Singapore legislation
Regulation 12
of Securities and Futures (Clearing Facilities) Regulations 2013
Regulation 12
Obligation to seek Authority’s approval
Subregulation 1
An approved clearing house shall seek the approval of the Authority —
prior to making any change to the risk management frameworks of the approved clearing house, including the types of collateral accepted by it, the methodologies for collateral valuation and the determination of margins to manage its risk exposure to its participants, and the size of the financial resources available to it to support a default of its member; and
prior to commencing any linkage, arrangement or co-operative arrangement referred to in regulation 11(3).
Subregulation 2
The Authority may grant its approval referred to in paragraph (1) subject to such conditions and restrictions as the Authority may think fit, and the approved clearing house shall comply with those conditions and restrictions.
Subregulation 3
For the purposes of paragraph (1)(a), the financial resources available to an approved clearing house to support a default of its member shall not include margins held with the approved clearing house.