Subject to market feedback, the proposal will limit a non-defaulting clearing member’s liability to meet multiple default losses arising within a 30-day period to three times the aggregate of its funded and unfunded clearing fund contributions, known as the prescribed contribution, as determined at the start of the 30-day period.
The Singapore Exchange (SGX:S68
) Group (SGX:S86) (SGX) has proposed a refinement of the existing cap on a clearing member’s liability to meet default losses arising from multiple events of default.
This cap is imposed on clearing members of SGX’s central counterparties (CCPs), namely the Central Depository (CDP) and Singapore Exchange Derivatives Clearing (SGX-DC).
