Whole Section

  • 5.9 Customer Margin Management for Trading Members

    • 5.9.1

      Where a Trading Member collects margins from a customer in connection with trades executed on SGX-ST, regardless of whether such margin is required to under the Rules, the following shall apply:

      (a) subject to Rule 10.9.5, nothing in the Rules prohibits the Trading Member from imposing margin requirements, haircut rates or discounts, payment periods for customers to deposit collateral, and valuations of positions and collateral, and from making calls for additional margins, as it sees fit; and
      (b) where a customer fails to meet a margin call, the Trading Member shall have the discretion to take such action as it may deem appropriate, without giving notice to the customer, to reduce its exposures to the customer. Such actions may include liquidating all or any part of the customer's collateral deposited with the Trading Member, or taking action to liquidate or offset all or any part of the customer's positions. SGX-ST may also order such Trading Member to immediately take such action to offset all or such part of the positions of the customer to rectify the deficiency.

      Added on 3 June 20193 June 2019.