Singapore legislation
Regulation 8
of Securities and Futures (Clearing Facilities) Regulations 2013
Regulation 8
Criteria for deciding whether applicant should be approved as approved clearing house or recognised as recognised clearing house
Subregulation 1
Without prejudice to section 51(10) of the Act, for the purposes of section 52(1)(a) of the Act, the Authority may approve a Singapore corporation as an approved clearing house under section 51(1)(a) of the Act if —
the Authority is satisfied that a disruption in the operations of a clearing facility to be operated by the corporation could —
trigger, cause or transmit further systemic disruptions to the capital markets or financial system of Singapore; or
affect public confidence in the capital markets, financial institutions or financial system of Singapore; or
where sub-paragraph (a) does not apply —
the corporation has applied to be an approved clearing house under section 50(1)(a) of the Act; and
the Authority is satisfied that the corporation is able to meet the obligations of, and comply with the requirements imposed on, an approved clearing house under the Act.
Subregulation 2
Without prejudice to section 51(10) of the Act, for the purposes of section 52(1)(a) of the Act, the Authority may recognise a Singapore corporation as a recognised clearing house under section 51(1)(b) of the Act if, and only if, both sub-paragraphs (a) and (b) of paragraph (1) do not apply.
Subregulation 3
The Authority may have regard to the following matters in determining whether the criteria referred to in paragraph (1)(a) have been satisfied:
the size and structure, or proposed size and structure, of the clearing facility to be operated by the corporation;
the nature of the services provided, or to be provided, by the clearing facility to be operated by the corporation;
the nature of the capital markets products cleared or settled, or to be cleared or settled, on the clearing facility to be operated by the corporation;
the nature of the investors or participants, or proposed investors or participants, who may use or have an interest in the clearing facility to be operated by the corporation;
whether the corporation is regulated by the Authority under the Act or any other written law;
the persons who may be affected in the event that the corporation, or the clearing facility to be operated by the corporation, runs into difficulties;
the interests of the public; and
any other circumstances that the Authority may consider relevant.