Singapore legislation
Clause 41
Clause 41
Emergency powers
(1)
Whenever the Authority has reason to believe that an emergency exists, it may direct an Exchange or a clearing house to take such action as the Authority considers necessary to maintain or restore orderly trading in, or liquidation of, any futures contract, or any class of futures contracts including but not limited to —
terminating or suspending trading on an Exchange or a clearing house;
confining trading to liquidation of futures contracts;
ordering the liquidation of all positions or part thereof or the reduction in such positions;
limiting trading to a specific price range;
modifying trading days or hours;
altering conditions of delivery;
fixing the settlement price at which contracts are to be liquidated;
requiring any person to act in a specified manner in relation to trading in futures contracts or any class of futures contracts;
requiring additional margins for any contracts; and
modifying or suspending any of the business rules of an Exchange,and the Exchange or clearing house shall comply with that direction.
(2)
Where an Exchange or a clearing house fails to comply with the direction of the Authority under subsection (1), within such time as is specified by the Authority, the Authority may itself take action to set emergency margin levels in any futures contract, or class of futures contracts, or to fix limits that may apply to market positions acquired in good faith prior to the date of the Authority’s action or such other action, including but not limited to those specified in subsection (1), as it thinks are necessary to maintain or restore orderly trading in or liquidation of futures contracts, or any class of futures contracts.
(3)
In this section, “emergency” includes, in addition to threatened or actual market manipulations and corners, any act of government affecting a commodity or any other major market disturbance which prevents the market from accurately reflecting the forces of supply and demand for such commodity or any other undesirable situations or practices which in the opinion of the Authority constitutes an emergency.
(4)
Without prejudice to subsection (1), where an Exchange or a clearing house exercises its powers under its rules to take emergency action, the Authority may modify such emergency action, including but not limited to the setting aside of that emergency action.
(5)
Any person who is aggrieved by any action taken by the Authority or an Exchange or a clearing house under this section may appeal to the Minister whose decision shall be final and shall not be challenged in any court.
(6)
Notwithstanding the lodging of an appeal under subsection (5), any emergency action taken by the Authority, an Exchange or a clearing house under this section shall continue to have force and effect until such time as the Minister makes a decision on the appeal.