Singapore legislation

Clause 65

Emergency powers of Authority

(1)

Where the Authority has reason to believe that an emergency exists, or where it is necessary or expedient in the interests of the public or section of the public or for the protection of investors, the Authority may direct by notice in writing a clearing house to take such action as it considers necessary including but not limited to —

(a)

altering conditions of delivery;

(b)

fixing the settlement price at which securities or futures contracts are to be liquidated;

(c)

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

(d)

modifying or suspending any of the business rules of the clearing house,and the clearing house shall comply with that direction.

(2)

Where 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 —

(a)

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

(b)

take such other action, including but not limited to those specified in subsection (1), as the Authority thinks fit to maintain or restore fair, orderly and expeditious clearing and settlement of transactions in securities or futures contracts or any 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;

(b)

any other major market disturbance which prevents the market from accurately reflecting the forces of supply and demand for such commodity; 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 clearing house 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 or a clearing house under this section may, within 30 days after he 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 or a clearing house 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 or a clearing house, that is the subject of an appeal and such modified emergency action shall have effect.

Read in full context — Securities and Futures Bill →