Singapore legislation
Regulation 46
of Securities and Futures (Clearing Facilities) Regulations 2013
Regulation 46
Permissible investment of customers’ money by recognised clearing house
Subregulation 1
A recognised 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 recognised clearing house and held by the recognised clearing house in the course of its clearing or settlement activities, including any money deposited in a custody account referred to in regulation 44(2)(a) or (3)(a), in any of the following:
debentures of the Government;
if the money deposited with or paid to the recognised 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 recognised 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 recognised clearing house shall satisfy the Authority —
that the management of the investments made by the recognised clearing house is consistent with the principles of preserving principal and maintaining sufficient liquidity to meet the obligations of customers of members of the recognised clearing house;
that prudential measures have been adopted to manage the risks in respect of the investment activities of the recognised 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.