Whole Section

  • Chapter 1 Application of Rules

    • 1.01 Application of Rules

      • 1.01.1

        This Rules apply to all Clearing Members and operate as a binding contract between the Clearing House and each Clearing Member and between a Clearing Member and any other Clearing Member and for the exclusive benefit only of the parties to such contract(s). Save as otherwise provided in this Rules, a person who is not a party to this Rules has no rights under the Contracts (Rights of Third Parties) Act 2001 to enforce any terms of this Rules.

        Amended on 27 March 200627 March 2006, 22 September 200622 September 2006 and 18 January 2022.

      • 1.01.2

        Except where the Clearing House, SGX RegCo, or any person or entity referred to under Rule 1.01.8 otherwise expressly agree with or expressly commit to any party, the benefit of any performance of obligations under:

        1.01.2.1 this Rules, or
        1.01.2.2 Directives, Practice Notes or Circulars issued by the Clearing House,

        is restricted to only Clearing Members. The Clearing House, its related corporations, SGX RegCo, any person or entity referred to under Rule 1.01.8, and their respective directors, officers, employees, representatives or agents (the "Relevant Persons") shall have no liability to any other party. In particular, the Relevant Persons shall have no liability to any party affected or aggrieved by any alleged action or omission.

        Amended on 27 March 200627 March 2006, 15 September 201715 September 2017 and 3 June 20193 June 2019.

      • 1.01.3

        Without prejudice to Rule 1.01.2 or the benefit of any exclusion of liability in any contract or undertaking, the Relevant Persons accept no duty to and therefore shall have no liability whatsoever to any Clearing Member or any Third Party in contract, tort, trust, as a fiduciary or under any other cause of action in respect of any damage, loss, cost or expense of whatsoever nature suffered or incurred by a Clearing Member or any Third Party, as the case may be, arising out of or in connection with the following, or any thing done or not done as a direct or indirect consequence of the following:

        1.01.3.1 any suspension, restriction or closure of any market whose contracts are cleared by or novated to the Clearing House (each a "Relevant Market"), whether for a temporary period or otherwise or as a result of a decision taken on the occurrence of a market emergency;
        1.01.3.2 any failure by the Clearing House or any Relevant Market to supply each other with data or information in accordance with arrangements from time to time established between and/or amongst any or all such persons;
        1.01.3.3 the failure of any systems, communications facilities or technology supplied, operated or used by the Relevant Persons;
        1.01.3.4 the failure of any systems, communications facilities or technology supplied, operated or used by any Relevant Market;
        1.01.3.5 the inaccuracy of any information supplied to and relied on by the Relevant Persons (including but not limited to any error in the establishment of a settlement price made by a Relevant Market) or a Relevant Market;
        1.01.3.6 any event which is outside the reasonable control of the Relevant Persons;
        1.01.3.7 the Clearing House's clearing and settlement of Contracts, and all other matters as contemplated in this Rules; and
        1.01.3.8 the exercise or non-exercise of any discretion or decision making power under this Rules.

        Amended on 27 March 200627 March 2006, 26 April 201326 April 2013, 15 September 201715 September 2017 and 3 June 20193 June 2019.

      • 1.01.4

        Without prejudice to Rule 1.01.2, and in addition to Rule 1.01.3, each Clearing Member should and must note that in connection with any index used or to be used by the Clearing House for clearing and settlement or in connection or by reference therewith, none of the Relevant Persons or any relevant party that the Clearing House may contract with for the supply of the index or information in relation thereto (each of the foregoing, a "Relevant Party") assume any obligation or liability in connection with the clearing or settlement of any contract based on such index. Accordingly, none of the foregoing parties shall be in any way responsible for any losses, expenses or damages (in all cases direct or indirect) arising in connection with or referable to the clearing or settlement of any contract linked or referable to the said index, provided that nothing herein shall affect either obligations of the Clearing House or its Clearing Members as parties clearing or settling in any contract so linked or referable. None of the Relevant Parties guarantee or warrant or undertake in any manner the accuracy or completeness of any such index or any information or data included in or referable to it.

        NONE OF THE RELEVANT PARTIES MAKES ANY WARRANTY OR GIVES ANY GUARANTEE OR UNDERTAKING, EXPRESS OR IMPLIED, AS TO THE ACCURACY OR COMPLETENESS OF, OR THE RESULTS TO BE OBTAINED BY ANY PERSON OR ENTITY FROM THE USE OF ANY SUCH INDEX, OR ANY INFORMATION OR DATA INCLUDED IN OR REFERABLE TO IT IN CONNECTION WITH ANY CLEARING OR SETTLEMENT OF ANY CONTRACTS OR FOR ANY OTHER USE. NONE OF THE RELEVANT PARTIES MAKES ANY EXPRESS OR IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE WITH RESPECT TO ANY SUCH INDEX, OR ANY INFORMATION OR DATA INCLUDED IN OR REFERABLE TO ANY SUCH INDEX.

        Added on 27 March 200627 March 2006 and amended on 15 September 201715 September 2017.

      • 1.01.5

        All Clearing Members are to note the foregoing and ensure that they are taking on Clearing Membership in and/or will carry on as Clearing Members of the Clearing House, transact and will transact by reference to the Clearing House or any Contract or information or action referable to the Clearing House or any of its directors or officers, only on the foregoing basis and will also ensure that they will not open or allow the continued operation of any account for any person with respect to any Contract unless such person has been notified of the foregoing provisions and has satisfied him/herself or itself that the same is acceptable and is accepted.

        Amended on 27 March 200627 March 2006.

      • 1.01.6

        The Clearing House may waive the application of a Rule (or part of a Rule) to suit the circumstances of a particular case, unless the Rule specifies that the Clearing House shall not waive it. The Clearing House may grant a waiver subject to such conditions as it considers appropriate. Such waiver is only granted if such conditions are satisfied. The Clearing House shall notify any Clearing Member of such waivers as soon as practicable.

        Added on 27 March 200627 March 2006.

      • 1.01.7

        No waiver by the Clearing House of any event of default or breach of any obligation under this Rules shall constitute a waiver of any other event or breach, and no exercise or partial exercise by the Clearing House of any remedy shall constitute a waiver of the right subsequently to exercise that or any other remedy.

        Added on 27 March 200627 March 2006.

      • 1.01.8

        The Clearing House may delegate, assign or grant authority to exercise any of its rights, powers, authorities and discretions under these Rules, including any right to enforce these Rules, to such person or entity as it may determine in its sole discretion, without consent from any Clearing Member

        Where these Rules provide that any power, authority or discretion is to be exercised by the Board, the Board may delegate, assign or grant authority to exercise such power, authority or discretion to any person or entity. The Board may authorise a delegate to sub-delegate.

        Added on 15 September 201715 September 2017.

      • 1.01.9

        SGX RegCo shall have the authority to exercise any rights, powers, authorities and discretions under these Rules, including the right to enforce these Rules. In the exercise of any such rights, powers, authorities and discretions under these Rules, SGX RegCo shall be bound to the same extent as the Clearing House in respect of any obligations arising from the exercise of such rights, powers, authorities and discretions.

        Added on 15 September 201715 September 2017.

    • 1.02 Regard to be had to Purpose or Object of Rules

      • 1.02.1

        The Clearing House may from time to time issue, without limitation, Directives, Practice Notes and Circulars to provide guidance on the interpretation or application of this Rules.

        Added on 27 March 200627 March 2006.

      • 1.02.2

        Directives, Practice Notes and Circulars may only be used in the manner and for such purposes as expressly contemplated under this Rules. "Directives" are binding notices directing Clearing Members to take corrective or other actions in the interests of a safe and efficient clearing facility or in light of investor protection concerns; "Practice Notes" are non-binding guidelines that seek to explain the application and interpretation of a Rule; "Circulars" are binding notices issued by the Clearing House regarding regulatory and non-regulatory matters pertaining to Clearing Members.

        Added on 27 March 200627 March 2006 and amended on 26 April 201326 April 2013 .

      • 1.02.3

        In the interpretation of any provision of this Rules, a construction that would promote the purpose or object underlying this Rules (whether the purpose is expressly stated in this Rules or not) is to be preferred to a construction that would not promote that purpose or object.

        Added on 27 March 200627 March 2006.

    • 1.03 Examples

      • 1.03.1

        If this Rules include an example of the operation of a rule:

        1.03.1.1 the example is not taken to be exhaustive; and
        1.03.1.2 if the example is inconsistent with the Rule, the Rule prevails.

        Amended on 27 March 200627 March 2006.

    • 1.04 Precedence of Instruments

      • 1.04.1

        Save as provided in Rule 1.04.2 below, the relationship between the Clearing House and a Clearing Member shall be governed by this Rules, and the prevailing Directives, Practice Notes or Circulars (which may contain prescribed procedures) and terms and conditions governing the operations, facilities and services provided by the Clearing House (together, the "Clearing Member Terms").

        Added on 27 March 200627 March 2006.

      • 1.04.2

        The Clearing House is only responsible for the performance of those duties which are expressly set out in the SFA, the Act, any applicable legislation and any regulations issued thereunder and the Clearing Member Terms. The Clearing House shall have no implied duties or obligations of any kind whatsoever.

        Added on 27 March 200627 March 2006.

      • 1.04.3

        The order of precedence of the following instruments applicable to the Clearing House and Clearing Members shall be (in descending order of precedence):

        1.04.3.1 legislation;
        1.04.3.2 this Rules;
        1.04.3.3 Directives;
        1.04.3.4 Circulars;
        1.04.3.5 terms and conditions governing the operations, facilities and services provided by the Clearing House;
        1.04.3.6 Practice Notes.

        Added on 27 March 200627 March 2006 and amended on 26 April 201326 April 2013.

      • 1.04.4

        In the event of any conflict between the provisions of the aforesaid instruments, the provisions in an instrument with a higher level of precedence shall prevail over the provisions in an instrument with a lower level of precedence.

        Added on 27 March 200627 March 2006.

    • 1.05 Amendment of Rules

      • 1.05.1

        The Clearing House is prohibited from making any amendments to this Rules unless it complies with such requirements as prescribed by the Authority, under the SFA or under any applicable laws. In addition to these requirements Board approval is required to effect any Rule amendments. These safeguards are designed to promote regulatory transparency and accountability on the part of the Clearing House with respect to its rulemaking process and thereby promote investor confidence.

        Added on 27 March 200627 March 2006 and amended on 31 December 201331 December 2013.

      • 1.05.2

        Any amendment to this Rules shall not come into force unless the prescribed time periods for effecting rule amendments as contemplated under or pursuant to the SFA, any regulations issued thereunder and any applicable laws are met.

        Added on 27 March 200627 March 2006 and amended on 31 December 201331 December 2013.

      • 1.05.3

        Notwithstanding anything to the contrary as set forth above the Clearing House may effect Rule amendments in such manner as directed by the Authority or pursuant to the SFA or other applicable laws.

    • 1.06 Applicable Law, Conflict and Jurisdiction

      • 1.06.2

        In the event of any inconsistency between any provision of this Rules and the rules of any Relevant Market, the provisions of this Rules shall prevail as between any Clearing Member and the Clearing House.

        Added on 27 March 200627 March 2006.

      • 1.06.4

        Rules 1.06.4, 2.02D.1.1, 2.02D.1.2, 2.14.5.2, 7.03A.1.4, 7.03A.5.1 and 7.03A.11, which apply solely to FCM Clearing Members, shall be governed by and construed in accordance with the federal laws of the United States of America. The federal courts of the United States of America shall have non-exclusive jurisdiction to determine any dispute arising from or in connection with such Rules.

        Added on 31 December 201331 December 2013.