Singapore legislation

Clause 24

Emergency powers of Authority

(1)

Where the Authority has reason to believe that an emergency exists, or where the Authority thinks it necessary or expedient in the interest of the public or section of the public or for the protection of investors, the Authority may direct by notice in writing a securities exchange or futures exchange to take such action as it considers necessary to maintain or restore orderly trading in securities or futures contracts or any class of securities or futures contracts or liquidation of any position in respect of any securities or futures contract or any class of securities or futures contracts, including but not limited to —

(a)

terminating or suspending trading on a securities exchange or futures exchange;

(b)

confining trading to liquidation of securities or futures contracts positions;

(c)

ordering the liquidation of all positions or part thereof or the reduction in such positions;

(d)

limiting trading to a specific price range;

(e)

modifying trading days or hours;

(f)

altering conditions of delivery;

(g)

fixing the settlement price at which positions are to be liquidated;

(h)

requiring any person to act in a specified manner in relation to trading in securities or futures contracts or any class of securities or futures contracts;

(i)

requiring margins or additional margins for any securities or futures contracts; and

(j)

modifying or suspending any of the business rules of a securities exchange or futures exchange,and the securities exchange or futures exchange, as the case may be, shall comply with that direction.

(2)

Where a securities exchange or futures exchange fails to comply with the direction of the Authority under subsection (1), within such time as is specified by the Authority, the Authority may —

(a)

set emergency margin levels in any securities or futures contract or class of securities or futures contracts;

(b)

set limits that may apply to market positions acquired in good faith prior to the date of the Authority’s action; or

(c)

take such other action as the Authority thinks fit to maintain or restore orderly trading in any securities or futures contracts or class of securities or futures contracts, or liquidation of any position in respect of securities or futures contract or class of securities or futures contracts.

(3)

In this section, “emergency” means threatened or actual market manipulations and corners, and includes —

(a)

any act of government affecting a commodity or securities;

(b)

any other major market disturbance which prevents the market from accurately reflecting the forces of supply and demand for such commodity or securities; or

(c)

any other undesirable situations or practices which in the opinion of the Authority constitutes an emergency.

(4)

Without prejudice to subsection (1), where a securities exchange or futures exchange takes emergency action under subsection (1), 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, a securities exchange or a futures exchange under this section may, within 30 days after it is notified of the action, appeal to the Minister whose decision shall be final.

(6)

Notwithstanding the lodging of an appeal under subsection (5), any emergency action taken by the Authority, a securities exchange or a futures exchange under this section shall continue to have effect pending the determination or withdrawal of the appeal.

(7)

The Minister may make such modification to any emergency action, taken by the Authority, a securities exchange or a futures exchange, that is the subject of an appeal and such modified emergency action shall have effect.

Read in full context — Securities and Futures Bill →