Singapore legislation
Regulation 25
of Securities and Futures (Clearing Facilities) Regulations 2013
Regulation 25
Permissible investment of customers’ money by approved clearing house
Subregulation 1
For the purposes of section 60(1)(c) of the Act, an approved clearing house may invest any money or assets deposited or paid for or in relation to the contracts of a customer of a member of the approved clearing house and held by the approved clearing house in the course of its clearing or settlement activities, including any money or assets deposited in a custody account referred to in regulation 23(2)(a) or (3)(a), in any of the following:
debentures of the Government;
if the money deposited with or paid to the approved clearing house is in the currency of a foreign country or territory, debentures of the government of that country or territory;
negotiable certificates of deposit;
money market funds.
Subregulation 2
The approved clearing house shall seek the approval of the Authority before investing any money or assets under paragraph (1).
Subregulation 3
When seeking the approval of the Authority under paragraph (2), the approved clearing house shall satisfy the Authority —
that the management of the investments made by the approved clearing house is consistent with the principles of preserving principal and maintaining sufficient liquidity to meet the obligations of customers of members of the approved clearing house;
that prudential measures have been adopted to manage the risks in respect of the investment activities of the approved clearing house; and
of any other matter which the Authority considers necessary for the sound management of the investments.
Subregulation 4
The Authority may grant the approval under paragraph (2) subject to such conditions or restrictions as the Authority may think fit.