PART I | Short title and commencement |
| 1. This Act may be cited as the Commodity Futures Act 1992 and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint. |
2. In this Act, unless the context otherwise requires —| “auditor” means an approved company auditor as defined in section 4 of the Companies Act [Cap. 50]; |
| “Board” means the Trade Development Board established under the Trade Development Board Act [Cap. 330]; |
“business rules”, in relation to a body corporate that maintains or proposes to maintain a commodity futures market, means the rules, regulations and by-laws, by whatever name called, governing the activities and conduct of —| (a) | the body corporate and its members; | | (b) | its clearing house; and | | (c) | other persons in relation to the commodity futures market, |
| whether those rules, regulations or by-laws are made by the body corporate or are contained in the Memorandum and Articles of Association of the body corporate or altered or supplemented by the Board; |
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“clearing house”, in relation to a commodity futures market, means a body corporate, or an association or organisation forming part of a Commodity Futures Exchange, that —| (a) | clears and settles commodity futures contracts; and | | (b) | makes adjustments to the contractual obligations arising out of those commodity futures contracts; |
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| “commodity” means rubber and such other produce, items, goods and articles which are the subject of commodity futures contracts, as the Board may by order prescribe, and includes indices, rights and interests in such commodity; |
| “commodity floor broker” means an individual who is employed by, or acts for, a commodity futures broker for the purpose of entering into contracts on the floor of a Commodity Futures Exchange on behalf of the commodity futures broker; |
| “commodity futures broker” means a person whether as principal or agent who carries on the business of soliciting, or accepting orders, for the purchase or sale of any commodity under a commodity futures contract on any Commodity Futures Exchange or commodity futures market and who, in connection therewith, accepts any money, securities or property (or extends credit in lieu thereof) to margin, guarantee or secure any trades or contracts that may result therefrom whether or not the business is part of, or is carried on in conjunction with, any other business; |
| “commodity futures broker’s representative” means a person who acts for, or by arrangement with, a commodity futures broker (other than a commodity floor broker or a person who is a director of a corporation holding a commodity futures broker’s licence or is a person who is in the direct employment of a commodity futures broker) who performs any of the functions of that commodity futures broker in connection with trading in commodity futures contracts, whether his remuneration is by way of commission or otherwise; |
“commodity futures contract” means a contract the effect of which is that —| (a) | one party agrees to deliver a specified commodity, or a specified quantity of a specified commodity, to another party at a specified future time and at a specified price payable at that time pursuant to terms and conditions set forth in the business rules or practices of a Commodity Futures Exchange or commodity futures market; or | | (b) | the parties will discharge their obligations under the contract by settling the difference between the value of a specified quantity of a specified commodity at the time of the making of the contract and at a specified future time, such difference being determined in accordance with the business rules or practices of the Commodity Futures Exchange or commodity futures market at which the contract is made, |
| and includes a commodity futures option transaction; |
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“Commodity Futures Exchange” means a body corporate —| (a) | that provides or proposes to provide the physical facilities necessary for trading in commodity futures contracts; and | | (b) | that maintains or proposes to maintain a commodity futures market that is approved by the Board; |
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| “commodity futures market” means a market, Commodity Futures Exchange or other place at which commodity futures contracts are regularly made whether that commodity futures market, Commodity Futures Exchange or place is in or outside Singapore; |
| “commodity futures option transaction” means a transaction in relation to a commodity futures contract which gives a person a right, acquired for a consideration, to buy or sell a specified amount of a commodity at a specified price within a specified period of time and includes any other option of which the subject is a commodity futures contract; |
| “commodity futures pool operator” means any person who carries on a business in the nature of a unit trust or other interest to which Division 6 of Part IV of the Companies Act [Cap. 50] applies and who, in connection therewith, accepts or receives from other persons funds, security or property, either directly or through capital contributions, the sale of shares or other forms of security or otherwise for the purpose of trading in a commodity futures contract but does not include such persons as the Board may by regulations prescribe; |
| “commodity futures pool operator’s representative” means a person in the direct employment of, or acting for, or by arrangement with, a commodity futures pool operator, who performs for that commodity futures pool operator any of the functions of a commodity futures pool operator; |
“commodity futures trading adviser” means any person who carries on the business of advising others, directly or indirectly, through publications or writings, or by whatever means or media advises others concerning commodity futures contracts, including the advisability of trading in any commodity futures contract made or to be made on, or subject to the business rules of, a commodity futures market or who as part of a regular business issues or promulgates analyses or reports concerning futures trading but does not include —| (a) | a bank that is licensed under the Banking Act [Cap. 19] or a merchant bank approved by the Monetary Authority of Singapore under the Monetary Authority of Singapore Act [Cap. 186]; | | (b) | a commodity futures broker, commodity futures broker’s representative, commodity futures pool operator or commodity futures pool’s representative; | | (c) | a person who carries on the business of printing or publishing a newspaper and is the holder of a permit issued under the Newspaper and Printing Presses Act [Cap. 206] where —| (i) | in so far as the newspaper is distributed generally to the public it is distributed only to subscribers to, and purchasers of, the newspaper for value; | | (ii) | the advice is given or the analyses or reports are issued or promulgated only through that newspaper; and | | (iii) | that person receives no commission or other consideration for giving the advice or for issuing or promulgating the analyses or reports; and |
| | (d) | such other persons as the Board may by regulations prescribe, |
| so long as the carrying on of the business by the abovementioned persons is solely incidental to the carrying on of their business; |
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| “commodity futures trading adviser’s representative” means a person in the direct employment of, or acting for, or by arrangement with, a commodity futures trading adviser, who performs for that commodity futures trading adviser any of the functions of a commodity futures trading adviser (other than work ordinarily performed by accountants, clerks or cashiers) whether his remuneration is by way of salary, wages, commission or otherwise; and, where the commodity futures trading adviser is a corporation, includes any director, member or officer of the corporation who is not the holder of a commodity futures trading adviser’s licence and who performs for that corporation any of the functions of a commodity futures trading adviser (whether or not his remuneration is by way of salary, wages, commission or otherwise); |
| “corporation” has the same meaning as in the Companies Act [Cap. 50]; |
| “customer” means a person on whose account a commodity futures broker carries on trading in commodity futures contracts; |
| “director” has the same meaning as in the Companies Act; |
| “financial year” has the same meaning as in the Companies Act; |
| “member” means a person who holds a membership of any class or description of a Commodity Futures Exchange whether or not he holds any share in the share capital of that Commodity Futures Exchange; |
| “officer” has the meaning as in the Companies Act; |
“trading in commodity futures contracts”, in relation to any person, whether acting as principal or agent, means —| (a) | making or offering to make an agreement with any other person or inducing or attempting to induce any other person to enter into an agreement for the purchase or sale of a commodity futures contract; or | | (b) | soliciting or accepting any order for, or otherwise dealing in, a commodity futures contract. |
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3.—(1) This Act shall not apply to —| (a) | a futures market established and maintained by the Singapore International Monetary Exchange Ltd or the clearing house of that futures market; | | (b) | a futures market of a Futures Exchange approved by the Monetary Authority of Singapore under section 4 of the Futures Trading Act [Cap. 116]; | | (c) | a body corporate approved as a clearing house by the Monetary Authority of Singapore under section 8 of the Futures Trading Act; | | (d) | the holder of a licence issued under the Futures Trading Act and acting lawfully under that Act; and | | (e) | any trading of futures contracts lawfully carried out under the Futures Trading Act. |
(2) The Futures Trading Act shall not apply to —| (a) | a futures market of a Commodity Futures Exchange approved by the Board under section 5; | | (b) | a body corporate approved as a clearing house by the Board under section 9; | | (c) | the holder of a licence issued under this Act and acting lawfully under this Act; and | | (d) | any trading of commodity futures contracts lawfully carried out under this Act. |
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