5.11.2 Preference Shares

Past version: Effective up to 28 Dec 2014

(1) Each General Clearing Member incorporated in Singapore shall immediately notify CDP prior to the date of issue of any preference share.
(2) A General Clearing Member incorporated in Singapore shall not redeem any redeemable preference share that is computed as part of its financial resources:—
(a) unless the General Clearing Member notifies CDP within such time before the proposed date of redemption as prescribed by the SFR (Financial and Margin Requirements);
(b) if at the date of redemption:—
(i) its financial resources (including qualifying letters of credit referred to in Rule 5.1C) are less than 150% of its total risk requirement; or
(ii) its aggregate indebtedness exceeds 600% of its aggregate resources;
(c) if such redemption will cause an event in Rule 5.11.2(2)(b) to occur; or
(d) if CDP has prohibited in writing such a redemption.

Amended on 1 July 20081 July 2008.