Cap 571 s 38 Duties of recognized clearing house (Securities and Futures Ordinance)

Contents of Section

Chapter:	571	Title:	Securities and Futures Ordinance	Gazette Number:	L.N. 12 of 2003
Section:	38	Heading:	Duties of recognized clearing house	Version Date:	01/04/2003

(1) It shall be the duty of a recognized clearing house to ensure-

(a) so far as reasonably practicable, that there are orderly, fair and expeditious clearing and settlement arrangements for any transactions in securities or futures contracts cleared or settled through its facilities; and

(b) that risks associated with its business and operations are managed prudently.

(2) In discharging its duty under subsection (1), a recognized clearing house shall-

(a) act in the interest of the public, having particular regard to the interest of the investing public; and

(b) ensure that the interest of the public prevails where it conflicts with the interest of the recognized clearing house.

(3) A recognized clearing house shall operate its facilities in accordance with the rules made under section 40 and approved under section 41.
(4) A recognized clearing house shall formulate and implement appropriate procedures for ensuring that its clearing participants comply with the rules of the clearing house.
(5) A recognized clearing house shall at all times provide and maintain-

(a) adequate and properly equipped premises;

(b) competent personnel; and

(c) automated systems with adequate capacity, facilities to meet contingencies or emergencies, security arrangements and technical support,

for the conduct of its business.