Hong Kong Ordinances

CLEARING AND SETTLEMENT SYSTEMS ORDINANCE - SECT 16

Monetary Authority may issue certificate of finality

Division 2—Certificate of finality

(1) Where a clearing and settlement system has been designated under Part 2,
the Monetary Authority shall determine in accordance with subsection (2)
whether the following criteria are met as regards that system, namely—

   (a)  ultimate settlement of transfer orders is effected within the system
        itself; and

   (b)  there is compliance with the requirements stipulated in section  7
        (1).

(2) In making a determination under subsection (1) the Monetary Authority—

   (a)  shall have regard to such information relating to the system as may be
        submitted to him by the system operator for the purposes of this
        section; and

   (b)  may in addition have regard to such other information in his
        possession relating to the system as he considers relevant, but the
        Monetary Authority shall not be under any obligation to undertake any
        enquiries for the purpose of making the determination.

(3) If the Monetary Authority determines that the criteria specified in
subsection (1) have been met as regards a designated system, he shall issue in
respect of the system a certificate certifying to that effect (“certificate
of finality”) and specifying a date and time from which the certificate
shall have effect.

(4) If the Monetary Authority finds himself unable to make a determination in
the terms mentioned in subsection (3) as regards a designated system, he shall
inform the system operator in writing accordingly giving particulars of the
respect in which any of the criteria specified in subsection (1) have not been
met or of the further information he requires in order to make a determination
in relation to such criteria.

(5) Except for the period of any suspension under section 17(1), a certificate
of finality in respect of a designated system remains in effect until it is
revoked or until the designation of the system for the purposes of this
Ordinance has been revoked.

(6) Except as otherwise provided, the following provisions of this Part apply
to and in relation to any designated system in respect of which a certificate
of finality is in effect; and in Divisions 3, 4 and 5 of this Part, a
reference to a designated system is a reference to such a designated system.

(7) The Monetary Authority shall publish in the Gazette notice of any
certificate of finality issued under this section.