On 19/05/2013,
you requested for the version in force on 19/05/2013
incorporating all amendments published on or before 19/05/2013.
The closest version currently available is that of 01/04/2006.
81.
—(1) 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 direct by notice in writing a designated clearing house to take such action as it considers necessary to maintain or restore safe and efficient operations of the clearing facilities operated by the designated clearing house.
[1/2005]
(2) Without prejudice to subsection (1), the actions which the Authority may direct a designated clearing house to take include —
(a)
ordering the liquidation of all positions or part thereof or the reduction of such positions;
(b)
altering conditions of delivery of transactions cleared or settled or to be cleared or settled through the clearing facility;
(c)
fixing the settlement price at which transactions are to be liquidated;
(d)
requiring margins or additional margins for transactions cleared or settled or to be cleared or settled through the clearing facility; and
(e)
modifying or suspending any of the business rules of the designated clearing house.
[1/2005]
(3) Where a designated clearing house fails to comply with any direction of the Authority under subsection (1) within such time as is specified by the Authority, the Authority may —
(a)
set margin levels for transactions cleared or settled or to be cleared or settled through the clearing facility to cater for the emergency;
(b)
set limits that may apply to market positions acquired in good faith prior to the date of the notice issued by the Authority; or
(c)
take such other action as the Authority thinks fit to maintain or restore safe and efficient operations of the clearing facilities operated by the designated clearing house.
[1/2005]
(4) In this section, “emergency” means any threatened or actual market manipulation or cornering, and includes —
(a)
any act of any government affecting a commodity or securities;
(b)
any major market disturbance which prevents the market from accurately reflecting the forces of supply and demand for such commodity or securities; or
(c)
any undesirable situation or practice which, in the opinion of the Authority, constitutes an emergency.
[1/2005]
(5) The Authority may modify any action taken by a designated clearing house under subsection (1), including the setting aside of that action.
[1/2005]
(6) Any person who is aggrieved by any action taken by the Authority or a designated clearing house under this section may, within 30 days after the person is notified of the action, appeal to the Minister whose decision shall be final.
[1/2005]
(7) Notwithstanding the lodging of an appeal under subsection (6), any action taken by the Authority or a designated clearing house under this section shall continue to have effect pending the decision of the Minister.
[1/2005]
(8) The Minister may, when deciding an appeal under subsection (6), make such modification as he considers necessary to any action taken by the Authority or a designated clearing house under this section, and such modified action shall have effect from the date of the decision of the Minister.
[1/2005]
(9) Any designated clearing house 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 thereof during which the offence continues after conviction.
[1/2005]
[FTA, s. 41]