Singapore legislation
Regulation 21
of Securities and Futures (Clearing Facilities) Regulations 2013
Regulation 21
Regulation of clearing fees of specified approved clearing houses
Subregulation 1
An approved clearing house specified in Part I of the Third Schedule shall not, without the prior approval of the Authority under paragraph (4) —
impose any clearing fee on its participants in respect of any service or services provided by the approved clearing house; or
modify, restructure or otherwise change any existing clearing fee imposed on its participants.
Subregulation 2
An application to the Authority for approval under paragraph (4) shall be made in Form 5.
Subregulation 3
Where an approved clearing house has made an application under paragraph (2), the Authority may require the approved clearing house to furnish the Authority with such information or documents as the Authority considers necessary in relation to the application, and the approved clearing house shall comply with that requirement.
Subregulation 4
The Authority shall, within 20 business days after receiving a completed application under paragraph (2), by notice in writing to the approved clearing house, either grant the approval or notify the approved clearing house of the Authority’s intention to refuse to grant the approval.
Subregulation 5
The Authority may, by notice in writing to the approved clearing house, extend the period referred to in paragraph (4) —
in the first instance, to a period of up to 35 business days after receiving the completed application under paragraph (2); or
upon the expiry of the period referred to in sub‑paragraph (a), for such further period as the Authority thinks fit.
Subregulation 6
Before the Authority extends under paragraph (5)(b) the period referred to in paragraph (4), the Authority shall give the approved clearing house an opportunity to be heard.
Subregulation 7
In deciding whether to grant or refuse approval under paragraph (4), the Authority may have regard to the following matters:
the effect of the proposed imposition of or change in the clearing fee on —
competition in the financial services industry of Singapore; and
access to clearing or settlement services in Singapore;
the cost of providing the service to which the proposed imposition or change applies;
the effect of the proposed imposition or change on the cost and efficiency of trading, clearing and settlement in Singapore of the capital markets products specified in Part II of the Third Schedule; and
the effect of the proposed imposition or change on the objectives of the Authority as specified in section 4(1)(b) of the Monetary Authority of Singapore Act (Cap. 186).
Subregulation 8
The Authority may grant its approval under paragraph (4) subject to such conditions or restrictions as the Authority may think fit to impose by notice in writing to the approved clearing house, including conditions or restrictions relating to —
the period for which the approval of a clearing fee will be in force;
the circumstances under which, or date by which, upon the expiry of the period referred to in sub-paragraph (a), the approved clearing house will be required to submit another application under paragraph (2) for approval of the clearing fee; and
the circumstances under which, or the changes in the clearing fee for which, upon the expiry of the period referred to in sub-paragraph (a), the approved clearing house will not be required to submit another application under paragraph (2) for approval of a change in the clearing fee.
Subregulation 9
The Authority shall not refuse to grant its approval under paragraph (4) without giving the approved clearing house an opportunity to be heard.
Subregulation 10
An approved clearing house may only charge a clearing fee approved by the Authority under paragraph (4) for the service or services in respect of which that fee was approved.
Subregulation 11
Any clearing fee charged by the company known as The Central Depository (Pte) Limited immediately before 1st August 2013 shall be deemed to be a clearing fee approved by the Authority under paragraph (1), subject to such conditions or restrictions as the Authority may think fit to impose by notice in writing.
Subregulation 12
In this regulation, “clearing fee” means any fee, tariff or compensation for clearing or settlement of transactions in the capital markets products specified in Part II of the Third Schedule.