XN000022-1976-08-27 — Page 5

FRIDAY, AUGUST 27, 1976

PARTS OF COMMODITIES TRADING ORDINANCE EFFECTIVE FROM NEXT MONTH

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IT IS ANNOUNCED IN THE GOVERNMENT GAZETTE TODAY THAT PART I 111 AND VI OF THE COMMODITIES TRADING ORDINANCE 1976 WILL COME INTO OPERATION ON SEPTEMBER 1.

PART I CONTAINS THE PRELIMINARY PROVISIONS, INCLUDING THE DEFINITION OF THE TERMS USED IN THE ORDINANCE.

PART III IS DESIGNED TO PROVIDE A BROAD REGULATORY FRAMEWORK WITHIN WHICH THE FUTURE COMMODITY EXCHANGE IN HONG KONG WILL OPERATE. UNDER THIS PART, THE GOVERNOR-IN-COUNCIL IS EMPOWERED TO GRANT A LICENCE TO THE EXCHANGE COMPANY TO ESTABLISH AND OPERATE AN EXCHANGE UPON APPLICATION.

PART VI DEALS WITH TRADING PRACTICES. THERE ARE PROVISIONS PROHIBITING THE CREATION OF A FALSE MARKET IN COMMODITIES AND MARKET RIGGING AND DECEPTIVE PRACTICES. IT WILL BE AN OFFENCE TO MAKE FALSE OR MISLEADING STATEMENTS FOR THE PURPOSE OF INDUCING THE PURCHASE OR SALE OF COMMODITY FUTURES CONTRACTS.

THE REMAINING PARTS OF THE ORDINANCE WILL COME INTO OPERATION AT LATER DATES WHICH WILL BE ANNOUNCED IN THE GAZETTE.

THE SPOKESMAN FOR THE OFFICE OF THE COMMISSIONER FOR COMMODITIES TRADING SAID THAT PART IV OF THE ORDINANCE DEALING WITH REGISTRATION OF COMMODITY DEALERS, COMMODITY TRADING ADVISERS AND REPRESENTATIVES WILL BECOME OPERATIVE ON OCTOBER 1.

FROM THAT DAY, NO PERSON MAY ACT AS A COMMODITY DEALER, COMMODITY TRADING ADVISER OR A REPRESENTATIVE UNLESS HE IS REGISTERED.

REGISTRATION WORK IN THIS CONNECTION HAS ALREADY COMMENCED. ANYONE WHO WISHES TO APPLY FOR REGISTRATION AS A COMMODITY DEALER, COMMODITY TRADING ADVISER AND REPRESENTATIVE IS ADVISED TO SUBMIT HIS APPLICATION AT HIS EARLIEST CONVENIENCE.

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