Hong Kong Ordinances

CLEARING AND SETTLEMENT SYSTEMS ORDINANCE - SECT 14

Monetary Authority may impose operating rules

(1) Without affecting the generality of section 13, the Monetary Authority may
by notice in writing given to a system operator or settlement institution of a
designated system direct that the operating rules of the system be amended in
such manner as the Monetary Authority considers necessary to bring the
operating rules into compliance with section 7(1)(b).

(2) A direction given under subsection (1)—

   (a)  shall specify the amendment to be effected;

   (b)  shall include a statement of the respect in which the Monetary
        Authority considers the operating rules of the system not to be in
        compliance with section 7(1)(b); and

   (c)  may specify a period, being a period that is reasonable in the
        circumstances, within which the amendment shall be effected, and may
        require that within a further period of 3 days a copy of the relevant
        part of the operating rules as so amended shall be provided to the
        Monetary Authority as confirmation of compliance with the direction.

(3) Without affecting the generality of subsection (1), a direction under that
subsection to amend a designated system’s operating rules may include a
direction to amend those rules by—

   (a)  adding a rule specified in the direction;

   (b)  amending a particular rule in the manner specified in the direction;
        or

   (c)  deleting a rule specified in the direction.

(4) Before giving a direction under subsection (1), the Monetary Authority
shall consult the Financial Secretary and the system operator or settlement
institution to whom the direction relates.

(5) If there is any failure to comply with a direction given under this
section, the Monetary Authority may by notice published in the Gazette declare
that the operating rules of the designated system shall be amended in the
manner specified in the direction, and the operating rules of the system shall
as from the time of publication of such have effect as if they had been so
amended.