1976-HKRS28-16-24_Part03 — Page 64

Prombled

cia by employees,

Licensing of

the Commodity Exchange.

(2) Subsection (1) does not apply-

(a) to the disclosure of any information authorized to be disclosed

or furnished by the Commissioner; or

(b) to the disclosure of information for the purpose of any legal pro- ceedings brought under this Ordinance, or for the purpose of any report of any such proceedings.

(3) Any person who—

(0) contravenes subsection (1); or

(b) aids, abets, counsels or procures any person to contravene sub-

section (1),

shall be guilty of an offence and shall be liable on conviction upon indict- ment to a fine of $10,000 and to imprisonment for 6 months,

12. (1) No person who has been appointed under or who is employed in carrying out or in assisting any person to carry out the provisions of this Ordinance shall directly or indirectly-

(x) effect or cause to be effected on his own account or for the benefit of any other person any trading in commodity futures contracts; or (b) participate in any operation or transaction relating to trading in

commodity futures contracts.

(2) Any person who-

(a) contravenes subsection (1); or

(5) aids, ubels, counsels or procures any person to contravene aub-

section (1),

shall be quilty of an offence and shall be liable ou conviction upon indict- ment to a fine of $10,000 and to imprisonment for 6 months.

PART III

Commporty Exchange

13. (1) The Governor in Council may, on application made to him in writing by the Exchange Company, issue a licence to establish and operate the Commodity Exchange if he is satisfied that the Company complies with the requirements specified in subsection (3).

(2) An application under subsection (1) shall be accompanied by— (a) a copy of the constitution of the Company; and

(b) such other documents and information as may be required by the Governor in Council for the purposes of jerning à licence under subsection (1).

(3) The requirements referred to in subsection (1) are—–—

(a) that the objects contained in the constitution of the Company in- clude a provision for the establishment and operation of a com- modity exchange;

(6) that the Company will-

(i) maintain to the satisfaction of the Commission an adequate and properly equipped place of business;

7

(fi) establish and operate commodity markets only at placca approved by the Commission;

(ii) establish a clearing house for the registration and settlement of futures contracts and the day-to-day adjustment of the financial position of such contracts; and

(iv) establish a guarantee corporation to guarantee that futures contracts will be fulfilled in the event of default by either of the 2 parties to such contracts;

(c) that the authorized share capital of the Company is not less than $25,000,000 divided into shares of equal value and the issued capital of the Company is not less than $3,000,000;

(d) that the constitution of the Company provides for the exclusion from membership of the Company of any person who would be disqualified under section 17 from becoming a shareholder;

(e) that at least 20 shareholders of the Company will carry on the business of trading in commodity futures contracts independently and in competition with one another in any commodity market;

(} that the constitution of the Company provides for the making of mules applicable to the Company in its capacity of Exchange Com- pany and of rules of commodity markets;

(g) that the constitution of the Company provides that op rules of the Exchange Company, and amendments thereto, will be effective unless approved in writing by the Commission;

() that the constitution of the Company provides that no amendmeut of the constitution of the Company will be effective unless approved in writing by the Commission;

( that the Company will make the deposits required to be made to

the compensation fund established under Part VIII.

14 (1) No

(a) amendment of the constitution of the Exchange Company:

(6) constitution of the Clearing House or any amendment thereto;

(c) constitution of the Guarantee Corporation or any amendment

thereto;

(d) rules of the Exchange Company or any amendment thereto;

(e) rules of the Clearing House or any amendment thereto; or () rules of the Guarantee Corporation or any amendment thereto, shall have effect unless approved in writing by the Commission.

C) The Exchange Company shall submit or came to be submitted to the Commission for its approval-

(a) every amendment of the constitution of the Exchange Company; (6) the constitution of the Clearing House and every amendment

thereto;

(c) the constitution of the Guarantee Corporation and every amend

ment thereto;

ADDCOV) of Jenendmutt E. to the conachiudon. rules of the Exchange Company, de,