Clause 36

a corporation;

an overseas securities exchange; or

an overseas futures exchange.

the applicant will ensure that, as far as is reasonably practicable, it will operate an orderly, informed and fair securities market or futures market;

the applicant will manage any risks associated with the applicant’s business and operations prudently;

the applicant, in discharging its obligations under paragraph (a), will not act contrary to the interests of the public, having particular regard to the interests of the investing public;

the applicant shall enforce compliance by its members with, its business rules and, where appropriate, its listing rules;

the business rules and, where appropriate, listing rules of the applicant make satisfactory provision —

for an orderly, informed and fair market in securities or futures contracts that are traded through its facilities; and

for the proper regulation and supervision of its members;

the applicant has sufficient financial, human and system resources to —

establish and operate a fair and efficient securities market or futures market;

meet contingencies or disasters; and

provide adequate security arrangements; and

it will not be contrary to the interests of the investing public to approve the application.

for the exclusion from membership of persons who are not of good character and high business integrity;

for the expulsion, suspension or disciplining of members for conduct inconsistent with just and equitable principles in the transaction of business, or for a contravention of the business rules or, where appropriate, listing rules of the proposed recognised trading system provider;

with respect to the terms and conditions under which securities may be listed for quotation or quoted on the securities market, or futures contracts may be listed for trading on the futures market, of the proposed recognised trading system provider;

with respect to the class or classes of securities that may be dealt in or futures contracts that may be traded by members and the terms and conditions governing dealings in securities or trading in futures contracts by members;

with respect to fair and properly supervised floor trading practices;

with respect to measures to prevent manipulation, market rigging and artificial market conditions in its securities market or futures market;

with respect to the recording and publishing of details of trading;

with respect to the clearing and other arrangements made and the financial condition of the proposed recognised trading system provider, the clearing house of the proposed recognised trading system provider and the members of the proposed recognised trading system provider, such as to provide reasonable assurance that all obligations arising out of the dealing in securities or trading in futures contracts on the securities market or futures market of that proposed recognised trading system provider will be met;

with respect to the establishment of any compensation arrangement, or any other scheme or system accepted by the Authority, which would compensate customers who suffer pecuniary loss through the defalcation of a member, or any of its directors, officers, employees or representatives, in respect of any money or other property that was entrusted to or received by a member, or any of its directors, officers, employees or representatives, for or on behalf of any person or by reason that the member was a trustee of the money or other property; and

generally for carrying on the business of the proposed recognised trading system provider with due regard to the interests and protection of the investing public.