Singapore legislation
Regulation 12
of Financial Services and Markets (Resolution of Financial Institutions) Regulations 2024
Regulation 12
Rights and liabilities connected with clearing and settlement arrangement of market infrastructure
Subregulation 1
A transfer of a part (but not the whole) of the business of a transferor under section 66 of the Act must not provide for the transfer of some, and not all, of the rights and liabilities of the transferor that arise from a clearing and settlement arrangement of a market infrastructure, if the failure to transfer any such right or liability will result in a disruption of the arrangement.
Subregulation 2
Without limiting the circumstances that constitute a disruption of the clearing and settlement arrangement of a market infrastructure, any of the following is considered a disruption of the arrangement under paragraph (1):
a disruption of the discharge of payment and delivery obligations in respect of transactions cleared and settled through the market infrastructure;
a disruption of the operation of the business rules of the market infrastructure relating to settlement finality;
a disruption of the operation of the business rules of the market infrastructure regarding processes to be observed on the default of a participant.
Subregulation 3
In this regulation, “clearing and settlement arrangement”, in relation to a market infrastructure, means any of the following that is governed by the business rules of the market infrastructure:
a market contract;
the business rules of the market infrastructure relating to the settlement of a market contract;
any proceedings or other actions taken under the business rules;
a market charge;
the provision of market collateral;
the default rules of the market infrastructure;
any default proceedings.
Subregulation 4
In paragraph (3), “default proceedings”, “default rules”, “market charge”, “market collateral” and “market contract” have the meanings given by section 48(1) of the Securities and Futures Act 2001, with the reference in each definition to an approved clearing house or a recognised clearing house substituted with a reference to a market infrastructure.