1964_COMMODITIES_TRADING_ORDINANCE — Page 10

1989 Ed.]

Commodities Trading

[CAP. 250

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PART III

COMMODITY EXCHANGE

13. Licensing of the Commodity Exchange

(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 issuing a licence under subsection (1).

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

(a) that the objects contained in the constitution of the Company include a provision for the establishment and operation of a commodity exchange;

(b) that the Company will-

(i) maintain to the satisfaction of the Commission an adequate

and properly equipped place of business;

(ii) provide and maintain commodity markets at places approved

by the Commission; (Replaced 61 of 1985 s. 4)

(iii) use one or more clearing houses for the registration and settlement of futures contracts and the day-to-day adjust- ment of the financial position of such contracts; (Amended 61 of 1985 s. 4)

(iv) use one or more guarantee corporations to guarantee fulfil-

ment of futures contracts; and (Replaced 61 of 1985 s. 4) (v) use only clearing houses or guarantee corporations which have been approved by the Commission for use by the Company in relation to particular commodity markets; (Added 61 of 1985 s. 4)

(c) that the authorized share capital of the Company is not less than $25,000,000 divided into shares and the issued capital of the Company is not less than $3,000,000; (Amended 61 of 1985 s. 4) (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;

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CAP. 250]