Singapore legislation
Section 81S
Section 81S
Emergency powers of Authority
(1)
Where the Authority has reason to believe that an emergency exists, or thinks that it is necessary or expedient in the interests of the public or a section of the public or for the protection of investors, the Authority may direct by written notice an approved clearing house or a recognised clearing house to take such action as the Authority considers necessary to maintain or restore the safe and efficient operation of the clearing facilities operated by the approved clearing house or recognised clearing house.
(2)
Without affecting subsection (1), the actions which the Authority may direct an approved clearing house or a recognised clearing house to take include —
ordering the liquidation of all positions or any part thereof, or the reduction of such positions;
altering the conditions of delivery of transactions cleared or settled, or to be cleared or settled, through the clearing facility;
fixing the settlement price at which transactions are to be liquidated;
requiring margins or additional margins for transactions cleared or settled, or to be cleared or settled, through the clearing facility; and
modifying or suspending any of the business rules of the approved clearing house or recognised clearing house.
(3)
Where an approved clearing house or a recognised clearing house fails to comply with any direction of the Authority under subsection (1) within such time as is specified by the Authority, the Authority may —
set margin levels for transactions cleared or settled, or to be cleared or settled, through the clearing facility to cater for the emergency;
set limits that may apply to positions acquired in good faith prior to the date of the notice issued by the Authority; or
take such other action as the Authority thinks fit to maintain or restore the safe and efficient operation of the clearing facilities operated by the approved clearing house or recognised clearing house.
(4)
In this section, “emergency” means any threatened or actual market manipulation or cornering, and includes —
any act of any government affecting any commodity or financial instrument;
any major market disturbance which prevents a market from accurately reflecting the forces of supply and demand for any commodity or financial instrument; or
any undesirable situation or practice which, in the opinion of the Authority, constitutes an emergency.
(5)
The Authority may modify any action taken by an approved clearing house or a recognised clearing house under subsection (1), including the setting aside of that action.
(6)
Any person who is aggrieved by any action taken by the Authority, or by an approved clearing house or a recognised clearing house, under this section may, within 30 days after the person is notified of the action, appeal to the Minister, whose decision is final.
(7)
Despite the lodging of an appeal under subsection (6), any action taken by the Authority, or by an approved clearing house or recognised clearing house, under this section continues to have effect pending the Minister’s decision.
(8)
The Minister may, when deciding an appeal under subsection (6), make such modification as he or she considers necessary to any action taken by the Authority, or by an approved clearing house or a recognised clearing house, under this section, and any such modified action has effect from the date of the Minister’s decision.
(9)
Any approved clearing house or recognised clearing house which fails to comply with a direction issued under subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $150,000 and, in the case of a continuing offence, to a further fine not exceeding $15,000 for every day or part of a day during which the offence continues after conviction.