Singapore legislation

Clause 63

Power of Authority to issue directions to clearing house

(1)

The Authority may, if it thinks it necessary or expedient —

(a)

for ensuring fair and orderly securities markets or futures markets, or for ensuring fair, orderly and expeditious clearing and settlement of transactions in securities or futures contracts;

(b)

for ensuring the integrity of, and proper management of systemic risks in securities markets or futures markets; or (c)in the interests of the public or section of the public or for the protection of investors,issue directions by notice in writing either of a general or specific nature to a clearing house.

(2)

Without prejudice to the generality of subsection (1), any direction issued under that subsection may relate to —

(a)

the clearing or settlement of securities or futures contracts and the making of adjustments of contractual obligations arising out of those securities or futures contracts;

(b)

the manner in which a clearing house carries on its business; and

(c)

any other matter which the Authority considers necessary for the proper administration of this Act,and the clearing house shall comply with any such direction.

(3)

A clearing house which, without reasonable justification or excuse, contravenes a direction issued under subsection (1) 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.

(4)

For the avoidance of doubt, a direction issued under subsection (1) shall be deemed not to be subsidiary legislation.

Read in full context — Securities and Futures Bill →