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  • 10.8 Internal Controls

    • 10.8.1

      A Trading Member must establish and maintain adequate internal control systems to:

      (a) set credit limits or position limits;
      (b) monitor positions to manage market and credit risks, and comply with notification requirements on monitoring thresholds as prescribed by SGX-ST;
      (c) compute and collect margins, including conducting daily valuation of customers' positions and collateral;
      (d) monitor margin calls;
      (e) manage customers' accounts that are in margin deficit;
      (f) manage customers' accounts that may fail to meet settlement obligations;
      (g) define and manage sources of liquidity to ensure that there are sufficient liquidity facilities to meet increased settlement obligations;
      (h) limit the impact of significant market movements through the use of tools such as cash flow projections, stress testing or credit limits; and
      (i) meet such other requirements as SGX-ST may prescribe from time to time.

      Added on 3 June 20193 June 2019.