On 23/05/2013,
you requested for the version in force on 23/05/2013
incorporating all amendments published on or before 23/05/2013.
The closest version currently available is that of 02/01/2011.
PART VI
POWERS OF BOARD
34.
—(1) Whenever 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 —
(a)
terminating or suspending trading on a commodity market or a clearing house;
(b)
confining trading to liquidation of commodity contracts;
(c)
ordering the liquidation of all positions or part thereof or the reduction in such positions;
(d)
limiting trading to a specific price range;
(e)
modifying trading days or hours;
(f)
altering conditions of delivery;
(g)
fixing the settlement price at which contracts are to be liquidated;
(h)
requiring any person to act in a specified manner in relation to trading in commodity contracts or any class of commodity contracts;
(i)
requiring additional margins for any contracts; and
(j)
modifying or suspending any of the business rules of a commodity market,
and the market or clearing house shall comply with that direction.
[22/2001; 35/2007]
(2) 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 such other action, including but not limited to those specified in subsection (1), as it thinks are necessary to maintain or restore orderly trading in, or liquidation of, commodity contracts or any class of commodity contracts.
[22/2001; 35/2007]
(3) 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.
(4) Without prejudice to 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.
[22/2001; 35/2007]
(5) Any 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 shall be final.
[22/2001; 35/2007]
(6) Notwithstanding 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 shall continue to have force and effect until such time as the Minister makes a decision on the appeal.
[22/2001; 35/2007]
35.
—(1) For the purpose of diminishing, eliminating or preventing excessive speculation in any commodity under a commodity contract, the Board may, by notice in writing, from time to time establish and fix such limits as it considers necessary on the amount of trading which may be done or positions which may be held by any person, generally or specifically, under a commodity contract on or subject to the business rules of a commodity market.
[22/2001; 35/2007]
(2) In determining whether a person has exceeded such limits, the positions held and trading done by any persons, directly or indirectly, controlled by such a person shall be included with the positions held and trading done by that person.
(3) Such limits upon positions and trading shall apply to positions held by, and trading done by, 2 or more persons acting pursuant to an express or implied agreement or understanding, as if the positions were held by, or the trading done by, a single person.
(4) This section shall not apply to transactions or positions which are bona fide hedging transactions or positions as defined by a commodity market in accordance with such regulations as may be prescribed under section 63.
[22/2001; 35/2007]
(5) No person shall, directly or indirectly —
(a)
buy or sell, or agree to buy or sell, a commodity contract or any number of such contracts (on or subject to the regulations of the commodity market which apply to the contract or contracts) in excess of the trading limits fixed for one business day, or other stated period set by the Board or a commodity market with the approval of the Board; or
(b)
hold or control a net buy or sell position under a commodity contract on or subject to the business rules of the commodity market in excess of any position limit fixed by the Board or a commodity market with the approval of the Board with respect to that commodity contract.
[22/2001; 35/2007]
(6) Nothing in this section shall preclude the Board from fixing different trading or position limits for different contracts or delivery months or for different days remaining until the last day of trading in a contract or different trading limits for the purposes of subsection (5), or from exempting transactions under this section.
[22/2001; 35/2007]
36.
—(1) A commodity market, clearing house, commodity broker or commodity pool operator shall —
(a)
produce any books, accounts and records kept by it or him in connection with, or for the purposes of, its or his business, or in respect of any trading in commodity contracts;
(b)
collect and furnish any returns; and
(c)
provide any information relating to its or his business, or any trading in commodity contracts, or any other specified information,
as the Board may require.
[22/2001; 35/2007]
(2) The Board may, on production of any books, accounts or records under subsection (1), take copies of or extracts from them.
(3) If any of the persons or bodies mentioned in subsection (1), without reasonable excuse, fails to comply with any requirement under subsection (1), the person or body concerned shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000.
37.
—(1) Every commodity market and clearing house shall keep such records as are necessary for the proper recording of each transaction on the market or clearing house and shall supply to any customer of any member of such market or clearing house, upon production of a written confirmation of any transaction with such member, particulars of the approximate time at which the transaction took place and verification or otherwise of the matters set forth in the confirmation.
[22/2001; 35/2007]
(2) The Board may, at any time, require a commodity market or a clearing house to deliver to it reports of transactions on the market or clearing house in such form as the Board may prescribe.
[22/2001; 35/2007]
38.
—(1) Upon a determination by the Board that information concerning accounts may be relevant to determine whether manipulation, corner, squeeze or other market disorders exists in any commodity market, the Board may, by notice in writing, require such information as it thinks necessary from any person, including a member of a clearing house or a commodity broker or any customer in the commodity market, and the person concerned shall provide the required information within such time as may be specified by the Board.
[22/2001; 35/2007]
(2) If the Board has reason to believe that any person has failed to give the information required in the notice, it may without prejudice to any other penalty that may be imposed inform a commodity market or a clearing house which shall, in the event, prohibit the execution of, or acceptance for orders of, trades on the market or a clearing house and in the months or expiration dates specified in the notice unless such trades offset open contracts of that person.
[22/2001; 35/2007]
Review of Commodity Futures Exchanges’ disciplinary action
39. [Deleted by Act 35 of 2007]
40.
—(1) The Board may conduct such investigations as it considers necessary to determine whether any person has contravened or is contravening any of the provisions of this Act.
(2) For the purpose of subsection (1), the Board may, in writing, require any person named therein to testify or to produce any document or other material relating to any matter under investigation, and such person shall immediately comply with that requirement.
(3) Nothing in this section shall compel the production by an advocate or solicitor of a document or other material containing a privileged communication made by or to him in that capacity or otherwise the taking of any such document or other material which is in his possession but if the advocate or solicitor refuses to produce the document or other material, he shall nevertheless be obliged to give the name and address of the person (if he knows them) to whom or by or on behalf of whom that communication was made.
(4) The Board may by regulations prescribe the practice and procedure to be followed in any investigation under this section.
(5) Any person who fails without reasonable excuse to comply with any requirement under subsection (2) or (3) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000.
41.
—(1) The Board may, from time to time, inspect under conditions of secrecy the books, accounts, documents and transactions of a commodity market, a clearing house, a commodity broker, a commodity pool operator or a commodity trading adviser.
[35/2007]
(2) The Board may appoint any person to exercise the powers of the Board under subsection (1).
(3) For the purpose of an inspection under this section, any of the persons or bodies referred to in subsection (1) under inspection shall afford the Board access to, and shall produce, its books, accounts and documents and shall give such information and facilities as may be required to conduct the inspection.
(4) Any person appointed by the Board shall at all times have the power to copy or take possession of the books, accounts and other documents of the commodity market, clearing house, commodity broker, commodity pool operator or commodity trading adviser.
[35/2007]
(5) Any person who or body which, without reasonable excuse, fails to produce any book, account or document or furnish any information or facilities in accordance with subsection (3) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000 or to imprisonment for a term not exceeding 2 years or to both.
42.
—(1) Where it appears to the Board that a commodity market, a clearing house or any person has contravened or is contravening any of the provisions of this Act or any regulations made thereunder, or is restraining trading in commodity contracts, the Board may, after giving the market, clearing house or any such person an opportunity of being heard —
(a)
direct the market, clearing house or such person to comply with that provision or to cease contravention of that provision; or
(b)
direct the market, clearing house or such person to desist from restraining trading in commodity contracts,
and the market, clearing house or such person shall comply with the direction.
[22/2001; 35/2007]
(2) A clearing house or any person who fails, without reasonable excuse, to comply with a direction given under subsection (1) that is applicable to him shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000 or to imprisonment for a term not exceeding 2 years or to both.
[35/2007]
(3) A commodity market, a clearing house or any person aggrieved by any direction given under subsection (1) may, within one month after he is notified of the direction, appeal to the High Court.
[22/2001; 35/2007]
(4) Notwithstanding the lodging of an appeal under subsection (3), any direction of the Board given under this section shall continue to have force and effect until such time as the High Court makes a decision on the appeal.