On 25/05/2013,
you requested for the version in force on 25/05/2013
incorporating all amendments published on or before 25/05/2013.
The closest version currently available is that of 02/05/1986.
PART VI
POWERS OF THE AUTHORITY
41.
—(1) Whenever the Authority has reason to believe that an emergency exists, it may direct an Exchange or a clearing house to take such action as the Authority considers necessary to maintain or restore orderly trading in, or liquidation of, any futures contract, or any class of futures contracts including but not limited to —
(a)
terminating or suspending trading on an Exchange or a clearing house;
(b)
confining trading to liquidation of futures 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 futures contracts or any class of futures contracts;
(i)
requiring additional margins for any contracts; and
(j)
modifying or suspending any of the business rules of an Exchange,
and the Exchange or clearing house shall comply with that direction.
(2) Where an Exchange or a clearing house fails to comply with the direction of the Authority under subsection (1), within such time as is specified by the Authority, the Authority may itself take action to set emergency margin levels in any futures contract, or class of futures contracts, or to fix limits that may apply to market positions acquired in good faith prior to the date of the Authority’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 futures contracts, or any class of futures contracts.
(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 Authority constitutes an emergency.
(4) Without prejudice to subsection. (1), where an Exchange or a clearing house exercises its powers under its rules to take emergency action, the Authority may modify such emergency action, including but not limited to the setting aside of that emergency action.
(5) Any person who is aggrieved by any action taken by the Authority or an Exchange or a clearing house under this section may appeal to the Minister whose decision shall be final and shall not be challenged in any court.
(6) Notwithstanding the lodging of an appeal under subsection (5), any emergency action taken by the Authority, an Exchange 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.
42.
—(1) For the purpose of diminishing or eliminating, or preventing excessive speculation in any commodity under a futures contract, the Authority or an Exchange, with the approval of the Authority, 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 futures contract on or subject to the business rules of a futures market.
(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, two 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 futures market in accordance with such regulations as may be prescribed.
(5) No person shall directly or indirectly —
(a)
buy or sell or agree to buy or sell, a futures contract on or subject to the regulations of the futures market to which the regulations apply, any number of such futures contract in excess of the trading limits fixed for one business day, or other stated period set by the Authority or an Exchange with the approval of the Authority; or
(b)
hold or control a net buy or sell position under a futures contract on or subject to the business rules of the futures market in excess of any position limit fixed by the Authority or an Exchange with the approval of the Authority with respect to that futures contract.
(6) Nothing in this section shall preclude the Authority, or an Exchange with the approval of the Authority, from fixing different trading or position limits for different futures 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.
43.
—(1) An Exchange, a clearing house, futures broker, futures trading adviser or futures 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 futures contracts;
(b)
collect and furnish any returns; and
(c)
provide any information relating to its or his business, or any trading in futures contracts, or any other specified information,
as the Authority may require.
(2) The Authority may on production of any books, accounts or records under subsection (1) take copies of them 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.
44.
—(1) Every Futures Exchange and clearing house shall keep such records as are necessary for the proper recording of each transaction on the Exchange or clearing house and shall supply to any customer of any member of such Futures Exchange 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.
(2) The Authority may, at any time, require a Futures Exchange or a clearing house to deliver to it reports of transactions on the Exchange or clearing house in such form as the Authority may prescribe.
45.
—(1) Upon a determination by the Authority that information concerning accounts may be relevant to determine whether manipulation, corner, squeeze or other market disorders exists in any futures market, the Authority may, by notice in writing, require such information as it thinks necessary from any person, including a member of the Exchange or a clearing house or a futures broker or any customer in the futures market, and the person concerned shall provide the required information within such time as may be specified by the Authority.
(2) If the Authority 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 the Exchange or a clearing house which shall, in that event, prohibit the execution of, or acceptance for orders of, trades on the Exchange or a clearing house and in the months or expiration dates specified in the notice unless such trades offset open contracts of that person.
46.
—(1) Where an Exchange reprimands, fines, suspends, expels or otherwise takes disciplinary action against a member of the Exchange, it shall forthwith inform the Authority in writing of the name of the member, the reason for, and nature of, the action taken, the amount of any fine and the period of any suspension.
(2) The Authority may review any disciplinary action taken by an Exchange under subsection (1) and may affirm, modify or set aside the decision of the Exchange after giving the member and the Exchange an opportunity to be heard.
(3) Nothing in this section shall preclude the Authority, in any case where an Exchange fails to act against a member, from itself suspending, expelling or otherwise disciplining a member of the Exchange, but before so doing the Authority shall give the member and the Exchange an opportunity to be heard.
(4) Any person who is aggrieved by the decision of the Exchange or the Authority under this section may, within one month after he is notified of the decision, appeal to the Minister whose decision shall be final.
47.
—(1) The Authority may conduct such investigations as it considers necessary to determine whether any person has contravened or is contravening any provisions of this Act.
(2) For the purpose of subsection (1) the Authority 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 forthwith 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 Authority 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 subsections (2) and (3) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000.
48.
—(1) The Authority may, from time to time, inspect under conditions of secrecy, the books, accounts, documents and transactions of a futures broker, a Futures Exchange, a clearing house, a futures pool operator or a futures trading adviser.
(2) The Authority may appoint any person to exercise the power of the Authority 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 Authority 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 Authority shall, at all times, have the power to copy or take possession of the books, accounts and other documents of a futures broker, a Futures Exchange, a clearing house, a futures pool operator and a futures trading adviser.
(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.
49.
—(1) Where it appears to the Authority that an Exchange, a clearing house or any person has failed to comply with, or is contravening any provision of, this Act or the regulations made thereunder, or is restraining trading in futures contracts, the Authority may, after giving the Exchange, clearing house or any such person an opportunity of being heard —
(a)
direct the Exchange, clearing house or such person to comply with that provision or to cease contravention of that provision; or
(b)
direct the Exchange, clearing house or such person to desist from restraining trading in futures contracts,
and the Exchange, clearing house or such person shall comply with the direction.
(2) An Exchange, a clearing house or any person who fails, without reasonable excuse, to comply with a direction under subsection (1) that is applicable to it or 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.
(3) An Exchange, a clearing house or any person aggrieved by any direction issued under subsection (1) may, within one month after he is notified of the direction, appeal to the High Court.
(4) Notwithstanding the lodging of an appeal under subsection (3), any direction of the Authority given under this section shall continue to have force and effect until such time as the High Court makes a decision on the appeal.