided by reference to the same price as the Contract is so 

netted, terminated or voided and a payment in respect of such price may be 

payable between Customer and Clearing Member pursuant to the 

Customer-Clearing Member Agreement or as determined by the Clearing 

Member. Thereupon, Customer and Clearing Member shall have no further 

rights and be under no further liability with respect to such Customer-CM 

Transaction(s) (or, if applicable, part thereof) other than in respect of any 

unpaid payments under such Customer-CM Transactions (which shall be 

payable as and when originally payable). Clearing Member may, at its 

discretion, elect to continue an equivalent transaction with Customer as a 

Non-Cleared Transaction.

(i) In addition, without limiting any rights that Clearing Member may have under 

the Customer-Clearing Member Agreement, if the Clearing House takes any 

step, including but not limited to the following events or actions, or any such 

event or action otherwise occurs (in each case including but not limited to any 

change in Applicable Law or any action taken by any Regulatory Authority 

pursuant to Applicable Law) in relation to a Contract, Clearing Member, at its 

option and discretion, shall be entitled to take equivalent action (or, if it cannot 

take equivalent action, it is not advisable to do so or equivalent action would 

not deal with the matter in hand, other appropriate action) in good faith and in 

a commercially reasonable manner, in relation to the related Customer-CM
4

Transaction and/or against Customer, including but not limited to terminating, 

and/or modifying the non-economic terms of, such Customer-CM Transaction 

and/or making adjustments to any determination of amounts paid or payable 

under the Customer-Clearing Member Agreement:

(i) imposition of a fine or disgorgement payment pursuant to Part 10, any 

arbitral award or any other payment obligation arising other than 

pursuant to the Contract Terms or Parts 5 or 11 of the Rules, where the 

conduct in question is caused by, or in any way due to, the Customer 

and/or under the Customer-CM Transaction;

(ii) any other event or action the effect of which is to create a material 

mismatch between the rights, obligations or exposures as between 

Clearing Member and the Clearing House pursuant to a Contract on the 

one hand and the rights, obligations or exposures as between Clearing 

Member and Customer, including without limitation pursuant to the 

related Customer-CM Transaction, on the other hand; and

(iii) any other event or action the effect of which is to result in any loss, 

liability, cost, claim, damages or expenses being incurred by Clearing 

Member in connection with a Contract where such event or action does 

not form part of the Contract (and so is not reflected in the related 

Customer-CM Transaction).

(j) Notwithstanding Section 3(c), Clearing Member and Customer may agree 

different settlement arrangements between Clearing Member and Customer so 

as to accommodate any particular requirements of Clearing Member or 

Customer.

(k) Any price or rate determined by the Clearing House under the Rules in 

relation to a Contract shall be used as the same price or rate by the Clearing 

Member in relation to the related Customer-CM Transaction(s).

(l) Customer shall not be entitled to serve any type of notice under a 

Customer-CM Transaction in circumstances in which or by means that the 

Clearing Member would not, by virtue of the Rules or Procedures, be entitled 

to serve a corresponding notice on the Clearing House in relation to the 

corresponding Contract. Clearing Member and the Clearing House shall be 

entitled to treat any service of a notice in breach of this provision as invalid.

(m) Clearing Member may, but (subject as otherwise agreed) is not obliged to, 

deliver any electronic notices in relation to Customer-CM Transactions at the 

times allowed under the Rules and Procedures.

(n) These Standard Terms may, pursuant to the process provided for in Section 2 

of these Standard Terms, from time to time, incorporate additional standard 

terms published by the Clearing House so as to establish mechanics for 

dealing with the relationship between Contracts and Customer-CM 

Transactions until such time as market infrastructure solutions are available to 

address the relevant operational issues. Such additional standard terms shall 

form part of these Standard Terms, may (if so specified) prevail over the
5

applicable Procedures in respect of Customer-CM Transactions and may be 

amended and/or withdrawn only as provided for in Section 2 of these Standard 

Terms.

(o) On each date on which the Customer has any open Customer-CM Transaction, 

the Customer shall represent that the Clearing House is not prevented from 

entering into any Contract nor is the Clearing Member prevented from 

entering into any Customer-CM Transaction as a result of any sanctions 

administered or imposed by a Governmental Authority of Singapore, the 

European Union, H.M. Treasury, the United Nations Security Council or any 

other relevant Governmental Authority affecting the Customer or any of its 

assets.

4. Margin Requirements.

(a) Subject as agreed otherwise in the Customer-Clearing Member Agreement, 

Clearing Member shall be entitled to require each of its Customers in respect 

of Contracts to provide margin (or permitted cover in respect thereof) in an 

amount no less than the amount of Margin of each relevant type required on a 

gross basis by the Clearing House with respect to the relevant Open Contract 

Position(s) for its Customer Account. For this purpose, "gross basis" shall 

mean that the margin requirement will be determined giving effect to any 

offset permitted under the Rules of such Open Contract Positions against Open 

Contract Positions relating to the same Set and Customer in such Customer 

Account, but without giving effect to any offset or permitted offset of such 

Open Contract Positions against Open Contract Positions relating to a different 

Customer.

(b) Customer agrees that Clearing Member may use any margin provided by 

Customer under the Customer-Clearing Member Agreement to satisfy 

Clearing Member's obligations to the Clearing House under Rule 504 or 

Part 11. Customer shall not be entitled to assert any equitable or other claim 

to any such collateral and/or Permitted Cover that has been transferred to the 

Clearing House except as required under the SFA and the SF(CF)R, including, 

without limitation, any trust obligation on the Clearing House arising pursuant 

to Regulation 23(3) of the SF(CF)R. Where Clearing Member uses margin 

other than that provided by Customer under the Customer-Clearing Member 

Agreement to satisfy Clearing Member's obligations to the Clearing House 

under Rule 504 in relation to a Contract where Customer is party to the related 

Customer-CM Transaction, Customer shall provide Customer-margin of the 

same value to Clearing Member within a reasonable period.

(c) Customer consents to the Clearing House acting as agent and/or attorney for 

the Clearing Member pursuant to Rule 301(e) or any Clearing Membership 

Agreement and, without prejudice to the rest of the Rules and Procedures, 

Customer acknowledges and agrees to Rule 505 which Rule shall be 

incorporated into these Standard Terms mutatis mutandis.
6

5. Events of Default and Termination.

(a) In the event of the declaration by the Clearing House of an Event of Default 

(as defined in the Rules) with respect to Clearing Member (such an event 

being an "ICE-Declared Default"), whether or not any other default 

(howsoever defined or described) has also occurred under the 

Customer-Clearing Member Agreement or otherwise, Customer shall not be 

entitled to exercise any remedies with respect to Customer-CM Transactions 

pursuant to the Customer-Clearing Member Agreement or otherwise, except as 

provided herein (and any other remedies being exercised at the time of the 

declaration of such ICE-Declared Default shall cease and be superseded by the 

applicable provisions of these Standard Terms).

(b) If an ICE-Declared Default occurs at a time when Clearing Member has not 

already terminated the relevant Customer-CM Transactions by reason of the 

occurrence of an event of default or termination event relating to Customer, 

Clearing Member may not take any action against Customer that may interfere 

with the Default Portability Rule resulting in Customer discharging its 

obligations to Clearing Member as provided for in Section 6(e) below. Save 

for such restriction, nothing in these Standard Terms will limit Clearing 

Member's remedies under the Customer-Clearing Member Agreement in 

respect of Customer-CM Transactions if an event of default or termination 

event (or similar concept) with respect to Customer occurs under the 

Customer-Clearing Member Agreement.

6. Post-default Portability; Termination and Valuation of Cleared Transactions.

(a) Customer shall indicate to Clearing Member in such manner as the Clearing

House may direct:

(i) Customer's preference as to whether, in the event of an ICE-Declared 

Default, it would prefer the Clearing House to apply the Default 

Portability Rules and related processes to the Customer's 

Customer-CM Transactions and related Contracts; and

(ii) its Default Portability Preference.

Any Default Portability Preference notified by Customer must apply to all 

Customer-CM Transactions with Clearing Member. Any such Default 

Portability Preference by Customer may be amended by notice to Clearing 

Member (who will, in turn, notify the Clearing House in accordance with the 

Rules and the Procedures), at any time prior to the occurrence of an 

ICE-Declared Default in respect of Clearing Member or, at the discretion of 

the Clearing House, by notice directly to the Clearing House in accordance 

with the Rules and the Procedures, following the occurrence of such an 

ICE-Declared Default.

(b) Unless it has notified the Clearing Member and Clearing House in writing to 

the contrary, Customer hereby consents and agrees that, in the event of an 

ICE-Declared Default, whether or not Customer has specified a Default 

Portability Preference, the Clearing House shall be entitled (but shall not be
7

obliged) to apply the Default Portability Rules with respect to Contracts to 

which Clearing Member and Customer's Customer-CM Transactions relate, 

including by taking any of the following steps:

(i) transferring, assigning, selling or novating Customer-CM Transactions

(and related Contracts) to any Transferee Clearing Member;

(ii) terminating Customer-CM Transactions (and related Contracts) and 

arranging for the entry into of new replacement Customer-CM 

Transactions (and related Contracts) with any Transferee Clearing 

Member (by way of novation or otherwise); and/or

(iii) transferring Margin (in such amount as the Clearing House may 

determine) credited to the Customer Margin Account of Clearing 

Member to the Customer Margin Account of the Transferee Clearing 

Member and, if such a transfer occurs, Clearing Member's obligations 

to Customer in respect of the transferred Margin shall be fully 

discharged.

(c) In the event that the Clearing House arranges for a replacement Contract and

related Customer-CM Transaction pursuant to Section 6(b)(ii), the

Customer-CM Transaction with the Transferor Clearing Member shall be 

deemed terminated at the same time that the replacement Contract and related 

Customer-CM Transaction is entered into. Customer shall take no action, 

including but not limited to attempting to obtain a court order, that could 

interfere with the ability of the Clearing House to take action contemplated by 

Part 9 of the Rules, including, without limitation, the Transfer of Contracts 

and Customer-CM Transactions, the transfer of any related Margin or other 

collateral or cover (or contingent cover) for the same or the imposition of the 

Transferee Clearing Member's form of Customer-Clearing Member 

Agreement where so permitted under the Default Portability Rules.

(d) Customer hereby appoints the Clearing House as its lawful agent and 

attorney-in-fact to take such actions on behalf of the Customer as the Clearing 

House determines necessary or appropriate in order to effect the Default 

Portability Rules with respect to Customer's Customer-CM Transactions and 

the Customer Margin Account, including executing any document or 

instrument with respect to the Transfer or replacement of the Customer-CM 

Transaction and/or exercising rights and remedies to terminate or Transfer 

Customer-CM Transactions, including (without limitation) the execution of 

any Transfer, or the exercise of any termination notice or the transfer of 

amounts recorded in the Customer Margin Account. Such appointment shall 

not be revoked by Customer. Customer shall take such actions as the Clearing 

House and/or a Transferee Clearing Member may request to give full effect to 

the Default Portability Rules, including without limitation execution of 

documentation confirming or agreeing to any terms specified by Transferee 

Clearing Member pursuant to Rule 904(j).

(e) In connection with any Transfer of Customer-CM Transactions pursuant to the 

Default Portability Rules, any termination payments owed between Customer 

and Clearing Member in respect of the relevant Customer-CM Transactions
8

(determined in accordance with the Rules and the provisions of the 

Customer-Clearing Member Agreement), any termination payments owed 

between Clearing Member and the Clearing House in respect of the related 

Contracts (which in each case shall be determined by the Clearing House 

pursuant to its default rules), any upfront variation margin payments owed 

between Customer and the Transferee Clearing Member with respect to the 

initiation of the replacement cleared transactions and any upfront Variation 

Margin payments owed between such Transferee Clearing Member and the 

Clearing House with respect to the initiation of replacement Contracts shall be 

equal.

(f) In the event of an ICE-Declared Default:

(i) There will be a minimum 4-hour period, after issuance by the Clearing 

House of a Circular including a Default Notice naming a Clearing 

Member, for Customers and their Transferee Clearing Members to 

notify the Clearing House of their agreement that Contracts and/or 

Margin can be Transferred to a Transferee Clearing Member pursuant 

to the Default Portability Rules ("Porting Notice"). Any Porting 

Notice, in order to be valid, must:

(A) [Not used.]

(B) concern and be duly authorised and executed by a Customer 

who would not, if it were a Clearing Member, be capable of 

being declared a Defaulter;

(C) concern and be duly authorised and executed by a Transferee

Clearing Member who is not a Defaulter;

(D) be delivered to the Clearing House electronically in the form 

and to the address specified by the Clearing House;

(E) concern positions which have not already been closed out or

Transferred; and

(F) otherwise comply with the requirements of Part 9 of the Rules. 

Subject to Rule 904(c), the Clearing House will act upon Porting Notices

received by it within the 4-hour period specified above. The Clearing House

may also act upon other Porting Notices received by it after the end of such 

period, at its discretion. However, Customers and Transferee Clearing 

Members acknowledge that due to operational constraints and depending on 

market conditions, it may not be possible for the Clearing House to process all 

Porting Notices (whether received within the 4-hour period or thereafter) 

within a reasonable period of time. Porting Notices received within the initial

4-hour period will be prioritised over any other notice. The Clearing House

may select Porting Notices to be dealt with in such order as it sees fit, based 

on such criteria as it determines are relevant, including completeness and due 

execution of Default Notices, legibility, time of receipt, size of positions, 

lawfulness of porting, Customer jurisdiction of incorporation or place of
9

business, whether risk increasing or risk decreasing and satisfaction of the 

requirements of Part 9 of the Rules. The Clearing House will not be obliged to 

comply with any Porting Notice which has not been acted upon by it:

(A) if the Default Notice was issued before 13:00 hrs on a Business Day 

prior to the close of business on the same Business Day;

(B) if the Default Notice was issued on a day which is not a Business Day 

prior to close of business on the next following Business Day; or

(C) if the Default Notice is issued after 13:00 hrs on a Business Day prior 

to noon of the next following Business Day.

At the end of this period, the Clearing House may, at its sole discretion, 

terminate any open Contracts and related assets of the Defaulter or undertake 

other Transfers under consents provided for in the Rules and these Standard 

Terms. The deadlines for the delivery of prioritised Porting Notices or for the 

Clearing House to act upon any Porting Notices may be extended at the 

Clearing House's discretion by Circular. If, as of the end of the period for 

acting upon Default Notices, any Customer-CM Transactions have not been 

Transferred pursuant to the Default Portability Rules, such Customer-CM 

Transactions shall be deemed terminated, and in such case an early 

termination date (or similar concept) in respect of the Customer-CM 

Transactions shall occur under the Customer-Clearing Member Agreement, on 

the applicable date on which the Clearing House terminates the related 

Contracts pursuant to Part 9 of the Rules.

(ii) Notwithstanding anything to the contrary in the Customer-Clearing 

Member Agreement or any other agreement or arrangement between 

Clearing Member and Customer, the amount payable pursuant to the 

Customer-Clearing Member Agreement in respect of the termination of 

the Customer-CM Transactions shall be determined on the basis of the 

termination value calculated by the Clearing House for the 

corresponding Contracts pursuant to Part 9 of the Rules but subject 

always, in the case of amounts due from Clearing Member, to 

Section 8(c) below. Customer hereby agrees and acknowledges that 

any determination made by the Clearing House with respect to the 

termination value of a Contract or a Customer-CM Transaction shall be 

conclusive and binding upon Customer for this purpose to the same 

extent that any 'net sum' declared by the Clearing House is conclusive 

and binding on Clearing Member. The obligation of a Clearing 

Member to a Customer under a Customer-CM Transaction shall be 

discharged to the extent that the Clearing House makes payment of any 

net sum or any part thereof direct to the Customer.

(iii) Customer acknowledges and agrees that the allocation and, subject to 

Applicable Law, return of available amounts in the relevant Customer 

Margin Account shall be governed by Part 9 of the Rules, which may 

reduce or defer Clearing Member's obligations to Customer.
10

(g) For the avoidance of doubt, nothing in these Standard Terms shall prevent 

other amounts being due and payable between Clearing Member and 

Customer as provided for in the Customer-Clearing Member Agreement.

7. Consents to Disclosure.

(a) Customer hereby consents to:

(i) the Clearing House having the right to obtain information in relation to 

the Customer-CM Transactions from any Market so as to enable the 

Clearing House to identify which Contracts and Margin or Permitted 

Cover between the Clearing House and Clearing Member relate to such 

Customer-CM Transactions;

(ii) 

(iii)

(iv)

Clearing Member making any disclosures in connection with Customer 

and Customer-CM Transactions as are required by the Rules and/or 

Procedures or as are required by Applicable Law;

disclosures to, use by and disclosures by the Clearing House of 

information relating to Customer (including the Personal Data of its 

Data Subjects) pursuant to Rule 106; and

submissions of and other actions relating to data concerning 

Customer-CM Transactions by the Clearing House pursuant to 

Section 12, the Rules and the Procedures.

8. Certain Limitations.

(a) Customer agrees and acknowledges for the benefit of the Clearing House and 

Clearing Member that: (i) the liability of the Clearing House to Customer 

shall be excluded and limited as set forth in Rule 111 and specifically that the 

Clearing House shall have no liability or obligation to Customer in respect of a 

Customer-CM Transaction or otherwise nor shall it have any duty of care 

directly to Customer, in any case whether in tort, contract, restitution, in 

respect of any Contract, pursuant to the Rules, pursuant to a Clearing 

Membership Agreement, pursuant to these Standard Terms or otherwise, save 

for any liability which by law may not be excluded, (ii) in no event shall 

Customer attempt to interfere with the ability of the Clearing House to 

exercise its rights hereunder or as set forth in the Rules, the Procedures or any 

Clearing Membership Agreement, and (iii) it is not entitled to, and will not, 

petition a court or take any action or commence any proceedings against the 

Clearing House, directly or indirectly and will if any such action is taken fully 

indemnify the Clearing House against any costs, losses or other consequences 

of Customer taking any such action. Customer agrees that Clearing Member 

acts as principal at all times in all its Contracts with the Clearing House.

(b) The Clearing House shall have no responsibility for the compliance by 

Clearing Member or Customer with its obligations under a Customer-Clearing 

Member Agreement. The Clearing House shall be under no obligation to 

enquire into, and shall be fully protected in relying on, any instructions or 

directions with respect to a Customer Account or the assets recorded therein or
11

transferred thereto or therefrom under the Rules received from a Person that 

the Clearing House believes to be authorised to act on behalf of Clearing 

Member.

(c) Customer agrees and acknowledges that the performance and payment 

obligations of Clearing Member to Customer are limited by and contingent on 

the actual performance or payment by the Clearing House under the related 

Contract and that Clearing Member shall have no responsibility for the 

compliance by the Clearing House (or any person other than that Clearing 

Member) with its obligations, including without limitation, under any 

Contract, the Rules or the Procedures. In the event that the Clearing House 

defaults in or defers or varies the payment or performance of any obligation 

otherwise owed by it in respect of a Contract corresponding to a 

Customer-CM Transaction (including, without limitation, any shortfall in 

repayment of Permitted Cover or any recovery of less than 100% of amounts 

owed by the Clearing House or property provided to the Clearing House in 

circumstances in which Rule 912 applies), Clearing Member will be entitled to 

make a corresponding deduction, withholding or other reduction from, or 

tolling or deferring of, any payment or performance otherwise owed by it 

under such corresponding Customer-CM Transactions and/or to make its 

performance under such Customer-CM Transactions conditional on 

performance by the Clearing House under the related Contract (and where any 

such deduction may be attributable to both Customer-CM Transactions and to 

Customer Account Contracts of other Customers, Clearing Member shall 

allocate such deduction among such contracts on a pro rata basis) provided 

that if such defaulted or delayed payment or performance is subsequently 

obtained by Clearing Member from the Clearing House (in whole or in apart), 

Clearing Member shall thereupon make the corresponding payment or 

performance (or portion thereof) to Customer.

9. Certain Tax Matters.

Subject always, and without prejudice, to any provisions of a Customer-Clearing 

Member Agreement: (i) if Clearing Member is required to pay to Clearing House any 

additional amount under Rule 301(j) or the Contract Terms with respect to a Contract 

corresponding to a Customer-CM Transaction, Customer shall be obliged to pay to 

Clearing Member an amount equal to such additional amount (or the applicable 

portion thereof), but without duplication of any additional amount payable by 

Customer under any relevant provision of the Customer-Clearing Member 

Agreement, (ii) for the avoidance of doubt, and without prejudice to the above, if 

Clearing House deducts or withholds any amount otherwise payable to Clearing 

Member on a Contract pursuant to Rule 301 or the Contract Terms, Clearing Member 

shall be entitled to make a corresponding deduction from any amount otherwise 

payable by Clearing Member to Customer under a corresponding Customer-CM 

Transaction, and (iii) where such additional amount or deduction may be attributable 

to both Customer-CM Transactions and to Customer-CM Transactions of other 

customers, Clearing Member shall allocate such additional amount or deduction 

among such contracts on a pro rata basis.
12

10. Reliance on Transactions etc.

The Clearing House shall be entitled to assume, without enquiry, that at each 

Acceptance Time at which a Customer-CM Transaction arises, the respective 

obligations of Clearing Member and Customer under such Customer-CM Transaction 

constitutes its legal, valid and binding obligations enforceable in accordance with 

their respective terms, subject to applicable bankruptcy, reorganisation, insolvency, 

moratorium or similar laws affecting creditors' rights generally and subject, as to 

enforceability, to equitable principles in general application (regardless of whether 

enforcement is sought in a proceeding in equity or at law). The sole remedy of 

Customer in the case of any error shall be to request that Clearing Member request the 

Clearing House to amend or correct any error pursuant to the Rules or Procedures.

11. Third Party Rights.

The Clearing House shall be entitled to rely upon and enjoy the benefit of the 

representations, warranties, agreements, obligations and covenants of the Customer 

under these Standard Terms and shall have the right to enforce such representations, 

warranties, agreements, obligations and covenants against the parties under the 

Contracts (Rights of Third Parties) Act (Chapter 53B of Singapore). Other than as set 

out in this Section 11, no persons other than Clearing Member and Customer shall 

have the right to enforce any provision of these Standard Terms under the Contracts 

(Rights of Third Parties) Act (Chapter 53B of Singapore) or otherwise.

12. Miscellaneous.

(a) Intellectual Property. Customer agrees to the representation, warranty and 

undertaking specified in Rule 406(g).

(b) Entire Agreement. These Standard Terms (together with the 

Customer-Clearing Member Agreement and the Rules and the Procedures 

incorporated by reference herein) constitutes the entire agreement and 

understanding of Customer and Clearing Member with respect to its subject 

matter and supersedes all oral communication and prior writings (except as 

otherwise provided herein) with respect thereto.

(c) Headings. The headings used in these Standard Terms are for convenience of 

reference only and are not to affect the construction of or to be taken into 

consideration in interpreting these Standard Terms.

(d) Governing Law. Any contractual or non-contractual disputes arising out of or 

in connection with the Customer-Clearing Member Agreement are governed 

by and shall be construed in accordance with the law specified in the 

Customer-Clearing Member Agreement and subject to the non-exclusive 

jurisdiction of the courts specified in the Cleared Transactions Master 

Agreement provided that: (i) Sections 6(d) and 11 of these Standard Terms 

shall be governed by and shall be construed in accordance with the laws of 

Singapore and are subject to arbitration under Rule 117 as if such provisions 

of these Standard Terms were Rules and the parties were bound thereby as if 

they were both Clearing Members, notwithstanding any choice of law or 

jurisdiction in the Cleared Transactions Master Agreement; and (ii) each
13

provision of the Rules and the Procedures incorporated by reference herein or 

in the Customer-Clearing Member Agreement shall be governed by and 

construed in accordance with the laws of the Republic of Singapore. Clearing 

Member and Customer hereby irrevocably waive any right to object to any 

such proceedings on the basis of forum non conveniens or otherwise.
Monetary Authority of Singapore

GUIDELINES ON FIT AND PROPER CRITERIA

GUIDELINE NO: FSG-G01 
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

2

Application of Guidelines

These Guidelines set out the fit and proper criteria applicable to all 

relevant persons in relation to the carrying out of any activity regulated 

by the Monetary Authority of Singapore [“MAS”] under any written law 

[“relevant legislation”].

2 MAS expects a relevant person to be competent, honest, to have 

integrity and to be of sound financial standing. This provides MAS with 

the assurance that the relevant person is willing and able to fulfil its or his 

obligations under any written law. This also underpins our requirements 

that the relevant person performs the activities regulated under the 

relevant legislation efficiently, honestly, fairly and acts in the best 

interests of its or his stakeholders and customers.

3 The onus is on each relevant person to establish that it or he is a fit 

and proper person rather than for MAS to show otherwise. Where a 

relevant person is required under the relevant legislation to ensure that 

another relevant person is fit and proper, the onus is on the former to 

establish to the satisfaction of MAS that the latter is fit and proper. As 

different appointments and designations entail different responsibilities, 

these Guidelines would be applied in a manner and to the extent that is 

suitable to the circumstances. MAS will consider the nature of the 

responsibilities of the relevant person in determining the relative 

emphasis and standard that should be expected of the relevant person.

[Amended on 26 November 2010]
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

3

4 When assessing an application for the appointment of a relevant 

person to senior or critical functions, MAS may, in addition to the fit and 

proper criteria set out in these Guidelines, consider other factors that may 

be relevant, such as whether the relevant person has a good standing in 

the profession in respect of which the application is submitted. If the 

relevant person fails to satisfy MAS that it or he is fit and proper, MAS 

may refuse the person’s application, revoke the person’s authorisation or 

exemption, or take other appropriate regulatory action, as may be 

applicable and necessary.

5 These Guidelines provide general guidance, and are not intended to 

be comprehensive nor replace or override any legislative provisions. They 

should be read in conjunction with the provisions of the relevant 

legislation, the subsidiary legislation made under the relevant legislation, 

as well as written directions, notices, codes and other guidelines that 

MAS may issue from time to time pursuant to the relevant legislation and 

subsidiary legislation.

Definitions

6 For the purposes of these Guidelines:

“Appointed Actuary” means an actuary appointed by a registered insurer 

under section 31 of the Insurance Act (Cap. 142) [“IA”];

“appointed representative” has the same meaning as in section 2(1) of the 

SFA or section 2(1) of the FAA, as the case may be; 

[Amended on 26 November 2010]
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

4

“authorisation” means —

(a) an approval as an approved exchange under section 8(1) of 

the Securities and Futures Act (Cap. 289) [“SFA”] 

respectively;

(b) a recognition as a recognised market operator under section 

8(2) of the SFA; 

(c) a licensing as a licensed trade repository under section 46E(1) 

of the SFA; 

(d) a licensing as a licensed foreign trade repository under 

section 46E(2) of the SFA;

(e) an approval as an approved clearing house under section 

51(1)(a) of the SFA;

(f) a recognition as a recognised clearing house under section 

51(1)(b) or 51(2) of the SFA;

(g) an approval as an approved holding company under section 

81W of the SFA; 

(h) a licensing as a holder of a capital markets services [“CMS”] 

licence under section 82(1) of the SFA;

(i) a licensing as a licensed financial adviser [“FA”] under 

section 6(1) of the Financial Advisers Act (Cap. 110) 

[“FAA”]; 

(j) a registration as an insurance broker under section 35X of 

the IA;

(k) an approval as an approved MAT insurance broker, an 

approved general reinsurance broker or an approved life 

reinsurance broker under regulation 4 of the Insurance 

(Approved Marine, Aviation and Transit Insurance Brokers 

and Approved Reinsurance Brokers) Regulations (Rg 14);
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

5

(l) an approval as an approved MAT insurer under regulation 5 

of the Insurance (Approved Marine, Aviation and Transit 

Insurers) Regulations (Rg 15); 

(m) an authorisation as a general reinsurer or life reinsurer under 

section 8(A) of the IA; 

(n) an approval to establish a representative office under section 

6 of the IA; 

(o) a licensing as a licensed trust company [“TC”] under section 

3(1) of the Trust Companies Act (Cap. 336) [“TCA”]; or

(p) a registration of a fund management company registered 

under paragraph 5(1)(i) of the Second Schedule to the 

Securities and Futures (Licensing and Conduct of Business) 

Regulations [“SFR(LCB)”];

(q) an approval as a trustee under section 289(1) of the SFA.

[Amended on 6 March 2014]

[Amended on 3 September 2015]

“broking staff”, in relation to an insurance broker, means any employee 

of the insurance broker or any other person who is authorised by the 

insurance broker to act on its behalf to provide technical advice to any 

client of the insurance broker in respect of —

(a) insurance policies relating to general business and long-term 

accident and health policies, other than insurance policies 

relating to reinsurance business; or

(b) reinsurance of liabilities under insurance policies relating to 

life or general business;

“business rules” has the same meaning as in section 2(1) of the SFA;
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

6

“Certifying Actuary” means an actuary approved by MAS under section 

37 of the IA;

“connected person” has the same meaning as in section 2(1) of the SFA 

or section 2(1) of the FAA, as the case may be;

[Amended on 26 November 2010]

“exempt entity” means:

(a) a person exempt from the requirement to hold a CMS licence 

under paragraph 5(1)(d) or 7(1)(b) of the Second Schedule to 

the Securities and Futures (Licensing and Conduct of 

Business) Regulations (Rg 10) [“SFR(LCB)”]; or

(b) a person exempt from holding an FA licence under

regulation 27(1)(d) of the Financial Advisers Regulations 

(Rg 2) [“FAR”]; 

[Amended on 26 November 2010]

[Amended on 7 August 2012]

“exempt financial institution” means:

(a) a financial institution exempt from the requirement to hold a 

CMS licence under section 99(1)(a), (b), (c), (d), (f) or (g) of 

the SFA; 

(b) a financial institution exempt from holding an FA licence 

under section 23(1)(a), (b), (c), (d), (e) or (ea) of the FAA; 

(c) a financial institution exempt from registration as an 

insurance broker under section 35ZN(1)(a), (b), (c), (d), (e) 

or (ea) of the IA; or

(d) a financial institution exempt from holding a TC licence 

under section 15(1)(a), (b) or (c) of the TCA, or regulation 
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

7

4(1)(j) of the Trust Companies (Exemption) Regulations (Rg 

1);

“exempt person” means:

(a) a person exempt from the requirement to hold a CMS licence 

under paragraph 5(1)(d) or 7(1)(b) of the Second Schedule to 

the SFR(LCB);

(b) a key officer of a person referred to in paragraph (a);

(c) a substantial shareholder or an equivalent person of a person 

referred to in paragraph (a); 

(d) a person (other than a person referred to in paragraph (b) or 

(c)) acting alone or together with any connected person, who 

–

(i) controls, directly or indirectly, not less than 20% of 

the voting power or such equivalent decision-making 

power in the person referred to in paragraph (a); or

(ii) acquires or holds, directly or indirectly, not less than 

20% of the issued shares or such equivalent share of 

ownership of the person referred to in paragraph (a); 

(e) a person exempt from holding an FA licence under 

regulation 27(1)(d) of the FAR; 

(f) a key officer of a person referred to in paragraph (e); 

(g) a substantial shareholder or an equivalent person of a person 

referred to in paragraph (e); 

(h) a person (other than a person referred to in paragraph (f) or 

(g)) acting alone or together with any connected person, who –

(i) controls, directly or indirectly, not less than 20% of 

the voting power or such equivalent decision-making 

power in the person referred to in paragraph (e); or
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

8

(ii) acquires or holds, directly or indirectly, not less than 

20% of the issued shares or such equivalent share of 

ownership of the person referred to in paragraph (e); 

[Amended on 26 November 2010]

[Amended on 7 August 2012]

“institution”, in relation to a relevant person whose activity is regulated 

by MAS under the FAA, the IA or the SFA, means:

(a) an approved exchange;

(b) a recognised market operator;

(c) an approved clearing house;

(d) a recognised clearing house;

(e) a licensed trade repository;

(f) a licensed foreign trade repository;

(g) an approved holding company; 

(h) a holder of a CMS licence; 

(i) a licensed FA; 

(j) a registered insurance broker;

(k) an approved MAT insurance broker;

(l) an approved general reinsurance broker;

(m) an approved life reinsurance broker;

(n) a licensed TC;

(o) a fund management company registered under paragraph 

5(1)(i) of the Second Schedule to the SFR(LCB); or

(p) an approved trustee;

[Amended on 6 March 2014]

[Amended on 3 September 2015]
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

9

“key officer”, in relation to an exempt person, means:

(a) a director or an equivalent person; or

(b) a chief executive officer or an equivalent person;

“person having control” :

(a) in relation to an approved MAT insurance broker, an 

approved general reinsurance broker or an approved life 

reinsurance broker, is as defined in section 12A(7) of the IA 

read with regulation 16(2) of the Insurance (Approved 

Marine, Aviation and Transit Insurance Brokers and 

Approved Reinsurance Brokers) Regulations (Rg 14);

(b) in relation to an authorised reinsurer, is as defined in section 

12A(7) of the IA;

(c) in relation to a representative office, shall have the same 

meaning as in section 12A(7) of the IA as though the 

references to authorised reinsurer were references to a 

representative office; and

(d) in relation to an approved MAT insurer, shall have the same 

meaning as in section 12A(7) of the IA as though references 

to authorised reinsurer were references to an approved MAT

insurer;

“provisional representative” has the same meaning as in section 2(1) of 

the SFA or section 2(1) of the FAA, as the case may be; 

[Amended on 26 November 2010]

“public register of representative” has the same meaning as in section 

2(1) of the SFA or section 2(1) of the FAA, as the case may be; 

[Amended on 26 November 2010]
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

10

“relevant person” means:

(a) in relation to a bank incorporated in Singapore that is 

licensed by MAS under the Banking Act (Cap. 19): 

(i) a substantial shareholder;

(ii) a director;

(iii) a chief executive officer or deputy chief executive 

officer;

(iv) a chief financial officer; 

(v) Head of Treasury; or

(vi) any other officer by whatever name described, who 

has responsibilities or functions similar to any of the 

persons referred to in sub-paragraph (iii) or (v), 

of the bank;

(b) in relation to a bank incorporated outside Singapore that is 

licensed by MAS under the Banking Act:

(i) a chief executive officer or deputy chief executive 

officer;

(ii) Head of Treasury; or

(iii) any other officer by whatever name described, who 

has responsibilities or functions similar to any of the 

persons referred to in sub-paragraph (i) or (ii),

of the bank;

(c) in relation to a merchant bank approved under section 28 of 

the Monetary Authority of Singapore Act (Cap. 186) [“MAS 

Act”]:
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

11

(i) a chief executive officer or deputy chief executive 

officer;

(ii) Head of Treasury; or

(iii) any other officer by whatever name described, who 

has responsibilities or functions similar to any of the 

persons referred to in sub-paragraph (i) or (ii),

of the merchant bank;

(d) in relation to a person whose activity is regulated by MAS 

under the FAA:

(i) a substantial shareholder or an equivalent person of a 

licensed FA;

(ii) a licensed FA;

(iii) an appointed or provisional representative under the 

FAA;

(iv) a chief executive officer, director or an equivalent 

person of a holder of a FA licence; 

(v) an exempt financial institution or its representatives;

(vi) an exempt person or its representatives;

(vii) a person for which an application for authorisation has 

been made to MAS under the applicable provision in 

the FAA;

(e) in relation to a person whose activity is regulated by MAS 

under the IA:

(i) a substantial shareholder of a registered insurer as 

defined under section 29(3) of the IA;

(ii) a registered insurance broker;
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

12

(iii) a substantial shareholder of a registered insurance 

broker;

(iv) a broking staff of a registered insurance broker;

(v) a chief executive officer, or director of a registered 

insurance broker;

(vi) a principal officer or director of a registered insurer;

(vii) an Approved Actuary;

(viii) a Certifying Actuary;

(ix) a chief executive officer, or director of the 

administrator as defined in the Insurance (Lloyd’s Asia 

Scheme) Regulations;

(x) a chief executive officer, or director of a Service 

Company registered with the administrator under the 

Insurance (Lloyd’s Asia Scheme) Regulations; 

(xi) a Singapore representative whom the representative 

office has appointed to be responsible for the activities 

of the representative office in Singapore; 

(xii) an exempt financial institution or its broking staff;

(xiii) a person for which an application for authorisation has 

been made to MAS under the applicable provision in 

IA; 

(xiv) a person having effective control of a registered 

insurer as defined under section 27 of IA; 

(xv) a person having control of a registered insurer as 

defined under section 28 of the IA; 

(xvi) a person having control of an approved MAT insurer, 

an authorised reinsurer, or a representative office;
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

13

(xvii) a person having control of an approved MAT 

insurance broker, an approved general reinsurance 

broker or an approved life reinsurance broker;

(f) in relation to a person whose activity is regulated by MAS 

under the SFA:

(i) a substantial shareholder or an equivalent person of a 

holder of a CMS licence, an approved exchange, a 

recognised market operator, a licensed trade repository, 

a licensed foreign trade repository, an approved 

clearing house, a recognised clearing house or an 

approved holding company; 

(ii) a holder of a CMS licence;

(iii) an appointed, provisional or temporary representative

under the SFA 

(iv) an approved exchange;

(v) a recognised market operator;

(vi) a licensed trade repository;

(vii) a licensed foreign trade repository;

(viii) an approved clearing house;

(ix) a recognised clearing house;

(x) an approved holding company;

(xi) a chief executive officer, director or key person stated 

in a notice under section 28(2), 46V(2), 71(2) or 

81ZF(3) of the SFA, of an approved exchange, a 

licensed trade repository, an approved clearing house

or an approved holding company;

(xii) a chief executive officer, director or an equivalent 

person of a holder of a CMS licence;
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

14

(xiii) a chief executive officer, or director of a recognised 

market operator;

(xiv) a chief executive officer, or director of a licensed 

foreign trade repository;

(xv) a chief executive officer, or director of a recognised 

clearing house;

(xvi) an exempt financial institution or its representatives;

(xvii) an exempt person or its representatives;

(xviii)a person for which an application for authorisation has 

been made to MAS under the applicable provision in 

the SFA;

(xix) a fund management company registered under 

paragraph 5(1)(i) of the Second Schedule to the 

SFR(LCB) and its chief executive officer, director or 

an equivalent person;

(xx) a trustee approved by MAS under section 289(1) of 

the SFA and its officers. 

[Amended on 6 March 2014]

[Amended on 3 September 2015]

(g) in relation to a finance company licensed by MAS under the 

Finance Companies Act (Cap.108):

(i) a substantial shareholder;

(ii) a director; or

(iii) a chief executive officer or deputy chief executive 

officer;

(iv) a chief financial officer; or
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

15

(v) any person by whatever name described, who has 

responsibilities or functions similar to any of the 

persons referred to in this sub-paragraph,

of the finance company;

(h) in relation to a holder of a money-changing or remittance 

licence granted under the Money-changing and Remittance 

Businesses Act (Cap. 187):

(i) a substantial shareholder;

(ii) a director of the holder; or

(iii) in the case of a holder of a money-changing licence 

that is a partnership, a partner,

of the holder;

(i) in relation to a credit card or charge card issuer licensed 

under section 57B of the Banking Act (Cap. 19): 

(i) a director;

(ii) a chief executive or deputy chief executive;

(iii) any other officer by whatever name described, who 

has responsibilities or functions similar to any of the 

persons referred to in sub-paragraph (i) or (ii),

of the credit card or charge card issuer;

(j) in relation to an operator of a payment system designated 

under the Payment Systems (Oversight) Act 2006:

(i) a chief executive officer; 

(ii) a director; or
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

16

(iii) any person by whatever name described, who has 

responsibilities or functions similar to a chief 

executive officer,

of the operator;

(k) in relation to a TC licensed by MAS under the TCA:

(i) a licensed TC;

(ii) a controller;

(iii) a director; or

(iv) a resident manager,

of the trust company;

[Amended on 26 November 2010]

“temporary representative” has the same meaning as in section 2(1) of the 

SFA.

[Amended on 26 November 2010]

7 The expressions used in these Guidelines shall, except where 

expressly defined in these Guidelines, have the same meanings as in the 

applicable Acts in which the expressions are referred to or used.

[Amended on 26 November 2010]

Fit and Proper Test

8 The criteria for considering whether a relevant person is fit and 

proper include but are not limited to the following:

(a) honesty, integrity and reputation;

(b) competence and capability; 

(c) financial soundness.

[Amended on 26 November 2010]
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

17

9 The failure by a relevant person to meet any one of the criteria set 

out in paragraph 8 may not lead to an automatic refusal of an application; 

refusal to enter his name or any additional regulated activity or financial 

advisory services in the public register of representatives; revocation of 

an authorisation; revocation of the status of an appointed, provisional or 

temporary representative; or withdrawal of an exemption or other 

regulatory action by MAS. The significance and relevance of a relevant 

person failing to satisfy MAS that it or he meets a specific criteria 

depends on:

(a) the seriousness of, and surrounding circumstances resulting 

in, the relevant person not meeting the specific criteria;

(b) the relevance of the failure by the relevant person to meet the 

specific criteria to the duties that are, or are to be, performed 

and the responsibilities that are, or are to be, assumed by the 

relevant person; and 

(c) the passage of time since the failure by the relevant person to 

meet the specific criteria.

[Amended on 26 November 2010]

10 In the case where the relevant person is an institution, to establish 

that it is fit and proper, an institution should satisfy MAS that:

(a) all of its substantial shareholders meet the fit and proper 

criteria of these Guidelines;

(b) each of its directors and chief executive officer, or 

equivalent persons, meet the fit and proper criteria of these 

Guidelines; and

(c) it has in place appropriate recruitment policies, adequate 

internal control systems and procedures that would 

reasonably ensure that the persons that it employs, authorises 
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

18

or appoints to act on its behalf, in relation to its conduct of 

the activity regulated under the relevant legislation, meet the 

fit and proper criteria of these Guidelines.

[Amended on 26 November 2010]

11 In the case where the relevant person is an exempt financial 

institution, to establish that it is fit and proper, the exempt financial 

institution should have in place appropriate recruitment policies, adequate 

internal control systems and procedures that would reasonably ensure that 

the persons that it employs, authorises or appoints to act on its behalf, in 

relation to its conduct of the activity regulated under the relevant 

legislation, meet the fit and proper criteria of these Guidelines.

[Amended on 26 November 2010]

12 In the case where the relevant person is an exempt entity or a fund 

management company registered under paragraph 5(1)(i) of the Second 

Schedule to the SFR(LCB), to establish that it is fit and proper, an exempt 

entity or a registered fund management company should satisfy MAS that:

(a) all of its substantial shareholders or equivalent persons and 

persons who:

(i) control, directly or indirectly, not less than 20% of the 

voting power or such equivalent decision-making 

power in the exempt entity; or

(ii) acquire or hold, directly or indirectly, not less than 

20% of the issued shares or such equivalent share of 

ownership of the exempt entity;

meet the fit and proper criteria of these Guidelines; 
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

19

(b) each of its key officers meet the fit and proper criteria of 

these Guidelines; and

(c) it has in place appropriate recruitment policies, adequate 

internal control systems and procedures that would 

reasonably ensure that the persons that it employs, authorises 

or appoints to act on its behalf, in relation to its conduct of 

the activity regulated under the relevant legislation, meet the 

relevant fit and proper criteria of these Guidelines.

[Amended on 26 November 2010]

[Amended on 7 August 2012]

Honesty, Integrity and Reputation

13 The factors set out in the following paragraphs are relevant to the 

assessment of the honesty, integrity and reputation of a relevant person. 

The factors include but are not limited to whether the relevant person: 

(a) has been refused the right or restricted in its or his right to 

carry on any trade, business or profession for which a 

specific license, registration or other authorisation is 

required by law in any jurisdiction;

(b) has been issued a prohibition order under any Act 

administered by MAS or has been prohibited from operating 

in any jurisdiction by any financial services regulatory 

authority; 
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

20

(c) has been censured, disciplined, suspended or refused 

membership or registration by MAS, any other regulatory 

authority, an operator of a market, trade repository or 

clearing facility, any professional body or government 

agency, whether in Singapore or elsewhere;

(d) has been the subject of any complaint made reasonably and 

in good faith, relating to activities that are regulated by MAS 

or under any law in any jurisdiction; 

(e) has been the subject of any proceedings of a disciplinary or 

criminal nature or has been notified of any potential 

proceedings or of any investigation which might lead to 

those proceedings, under any law in any jurisdiction;

(f) has been convicted of any offence, or is being subject to any 

pending proceedings which may lead to such a conviction, 

under any law in any jurisdiction; 

(g) has had any judgment (in particular, that associated with a 

finding of fraud, misrepresentation or dishonesty) entered 

against the relevant person in any civil proceedings or is a 

party to any pending proceedings which may lead to such a 

judgment, under any law in any jurisdiction; 

(h) has accepted civil liability for fraud or misrepresentation 

under any law in any jurisdiction;
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

21

(i) has had any civil penalty enforcement action taken against it 

or him by MAS or any other regulatory authority under any 

law in any jurisdiction; 

(j) has contravened or abetted another person in breach of any 

laws or regulations, business rules or codes of conduct, 

whether in Singapore or elsewhere;

(k) has been the subject of any investigations or disciplinary 

proceedings or been issued a warning or reprimand by MAS, 

any other regulatory authority, an operator of a market, trade 

repository or clearing facility, any professional body or 

government agency, whether in Singapore or elsewhere;

(l) has been refused a fidelity or surety bond, whether in 

Singapore or elsewhere; 

(m) has demonstrated an unwillingness to comply with any 

regulatory requirement or to uphold any professional and 

ethical standards, whether in Singapore or elsewhere;

(n) has been untruthful or provided false or misleading 

information to MAS or been uncooperative in any dealings 

with MAS or any other regulatory authority in any 

jurisdiction;

(o) in addition to sub-paragraphs (a) to (n), where the relevant 

person is an individual:
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Last revised on 3 September 2015 

22

(i) is or has been a director, partner, substantial 

shareholder or concerned in the management of a 

business that has been censured, disciplined, 

prosecuted or convicted of a criminal offence, or been 

the subject of any disciplinary or criminal 

investigation or proceeding, in Singapore or 

elsewhere, in relation to any matter that took place 

while the person was a director, partner, substantial 

shareholder or concerned in the management of the 

business; 

(ii) is or has been a director, partner, substantial 

shareholder or concerned in the management of a 

business that has been suspended or refused 

membership or registration by MAS, any other 

regulatory authority, an operator of a market, trade 

repository or clearing facility, any professional body 

or government agency, whether in Singapore or 

elsewhere;

(iii) has been a director, partner, substantial shareholder or 

concerned in the management of a business that has 

gone into insolvency, liquidation or administration 

during the period when, or within a period of one year 

after, the relevant person was a director, partner, 

substantial shareholder or concerned in the 

management of the business, whether in Singapore or 

elsewhere; 

(iv) has been dismissed or asked to resign from —

(A) office; 

(B) employment;
Guidelines on Fit and Proper Criteria

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(C) a position of trust; or; 

(D) a fiduciary appointment or similar position,

whether in Singapore or elsewhere; 

(v) is or has been subject to disciplinary proceedings by 

his current or former employer(s), whether in 

Singapore or elsewhere; 

(vi) has been disqualified from acting as a director or 

disqualified from acting in any managerial capacity, 

whether in Singapore or elsewhere; and 

(vii) has been an officer found liable for an offence 

committed by a body corporate as a result of the 

offence having proved to have been committed with 

the consent or connivance of, or neglect attributable to, 

the officer, whether in Singapore or elsewhere;

[Amended on 26 November 2010]

[Amended on 7 August 2012]

[Amended on 6 March 2014]

(p) in addition to sub-paragraphs (a) to (o), where the relevant 

person is carrying on business in, or is acting as a 

representative in respect of, providing credit rating services, 

is or has been in observance of the Code of Conduct for 

Credit Rating Agencies. 

[Amended on 17 January 2012]
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Last revised on 3 September 2015 

24

Competence and Capability

14 The factors set out in the following paragraphs are relevant to the 

assessment of the competence and capability of a relevant person. The 

factors include but are not limited to: 

(a) whether the relevant person has satisfactory past 

performance or expertise, having regard to the nature of the 

relevant person’s business or duties, as the case may be, 

whether in Singapore or elsewhere;

(b) where the relevant person is an individual who is assuming 

concurrent responsibilities, whether such responsibilities 

would give rise to a conflict of interest or otherwise impair 

his ability to discharge his duties in relation to any activity 

regulated by MAS under the relevant legislation;

(c) in relation to a relevant person whose activity is regulated by 

MAS under the FAA, the IA, the SFA or the TCA and where 

the relevant person is an institution, exempt financial

institution or exempt entity, whether its directors or 

equivalent persons, chief executive officer or equivalent 

person, the persons that it employs, authorises or appoints to 

act on its behalf, in relation to its conduct of the activity 

regulated under the relevant legislation, where applicable, 

have satisfactory educational qualification or experience, 

whether in Singapore or elsewhere;
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

25

(d) in relation to a relevant person whose activity is regulated by 

MAS under the FAA or the SFA, whether the representative

of the relevant person has:

(i) satisfactory educational qualification or experience, 

relevant skills and knowledge, whether in Singapore or 

elsewhere, having regard to the nature of the duties 

they are required to perform; and 

(ii) satisfied the requirements stipulated in the Notice on 

Minimum Entry and Examination Requirements for 

Representatives of Holders of CMS Licence and 

Exempt Financial Institutions [Notice No. SFA 04-

N09] or Notice on Minimum Entry and Examination 

Requirements for Representatives of Licensed 

Financial Advisers and Exempt Financial Advisers 

[Notice No.FAA-N13], as the case may be and as may 

be applicable to the representative;

(e) in relation to a relevant person whose activity is regulated by 

MAS under the IA, whether the broking staff of the relevant 

person has: 

(i) satisfactory qualification or experience, whether in 

Singapore or elsewhere, having regard to the nature of 

the duties he is to perform; and

(ii) satisfied the requirements stipulated in the Notice on 

Minimum Standards and Continuing Professional 

Development Requirements for Insurance Brokers and 

their Broking Staff [Notice No. MAS 502], as may be 

applicable to the broking staff;
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

26

(f) in relation to an Appointed Actuary or a Certifying Actuary: 

(i) whether the actuary has satisfactory past performance 

or expertise indicating knowledge of the local life or 

general insurance market; 

(ii) whether an Appointed Actuary is a Fellow of 

Singapore Actuarial Society (SAS); 

(iii) whether a Certifying Actuary is a member of the SAS 

and is a Fellow of an association recognised by the 

International Actuarial Association.

[Amended on 26 November 2010]

Financial Soundness 

15 The factors set out in the following paragraphs are relevant to the 

assessment of the financial soundness of a relevant person. The factors 

include but are not limited to, whether the relevant person: 

(a) is or has been unable to fulfil any of its or his financial 

obligations, whether in Singapore or elsewhere; 

(b) has entered into a compromise or scheme of arrangement 

with its or his creditors or made an assignment for the 

benefit of its or his creditors, being a compromise or scheme 

of arrangement or assignment that is still in operation, 

whether in Singapore or elsewhere;

(c) is subject to a judgment debt which is unsatisfied, either in 

whole or in part, whether in Singapore or elsewhere;
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

27

(d) in addition to sub-paragraphs (a) to (c), in the case where the 

relevant person is an individual: 

(i) is or has been the subject of a bankruptcy petition, 

whether in Singapore or elsewhere; 

(ii) has been adjudicated a bankrupt and the bankruptcy is 

undischarged, whether in Singapore or elsewhere; or

(iii) is or has been subject to any other process outside 

Singapore that is similar to those referred to in subparagraph (i) and (ii); and

(e) in addition to sub-paragraphs (a) to (c), in the case where the 

relevant person is a corporation: 

(i) is or has been the subject of a winding up petition, 

whether in Singapore or elsewhere; 

(ii) is in the course of being wound-up or otherwise 

dissolved, whether in Singapore or elsewhere; 

(iii) is or has been a corporation where a receiver, receiver 

and manager, judicial manager, or such other person 

having the powers and duties of a receiver, receiver 

and manager, or judicial manager, has been appointed, 

in relation to, or in respect of any property of, the 

corporation, whether in Singapore or elsewhere; or

(iv) is or has been subject to any other process outside 

Singapore that is similar to those referred to in subparagraphs (i) to (iii).

[Amended on 26 November 2010]
Guidelines on Fit and Proper Criteria

Last revised on 3 September 2015 

28

Cancellation of Guidelines

16 These Guidelines take immediate effect. The Guidelines on Fit and 

Proper Criteria (Guideline No. MCG-G01) issued on 1 July 2005 are 

cancelled.

Issue Date : Amended on 26 November 2010

Amended on 7 August 2012

Amended on 6 March 2014

Amended on 3 September 2015
ICE CLEAR 

SINGAPORE

S-1 SUPPLEMENT 

ANNEX D-2
April 23
This material may not be reproduced or redistributed in whole or in part without the express, prior written consent of Intercontinental Exchange, Inc.

 Copyright Intercontinental Exchange, Inc. 2015. All Rights Reserved.

ICE Clear Singapore

Disclosure Framework

13 November, 2015
INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 2

TABLE OF CONTENTS

LIST OF ABBREVIATIONS AND DEFINITIONS........................................................................ 3

I. Executive summary ................................................................................................................ 4

II. Summary of major changes since the last disclosure....................................................... 4

III. General background on the FMI.......................................................................................... 4

IV. Principle-by-principle summary narrative disclosure ...................................................... 8
INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 3

LIST OF ABBREVIATIONS AND DEFINITIONS

ACH Approved Clearing House regulated by the MAS

AFI Approved Financial Institution

APS Assured Payment Service

Board ICE Clear Singapore Board of Directors

BCP ICE Clear Singapore Business Continuity Plan

CCP Central Counterparty

Clearing Rules Rules and Procedures of ICE Clear Singapore

CM Clearing Member of ICE Clear Singapore

Defaulter Defaulting Clearing Member of ICE Clear Singapore

DR ICE Clear Singapore Disaster Recovery Plan

ECS Extensible Clearing System

Exchange Rules Rules, Procedures and Contract Terms of ICE Futures Singapore

GF Guaranty Fund

ICE Intercontinental Exchange Group

ICE, Inc. Intercontinental Exchange, Inc.

ICE Clear Singapore ICE Clear Singapore Pte. Ltd.

ICE Futures Singapore ICE Futures Singapore Pte. Ltd.

MAS Monetary Authority of Singapore

Nominated Account An account with an AFI nominated by a CM for the purposes of making 

and receiving cash transfers in respect of amounts due in respect of that 

CM's proprietary or customer account

Payment System The payment system operated by ICE Clear Singapore consisting of the 

formal arrangements between itself and its Clearing Members

PFMI Principles for Financial Market Infrastructure

PTMS Post Trade Management System

SFA Securities and Futures Act (Chapter 289) of Singapore

SGT Singapore Standard Time
INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 4

I. Executive summary

The objective of this document (this "Disclosure Framework") is to provide relevant disclosure to 

market participants on the methods used by ICE Clear Singapore Pte. Ltd ("ICE Clear 

Singapore") to manage the risks it faces as a central counterparty ("CCP").

The Disclosure Framework is prepared in accordance with the internationally recognised 

"Principles for Financial Market Infrastructure" ("PFMI") published in February 2012 and 

developed jointly by the Committee on Payment and Settlement Systems and the Technical 

Committee of the International Organisation of Securities Commissions. No disclosure is provided 

with respect to Principles 11 and 24 as they do not apply to CCPs.

ICE Clear Singapore, formerly Singapore Mercantile Exchange Clearing Corporation Pte. Ltd., 

was authorised as an "approved clearing house" ("ACH") by the Monetary Authority of Singapore 

("MAS") prior to its acquisition by the ICE group on 3 February 2014. Singapore Mercantile 

Exchange Clearing Corporation Pte. Ltd. changed its name to ICE Clear Singapore on 22 April 

2014, and has maintained its ACH status.

II. Summary of major changes since the last disclosure

This is the initial version of the Disclosure Framework and, therefore, does not include a summary 

of major changes. Subsequent versions will include a summary of major changes since the last 

update.

III. General background on the FMI

General description of the FMI and the markets it serves

ICE Clear Singapore provides clearing services for derivatives contracts by: (1) reconciling and 

clearing futures and options on futures transactions executed on ICE Futures Singapore Pte. Ltd. 

("ICE Futures Singapore"); and (2) assuring the financial integrity of each transaction and 

resulting position. When a trade has been matched and accepted for clearing, ICE Clear 

Singapore becomes the counterparty to the trade, thereby guaranteeing financial performance of 

the contract to its Clearing Member ("CM") on each side of the trade. CMs may clear contracts for 

both their own house trading as well as customer transactions. A list of current CMs is or will be 

available on the website.

ICE Clear Singapore has rules, policies and procedures ("Clearing Rules") designed to ensure 

certainty of financial performance in the marketplace. ICE Clear Singapore provides the following 

key functions:

Clearing Establish appropriate clearing membership requirements and support effective 

and efficient operations.

Settlement Ensure contractual and financial obligations to CMs are met.
INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 5

Margin Safeguard CM deposits by ensuring qualification of acceptable collateral and 

approved depositories and counterparties.

ICE Clear Singapore organises its business activities by leveraging technology, operational 

centres and services that are used to service the exchanges and clearing houses of the 

Intercontinental Exchange group (“ICE”) the ultimate holding company of which is Intercontinental 

Exchange, Inc. ("ICE, Inc.").

ICE Clear Singapore provides clearing services for Energy, FX and Precious Metal products 

traded on ICE Futures Singapore. Additional data regarding volume by product type and ICE 

Futures Singapore‟s open interest is or will be available on the ICE Clear Singapore website.

General organisation of the FMI

ICE Clear Singapore is a wholly-owned subsidiary of ICE Futures Singapore, which is ultimately 

owned by ICE, Inc. ICE is a leading global network of exchanges and clearing houses offering the 

broadest portfolio of services for trading, clearing and listings. ICE Clear Singapore's governance 

structure is summarised below.

The Board is advised by its Nominating Committee, Conflicts Committee, Audit Committee, 

Remuneration Committee, Risk Management Committee and its Risk Committee, in addition to 

senior management. The organisational structure is illustrated below.
INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 6

Legal and regulatory framework

ICE Clear Singapore is subject to supervision by the MAS. The MAS reviews, assesses and 

enforces adherence to the Securities and Futures Act (Chapter 289) of Singapore (the "SFA") 

and the regulations promulgated thereunder on an on-going basis, including but not limited to, 

compliance with the Securities and Futures (Clearing Facilities) Regulations 2013 and the 

Securities and Futures (Corporate Governance of Approved Exchanges, Approved Clearing 

Houses and Approved Holding Companies) Regulations 2013. ICE Clear Singapore complies 

with the statutory objectives as set out in the SFA, which applies requirements on an ACH 

consistent with the international risk management standards set forth in the PFMI.

The MAS is the Singapore government authority that has direct regulatory and oversight 

responsibility for ACHs. The MAS is responsible for monitoring ICE Clear Singapore's operations 

and receives regular, as well as event-specific, reports relating to, among other things, audited 

financial statements, business, and any such other information as MAS may require for the 

proper administration of ICE Clear Singapore1. The MAS will conduct periodic on-site visits and 

off-site reviews, and regularly engage with ICE Clear Singapore in order to monitor compliance 

with the PFMI2.

System design and operations

The clearing systems of ICE Clear Singapore encompass a number of integrated systems, most 

importantly the Post Trade Management System ("PTMS") and the Extensible Clearing System 

("ECS"). PTMS provides real-time trade processing services enabling CMs to offer real-time risk 

management services. Within PTMS, if trades are marked for give-ups, they go into the Allocation 

and Claim Transaction System ("ACT") where CMs can initiate allocations and monitor the status. 

Give-up transactions are recorded in the clearing system and reflected on the CM records and 

fed into the eGAINS system for billing.

ECS supports open and delivery position management, real-time trade and post-trade 

accounting, risk management (daily and intraday cash, mark-to-market/option premium, and 

original margin using algorithms based on the SPAN algorithm), collateral management, daily 

settlement and banking. ECS is a state-of-the-art system offering open, internet-based 

connectivity and integration options for CM access to user and account management, position 

reporting and collateral management.

ICE Clear Singapore offers real-time trade confirmation of trades booked for clearing over 

standard FIXML formatted messages and supports a multitude of post-trade management 

functions including trade corrections, trade adjustment, position transfers, average pricing and 

give-up processing. ICE Clear Singapore takes a proactive approach to enhancing the reliability, 

capacity and performance of its clearing systems.

The risk management systems calculate real-time original margin and variation margin 

requirements of intra-day trade activity. Each day, ICE Clear Singapore follows a consistent 

sequence of events illustrated as follows (all times are Singapore Standard time ("SGT")): 

Margin payments are due no later than 10 AM SGT the following day, regardless of the time zone 

in which a CM is located. During the day, any shortfall calculated by the risk management 

systems can be called from the CM. Such calls are required to be met within the hour following 

their issuance.

 

1 Securities and Futures (Clearing Facilities) Regulations 2013, Regulation 14.

2 See Question 3 of the MAS FAQs on Compliance with the PFMIs.
INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 7

Intraday variation settlement instructions are delivered to an Approved Financial Institution 

("AFI"). AFIs are banks that have been designated as an approved financial institution by ICE 

Clear Singapore for the purpose of making and receiving cash transfers and payment transfer 

orders.
Principle 1: Legal Basis

INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 8

IV. Principle-by-principle summary narrative disclosure

Principle 1: Legal Basis

An FMI should have a well-founded, clear, transparent, and enforceable legal basis for each 

material aspect of its activities in all relevant jurisdictions.

Summary narrative

ICE Clear Singapore has a well-founded, clear, transparent and enforceable legal basis for each 

aspect of its activities in all relevant jurisdictions.

ICE Clear Singapore is a company incorporated in the Republic of Singapore and is governed by 

its certificate of incorporation, memorandum and articles of association and operates in 

accordance with the Clearing Rules (construed in accordance with and governed by the laws of 

the Republic of Singapore). Currently, ICE Clear Singapore is conducting business solely in the 

Republic of Singapore and only with Singapore-incorporated CMs or Singapore branches of 

overseas banks. On an on-going basis, ICE Clear Singapore assesses and assures its 

compliance with all relevant Singapore statutes and regulations. Its activities as a clearing house 

are supervised by the MAS. 

Each CM is required to enter into the standard form clearing membership agreement whereby it 

agrees to observe, comply with and be bound by all of the Clearing Rules. The Clearing Rules 

address the material aspects of ICE Clear Singapore's activities, which include: acceptance of 

trades; trade offsets, margin requirements; default; netting; guaranty fund; portability; physical 

settlement; and segregation.

The Clearing Rules are publicly available on the ICE Clear Singapore website. As an ACH, ICE 

Clear Singapore must file all changes to the Clearing Rules (together with details of the purpose 

of such rule change) with the MAS in accordance with Regulation 30 of the Securities and 

Futures (Clearing Facilities) Regulations 2013. It also consults publicly on Clearing Rules 

changes3. The MAS may disallow, alter or supplement the whole or any part of a proposed rule 

amendment4. 

Where necessary, ICE Clear Singapore may provide further guidance to CMs through circulars, 

which will also be posted on its website, to help clarify the intention behind the relevant Clearing

Rules.

Prior to filing any proposed rule change with the MAS, and absent any emergency or other 

circumstance, ICE Clear Singapore may consult with its Risk Committee in relation to the 

proposed rule change where this affects its risk management framework. The Risk Committee is 

entitled to provide recommendations to the Board on risk-related matters affected by any rule 

change. This governance process, as well as the procedures outlined in the Clearing Rules, 

allows multiple stakeholders to provide input and feedback regarding Clearing Rules

amendments. 

All contractual obligations and rights between ICE Clear Singapore and CMs are properly 

executed and expressly stated to be governed by the laws of the Republic of Singapore. ICE 

Clear Singapore has sought legal advice to confirm that the Clearing Rules and contracts cleared 

by ICE Clear Singapore are enforceable and that actions taken under the Clearing Rules will not 

be voided, reversed or subject to stays. Further, section 67(1) of the SFA provides that the 

 

3 Clearing Rules, Rule 109 (Alteration of Rules, Procedures, Guidance and Circulars).

4 Securities and Futures (Clearing Facilities) Regulations 2013, Regulation 30(5).
Principle 1: Legal Basis

INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 9

Clearing Rules operate as a binding contract between ICE Clear Singapore and CMs, and section 

81F of the SFA requires that ICE Clear Singapore's clearing and settlement functions will not be 

disrupted by a CM insolvency. In addition, the Clearing Rules provide that in the event of 

inconsistencies between the Clearing Rules and applicable Singapore laws or regulations, such 

Singapore laws and regulations will prevail and the Clearing Rules shall be construed in a 

manner consistent with those laws and regulations5. By complying with applicable laws, ICE 

Clear Singapore will ensure that there is a high degree of certainty that the Clearing Rules will not 

be voided, reversed or challenged in the Republic of Singapore or elsewhere. 

Regarding foreign jurisdictions, ICE Clear Singapore requires each CM to ensure that it has the 

appropriate regulatory status in each jurisdiction in which the CM operates or plans to operate.

 

5 Clearing Rules, Rule 102(r)(Interpretation); Rule 108(a) (Maintenance of Records; Return of Documents and other 

Materials); Rule 201(a)(xxviii) and Rule 201(a)(xxxi) (Clearing Membership Criteria); Rule 204(b) (Notifications by Clearing 

Members); Rule 208 (Suspension of Clearing Member); and Rule 901(a)(xii) (Events of Default affecting Clearing 

Members).
Principle 2: Governance

INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 10

Principle 2: Governance 

An FMI should have governance arrangements that are clear and transparent, promote the safety 

and efficiency of the FMI, and support the stability of the broader financial system, other relevant 

public interest considerations, and the objectives of relevant stakeholders.

Summary narrative

ICE Clear Singapore has governance arrangements that are clear and transparent, promote its 

safety and efficiency and support the stability of the broader financial system, other relevant 

public interest considerations and the objectives of relevant stakeholders.

The ICE Clear Singapore governance structure promotes the various statutory objectives set out 

in the SFA, including promoting the provision of safe and efficient clearing facilities and the 

reduction of systemic risk6. Pursuant to section 57 of the SFA, ICE Clear Singapore shall also, 

amongst other things, ensure that it: (i) will not act contrary to the interests of the public when 

discharging its obligations under the SFA; (ii) will have sufficient financial, human and system 

resources to operate a safe and efficient clearing facility, meet contingencies or disasters, and 

provide adequate security arrangements; and (iii) will appoint and employ fit and proper persons 

as its Chairman and directors.

The ICE Clear Singapore governance structure is set forth in its Articles of Association, which 

provide that the Board has control and management of the affairs and business and has all the 

powers and duties set forth in the Clearing Rules7. Ultimate responsibility for operations rests with 

the Board. The Board formulates or approves policy and oversees and directs the overall 

management of ICE Clear Singapore's business by its officers. The Board may from time to time 

delegate authority to the Risk Committee and other Board committees described below, ICE 

Clear Singapore officers or to others to act on behalf of ICE Clear Singapore.

In accordance with the Articles of Association8, the Board will be comprised of at least one 

director (the Chairman) at any time. ICE Clear Singapore directors are elected by its shareholder.

ICE Clear Singapore has three non-executive directors who are independent of the management 

and business of ICE Clear Singapore, provided that such directors also sit on the board of ICE 

Futures Singapore. Such directors do not have any management or business relationship or any 

financial interest in the ICE group other than being directors of the ICE Clear Singapore, ICE 

Futures Singapore and its holding company. Such arrangements have been approved by the 

MAS. 

Directors are required to have appropriate skills and incentives to fulfil their responsibilities. The 

Board reviews its overall performance on an annual basis. The Nominating Committee annually 

reviews and evaluates the performance of individual directors. 

The Board appoints officers and, pursuant to the Articles of Association, prescribes the authority 

and duties to be performed by each officer. The Board is responsible for appointing officers that 

have the appropriate experience, skills, and integrity necessary to discharge operational and risk 

management responsibilities. In addition, the Board is charged with ensuring that risk 

management and internal control personnel have sufficient authority, resources, and access to 

the Board so that ICE Clear Singapore will function in accordance with the risk management 

framework established by the Board.

 

6 SFA, Section 47.

7 Articles of Association, Article 3 and Clearing Rule 114 (Action by the Clearing House).

8 Articles of Association, Article 64 and Article 84
Principle 2: Governance

INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 11

The Board has various committees to assist with its oversight functions and to ensure compliance 

with Singaporean laws and international standards. Regulation 8 of the Securities and Futures 

(Corporate Governance of Approved Exchanges, Approved Clearing Houses and Approved 

Holding Companies) Regulations 2005 require ACHs to have a Nominating Committee, a 

Remuneration Committee, an Audit Committee, and a Conflicts Committee. 

The Nominating Committee is composed of at least five members of the Board. It identifies 

candidates, reviews nominations and considers resignations of each director, each member of 

any committee of the Board, and other officers such as the chief operating officer and chief 

financial officer9.

The Remuneration Committee is composed of at least three members of the Board. It is tasked 

with ensuring that ICE Clear Singapore maintains appropriate and suitable remuneration policies 

and procedures. The Remuneration Committee makes recommendations to the Board regarding 

the remuneration framework for directors and other officers.

The Audit Committee, which is composed of at least three members of the Board, is responsible 

for the adequacy of the external and internal audit functions, including reviewing the scope and 

results of internal and external audits.

The Conflicts Committee is comprised of at least three members of the Board. It reviews the 

adequacy of arrangements within the ICE group for dealing with any perceived or actual conflicts 

of interest.

The Risk Management Committee is comprised of at least three members of the Board and at 

least a majority of company directors who are non-executive directors (including the chairman of 

the Committee). Members of the Risk Management Committee are appointed by the Board. The 

Risk Management Committee, amongst other things, advises and makes recommendations to the 

Board with respect to the establishment and operation of a risk management system for 

managing risks on an enterprise-wide basis and the adequacy of the risk management function of 

ICE Clear Singapore.

Consistent with international practice, ICE Clear Singapore has also established a Risk 

Committee. The Board has established and will periodically review the terms of reference of the 

Risk Committee. The Risk Committee is comprised of representatives of ICE Clear Singapore, 

clearing members and other market participants, with no single group having a majority of 

representation.The Risk Committee, amongst other things, makes recommendations to the Board 

with respect to clearing membership requirements, margin parameter settings and sensitivity 

analysis, default management procedures, analysis of guaranty fund requirements, collateral 

management, AFI risk reviews, liquidity analysis, and stress scenarios.

The President & COO of ICE Clear Singapore reports to the Board and the officers of ICE Clear 

Singapore are accountable to the President & COO. The President & COO supervises the 

business and affairs, subject to the direction of the Board, and is responsible for implementing the 

decisions of the Board. At least annually, the Board approves various policies, procedures and 

frameworks, including a Risk Management Framework, to provide for the comprehensive 

management of all material risks to which ICE Clear Singapore is, or may be exposed. Per such 

policies, procedures and framework, the President & COO is responsible for all activities, 

including crisis management, implementing default rules and procedures, system safeguards, 

and recovery and wind-down plans.

 

9 Securities and Futures (Corporate Governance of Approved Exchanges, Approved Clearing Houses and Approved 

Holding Companies) Regulations 2005, Regulation 10.
Principle 2: Governance

INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 12

The ICE group provides the internal audit function independently from ICE Clear Singapore‟s 

business activities. Internal audit has the authority to review all areas of the ICE group and 

provides ICE Clear Singapore with an independent source of assurance on compliance controls, 

including risk management. Internal audit reports directly to the Board. 

ICE Clear Singapore maintains a public complaints resolution procedure setting out the dispute 

resolution process for complaints arising from the performance of ICE Clear Singapore regulatory 

functions. This procedure provides that complaints are investigated by an independent 

commissioner. 

Non-confidential decisions of the Board of relevance will be clearly disclosed in a timely manner 

to CMs, other relevant stakeholders, and to the MAS. Additionally, subject to confidentiality 

requirements, major decisions of the Board having a broad market impact will be disclosed to the 

public through circulars or press releases (made publicly available on the ICE Clear Singapore 

website). Further, ICE Clear Singapore will update the information disclosed on its website to 

reflect any such major decisions appropriately.
Principle 3: Framework for the comprehensive management of risks

INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 13

Principle 3: Framework for the comprehensive management of risks

An FMI should have a sound risk-management framework for comprehensively managing legal, 

credit, liquidity, operational, and other risks.

Summary narrative

ICE Clear Singapore has a sound risk management framework for comprehensively managing

legal, credit, liquidity, operational and other risks.

ICE Clear Singapore's risk management program includes risk management policies, procedures 

and systems that enable it to identify, measure, monitor and manage the risks faced on an 

enterprise-wide basis. This risk assessment includes ensuring that ICE Clear Singapore is 

sufficiently resourced to monitor risk by these various risk categories and has appropriate 

independent reporting lines. ICE Clear Singapore reviews its risk framework on at least an annual 

basis.

The Risk Management Committee is mandated to ensure effective internal controls and risk 

management practices are implemented to achieve security, reliability, resiliency and 

recoverability. 

The Risk Committee regularly reviews and recommends Board approval of the risk management 

framework including: clearing membership requirements; margin parameter settings and 

sensitivity analysis; default management procedures; analysis of guaranty fund requirements; 

collateral management; AFI risk reviews; liquidity analysis; and stress scenarios.

Members are provided with information, tools and incentives to manage and contain the risks 

they pose to ICE Clear Singapore. For instance, members can impose system limits on the 

exposure per client account, have access to working orders with the ability to withdraw and have 

insight in processed orders on a real-time basis. Members‟ contributions to the Guaranty Fund 

are based on the relative exposure they pose and, in case of a default auction, the order in which 

the members‟ contribution is used will be dependent on the active participation and bidding 

behaviour of members during the default auction.

ICE Clear Singapore requires CMs to monitor and manage the risks they pose to ICE Clear 

Singapore. These requirements include:

(i) Clearing Rules require CMs to maintain adequate risk management systems, which 

address the risks that such CMs may pose to ICE Clear Singapore and a requirement 

that CMs make information and documents regarding their risk management policies,

procedures, and practices available to ICE Clear Singapore upon request10; 

(ii) Clearing Rules that require CMs to actively manage their positions and the ability of ICE 

Clear Singapore, should a CM fail to continue to meet membership criteria, to remove 

that CM from membership11; and

(iii) Clearing Rules that enable ICE Clear Singapore to impose risk mitigation measures, such 

as higher margin and guaranty fund requirements, on those CMs who it considers pose a 

threat to its operations12. 

 

10 Clearing Rules, Rule 202(a)(xiv)(B) (Interpretation) and Rule 202(a)(xvii) (Interpretation).

11 Clearing Rules, Rule 209 (Termination of Clearing Membership).

12 Clearing Rules, Rule 201(b) (Clearing Membership Criteria).
Principle 3: Framework for the comprehensive management of risks

INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 14

In addition, the Clearing Rules give ICE Clear Singapore powers to discipline and take corrective 

action against CMs who fail to comply with the Clearing Rules and the clearing membership 

agreement. In particular, the Clearing Rules set out the circumstances in which a CM may be 

suspended and states when ICE Clear Singapore will be entitled to terminate the membership of 

any CM. The Clearing Rules also set out the default rules which apply following a CM default, 

together with the disciplinary proceedings for CMs who have breached the Clearing Rules13. 

ICE Clear Singapore has identified a range of scenarios of business interruption and consequent 

response plans to these scenarios.

The ICE Clear Singapore recovery and resolution plan provides for the on-going provision of 

clearing services during recovery as well as an orderly process in the event wind-down becomes 

necessary14.

 

13 Clearing Rules, Rule 208 (Suspension of Clearing Membership), 209 (Termination of Clearing Membership), Part 9 

(Default Rules) and Part 10 (Disciplinary Proceedings).

14 Securities and Futures (Clearing Facilities) Regulations 2013, Regulation 17; Clearing Rules, Rule 105 (Termination).
Principle 4: Credit Risk

INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 15

Principle 4: Credit Risk

An FMI should effectively measure, monitor, and manage its credit exposures to participants and 

those arising from its payment, clearing, and settlement processes. An FMI should maintain 

sufficient financial resources to cover its credit exposure to each participant fully with a high 

degree of confidence. In addition, a CCP that is involved in activities with a more complex risk 

profile or that is systemically important in multiple jurisdictions should maintain additional financial 

resources sufficient to cover a wide range of potential stress scenarios that should include, but 

not be limited to, the default of the two participants and their affiliates that would potentially cause 

the largest aggregate credit exposure to the CCP in extreme but plausible market conditions. All 

other CCPs should maintain additional financial resources sufficient to cover a wide range of 

potential stress scenarios that should include, but not be limited to, the default of the participant 

and its affiliates that would potentially cause the largest aggregate credit exposure to the CCP in 

extreme but plausible market conditions.

Summary narrative

ICE Clear Singapore effectively measures, monitors and manages its credit exposures to CMs, 

arising from its payment, clearing and settlement function. ICE Clear Singapore maintains 

sufficient resources to cover its credit exposure to each CM in full and with a high degree of 

confidence by, amongst other things, requiring CMs to provide original margin (to address 

potential price movements) and variation margin (to address actual price movements). 

To mitigate credit risk, ICE Clear Singapore actively monitors credit exposure to CMs and AFIs. 

ICE Clear Singapore's risk management techniques are comprehensive and specifically designed 

to prevent the accumulation of losses, ensure sufficient resources are available to cover future 

obligations and promptly detect financial and operational weaknesses.

In its operation as a clearing house, ICE Clear Singapore acts as a CCP and rigorously controls 

the risks it assumes, for instance, by: (i) granting admission only to CMs who are financially 

stable and who meet the stringent membership criteria15; and (ii) calculating and enforcing CM 

margin thresholds sufficient to cover current and future exposures of ICE Clear Singapore to each 

CM16. In addition, ICE Clear Singapore monitors clearing risk exposures on a daily basis and 

maintains additional financial resources to cover a wide range of potential stress scenarios. The 

stress-testing program is designed to ensure that the combination of requirements for margin, 

default fund contributions and other financial resources are sufficient to withstand the default of at 

least the CM (and its affiliates) to which ICE Clear Singapore has the largest aggregate credit 

exposures and the two financially weakest CMs in extreme but plausible market conditions. 

ICE Clear Singapore requires all CMs to participate in funding the Guaranty Fund ("GF"). The GF 

comprises contributions from ICE Clear Singapore and CMs, which are used to meet losses in 

the event of a CM default where margin contributions and other collateral of a defaulting CM (a 

“Defaulter”) are insufficient to cover these losses. The GF methodology computes the magnitude 

of potential losses based on a comprehensive set of stress test scenarios, established following 

international standards, including those for qualifying central counterparties (QCCPs) under Basel 

III. These scenarios are periodically reviewed by the Risk Committee. ICE Clear Singapore 

calculates the adequacy of the GF daily using pre-determined parameters and assumptions for 

different stress scenarios. In addition, ICE Clear Singapore reviews and documents the 

supporting rationale for the size of the GF on a monthly basis and reports the results of its review 

to the Risk Committee periodically. ICE Clear Singapore will report more frequently when markets 

become volatile or less liquid and, where necessary, makes recommendations on the level of the 

GF. The Risk Committee's opinion on the level of the GF, including any recommended 

 

15 Clearing Rules, Rule 201 (Clearing Membership Criteria) and Rule 202 (Obligations of Clearing Members).

16 Clearing Rules, Part 5 (Margin)
Principle 4: Credit Risk

INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 16

adjustments, will be recommended to and considered by the Board, as appropriate. Any 

adjustment to the size of an individual CM's GF contribution will be communicated individually by 

letter. CMs will ordinarily have ten Singaporean business days from such notification of 

adjustment to the GF to lodge sufficient funds.

In the case of losses exceeding the funded financial resources available, ICE Clear Singapore

may also impose assessments on CMs, subject to a per default assessment limit (2 times their

GF contribution).

Further, with regard to the management of credit risk from banks, ICE Clear Singapore only uses 

those AFIs and financial institutions that have a minimum financial rating both from external 

agencies and the ICE Clear Singapore Counterparty Rating Systems.
Principle 5: Collateral

INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 17

Principle 5: Collateral

An FMI that requires collateral to manage its or its participants' credit exposure should accept 

collateral with low credit, liquidity, and market risks. An FMI should also set and enforce 

appropriately conservative haircuts and concentration limits.

Summary narrative

ICE Clear Singapore requires collateral with low credit, liquidity and market risks to manage its 

CM's credit exposure. ICE Clear Singapore requires and enforces conservative haircuts and 

concentration limits. ICE Clear Singapore operates a collateral management policy that is 

designed to ensure that: (i) all forms of collateral can efficiently be liquidated; (ii) appropriate limits 

are set and monitored to mitigate risk from concentrated collateral positions; and (iii) appropriate 

prices are used for the valuation on the revaluation of collateral. 

In order to ensure that its collateral management framework is well-designed, operationally 

flexible and manages market risks effectively, ICE Clear Singapore takes into account the 

following broad general principles when accepting assets as collateral:

(i) the asset must be able to be re-valued on a daily basis and quoted intraday by third-party 

financial market news information providers;

(ii) assets acceptable as collateral must be highly liquid with an active sale or repurchase 

agreement market with a diverse group of buyers and sellers or are secured instruments 

that are freely convertible into cash;

(iii) the market for the asset should have sufficient price history to permit the ability to analyse 

the statistical returns of such assets;

(iv) the asset must comply with all relevant legal and regulatory requirements, including in 

relation to enforceability of title-transfer arrangements in the relevant jurisdiction;

(v) ICE Clear Singapore must have the operational framework and necessary technology in 

place to handle deposits, liquidation and return of the asset;

(vi) cash collateral shall only be in currencies specified by ICE Clear Singapore;

(vii) where the asset is a financial instrument, the following additional principles apply:

a. only „vanilla‟ forms of that instrument will be accepted. Instruments containing 

special features such as embedded optionality or perpetual bonds will not be 

accepted. Inflation indexed government bonds are accepted;

b. financial instruments issued by a CM, or any entity that is part of the same group 

as the CM, will not be accepted from that CM;

c. financial instruments issued by a CCP or any entity whose business involves 

providing services critical to the functioning of ICE Clear Singapore will not be 

acceptable (unless that entity is a central bank of issue of a currency in which the 

CCP has exposures);

d. the financial instrument must be of low credit risk.

(viii) where market conditions dictate, ICE Clear Singapore is entitled to review and remove 

securities from the list of accepted collateral and vary the applicable haircuts at any time. 
Principle 5: Collateral

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ICE Clear Singapore publishes the list of "Permitted Cover" (acceptable collateral) on its website. 

The list of Permitted Cover also specifies applicable haircuts and limits. 

ICE Clear Singapore sets absolute limits per type of permitted cover that can be posted against a 

CM's requirements. The purpose of these limits is to minimise liquidity risk in the event that it is 

necessary to liquidate that collateral. Limits are determined with reference to the daily trading 

volume of the asset. Further, in order to ensure diversification across the collateral lodged by the 

CM, ICE Clear Singapore applies concentration limits for each collateral type that determines the 

total value of collateral as eligible cover. These limits mitigate concentration risk in the collateral 

of a CM and ensure a large portion of a CM's collateral is not exposed to idiosyncratic risk from 

one particular issuer. 

ICE Clear Singapore monitors the collateral limits set out above on a near to real-time basis. 

Breaches are reviewed internally and the CM(s) concerned will be contacted and advised on the 

nature of the breach and the actions required to rectify it. Actions a CM may be required to take in 

order to remediate the breach include posting additional collateral reducing positions and/or 

removal of some portion of a collateral type that is in breach of a limit.

In order to reduce the operational burden of enforcing the relevant absolute and relative limits, the 

right to enforce the limit may be waived in such circumstances whereby doing so does not result 

in a material change in risk.

Haircuts applied to Permitted Cover and cross currency haircuts (where collateral is posted in a 

currency other than that of the initial margin liability) are set to account for the risk associated with 

fluctuations of collateral asset prices. 

As part of the daily risk control procedures, ICE Clear Singapore conducts back-testing to verify 

that the risk model is performing properly. Each asset's price move is compared to the haircut 

currently in production. A breach of a haircut level automatically triggers a review of the particular 

haircut. 

Should a breach of the haircut level occur for a particular security, ICE Clear Singapore will: 

investigate the cause of the collateral breach. Where considered necessary, the haircut deemed 

for the relevant issuer and tenor will be recalculated in accordance with the standard collateral 

haircut methodology.
Principle 6: Margin

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Principle 6: Margin

A CCP should cover its credit exposures to its participants for all products through an effective 

margin system that is risk-based and regularly reviewed.

Summary narrative

ICE Clear Singapore covers its credit exposures to its CMs for all products through an effective 

margin system that is regularly reviewed.

ICE Clear Singapore holds original margin in respect of all open positions. The original margin 

requirement is sized to cover potential losses should it become necessary to liquidate a CM's 

portfolio of positions. ICE Clear Singapore imposes capital-to-margin ratio limits on CMs, which 

are designed to ensure that a CM's original margin requirement is monitored and does not 

exceed certain ratios when compared to the CM's balance sheet capital. As such, the capital-tomargin ratio limits are limits on leverage aimed at ensuring a CM does not enter into excessively 

large risk positions relative to its ability to absorb losses on those positions. 

CM original margin requirements are re-calculated following the close of business each business 

day, separately for each CM house and client.

Original margin is calculated using the historical price volatility of the contract being margined. It 

is collected to ensure CMs can meet their variation margin obligations for the next day, should the 

market move significantly against the positions the CMs are carrying. ICE Clear Singapore

calculates original margin requirements using a system that determines the loss a CM could incur 

due to prices moves over the liquidation period based on historical market prices and volatility. 

ICE Clear Singapore assumes a liquidation period of 1 day unless contract characteristics require 

a longer period to be taken into account. 

ICE Clear Singapore uses a variety of analytical tools and procedures to establish and validate 

the margin requirement. All parameters, scanning ranges, inter-month spread charges and intercommodity spread rates (where offered), are calculated to a confidence level of 99%. This 

ensures that ICE Clear Singapore holds sufficient margin to cover the cost of closing-out a 

Defaulter‟s position in all but the most extreme of market conditions, thus protecting the Guaranty 

Fund and its membership from loss. ICE Clear Singapore adjusts the margin requirement for 

each commodity up or down as market volatility changes. 

ICE Clear Singapore ensures that valuation and re-valuations of all open positions in cleared 

contracts accurately represent the market valuations at the time or revaluation. To this end, ICE 

Clear Singapore liaises closely with ICE Futures Singapore to ensure mutual understanding and 

cooperation on valuations, working together where concerns are raised. For ICE Futures 

Singapore products, it is the ICE Futures Singapore Market Supervision team who are 

responsible for the formation of daily and final settlement prices. ICE Clear Singapore uses these

settlement prices as the basis for valuation, but retains the right to override these settlement 

prices in certain circumstances under the Clearing Rules17. 

ICE Clear Singapore receives real-time price feeds as well as daily end-of-day settlement prices 

from ICE Futures Singapore and price quotations from independent price quote vendors such as 

Reuters and Bloomberg. 

If a CM's original margin requirement increases and is not holding sufficient excess cash or 

collateral to cover the increase, ICE Clear Singapore will call for additional original margin to meet 

 

17 Clearing Rules, Rule 701 (Determination of Exchange Delivery Settlement Price).
Principle 6: Margin

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the deficiency18. This calculation is made on a daily basis for each CM's end-of-day positions but 

may be made on an intra-day basis. 

ICE Clear Singapore has the authority and operational ability to make intra-day margin calls to 

CMs. Throughout the business day, every CM will have their Variation and Original Margin 

requirement recalculated as their portfolio and prices change. Should the size of a CM‟s intraday 

shortfall exceed the risk tolerance, ICE Clear Singapore will ask that CM to take actions to 

remediate that risk. 

ICE Clear Singapore conducts back-testing on a daily basis to review the adequacy of margin 

requirements. If the model consistently demonstrates exceptions, the ICE Clear Singapore

reviews the models and recommends revisions to the Risk Committee.

At least monthly, ICE Clear Singapore prepares a sensitivity analysis report that provides an 

assessment of the margin requirements process. The assessment is an evaluation of the 

effectiveness of the margin models and contains any recommendations for changes. It also 

evaluates the margin methodology under a wide range of volatilities to ensure the margin 

calculation will properly assess risk should those environments occur.

 

18 Clearing Rules, Rule 502(g) (Margin).
Principle 7: Liquidity risk

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Principle 7: Liquidity risk

An FMI should effectively measure, monitor, and manage its liquidity risk. An FMI should maintain 

sufficient liquid resources in all relevant currencies to effect same-day and, where appropriate, 

intraday and multiday settlement of payment obligations with a high degree of confidence under a 

wide range of potential stress scenarios that should include, but not be limited to, the default of 

the participant and its affiliates that would generate the largest aggregate liquidity obligation for 

the FMI in extreme but plausible market conditions.

Summary narrative

ICE Clear Singapore measures, monitors, and manages its liquidity requirements and resources 

through its liquidity risk management framework, which is validated and reviewed at least 

annually. This framework is designed to ensure that ICE Clear Singapore has sufficient liquid 

resources to meet all of its payment obligations with a high degree of confidence. As part of its 

liquidity risk management framework ICE Clear Singapore identifies, assesses and consequently 

mitigates sources of liquidity risk. ICE Clear Singapore has effective operational and analytical 

tools in place to identify, measure and monitor settlement and funding flows on an ongoing and 

timely basis, including the use of intraday liquidity.

ICE Clear Singapore's liquidity risk management framework includes daily stress testing of 

liquidity requirements to meet intra-day, same-day, and multi-day settlement obligations under 

extreme but plausible market conditions. Such stress scenarios are designed to ensure that the 

combination margin requirements, default fund contributions and other financial resources are 

sufficient to withstand the default of at least the CM (and its affiliates) to which ICE Clear 

Singapore has the largest aggregate credit exposures and the two financially weakest CMs in 

extreme but plausible market conditions. Stress scenarios also include reverse stress tests to 

identify the extreme default scenarios and extreme market condition under which ICE Clear 

Singapore‟s liquid resources would be insufficient.

On a periodic basis (and more frequently when markets become volatile or less liquid), ICE Clear 

Singapore conducts and evaluates the results of liquidity tests in order to determine liquidity 

requirements. It looks at the intra-day and end-of-day requirements under normal and extreme 

but plausible conditions. When required, ICE Clear Singapore adjusts the availability of its 

liquidity resources. Results of liquidity tests are circulated to senior management and to the Risk 

Committee on a periodic basis.

When performing the periodic analysis of the liquidity scenarios, ICE Clear Singapore considers 

the impact on AFIs, depositories, liquidity providers and other entities, and the impact any interlinkages between CMs and other roles they may have. ICE Clear Singapore also considers multiday scenarios and the probability of multiple firm failures and contagion effect among CMs when 

evaluating the stress scenarios for liquidity.

Furthermore, ICE Clear Singapore periodically tests its procedures for accessing its liquidity 

arrangements, and its ability to convert currencies pursuant to FX transactions. ICE Clear 

Singapore monitors exposure to and credit worthiness of its liquidity providers.
Principle 8: Settlement finality

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Principle 8: Settlement finality

An FMI should provide clear and certain final settlement, at a minimum by the end of the value 

date. Where necessary or preferable, an FMI should provide final settlement intraday or in real 

time.

Summary narrative

ICE Clear Singapore provides clear and certain settlement upon payment and receipt of funds in 

real-time. 

Part 12 (Settlement Finality) of the Clearing Rules has detailed provisions on settlement finality, 

which, together with the provisions on default rules and disciplinary proceedings, are treated as 

'default rules' for the purposes of Part III of the SFA and the Securities and Futures (Clearing 

Facilities) Regulations 201319. Such settlement finality provisions provide clear and certain final 

settlement and enhance the systemic risk protection provided to CMs in the event of a clearing 

counterparty default.

The exact point of settlement finality under the Clearing Rules differs depending on the type of 

transfer order which is entered into the ICE Clear Singapore payment system (the "Payment 

System"). Broadly, the Payment System means the system operated by ICE Clear Singapore

consisting of the formal arrangements between itself and CMs. Such formal arrangements include 

the Clearing Rules and the Procedures and the standardised arrangements (including, among 

other things, the clearing membership agreements and other agreements involving ICE Clear 

Singapore, CMs and AFIs) and related functionality for the effecting of transfer orders between 

ICE Clear Singapore and CMs.

ICE Clear Singapore operates a Payment System whereby transfer orders are made through an 

assured payment service ("APS") account structure for the collection and payments of amounts 

due in respect of contracts or collateral. Such structure involves AFIs (through which payments 

between CMs and ICE Clear Singapore are made. ICE Clear Singapore requires each CM to 

open one or more accounts with an AFI nominated for the purposes of making and receiving cash 

transfers in respect of amounts due in respect of that CM's proprietary account (each account a 

“Nominated Account”) and one or more accounts with an AFI nominated for the purposes of 

making and receiving cash transfers in respect of amounts due in respect of that CM's customer 

account (each account a “Nominated Account”). 

In order to ensure that the provisions in the Clearing Rules on settlement finality are legally 

binding, Clause 5.2 of ICE Clear Singapore's standard form clearing membership agreement 

requires each CM at all times to have in place a duly executed Third Party Authority Form in 

favour of each AFI used by it and in respect of (each of) its Nominated Account(s). Under the 

same provision ICE Clear Singapore is appointed as the CM's lawful attorney and agent, 

pursuant to which appointment ICE Clear Singapore may take any action as it in its discretion 

determines in connection with the CM's Nominated Account(s). The power of attorney and 

agency give ICE Clear Singapore the power to instruct AFIs to receive balance and transaction 

information, including account statements and transaction advices, from the AFIs in relation to the 

Nominated Account(s) at any time. Pursuant to the same provision, CMs agree and acknowledge 

that the AFI will act upon any instructions received from ICE Clear Singapore in relation to the 

Nominated Account(s), notwithstanding that such instructions may result in an overdraft on (any 

of) the Nominated Account(s), without any further reference to, or authority from, that CM. Finally, 

CMs will represent, warrant and acknowledge to ICE Clear Singapore that instructions given by 

the ICE Clear Singapore in relation to the Nominated Account(s) shall be deemed to be, and may 

be treated by any AFI as, instructions given on behalf of the CM. This process is designed to 

 

19 Clearing Rules, Part 9 (Default Rules), Part 10 (Disciplinary Proceedings) and Part 12 (Settlement Finality).
Principle 8: Settlement finality

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ensure that all payments made by the AFI under ICE Clear Singapore's settlement finality rules 

will, immediately upon execution, be irrevocable and the AFI will not be able to reverse the 

payment from the ICE Clear Singapore account without receipt of authorisation from ICE Clear 

Singapore evidenced in writing. 

The account structure described above is used where a payment transfer order or a securities 

transfer order is effected in the ICE Clear Singapore systems. 

The settlement finality of Payment Transfer Orders and Securities Transfer Orders is provided for 

under the Clearing Rules as follows:

(i) Payment Transfer Orders become irrevocable and unconditional at the time when the AFI 

of the account from which payment is to be made sends a SWIFT confirmation message, 

other electronic message, fax, telephone or other message confirming that the relevant 

payment will be or has been made (subject to certain provisions for corrections of 

errors)20; and

(ii) in respect of Securities Transfer Orders:

a. position transfer orders become irrevocable when the definitive record of the 

open contract position of the CM is updated as a result of a successful position 

transfer clearing run in the ICE Clear Singapore systems to reflect the transfer, 

assignment or novation of contracts which are given effect pursuant to such 

position transfer order;

b. collateral transfer orders become irrevocable when either ICE Clear Singapore

receives the non-cash collateral, or when any related securities transfer order 

becomes irrevocable; and

c. ICE Futures Singapore Block Clearing Orders become irrevocable when ICE 

Clear Singapore becomes party to resulting contracts with CMs21. 

Moreover, the Clearing Rules limit the circumstances in which transfer orders may be amended 

or cancelled, such as manifest or proven error, the contract being void ab initio, or the transaction 

not being eligible for clearing or not accepted for clearing22. 

The process by which transfer orders are effected in ICE Clear Singapore's systems, in 

conjunction with the APS account structure, ensures that the point of settlement finality for 

contracts cleared on ICE Clear Singapore is clear and definite. The Clearing Rules clearly define 

the point where after which unsettled payments, transfer orders or other obligations may not be 

revoked by a CM. Further, confidence in the clearing function of ICE Clear Singapore is 

maintained because once settlement finality is achieved, transfer orders become irrevocable in 

the manner described above and are thus protected from general laws of insolvency, such that 

transfer orders can be seen to completion notwithstanding an insolvency of a CM.

In relation to non-financial instruments, ICE Clear Singapore operates Guardian, a delivery 

system for the transfer of warrants. A warrant issued in Guardian is evidence of title to the 

underlying and transfers of warrants on Guardian constitute effective and immediate transfer of 

title in the underlying pursuant to Clearing Rules.

 

20 Clearing Rules, Rule 1203 (Transfer Orders Becoming Irrevocable).

21 Clearing Rules, Rule 1203 (Transfer Orders Becoming Irrevocable).

22 Rule 1204 (Variations to or Cancellation of Transfer Orders).
Principle 9: Money Settlements

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Principle 9: Money settlements

An FMI should conduct its money settlements in central bank money where practical and 

available. If central bank money is not used, an FMI should minimise and strictly control the credit 

and liquidity risk arising from the use of commercial bank money.

Summary narrative

ICE Clear Singapore conducts its money settlements through approved commercial banks. The 

financial institutions that ICE Clear Singapore uses for settlement and custody are among the 

largest financial institutions in the world. They are reputable organisations that employ accounting 

practices, safekeeping procedures and internal controls designed to protect deposits. Such 

financial institutions are licenced and supervised by the MAS under the Banking Act (Chapter 19) 

of Singapore. 

ICE Clear Singapore monitors the financial health of the financial institutions in which it holds its 

settlement and custodial accounts. ICE Clear Singapore also utilises an internal rating system to 

monitor and evaluate these institutions. The rating system is used to generate an internal rating 

for each institution, based on a combination of financial data, market data and an overall 

qualitative assessment of the AFI's financial condition and market standing. ICE Clear Singapore 

limits its exposure to a single institution by investing cash under management across multiple 

institutions.

ICE Clear Singapore's legal agreements with its AFIs and the Clearing Rules ensure that all 

settlements are final when effected. Pursuant to such legal agreements, settlement fund transfers 

are irrevocable and unconditional at the time when the AFI of the account from which payment is 

to be made sends a SWIFT confirmation message, other electronic message, fax, telephone or 

other message confirming that the relevant payment will be or has been made (subject to certain 

provisions for corrections of errors).
Principle 10:Physical deliveries

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Principle 10: Physical deliveries

An FMI should clearly state its obligations with respect to the delivery of physical instruments or 

commodities and should identify, monitor, and manage the risks associated with such physical 

deliveries.

Summary narrative

The Clearing Rules and the Delivery Procedures clearly state ICE Clear Singapore's obligations 

with respect to physical deliveries. In addition, ICE Clear Singapore regularly identifies, monitors 

and manages the risks associated with such physical deliveries.

The Clearing Rules address the management of risks and costs of storage and the allocation of 

risks between the delivery participants related to delivery of physical instruments or commodities.

Each CM who is a seller under a contract subject to delivery (the "Seller") and each CM that is a 

buyer to the same contract (the "Buyer") is required under the Clearing Rules to make such 

payments and deliveries and deliver such tenders, notices and invoices as are required pursuant 

to the Delivery Procedures and Clearing Rules. The Clearing Rules clearly provide that the 

passing on by ICE Clear Singapore of such tenders or such other documents shall not constitute 

acceptance by ICE Clear Singapore of such tenders or such documents if the CM to which ICE 

Clear Singapore passed on such tender or documents rejects the same where permitted to do so. 

In the event of such rejection, ICE Clear Singapore shall also be entitled to reject the tenders or 

other documents. Similarly, where a CM who is a Buyer under a contract rejects a deliverable 

delivered to it, ICE Clear Singapore as Buyer under the corresponding back-to-back contract shall 

be entitled, if to do so would be in accordance with the applicable contract terms, to take the 

same action as against the Seller under that contract and ICE Clear Singapore shall not be 

deemed to have accepted such delivery until the relevant Buyer has accepted delivery under the 

first contract23. 

Further, the Clearing Rules provide that ICE Clear Singapore may direct a CM who is a Seller to 

deliver the deliverable to another CM that is a Buyer. The Seller and the Buyer shall each be 

bound by any such direction. Delivery in accordance with any such direction shall be deemed to 

constitute delivery by the Seller to ICE Clear Singapore and from ICE Clear Singapore to the 

Buyer for the purposes of the contract or contracts in question (but title shall not pass unless and 

until such time specified in the Delivery Procedures). All payments in relation to such contracts 

shall nonetheless be made only to and from ICE Clear Singapore by the CMs concerned24.

 

23 Clearing Rules, Rule 703(c) (Delivery).

24 Clearing Rules, Rule 703(f) (Delivery).
Principle 12: Exchange-of-value settlement systems

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Principle 12: Exchange-of-value settlement systems

If an FMI settles transactions that involve the settlement of two linked obligations (for example, 

securities or foreign exchange transactions), it should eliminate principal risk by conditioning the 

final settlement of one obligation upon the final settlement of the other.

Summary narrative

The Clearing Rules eliminate principal risk with respect to the delivery of physically-deliverable 

contracts by providing that where a CM who is a Buyer under a contract rejects a deliverable 

delivered to it, ICE Clear Singapore as Buyer under the corresponding back to back contract shall 

be entitled in certain circumstances to take the same action as against the Seller under that 

contract and ICE Clear Singapore shall not be deemed to have accepted such delivery until the 

relevant Buyer has accepted delivery under the first contract25. 

Further, ICE Clear Singapore may direct a Seller to deliver the deliverable that is the subject 

matter of the relevant contract to a Buyer. Delivery in accordance with any such direction shall be 

deemed to constitute delivery by the Seller to ICE Clear Singapore and from ICE Clear Singapore

to the Buyer for the purposes of the contract or contracts in question (but title shall not pass 

unless and until such time specified in the Delivery Procedures)26.

No margin payment, option premium or GF contribution payment to or from ICE Clear Singapore

involves two linked obligations.

 

25 Clearing Rules, Rule 703(c) (Delivery).

26 Clearing Rules, Rule 703(f) (Delivery).
Principle 13: Participant-default rules and procedures

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Principle 13: Participant-default rules and procedures

An FMI should have effective and clearly defined rules and procedures to manage a participant 

default. These rules and procedures should be designed to ensure that the FMI can take timely 

action to contain losses and liquidity pressures and continue to meet its obligations.

Summary narrative

ICE Clear Singapore has effective and clearly defined rules and procedures in place to manage a 

CM default. The Clearing Rules contain detailed provisions on CM events of default and 

disciplinary proceedings, which, together with the provisions on settlement finality, are treated as 

'default rules' and any actions taken by ICE Clear Singapore pursuant to such provisions are 

treated as 'default proceedings' for the purposes of Part III of the SFA and the Securities and 

Futures (Clearing Facilities) Regulations 2013. The Clearing Rules are designed to ensure that 

ICE Clear Singapore can take timely action on a CM event of default to contain losses, manage 

liquidity pressures and to enable ICE Clear Singapore to continue to function as a clearing 

house27. 

The Clearing Rules provide ICE Clear Singapore with significant latitude as to when a CM may be 

deemed to be subject to an event of default to ensure ICE Clear Singapore has sufficient freedom 

of action in order to protect itself, and the market, from potential systemic risk. For example, the 

circumstances in which ICE Clear Singapore may declare a CM default include, amongst others, 

a CM's failure to meet payment obligations to ICE Clear Singapore, a CM's insolvency or the 

insolvency of any of that CM's group companies and breach by the CM of the Clearing Rules or 

applicable law. 

If an event of default has been declared, ICE Clear Singapore may immediately suspend or 

terminate the clearing membership and any other entitlements under the Clearing Rules of the 

Defaulter, take any action to close out the Defaulter's positions and take any other action as is 

necessary to control or reduce losses or liquidity pressures resulting from an event of default28.

The Clearing Rules provide ICE Clear Singapore with a certain level of discretion and flexibility in 

its implementation of the default rules, to enable it to adequately address each event of default 

separately and tailor any default proceedings to the particular financial emergency or CM default 

at issue. For example, if ICE Clear Singapore determines that the suspension or termination of a 

Defaulter's clearing membership would either not be in the best interests of ICE Clear Singapore

or would be likely to adversely affect the operation of any market, it has discretion to temporarily 

postpone or not enforce such suspension or termination.

In the event that the Defaulter has customer-related positions, ICE Clear Singapore may transfer 

non defaulting customer positions from the Defaulter to one or more non-defaulting CMs, to the 

extent permitted by law and in all cases subject to agreement from the receiving CM(s)29.

 

27 Clearing Rules, Part 9 (Default Rules).

28 Clearing Rules, Rule 902 (Actions to be taken following declaration of a Clearing Member Event of Default).

29 Clearing Rules, Rule 903 (Treatment of Contracts following a Clearing Member Event of Default and Hedging).
Principle 13: Participant-default rules and procedures

INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 28

ICE Clear Singapore collects margin on all open contract positions and other pre-funded financial 

resources from CMs, including a CM's GF contribution, to protect ICE Clear Singapore from 

potential losses arising from events of default. Where necessary to cover losses from a CM 

default, ICE Clear Singapore's default resources will be used in the following order:

 Defaulter's Original Margin

 Defaulter's GF Contribution

 ICE Clear Singapore‟s GF Initial Contribution (15% of GF)

 Non-defaulting CM's Contribution; and 

ICE Clear Singapore‟s Secondary Contribution (10% of GF)

 Powers of Assessment (2x GF Contributions)

In the unlikely event that ICE Clear Singapore's funded default resources are inadequate to 

resolve a CM default, ICE Clear Singapore has additional recovery tools available to it including, 

assessment rights and the requirement that CMs "replenish" the GF to restore any deficiencies 

caused by the consumption of GF assets during a CM default.

ICE Clear Singapore conducts a review of its default management framework at least quarterly 

and conducts an annual mock CM 'default test' which is designed to assess:

(i) ICE Clear Singapore's risk, finance and operations teams' responsibilities;

(ii) adequacy of trading facilities, including equipment and systems; 

(iii) awareness of ICE Clear Singapore's approved brokers of their responsibilities in the 

event of ICE Clear Singapore executing its default procedures, including confirming that 

broker accounts are open and available for trading;

(iv) relevance and content of ICE Clear Singapore's default management framework; and

(v) whether all CMs understand the default procedures and have appropriate arrangements 

in place to respond to an event of default by verifying during the simulation exercise that 

all CMs, clients (where applicable), and other relevant parties including, but not limited to, 

interoperable central counterparties and any related service providers, are duly informed 

and know the procedures involved in a default scenario. 

Following each exercise, ICE Clear Singapore will review whether the default test procedures are 

adequate and, where necessary, amend the procedures.
Principle 15: General business risk

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Principle 14: Segregation and portability

A CCP should have rules and procedures that enable the segregation and portability of positions 

of a participant's customers and the collateral provided to the CCP with respect to those 

positions.

Summary narrative

The ICE Clear Singapore account structure entitles a CM to segregate customer money and 

customer assets from a CM's own money and assets through the use of a customer account (for 

customer money and assets) and a proprietary account (which contains records only of the 

positions entered into for such CM for its own account or for the account of its affiliates‟ 

proprietary clearing activities, together with assets provided as margin on that account)30. Any 

contract entered into by the CM must be designated and recorded in ICE Clear Singapore's 

books, promptly and accurately, as for a CM's proprietary account or for its customer account.

Each customer account is opened in the name of the relevant CM for the recording of contracts to 

which that CM is a party as a result of it acting for one or more customers, and the recording of 

related margin. No assets or positions relating to the CM's own account are recorded in its 

customer account, enabling the CM to distinguish the assets and positions in contracts held for 

the account of its customers from those held for its proprietary account31. Each customer account 

comprises the related customer position account (in which ICE Clear Singapore records the 

contracts to which a CM is a party as a result of it acting for one or more customers) and 

customer margin account (for the recording of debits and credits of margin). Each CM is required 

to provide assets to ICE Clear Singapore as margin (collateral) for exposures and risks under 

contracts. Customer collateral posted by each CM is co-mingled in that CM's customer margin 

account and accounted for on a per CM basis.

Further, pursuant to its standard form clearing membership agreement ICE Clear Singapore

acknowledges that the customer account is not to be combined with the proprietary account, nor 

is any right of set off to be exercised by ICE Clear Singapore in relation to the proprietary 

account, to ensure that customer assets remain segregated from a CM's own assets. In 

particular, any margin or other amounts deposited in relation to a CM's customer account or a 

customer account of a CM who has been declared as a Defaulter shall not be used to meet a 

shortfall on that CM's or Defaulter's proprietary account, nor shall any contract recorded in a CM's 

or Defaulter's customer account be netted, combined or offset with any contract recorded in the 

CM's or Defaulter's proprietary account (except as expressly provided under the Clearing Rules 

and to the extent permissible under applicable laws). 

The Clearing Rules provide that each CM is responsible for ensuring that its proprietary bank 

account and its customer bank account which is held at an AFI and nominated by the CM for the 

purposes of making and receiving cash transfers are linked appropriately to the relevant CM's 

proprietary account and its customer account respectively. Further, CMs must ensure their own 

compliance with applicable laws relating to conduct of business, client money, segregation and 

use of client assets and segregation of customer transactions32. 

The Clearing Rules do not permit ICE Clear Singapore to aggregate, set off or apply any margin, 

surplus collateral or other surplus assets available to it in relation to a Defaulter's customer 

account to meet a shortfall on that Defaulter's proprietary account. However, to ensure the fullest 

possible protection of customer assets, ICE Clear Singapore will aggregate, set off or apply any 

margin, surplus collateral or other surplus assets available in relation to a Defaulter's proprietary 

account to meet a shortfall on that Defaulter's customer account as set out in the Clearing Rules. 

 

30 Clearing Rules, Rule 102(q) (Interpretation).

31 Clearing Rules, Rules 401(o) and (p) (Formation of Contracts).

32 Clearing Rules, Rule 207(d) (Clearing Member Status).
Principle 15: General business risk

INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 30

If any amounts are so aggregated, set off or applied, the net sum payable by ICE Clear 

Singapore in relation to the defaulting CM's proprietary account shall be reduced by the same 

amount as is so included within the net sum for its customer account. Where and to the extent 

that ICE Clear Singapore determines to apply proprietary account assets of a defaulting CM to its 

customer account, such amounts (together with any guaranty fund contributions or any amounts 

received by ICE Clear Singapore under a controller guarantee of a defaulting CM) must first be 

applied to reduce any losses on the customer account, which would otherwise have a net sum 

representing a shortfall or loss33.

The Clearing Rules also allow for the portability of contracts and margin on a CM event of 

default34. In particular, as part of a CM's default proceedings, ICE Clear Singapore may: (i) 

arrange for a transfer, sale, assignment or novation of a Defaulter's contracts to another CM 

(such CM, a "Transferee CM"); or (ii) ICE Clear Singapore may also arrange for the termination 

of a Defaulter's contracts with ICE Clear Singapore (and any related contract between that CM 

and its customer on economic terms similar to the corresponding contract recorded in that CM's 

customer account, a "Customer-CM Transaction") and the entry into of replacement contracts 

between ICE Clear Singapore and a Transferee CM (by way of novation and amendment or 

otherwise) or between such customer and such Transferee CM, as applicable. 

Upon such a transfer, in order to ensure the protection and segregation of any customer money 

and customer assets:

(i) any related margin recorded in the relevant customer account may, at the discretion of 

ICE Clear Singapore, also be transferred from that customer account to the Transferee 

CM's customer account;

(ii) to the extent that any transfer of margin takes place, the Defaulter shall have no claim 

against ICE Clear Singapore or any Transferee CM for return of such margin and ICE 

Clear Singapore shall be released from any liability or obligation to return such margin (or 

any property in substitution thereof) to the Defaulter; and

(iii) as between the Transferee CM and ICE Clear Singapore, ICE Clear Singapore shall have 

all rights in relation to any margin transferred as if the same were margin transferred to 

ICE Clear Singapore directly from the Transferee CM. 

There is a number of conditions that must be satisfied before contracts, Customer-CM 

Transactions and related assets can be ported to a Transferee CM. For example, porting must 

not result in a customer account being under-collateralised and porting must not be unlawful nor 

expose ICE Clear Singapore to liabilities or legal challenges35. In addition, a consenting 

Transferee CM will need to have been found. In order for positions to be ported on an event of 

default, a customer needs to have appointed a replacement Transferee CM who is prepared to 

act as such36. If no such Transferee CM is appointed or can be found, or the Transferee CM that 

has been so nominated declines to become party to replacement contracts or Customer CM 

Transactions, ICE Clear Singapore will terminate the contracts and Customer-CM Transactions, 

offsetting any resultant losses or combining any resultant gains against the collateral on the 

account37. Transferee CMs may not commit to accept contracts and Customer-CM Transactions 

until a default occurs and they can assess the risks arising on the exposures under contracts that 

they would accept. Transferee CMs may have other conditions that they require to be met prior to 

 

33 Clearing Rules, Rule 102(q) (Interpretation) and Rule 906(c) (Net Sums Payable).

34 Clearing Rules, Rule 904 (Transfer of Contracts and Margin on a Clearing Member Event of Default).

35 Clearing Rules, Rule 904(c) (Transfer of Contracts and Margin on a Clearing Member Event of Default).

36 Clearing Rules, Rule 904(c) and 904(m) (Transfer of Contracts and Margin on a Clearing Member Event of Default).

37 Clearing Rules, Rule 903 (Treatment of Contracts following a Clearing Member Event of Default and Hedging).
Principle 15: General business risk

INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 31

porting, such as the posting of additional collateral, supply of "know your customer" 

documentation or execution of agreements.
Principle 15: General business risk

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Principle 15: General business risk

An FMI should identify, monitor, and manage its general business risk and hold sufficient liquid 

net assets funded by equity to cover potential general business losses so that it can continue 

operations and services as a going concern if those losses materialise. Further, liquid net assets 

should at all times be sufficient to ensure a recovery or orderly wind-down of critical operations 

and services.

Summary narrative

ICE Clear Singapore identifies monitors and manages its general business risks and holds 

sufficient liquid net assets, funded by equity, to cover any general business losses so that it can 

continue operations and services as a going concern if these losses materialise. Furthermore, 

these liquid net assets are at all times sufficient to ensure a recovery or orderly wind-down of 

critical operations and services.

ICE Clear Singapore has robust management and control systems through governance, financial 

statements and internal audit to ensure that ICE Clear Singapore identifies and is aware of 

general business risk. The Clearing Rules provide for recovery and wind-down following the 

insolvency of a CM, a business decision of ICE Clear Singapore to exit clearing services and the 

insolvency of ICE Clear Singapore38. 

ICE Clear Singapore has determined that its liquid operating resources, maintained in order to 

have a feasible plan of action pursuant to Regulation 17 of the Securities and Futures (Clearing 

Facilities) Regulations 2013, are sufficient to support its operations during any recovery or winddown process. Specifically, ICE Clear Singapore believes an orderly wind-down of its business 

would take no longer than six months and ICE Clear Singapore maintains financial resources to 

cover six months of operating costs. ICE Clear Singapore believes financial resources equal to 

six months of operating costs will be more than sufficient during wind-down, given the likely 

reduction in personnel expenses, marketing costs and volume-based expenditures. 

In the event of a CM default, ICE Clear Singapore will follow its CM default management 

procedures. In the unlikely event that funded and unfunded default resources are inadequate to 

resolve the CM default, ICE Clear Singapore may implement plans to raise additional capital, or 

move to wind-down. 

ICE Clear Singapore‟s plan for raising additional financial resources (including, where 

appropriate, capital) will necessarily depend on the circumstances. Accordingly, the plan includes 

exploring the following possibilities: direct funding from ICE Clear Singapore's parent; amending 

intercompany service agreements to provide economic relief and/or additional services; 

leveraging the resources of affiliated clearing house entities within the ICE, Inc. group; merging 

ICE Clear Singapore with another ICE, Inc. clearing house; offering shares or an economic 

interest in ICE Clear Singapore; „delisting‟ unprofitable products; transferring unprofitable 

products to another affiliated or unaffiliated clearing house; and selling ICE Clear Singapore.

 

38 Clearing Rules, Rule 105 (Termination) and Rule 209 (Termination of Clearing Membership).
Principle 16: Custody and investment risks

INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 33

Principle 16: Custody and investment risks

An FMI should safeguard its own and its participants' assets and minimise the risk of loss on and 

delay in access to these assets. An FMI's investments should be in instruments with minimal 

credit, market, and liquidity risks.

Summary narrative

ICE Clear Singapore safeguards its own and its CMs' assets through the use of AFIs that employ 

accounting practices, safekeeping procedures and internal controls that protect deposits. The 

financial institutions that ICE Clear Singapore uses for settlement and custody are among the 

largest financial institutions in the world. ICE Clear Singapore monitors the financial health of its 

AFIs. 

The SFA also provides protection to ICE Clear Singapore and CM assets. Pursuant to section 

81F of the SFA, the provision of market collateral and market charges under the Clearing Rules 

will not be considered invalid due to inconsistencies with insolvency law concerning the 

distribution of assets. This section of the SFA also prevents a court applying insolvency law from 

interfering with the Clearing Rules or any action taken under the Clearing Rules. With regards to 

insolvency proceedings commenced in a foreign jurisdiction, section 81O of the SFA states that a 

Singapore court will not recognise or give effect to a foreign order if that order is not permitted by 

section 81F of the SFA.

ICE Clear Singapore may invest its cash balances in accordance with investment guidelines as 

the Board may adopt from time to time. The primary objectives for these investment guidelines

are (in order of importance) to (1) safeguard the principal (safety); (2) provide sufficient liquidity to 

meet all operational requirements (same day liquidity in Asia time zone); and (3) obtain a 

reasonable rate of return (risk weighted yield). Under the current investment guidelines ICE Clear 

Singapore limits its exposure to single AFIs by investing cash under management across multiple 

AFIs, multiple commercial banks that meet credit criteria equal to AFIs and a number of liquidity 

funds of high credit rating, yet retaining prompt access to the invested funds.
Principle 17: Operational risk

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Principle 17: Operational risk

An FMI should identify the plausible sources of operational risk, both internal and external, and 

mitigate their impact through the use of appropriate systems, policies, procedures, and controls. 

Systems should be designed to ensure a high degree of security and operational reliability and 

should have adequate, scalable capacity. Business continuity management should aim for timely 

recovery of operations and fulfilment of the FMI's obligations, including in the event of a widescale or major disruption.

Summary narrative

ICE Clear Singapore identifies plausible sources of operational risk, both internal and external, 

and mitigates their impact through the use of appropriate systems, policies, procedures and 

controls. ICE Clear Singapore's systems are designed to ensure a high degree of security and 

operational reliability and have adequate, scalable capacity. ICE Clear Singapore's business 

continuity management aims for the timely recovery of operations and the fulfilment of its

obligations, including in the event of a wide-scale or major disruption.

ICE Clear Singapore's operational risk program addresses the risk that deficiencies in information 

systems or internal processes, human errors, management failures or disruptions from external 

events will result in the reduction, deterioration, or breakdown of services. On at least an annual 

basis, the Board reviews and approves an operational risk framework for ICE Clear Singapore

that includes operational performance standard setting and monitoring, and risk identification, 

assessment, and mitigation.

ICE Clear Singapore performs comprehensive operational performance standard setting and 

monitoring. The purpose of operational performance standard setting and monitoring is to 

establish clearly defined operational reliability objectives that serve as benchmarks to evaluate 

efficiency and effectiveness, promote confidence among participants and evaluate performance 

against expectations. ICE Clear Singapore reports breaches to the Board and will report 

significant breaches to the MAS as required by applicable regulations39. Regular monitoring is 

performed to determine whether systems meet established objectives and service-level targets. 

ICE Clear Singapore's operational risk policy also includes procedures to prevent and manage 

fraudulent activity, such as the ICE, Inc. whistle-blowing policy. 

ICE Clear Singapore utilises ICE, Inc.'s robust information security program including policies and 

procedures to ensure employee compliance. ICE, Inc.'s information security program includes: 

physical and environmental security; authorisation, authentication and access control 

management; internet, e-mail and data policy management, record retention management; and 

accountability, compliance and auditability.

ICE, Inc. reviews, scans and tests the information security systems regularly. In addition, the 

quality assurance team tests all ICE, Inc. systems (including ICE Clear Singapore systems) to 

ensure reliability and adequate scalable capacity.

ICE Clear Singapore has a comprehensive business continuity plan ("BCP") and disaster 

recovery ("DR") program that supports the continued performance of critical functions in the event 

ICE Clear Singapore's offices or primary data centre are unavailable due to significant business 

interruption. The BCP-DR program has six objectives: (i) ensure continuity and recovery of critical 

functions through its secondary/disaster recovery facility; (ii) minimise the disruption to clients and 

business partners; (iii) protect the firm's books and records; (iv) reduce the number and frequency 

of ad hoc decisions following a significant business interruption; (v) educate employees about 

 

39 Securities and Futures Act, Section 57(1)(b).
Principle 17: Operational risk

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contingency plans and roles and responsibilities in executing the plans; and (vi) comply with 

regulatory requirements.

ICE Clear Singapore's detailed BCP serves to: (i) preserve the health and safety of staff; (ii) avoid 

confusion and reduce exposure to error during an interruption by providing an organised and 

consolidated approach to managing response, recovery and resolution activities; (iii) reduce the 

impact resulting from short-term business interruptions by providing appropriate responses for 

rapid recovery from unplanned incidents; and (iv) resume essential operations within two hours. 

ICE Clear Singapore's BCP-DR strategy includes remote work, cross-training personnel between 

geographically diverse locations, and alternate work locations in selected cities, which is sufficient 

to enable ICE Clear Singapore to recover its operations and resume daily processing, clearing, 

and settlement no later than two hours following a disruption (including in the event of a widescale or major disruption).

ICE Clear Singapore conducts regular, periodic testing of its BCP-DR and such testing is subject 

to audit. ICE Clear Singapore participates in the industry-wide disaster recovery testing 

conducted in coordination with the Futures Industry Association.
Principle 18: Access and participation requirements

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Principle 18: Access and participation requirements

An FMI should have objective, risk-based, and publicly disclosed criteria for participation, which 

permit fair and open access.

Summary narrative

ICE Clear Singapore maintains objective, risk-based and publicly disclosed criteria for 

participation, which permits fair and open access.

The membership requirements of ICE Clear Singapore are publicly disclosed in the Clearing

Rules and are designed to permit fair and open access, whilst protecting ICE Clear Singapore

and its CMs. The membership requirements are the same for all applicants and include fitness 

criteria, financial standards, operational standards and appropriate registration qualifications with 

applicable statutory regulatory authorities. ICE Clear Singapore applies a due diligence process 

to ensure that all applicants meet the required criteria and conducts on-going monitoring of CMs. 

Additionally, the Clearing Rules require all CMs to be regulated in the Republic of Singapore.

ICE Clear Singapore maintains its Clearing Membership Application Instructions and Forms on its 

website. Any organisation applying for clearing membership with ICE Clear Singapore must 

satisfy the requirements detailed in the application and summarised below both initially and on an 

on-going basis.

Membership requirements include, amongst other things:

(i) holding sufficient capital;

(ii) being party to a Clearing Membership Agreement;

(iii) holding all necessary regulatory authorizations, licenses, permissions and approvals;

(iv) itself, its directors, officers and other relevant persons being fit and proper as set out in 

the Clearing Rules;

(v) having appropriate technical and operational systems and controls;

(vi) having appropriate business continuity procedures;

(vii) being able to meet margin requirements;

(viii) having contributed to the Guaranty Fund as appropriate; and

(ix) not being subject to insolvency or other event of default.

All CMs must (if proposing to become a CM in relation to ICE Futures Singapore transactions) 

also be a member of ICE Futures Singapore40. Additionally, CMs must institute risk management 

controls and demonstrate the operational capability to handle customer business41. All CMs must 

establish banking arrangements with approved AFIs to facilitate payments to and from ICE Clear 

Singapore42.

 

40 Clearing Rules, Rule 201(a)(iii) (Clearing Membership Criteria).

41 Clearing Rules, Rule 201(a)(xiv) (Clearing Membership Criteria).

42 Clearing Rules, Rule 301 (Fees, Margin, Contract and other payment obligations).
Principle 18: Access and participation requirements

INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 37

All CMs are required to provide quarterly financial statements on a timely basis (and, if a CM has 

customers, must submit a daily GCM file). Furthermore, the Clearing Rules require CMs to 

provide notice of significant financial, regulatory, and organisational events that could impact 

upon the financial or operational capacity of a CM43. In addition, ICE Clear Singapore reviews the 

risk management policies, procedures, and practices of its CMs. The periodic risk review is used 

to assess the effectiveness of each CM's risk and credit frameworks, procedures and policies. 

The Clearing Rules publicly set forth CM obligations and procedures for the suspension and 

orderly exit of a CM that breaches, or no longer meets, ICE Clear Singapore participation 

requirements44.

 

43 Clearing Rules, Rule 204 (Notifications by Clearing Members).

44 Clearing Rules, Rule 208 (Suspension of Clearing Members) and Rule 209 (Termination of Clearing Member).
Principle 19: Tiered participation agreements

INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 38

Principle 19: Tiered participation arrangements

An FMI should identify, monitor, and manage the material risks to the FMI arising from tiered 

participation arrangements.

Summary narrative

ICE Clear Singapore does not currently have tiered participation arrangements. The only form of 

direct participation with ICE Clear Singapore is as a CM and anyone who is not a CM must be a 

customer of a CM. However, such customers are also eligible for representation on the Risk 

Committee. In addition, CMs are required to submit position reports on underlying customer 

positions.

Where a CM designates that a transaction submitted to ICE Clear Singapore is to be recorded in 

its customer position account with ICE Clear Singapore. At the same time, a transaction (a 

"Customer-CM Transaction") between that CM and its Customer will arise automatically on 

economic terms similar to those of the corresponding contract recorded in the CM's customer 

position account (except, as applicable, the position of the CM as Buyer or Seller)45. Such 

Customer-CM Transactions are governed by the standard terms published as an Exhibit to the 

Clearing Rules from time to time. The standard terms set out, among other things, the rights and 

obligations under Customer-CM Transactions relating to customer margin, events of default and 

post-default portability.

 

45 Clearing Rules, Exhibit 2, Paragraph 3 (Cleared Transactions).
Principle 20: FMI links

INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 39

Principle 20: FMI links

An FMI that establishes a link with one or more FMIs should identify, monitor, and manage linkrelated risks.

Summary narrative

ICE Clear Singapore currently does not offer inter-operability links with other CCPs.
Principle 21: Efficiency and effectiveness

INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 40

Principle 21: Efficiency and effectiveness

An FMI should be efficient and effective in meeting the requirements of its participants and the 

markets it serves.

Summary narrative

ICE Clear Singapore is efficient and effective in meeting the requirements of its CMs and the 

markets it serves.

ICE Clear Singapore's objective is to provide secure, capital-efficient counterparty risk 

management and post-trade services for contracts traded on ICE Futures Singapore.

On a regular basis, ICE Clear Singapore uses the following mechanism to review how it 

effectively and efficiently meets the needs of its CMs and markets:

(i) through its trade management application (PTMS) supports an "Ideas" button that allows 

users to comment on system features and request enhancements. Comments are posted 

on ICE Community which is an information network for CMs and vendors to share ideas 

and use as a resource for anything ICE Clear Singapore-related.

(ii) ICE Clear Singapore staff meet with CMs to discuss a variety of commercial, risk and 

operational details.

In order to monitor operational performance, ICE Clear Singapore looks at the following metrics

on a periodic basis:

(a) Creation Time of SPAN Array Files

(b) End-of-Day Processing Settlement Run Times and Report Production

(c) Volume of Trades Processed Daily

(d) Timing of Settlement Instructions to the Banks

(e) Processing Incidents

(f) Clearing Application Uptime
Principle 22: Communication procedures and standards

INTERCONTINENTAL EXCHANGE ICE Clear Singapore Disclosure Framework v 1.0 | 13 November 2015 41

Principle 22: Communication procedures and standards

An FMI should use, or at a minimum accommodate, relevant internationally accepted 

communication procedures and standards in order to facilitate efficient payment, clearing, 

settlement, and recording.

Summary narrative

ICE Clear Singapore uses relevant internationally accepted communication procedures and 

standards in order to facilitate efficient payment, clearing, settlement and recording.

ICE Clear Singapore uses the widely accepted and internationally utilised Society for Worldwide 

Interbank Financial Telecommunication ("SWIFT") for messaging of payment transactions. 

ICE Clear Singapore utilises FIXML real-time trade feeds to communicate trade information. 

FIXML is an internationally recognised, industry-standard messaging protocol used by vendors to 

automate clearing transaction processing.
Principle 23: Disclosure of rules, key procedures , and market data

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Principle 23: Disclosure of rules, key procedures, and market data

An FMI should have clear and comprehensive rules and procedures and should provide sufficient 

information to enable participants to have an accurate understanding of the risks, fees, and other 

material costs they incur by participating in the FMI. All relevant rules and key procedures should 

be publicly disclosed.

Summary narrative

ICE Clear Singapore has clear and comprehensive rules and procedures that provide sufficient 

information to enable CMs to have an accurate understanding of the risks, fees and other 

material costs they incur at ICE Clear Singapore. The Clearing Rules are publicly available on the 

ICE Clear Singapore website.

The Clearing Rules clearly and comprehensively detail the rights and obligations of CMs. The 

Clearing Rules also document the daily operation of ICE Clear Singapore as well as the operation 

of ICE Clear Singapore during non-routine, though foreseeable, events such as CM default46. ICE 

Clear Singapore's policies and procedures also provide further detail regarding its design, 

operations and the various integrated systems used by ICE Clear Singapore.

ICE Clear Singapore has a robust governance process for any changes to the Clearing Rules, 

which includes consultation with multiple stakeholders, public disclosure of all proposed changes 

and notification of material changes. ICE Clear Singapore offers support its CMs support through 

the ICE group's full-service client services and support team that is available at all times. 

ICE Clear Singapore's fees are publicly available on its website and CMs are notified of any 

changes to such fees by circular47.

ICE Clear Singapore most recently completed this Disclosure Framework on the date provided on 

the cover page. This Disclosure Framework is updated following material changes at ICE 

Clearing Singapore and, at a minimum, every two years. Publicly disclosed information is 

available on the ICE Clear Singapore website. All publicly available information is provided in 

English.

 

46 Clearing Rules, Part 2 (Clearing Membership) and Part 9 (Default Rules).

47 Clearing Rules, Rule 301(a) (Fees, Margin, Contract and other payment obligations).