Statute Details
- Title: Securities and Futures (Clearing Facilities) (Exemption) Regulations 2013
- Act Code: SFA2001-S461-2013
- Legislation Type: Subsidiary legislation (SL)
- Authorising Act: Securities and Futures Act (Cap. 289)
- Enacting Authority: Monetary Authority of Singapore (MAS)
- Commencement: 1 August 2013
- Legislative Instrument Number: SL 461/2013
- Status: Current version as at 27 Mar 2026 (per provided extract)
- Key Provisions:
- Regulation 1: Citation and commencement
- Regulation 2: Exemption from section 49(1) of the Securities and Futures Act while an application under section 50(1)(a), (b) or (2) is pending
What Is This Legislation About?
The Securities and Futures (Clearing Facilities) (Exemption) Regulations 2013 is a short, targeted piece of subsidiary legislation. Its central purpose is to provide a temporary legal “bridge” for certain clearing-related entities during a specific application window in 2013. In practical terms, it prevents a particular statutory requirement in the Securities and Futures Act from applying to eligible “relevant persons” while MAS is considering their applications.
At the heart of the Regulations is an exemption from section 49(1) of the Securities and Futures Act. Although the extract does not reproduce section 49(1) itself, the structure of the exemption indicates that section 49(1) imposes a regulatory obligation or restriction that would otherwise apply to clearing facilities or persons operating them. The exemption is triggered where a relevant person makes an application to MAS under section 50(1)(a), (b), or (2), and the application is pending.
The Regulations are time-bound. They apply to applications made during a defined period—from 1 August 2013 to 1 November 2013—and the exemption continues until the application is granted, refused, or withdrawn. This suggests a transitional regulatory approach: entities that needed to regularise their status (or obtain approvals/recognition/authorisation) were not meant to be immediately blocked by section 49(1) while MAS processed their applications.
What Are the Key Provisions?
Regulation 1 (Citation and commencement) is straightforward. It confirms that the Regulations may be cited as the Securities and Futures (Clearing Facilities) (Exemption) Regulations 2013 and that they come into operation on 1 August 2013. For practitioners, this matters because the exemption in regulation 2 is expressly tied to the commencement date and the application window that follows.
Regulation 2 (Exemption from section 49(1) while an application under section 50 is pending) is the operative provision. Regulation 2(1) provides that where a “relevant person” makes an application to MAS under section 50(1)(a), (b) or (2) during the period beginning on 1 August 2013 and ending on 1 November 2013, then section 49(1 of the Act shall not apply to that relevant person during the period beginning on 1 August 2013 and ending on the date the application is granted, refused, or withdrawn.
This is a classic pending-application exemption. The legal effect is to suspend the operation of section 49(1) for the relevant person, but only in relation to the period while MAS is deciding the application. The exemption is not indefinite; it ends when MAS reaches a decision or when the applicant withdraws the application. For counsel advising on compliance timing, this means the regulatory risk associated with section 49(1) is reduced during the decision period, provided the entity qualifies as a “relevant person” and the application is made within the specified window.
Regulation 2(2) defines “relevant person”. The definition is split into two categories:
- Regulation 2(2)(a): specific named corporations, namely:
- Clearstream Banking S.A.
- Euroclear Bank S.A./N.V.
- LCH.Clearnet Limited
- NOS Clearing ASA
- Regulation 2(2)(b): any person operating, immediately before and on 1 August 2013, a clearing facility for the clearing or settlement of derivatives contracts.
For practitioners, this dual structure is important. It combines (i) a list of internationally known clearing institutions and (ii) a broader “existing operator” category for persons already operating clearing facilities for derivatives at the relevant date. The “immediately before and on 1 August 2013” language indicates that the operator must have been in operation at that time; it is not enough to plan to operate later or to have only recently commenced operations.
Practical compliance point: the exemption is conditional on the applicant making an application under section 50(1)(a), (b) or (2). Counsel should therefore focus not only on whether the entity is a “relevant person,” but also on whether the application is correctly framed under the correct statutory pathway. If the application is made under a different provision, the exemption may not apply.
How Is This Legislation Structured?
The Regulations are structured as a short instrument with two regulations:
- Regulation 1 sets out the citation and commencement date.
- Regulation 2 creates the substantive exemption, including:
- the application window (1 August 2013 to 1 November 2013);
- the exemption period (from 1 August 2013 until the application is granted, refused, or withdrawn);
- the definition of “relevant person” (named corporations and existing derivatives clearing facility operators).
There are no additional parts or schedules in the extract. The brevity reflects the Regulations’ purpose: to address a specific transitional compliance issue rather than to create a comprehensive regulatory framework.
Who Does This Legislation Apply To?
The Regulations apply to “relevant persons” that make an application to MAS under section 50(1)(a), (b) or (2) during the specified period (1 August 2013 to 1 November 2013). The exemption is therefore not universal; it is limited by both person and timing.
There are two main groups. First, the Regulations expressly cover certain named clearing institutions: Clearstream Banking S.A., Euroclear Bank S.A./N.V., LCH.Clearnet Limited, and NOS Clearing ASA. Second, the Regulations cover any person who was already operating a clearing facility for the clearing or settlement of derivatives contracts immediately before and on 1 August 2013. In other words, the Regulations are designed to capture both specific major market participants and other existing derivatives clearing facility operators.
For modern practitioners, it is also important to note the temporal nature of the exemption. The application window is anchored in 2013. While the instrument is shown as “current version” as at 27 March 2026, the exemption’s operative conditions are tied to applications made within that historical window. As a result, the Regulations are likely relevant primarily for historical compliance analysis, transitional arrangements, or understanding how MAS managed regulatory onboarding at that time.
Why Is This Legislation Important?
Even though the Regulations are brief, they illustrate an important regulatory technique: transitional exemptions that prevent operational disruption while regulators process applications. Clearing and settlement activities are critical infrastructure for derivatives markets. If section 49(1) had applied immediately without any pending-application relief, eligible clearing facility operators could have faced compliance uncertainty or operational constraints during the approval process.
From an enforcement and risk perspective, the exemption reduces the likelihood that MAS would treat conduct during the application period as a breach of section 49(1). It also provides legal certainty to applicants: if they meet the definition of “relevant person” and apply within the window, they can rely on the exemption while MAS decides their application.
For practitioners advising on regulatory strategy, the Regulations underscore two drafting points that often matter in compliance work:
- Conditional exemptions are typically tied to both the type of application and the timing of the application.
- Defined eligibility (named entities and a specific “existing operator” test) can be decisive. Counsel should verify factual status as at the relevant date (here, 1 August 2013) and confirm that the entity’s activities fall within “clearing or settlement of derivatives contracts.”
Finally, the Regulations are useful for understanding MAS’s approach to clearing facilities regulation under the Securities and Futures Act framework. They show that MAS can calibrate statutory obligations to avoid gaps or sudden transitions when new regulatory requirements are being implemented or when entities are being brought within a particular licensing/approval regime.
Related Legislation
- Securities and Futures Act (Cap. 289) — in particular:
- Section 49(1) (statutory requirement from which the exemption is granted)
- Section 50(1)(a), (b) and section 50(2) (application provisions that trigger the exemption)
- Section 337(1) (power authorising MAS to make these Regulations)
- Futures Act (mentioned in the provided metadata as related legislation)
- Legislation Timeline / MAS legislative history (for version verification and amendment context)
Source Documents
This article provides an overview of the Securities and Futures (Clearing Facilities) (Exemption) Regulations 2013 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.