Singapore legislation
Clause 51
Clause 51
Power of Authority to approve clearing house
(1)
A corporation may apply to the Authority for approval to be a clearing house in such form and manner as the Authority may prescribe.
(2)
The application shall be accompanied by the prescribed fee.
(3)
The Authority may require a corporation to provide the Authority with such further information as it considers necessary in relation to the application, in such form or verified in such manner as the Authority may direct.
(4)
The Authority may, in writing, subject to such conditions or restrictions as it may think fit to impose, approve a corporation as a clearing house if the Authority is satisfied that —
the corporation will ensure that, as far as is reasonably practicable, there are orderly, fair and expeditious clearing arrangements for transactions in securities or futures contracts;
the corporation will manage any risks associated with its business and operations prudently;
the corporation, 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 corporation will enforce compliance by its members with its business rules;
the business rules of the corporation make satisfactory provision for —
the proper regulation and efficient operation of the clearing facility which it operates; and
the proper regulation and supervision of its members;
the corporation has sufficient financial, human and system resources to —
establish and operate an orderly, fair and expeditious clearing facility;
meet contingencies or disasters; and
provide adequate security arrangements; and (g)it would not be contrary to the interests of the investing public to approve the application.
(5)
The Authority may impose different conditions or restrictions or give different directions with respect to different applications for approval to be a clearing house.
(6)
An applicant that is aggrieved by the refusal of the Authority to grant an approval under subsection (4) may, within 30 days after he is notified of the decision, appeal to the Minister whose decision shall be final.
(7)
The Authority shall give notice in the Gazette of any clearing house that has been approved under this section.
(8)
A clearing house which contravenes any of the conditions or restrictions imposed under subsection (4) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part thereof during which the offence continues after conviction.
(9)
For the purposes of subsection (4)(f), “contingencies or disasters” includes, but is not limited to, events such as technical complications occurring within automated systems operated by the clearing house.