Statute Details
- Title: Securities and Futures (Clearing Facilities) (Savings and Transitional Provisions) Regulations 2013
- Act Code: S459-2013
- Legislation Type: Subsidiary legislation (SL)
- Enacting Authority: Made under the powers conferred by section 95 of the Securities and Futures (Amendment) Act 2012
- Commencement: 1 August 2013
- Current Version: Current version as at 27 March 2026 (per the platform status)
- Key Provisions: Section 1 (citation and commencement); Section 2 (definitions); Section 3 (corporations deemed to be approved clearing houses); Schedule (approved clearing houses)
- Primary Parent Act: Securities and Futures Act (Cap. 289)
- Related Legislation: Futures Act
What Is This Legislation About?
The Securities and Futures (Clearing Facilities) (Savings and Transitional Provisions) Regulations 2013 (“the Regulations”) are a transitional instrument designed to ensure continuity when Singapore’s regulatory framework for clearing facilities was amended. In practical terms, the Regulations prevent regulated clearing businesses from experiencing a regulatory “gap” when the legal basis for approval and oversight changed on 1 August 2013.
Clearing facilities are central to the functioning of securities and derivatives markets. They manage counterparty risk by interposing themselves between buyers and sellers and by ensuring that trades are settled reliably. Because clearing houses are systemically important, Singapore regulates them through a regime of approval and ongoing supervisory conditions imposed by the Monetary Authority of Singapore (“the Authority”).
This set of Regulations is narrow in scope. It does not create a new substantive clearing framework from scratch. Instead, it “saves” existing arrangements and converts certain existing operators into the new legal category of “approved clearing house” under the Securities and Futures Act (“the Act”), while preserving conditions previously imposed by the Authority.
What Are the Key Provisions?
Section 1 (Citation and commencement) is straightforward. It provides that the Regulations may be cited as S 459/2013 and that they come into operation on 1 August 2013. For practitioners, the commencement date matters because the transitional effects in section 3 are anchored to that date.
Section 2 (Definitions) ensures interpretive consistency with the Act. It defines “Act” as the Securities and Futures Act (Cap. 289) and imports key defined terms—such as “approved clearing house”, “Authority”, “clearing facility”, and “recognised clearing house”—by reference to the Act’s definitions in section 2(1). It also defines “Singapore corporation” by reference to section 48(1) of the Act. This cross-referencing is typical for subsidiary legislation that operates within a broader statutory scheme.
Section 3 (Corporations deemed to be approved clearing houses) is the core operative provision and should be read carefully. It contains three main mechanisms: (1) a deeming provision for specified corporations; (2) a “continuity of conditions” provision; and (3) an express power for the Authority to impose further conditions.
First, section 3(1) creates a deeming effect. It provides that every Singapore corporation specified in the Schedule, which was immediately before 1 August 2013 operating a clearing facility, is deemed—on and after that date—to have been approved as an approved clearing house under section 51(1)(a) of the Act, with effect from 1 August 2013. The legal significance of “deemed to have been approved” is that the corporation does not need to obtain a fresh approval decision to satisfy the new statutory requirement; approval is treated as having been granted by operation of law.
Second, section 3(2) preserves existing regulatory conditions. It states that every condition or restriction imposed by the Authority on the specified corporation under Part III of the Act in force immediately before 1 August 2013 continues in force after that date as if the condition or restriction had been imposed under section 51(4) of the Act. This is a classic “savings” provision: it avoids the risk that conditions imposed under the former regime would lapse or require re-imposition under the new regime.
Third, section 3(3) confirms the Authority’s ongoing supervisory discretion. Without prejudice to section 3(2), the approval is subject to such conditions or restrictions as the Authority may think fit to impose under section 51(4) by notice in writing to the corporation. This means that while existing conditions continue automatically, the Authority retains the power to adjust the regulatory perimeter going forward. For regulated entities, this is important: transitional continuity does not freeze supervisory oversight.
The Schedule is also critical in practice. It lists the “approved clearing houses” that are captured by the deeming provision in section 3(1). Although the extract provided does not reproduce the Schedule’s contents, the Schedule is the gatekeeper: only the Singapore corporations named there benefit from the deeming approval and the associated savings of conditions.
How Is This Legislation Structured?
The Regulations are structured in a compact, three-part format typical of transitional subsidiary legislation:
(1) Enacting formula and short title/commencement: The Regulations are made under the Securities and Futures (Amendment) Act 2012 and specify their commencement on 1 August 2013.
(2) Definitions (section 2): Key terms are defined by reference to the Act, ensuring consistent interpretation.
(3) Transitional operative provision (section 3): The deeming of specified corporations as approved clearing houses, the saving of existing conditions/restrictions, and the confirmation of the Authority’s power to impose further conditions.
(4) Schedule: The Schedule identifies the Singapore corporations that are captured by the transitional deeming mechanism. In regulatory practice, the Schedule is often where the “real-world” impact is determined.
Who Does This Legislation Apply To?
The Regulations apply to Singapore corporations that are specified in the Schedule and that were operating a clearing facility immediately before 1 August 2013. The deeming approval is not universal for all clearing facility operators; it is limited to those named in the Schedule.
Accordingly, the Regulations are relevant primarily to the corporate entities that operate clearing facilities and to their counsel and compliance teams. They also matter to the Authority, because the Regulations preserve the legal effect of conditions previously imposed and clarify that the Authority can continue to impose conditions under the updated statutory framework.
Why Is This Legislation Important?
From a legal and compliance perspective, the Regulations are important because they provide regulatory continuity. In financial market regulation, even short gaps in approval status or uncertainty about the enforceability of conditions can create operational risk, governance issues, and potential breaches of statutory obligations. By deeming specified corporations to be approved clearing houses with effect from 1 August 2013, the Regulations ensure that the transition to the amended approval regime does not disrupt clearing operations.
The savings of conditions in section 3(2) is equally significant. Conditions imposed by the Authority under the prior regime are not treated as obsolete. Instead, they are “carried over” and treated as if imposed under the new statutory provision. This reduces administrative burden and prevents disputes about whether a condition remains enforceable after the legislative change.
Finally, section 3(3) underscores that the transitional mechanism does not reduce regulatory oversight. The Authority can impose additional or revised conditions by notice in writing under section 51(4) of the Act. For practitioners advising clearing houses, this means that while the entity’s approval status is secured by deeming, the compliance programme must remain responsive to supervisory directions.
Related Legislation
- Securities and Futures Act (Cap. 289) (including sections on approved clearing houses and the Authority’s powers under section 51)
- Futures Act
- Securities and Futures (Amendment) Act 2012 (the enabling amendment that led to the transitional regulations)
Source Documents
This article provides an overview of the Securities and Futures (Clearing Facilities) (Savings and Transitional Provisions) Regulations 2013 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.