Membership Requirements

Membership Requirements 2018-04-20T03:24:38+00:00

Membership Requirements

Type of Membership Broker Member Approved Supplier
Minimum Capital and Financial Requirement Singapore based Capital Market Services Licence or Commodity Broker Licence holder must comply with the financial requirements of either the Securities and Futures Act or the Commodity Trading Act’s requirement respectively

Remote Broker Members must maintain a Net Capital* of US$1m at all times

Approved Supplier must maintain a Net Capital* of US$1m at all times
Permitted Activities
  • Undertake agency trades for Accredited Investors** or such other class of investors as the Exchange may prescribe
  • Proprietary Trading
  • Consign physical diamonds to the Exchange for trading
  • Recall of physical diamonds consigned to but not traded on the Exchange
  • Proprietary Trading
Admission Criteria
  • Must be a corporation or partnership
  • Must hold relevant licenses or be exempted from licensing in the jurisdiction of its operations
  • Must comply with minimum financial requirements at all times
  • Applicant must have established track record
  • Must establish a physical office in Singapore unless it is a Remote Member
  • Must have fit and proper personnel to run the company
  • Only accept Accredited Investors or such other class of investors as the Exchange may prescribe as customers
  • Must have sufficient resources and staff to ensure compliance with Exchange Rules
  • Must be a corporation or partnership
  • Applicant must be reputable and have established track record
  • Must comply with minimum financial requirements at all times
  • Must have an active commercial interest in the sourcing and supply of diamonds to be traded on the Exchange
  • Must have legal and beneficial ownership and good title of the diamonds it consigns for trading. Such diamonds must be clear and free of any mortgage, charge, lien, encumbrance etc
  • Must agree to provide the Exchange with written documentation of its source of diamonds and process of sourcing for diamonds upon request
  • Must have fit and proper personnel to run the company
  • Must have sufficient resources and staff to ensure compliance with Exchange Rules
Persons required to be registered with the Exchange
  • Person entering order to be registered as Registered Operator
  • Person entering order to be registered as Registered Operator

*“Net Capital” means the amount by which current assets exceed liabilities, less such other items as may be specified in any Guidance Note issued by the Exchange, and in determining Net Capital:

(a) unrealised profits shall be added and unrealised losses shall be deducted in the accounts of the Member; and

(b) “current assets” and “liabilities” shall be computed in accordance with any Guidance Note issued by the Exchange.

** Accredited Investor means

(a)      an individual:

 (i)      whose net personal assets exceed in value the minimum amount of S$2 million (or its equivalent in a foreign currency); or

(ii)      whose income in the preceding 12 months is not less than S$300,000 (or its equivalent in a foreign currency);

(b)      a corporation with net assets exceeding S$10 million in value (or its equivalent in a foreign currency), as determined by:

(A)     the most recent audited balance-sheet of the corporation; or

(B)     where the corporation is not required to prepare audited accounts regularly, a balance-sheet of the corporation certified by the corporation as giving a true and fair view of the state of affairs of the corporation as of the date of the balance-sheet, which date shall be within the preceding 12 months;

(c)      the trustee of a trust of which all property and rights of any kind whatsoever held on trust for the beneficiaries of the trust exceed S$10 million in value (or its equivalent in a foreign currency);

(d)      an entity (other than a corporation) with net assets exceeding S$10 million in value (or its equivalent in a foreign currency);

(e)      a partnership (other than a limited liability partnership within the meaning of the Limited Liability Partnerships Act (Chapter 163A of Singapore) in which each partner is an Accredited Investor; or

(f)      a corporation, the sole business of which is to hold investments and the entire share capital of which is owned by one or more persons, each of whom is an Accredited Investor.