Singapore legislation

Clause 9

Power of Authority to approve securities exchange or futures exchange

(1)

A corporation may apply to the Authority for approval to be a securities exchange or futures exchange in such form and manner as the Authority may prescribe.

(2)

The application shall be accompanied by the prescribed fee.

(3)

The Authority may require a corporation to provide the Authority with such further information as it considers necessary in relation to the application, in such form or verified in such manner as the Authority may direct.

(4)

The Authority may, in writing, subject to such conditions or restrictions as it may think fit to impose, approve a corporation as a securities exchange or futures exchange if the Authority is satisfied that —

(a)

the corporation will ensure that, as far as is reasonably practicable —

(i)

in the case of a securities exchange, that it will operate an orderly, informed and fair securities market; or

(ii)

in the case of a futures exchange, that it will operate an orderly, informed and fair futures market;

(b)

the corporation will manage any risks associated with its business and operations prudently;

(c)

the corporation, in discharging its obligations under paragraph (a), will not act contrary to the interests of the public, having particular regard to the interests of the investing public;

(d)

the corporation will enforce compliance by its members with its business rules and, where appropriate, its listing rules;

(e)

the business rules and, where appropriate, listing rules of the corporation make satisfactory provision for —

(i)

an orderly, informed and fair market in securities or futures contracts that are traded through its facilities; and

(ii)

the proper regulation and supervision of its members;

(f)

the corporation has sufficient financial, human and system resources to —

(i)

establish and operate a fair and efficient securities market or futures market;

(ii)

meet contingencies or disasters; and

(iii)

provide adequate security arrangements; and

(g)

it would not be contrary to the interests of the investing public to approve the application.

(5)

For the purposes of subsection (4)(f), “contingencies or disasters” includes events such as technical complications occurring within automated systems.

(6)

The Authority may impose different conditions or restrictions or give different directions with respect to different applications for approval to be a securities exchange or futures exchange.

(7)

An applicant that is aggrieved by the refusal of the Authority to grant an approval under subsection (4) may, within 30 days after it is notified of the decision, appeal to the Minister whose decision shall be final.

(8)

The Authority shall give notice in the Gazette of any securities exchange or futures exchange that has been approved under this section.

(9)

A securities exchange or futures exchange which contravenes any of the conditions or restrictions specified under subsection (4) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $200,000 and, in the case of a continuing offence, to a further fine not exceeding $20,000 for every day or part thereof during which the offence continues after conviction.

Read in full context — Securities and Futures Bill →