Commodity Trading Act 1992 · 2020 Revised Edition · Part 6 · Powers of Board
34. Emergency powers
Feedback & supportWhenever the Board has reason to believe that an emergency exists, the Board may direct a commodity market or a clearing house to take such action as it considers necessary to maintain or restore orderly trading in, or liquidation of, any commodity contract or any class of commodity contracts including but not limited to —
Board
“Board” means the Enterprise Singapore Board established by section 3 of the Enterprise Singapore Board Act 2018;
terminating or suspending trading on a commodity market or a clearing house;
confining trading to liquidation of commodity contracts;
ordering the liquidation of all positions or part thereof or the reduction in such positions;
limiting trading to a specific price range;
modifying trading days or hours;
altering conditions of delivery;
fixing the settlement price at which contracts are to be liquidated;
requiring any person to act in a specified manner in relation to trading in commodity contracts or any class of commodity contracts;
requiring additional margins for any contracts; and
modifying or suspending any of the business rules of a commodity market,and the market or clearing house must comply with that direction.
Where a commodity market or a clearing house fails to comply with the direction of the Board under subsection (1) within such time as is specified by the Board, the Board may itself take action to set emergency margin levels in any commodity contract or class of commodity contracts, or to fix limits that may apply to market positions acquired in good faith prior to the date of the Board’s action or any other action, including but not limited to those specified in subsection (1), that it thinks are necessary to maintain or restore orderly trading in, or liquidation of, commodity contracts or any class of commodity contracts.
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 this section, “emergency” includes, in addition to threatened or actual market manipulations and corners, any act of government affecting a commodity or any other major market disturbance which prevents the market from accurately reflecting the forces of supply and demand for such commodity or any other undesirable situations or practices which in the opinion of the Board constitutes an emergency.
commodity
“commodity” means any produce, item, goods or article that is the subject of any —(a)commodity forward contract;(b)leveraged commodity trading;(c)contract made pursuant to trading in differences; or(d)spot commodity trading,and includes an index, a right or an interest in such commodity, and such other index, right or interest of any nature as the Board may, by notification in the Gazette, prescribe to be a commodity; but does not include any produce, item, goods or article that is the subject of a commodity futures contract and any index, right or interest in such produce, item, goods or article;
Without affecting subsection (1) where a commodity market or a clearing house exercises its powers under its rules to take emergency action, the Board may modify such emergency action, including but not limited to the setting aside of that emergency action.
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;
A person who is aggrieved by any action taken by the Board, a commodity market or a clearing house under this section may appeal to the Minister whose decision is final.
Despite the lodging of an appeal under subsection (5), any emergency action taken by the Board, a commodity market or a clearing house under this section continues to have force and effect until such time as the Minister makes a decision on the appeal.