Hong Kong Ordinances

SECURITIES AND FUTURES ORDINANCE - SECT 41

Approval of rules or amendments to rules of recognized clearing house

(1) Subject to subsection (7), no rule (whether or not made under section 40)
of a recognized clearing house or any amendment thereto shall have effect
unless it has the approval in writing of the Commission.

(2) A recognized clearing house shall submit or cause to be submitted to the
Commission-

   (a)  for its approval the rules and every amendment thereto that require
        approval under subsection (1), together with explanations of their
        purpose and likely effect, including their effect on the investing
        public, in sufficient detail to enable the Commission to decide
        whether to approve them or refuse to approve them; and

   (b)  for its information the rules which belong to a class the subject of a
        declaration under subsection (7) and every amendment to the rules, as
        soon as reasonably practicable after they have been made.

(3) The Commission shall, not later than 6 weeks after the receipt of a
submission under subsection (2)(a) from a recognized clearing house, by notice
in writing served on the clearing house, give its approval or refuse to give
its approval (together with its reasons for the refusal) to the rules or
amendment of the rules (as the case may be) or any part thereof, the subject
of the submission.

(4) The Commission may give its approval under subsection (3) subject to
requirements which shall be satisfied before the rules or amendment of the
rules or any part thereof take effect.

(5) The Commission may in a particular case, with the agreement of the
recognized clearing house concerned, extend the time prescribed in subsection
(3).

(6) The Financial Secretary may, after consultation with the Commission and
the recognized clearing house concerned, extend the time prescribed in
subsection (3).

(7) The Commission may, by notice published in the Gazette, declare any class
of rules of a recognized clearing house (except any default  rules of the
clearing house) to be a class of rules which are not required to be approved
under subsection (1) and, accordingly, any rules of the clearing house which
belong to that class (including any amendment thereto) shall have effect
notwithstanding that they have not been so approved.

(8) Neither the rules under section 40 nor a notice under subsection (7) is
subsidiary legislation.