Commodity Trading Act 1992 · 2020 Revised Edition · Part 2 · Commodity Market and Clearing House
11. Liabilities of commodity market and clearing house
Feedback & supportA person, who is aggrieved by the failure of a commodity market or a clearing house or any of the directors or employees of the commodity market or clearing house to enforce its business rules or by the contravention of this Act or any regulations made under this Act in the enforcement of the business rules, has a right of action in damages for the actual amount of damages suffered by that person —
commodity market
“commodity market” means —(a)a market, whether in Singapore or elsewhere, at which commodity contracts are regularly made; or(b)an electronic system, whether operating in Singapore or elsewhere, through which trading in commodity contracts is carried out, but excludes an electronic facility which merely provides price or other information relating to commodity contracts (whether that facility is part of or carried on in conjunction with the provision of any other information not related to commodity contracts) and which does not permit users of the facility to channel orders for, execute transactions in, or make markets in, commodity contracts;
in any transaction that the person has entered into on or subject to the business rules of a commodity market; and
that is directly attributable to the failure to enforce the business rules, or the contravention of this Act or any regulations made under this Act in the enforcement of the business rules.
No action for damages shall lie against a commodity market or a clearing house, or any of its directors or employees under subsection (1) unless the aggrieved person can show that, in failing to take action or in taking such action as was taken resulting in loss to the aggrieved person, the commodity market or the clearing house, or any of the directors or employees, acted in bad faith.
clearing house
“clearing house”, in relation to a commodity market, means a body corporate that —(a)clears and settles commodity contracts; and(b)makes adjustments to the contractual obligations arising out of those commodity contracts;
The right of action conferred by this section is the exclusive remedy available to any person who suffers loss as a result of an alleged failure of a commodity market or a clearing house, or any of its directors or employees, to enforce its business rules, or the contravention of this Act or any regulations made under this Act in the enforcement of the business rules.
business rules
“business rules”, in relation to a body corporate that maintains or proposes to maintain a commodity market, means the rules, regulations and by-laws, by whatever name called, governing the activities and conduct of —(a)the body corporate and its members;(b)its clearing house; and(c)other persons in relation to the commodity market,whether those rules, regulations or by-laws are made by the body corporate or are contained in the Memorandum and Articles of Association of the body corporate or altered or supplemented by the Board;