Securities and Futures (Markets) Regulations

Securities and Futures Act

(Chapter 289, Sections 7, 22, 33, 44, 188, 189, 341 and 343)

Rg 8

G.N. No. S 455/2002

REVISED EDITION 2004

(29th February 2004)

[29th February 2004]

PART I

PRELIMINARY

Citation

1. These Regulations may be cited as the Securities and Futures (Markets) Regulations.

Definitions

2. In these Regulations, unless the context otherwise requires —

“annual report” means the audited profit and loss accounts, audited balance-sheet and auditors’ report, by whatever name called, of any securities exchange, futures exchange, exchange holding company or recognised trading system provider;

“chief executive officer” means any person, by whatever name called, who is in the direct employment of, or acting for or by arrangement with, a securities exchange, futures exchange, exchange holding company or recognised trading system provider, and who is principally responsible for the management and conduct of the business of the securities exchange, futures exchange, exchange holding company or recognised trading system provider;

“futures equivalent” means an option contract which has been adjusted by that option contract’s risk factor or delta coefficient, such risk factor or delta coefficient being calculated at the previous day’s close of trading or at such other time as the Authority may determine;

“key management officer” means any person who is appointed to a key management position referred to in regulation 9(3), 19(3) or 24(2);

“position”, in relation to a futures contract, means a futures contract which is still outstanding and which has not been liquidated —

(a)	by an off-setting transaction;
(b)	by delivery of the commodity underlying the futures contract;
(c)	through settlement of the futures contract in accordance with the rules of a futures exchange or the practices of a futures market or a recognised trading system provider, as the case may be; or
(d)	by substituting the futures contract for cash commodity;

“rules” means business rules and, where appropriate, listing rules;

“subsidiary” has the same meaning as in section 5 of the Companies Act (Cap. 50).

Forms

3.—(1) The forms mentioned in these Regulations are those set out in the First Schedule.

(2) Where any provision of these Regulations provides for the lodgment of a document with the Authority, that document shall be lodged with the Authority in the relevant form.

(3) A form prescribed by these Regulations shall be completed in the English language and in accordance with such directions as may be specified in the form or by the Authority.

(4) The Authority may refuse to accept any form that is not completed in accordance with this regulation.

Application for exemption from approval or recognition

4. For the purposes of section 5(2) or 6(2) of the Act, an application by any person for exemption from approval as a securities exchange or futures exchange or from recognition as a recognised trading system provider shall be made in Form 1 together with any relevant annex and information as specified in that form.

Application for approval or recognition

5. An application —

(a)	for approval as a securities exchange or futures exchange shall be in Form 2;
(b)	for approval as an exchange holding company shall be in Form 3; and
(c)	for recognition as a recognised trading system provider shall be in Form 4,

and shall be lodged with the Authority together with —

(i)	Forms A and B;
(ii)	a copy of the rules of the securities exchange, futures exchange, exchange holding company or recognised trading system provider, as the case may be, being a copy which has been certified to be a true copy by the persons signing the application; and
(iii)	any relevant annex and information specified in the Form.

Fees

6.—(1) The fees specified in the Second Schedule shall be payable to the Authority for the purposes specified therein, and shall not be refundable.

(2) Payment of the fees referred to in paragraph (1) may be made through such electronic funds transfer system as the Authority may designate from time to time, whereby payment is effected by directing the transfer of funds electronically from the bank account of the person making payment to a bank account designated by the Authority.

Time for document to be lodged

7. Where a document is required to be lodged with the Authority under Part II of the Act or under these Regulations but the period within which the document is to be lodged is not specified, the document shall be lodged within 14 days after the occurrence of the event to which the document relates.

Keeping of books and other information

8. A securities exchange, futures exchange or recognised trading system provider shall ensure that all relevant books and other information as may be required by the Authority for the purposes of section 14(1) or 42(1) of the Act, as the case may be, are kept for a minimum of 6 years.

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