Singapore legislation

Regulation 2

of Securities and Futures (Clearing Facilities of Approved Exchanges or Recognised Market Operators) (Exemption) Regulations 2023

Regulation 2

Exemption

Subregulation 1

Subject to paragraph (2), an approved exchange or a recognised market operator which establishes or operates a clearing facility is exempt from section 49(1) of the Act.

Subregulation 2

The exemption mentioned in paragraph (1) applies if —

(a)

every transaction that is to be cleared or settled using the clearing facility —

(i)

is executed on an organised market that is established or operated by the approved exchange or recognised market operator, as the case may be; and

(ii)

is not routed by the approved exchange or recognised market operator (as the case may be) to any of the following for clearance or settlement:

(A)

an approved clearing house;

(B)

a recognised clearing house; (C)a person (other than the approved exchange or recognised market operator mentioned in paragraph (1), as the case may be) who operates a clearing facility; and

(b)

every transaction that is to be cleared or settled using the clearing facility is only cleared or settled in either or both of the following ways:

(i)

information relating to the terms of the transaction is verified by the clearing facility with a view to confirming the transaction;

(ii)

the obligations of parties under the transaction are calculated, whether or not such calculations include multilateral netting arrangements.

Subregulation 3

The exemption mentioned in paragraph (1) ceases if any transaction that is cleared or settled using the clearing facility —

(a)

is not executed on an organised market established or operated by the approved exchange or recognised market operator mentioned in paragraph (1), as the case may be;

(b)

is routed by the approved exchange or recognised market operator (as the case may be) to any of the following for clearance or settlement:

(i)

an approved clearing house;

(ii)

a recognised clearing house; (iii)a person (other than the approved exchange or recognised market operator mentioned in paragraph (1), as the case may be) who operates a clearing facility; or

(c)

is not cleared or settled in the manner specified in paragraph (2)(b).

Read in full context — Securities and Futures (Clearing Facilities of Approved Exchanges or Recognised Market Operators) (Exemption) Regulations 2023 →