Enforcement Actions
Published Date: 08 April 2015

MAS Reprimands CMC Markets Singapore Pte Ltd for Contravention of Regulation 24A of the Securities and Futures (Financial and Margin Requirements for Holders of Capital Markets Services Licences) Regulations (Rg.13) [“SF(FMR) Regs”]

1              On 8 April 2015, MAS reprimanded CMCS Markets Singapore Pte Ltd [“CMCS”] for its contravention of regulation 24A of the SF(FMR) Regs.

2               Regulation 24A(1) of the SF(FMR) Regs states that the holder of a licence who enters into a contract for differences with its customers shall obtain margin from each customer, in the form of acceptable collateral, for the purpose of trading in contracts for differences. Regulation 24A(2) of the SF(FMR) Regs further states that for the purpose of this regulation, margins deposited by customers with the holder of a licence shall be determined in accordance with Table 18 of the Fourth Schedule to the SF(FMR) Regs and such other requirements as MAS may from time to time specify by notice in writing.

3               CMCS had contravened regulation 24A of the SF(FMR) Regs as it had failed to apply the relevant prescribed margin rates in the SF(FMR) Regs for one of its clients for the period between 12 November 2012 and 17 February 2014. CMCS used rates that were lower than required in the SF(FMR) Regs in this instance.

MAS expects all capital markets services licensees to ensure that they comply with the provisions of the Securities and Futures Act, its regulations and all applicable regulatory requirements at all times.