Singapore legislation
Regulation 7
of Securities and Futures (Clearing Facilities) Regulations 2013
Regulation 7
Minimum requirements for approval or recognition
Subregulation 1
For the purposes of section 51(7) of the Act, the Authority shall not approve an applicant as an approved clearing house, unless the applicant has demonstrated to the Authority’s satisfaction that —
the applicant is able to meet the obligations of, and comply with the requirements imposed on, an approved clearing house under the Act; and
the applicant is able to maintain a minimum base capital of at least $10,000,000.
Subregulation 2
For the purposes of section 51(7) of the Act, the Authority shall not recognise an applicant as a recognised clearing house, unless the applicant has demonstrated to the Authority’s satisfaction that —
the applicant is able to meet the obligations of, and comply with the requirements imposed on, a recognised clearing house under the Act; and
if the applicant is a Singapore corporation, the applicant is able to maintain a minimum base capital of at least $5,000,000.
Subregulation 3
In this regulation, “base capital”, in relation to an applicant, means the amount remaining after deducting any interim loss in the latest accounts of the applicant, and any dividend that has been declared since the latest audited accounts of the applicant, from the sum of the following items:
the paid-up ordinary share capital of the applicant in the latest accounts of the applicant;
the paid-up irredeemable and non-cumulative preference share capital of the applicant in the latest accounts of the applicant;
any unappropriated profit or loss in the latest audited accounts of the applicant; and
any reserves set aside by the applicant solely for the purposes of the applicant’s clearing fund.