Securities and Futures Act 2001 · 2020 Revised Edition · Part 2 · Organised Markets
46AA. Emergency powers of Authority
Feedback & supportLast amended by an amending law of 2017.
Where the Authority has reason to believe that an emergency exists, or thinks that it is necessary or expedient in the interests of the public or a section of the public or for the protection of investors, the Authority may by written notice direct an approved exchange or a recognised market operator (as the case may be) to take such action as the Authority considers necessary to maintain or restore the fair, orderly and transparent operation of the organised markets operated by the approved exchange or recognised market operator, as the case may be.
Without affecting subsection (1), the actions which the Authority may direct an approved exchange or a recognised market operator (as the case may be) to take include —
approved exchange
“approved exchange” means a corporation that is approved by the Authority under section 9(1)(a) as an approved exchange;
terminating or suspending trading on the organised market operated by the approved exchange or recognised market operator;
confining trading to liquidation of positions in capital markets products;
ordering the liquidation of any position or all positions or the reduction in any position or all positions;
limiting trading to a specific price range;
modifying trading days or hours;
altering conditions of delivery;
fixing the settlement price at which positions are to be liquidated;
requiring any person to act in a specified manner in relation to trading in capital markets products or any class of capital markets products;
requiring margins or additional margins for any capital markets products; and
modifying or suspending any of the business rules, or listing rules (as the case may be) of the approved exchange or recognised market operator, as the case may be.
Where an approved exchange or a recognised market operator fails to comply with any direction of the Authority under subsection (1) within such time as is specified by the Authority, the Authority may —
recognised market operator
“recognised market operator” means a corporation that is recognised by the Authority under section 9(1)(b) or (2) as a recognised market operator;
set margin levels in any capital markets products or class of capital markets products to cater for the emergency;
set limits that may apply to positions acquired in good faith by any person prior to the date of the notice issued by the Authority; or
take such other action to maintain or restore the fair, orderly and transparent operation of the organised markets operated by the approved exchange or recognised market operator, as the case may be.
In this section, “emergency” means any threatened or actual market manipulation or cornering, and includes —
any act of any government affecting any commodity or financial instrument;
any major market disturbance that prevents an organised market from accurately reflecting the forces of supply and demand for any commodity or financial instrument; or
any undesirable situation or practice that, in the opinion of the Authority, constitutes an emergency.
The Authority may modify any action taken by an approved exchange or a recognised market operator under subsection (1), including the setting aside of that action.
Any person which is aggrieved by any action taken under this section by the Authority, an approved exchange or a recognised market operator, may, within 30 days after the person is notified of the action, appeal to the Minister whose decision is final.
Despite the lodging of an appeal under subsection (6), any action taken under this section by the Authority, an approved exchange or a recognised market operator, continues to have effect pending the Minister’s decision.
The Minister may, when deciding an appeal under subsection (6), make such modification as the Minister considers necessary to any action taken under this section by the Authority, an approved exchange or a recognised market operator, and such modified action has effect starting on the date of the Minister’s decision.
Any approved exchange or recognised market operator which fails to comply with a direction issued under subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $150,000 and, in the case of a continuing offence, to a further fine not exceeding $15,000 for every day or part of a day during which the offence continues after conviction.