(1) A market operator shall calculate its basic capital requirement as the higher of 6 months operating expenses, as specified in paragraph (2) or (3), or the MORCAAP amount.
(2) For the purpose of calculating the basic capital requirement, a market operator shall use the 6 months operating expenses included in the two most recent sets of quarterly financial statements returns submitted to the Bank adjusted for the following:
(a) subject to the prior written approval of the Bank, the deduction of material non-recurring expenditure incurred in the previous 6 months, and
(b) the addition of material exceptional expenses forecast for the next 6 months.
(3) For the purpose of calculating the basic capital requirement, a market operator, in the 3 years from the date of authorisation, shall use the basic capital requirement as specified in paragraph (1) and (2) and -
(a) 12 months operating expenses,
(b) 12 months capital expenditure, and
(c) such capital add-on as may be specified by t