Hong Kong Ordinances

CLEARING AND SETTLEMENT SYSTEMS ORDINANCE - SECT 2

Interpretation

(Past version on 04/11/2004).

“applicant” (申請人) “book-entry securities” (記帳證券)
“certificate of finality” (終局性證明書) “Chairman of the
Tribunal” (審裁處主席) “clearing and settlement system”
(結算及交收系統) “collateral security” (附屬抵押品) “default
arrangements” (違責處理安排) “defaulting participant”
(違責參與者) “designated system” (指定系統) “directors’
voluntary winding up statement” (董事自動清盤陳述書) “disposition
of property” (財產產權處置) “Monetary Authority”
(金融管理專員) “netting” (淨額計算) “obligations” (義務)
“officer” (高級人員) “operating rules” (運作規則)
“participant” (參與者) “relevant insolvency office-holder”
(有關破產清盤人員) “resolution for voluntary winding up”
(自動清盤決議) “settlement account” (交收帳戶) “settlement
institution” (交收機構) “system operator” (系統營運者)
“transfer order” (轉撥指令) “Tribunal” (審裁處) In this
Ordinance, unless the context otherwise requires— “applicant”
(申請人), in relation to any proceedings under Part 4, means the person who
refers a decision to the Tribunal for review under section  35 (1);
“book-entry securities” (記帳證券) means any securities issued under
any law transferable by a book-entry (whether on a register or of any other
kind); “certificate of finality” (終局性證明書) means a certificate
issued by the Monetary Authority under section 16(3); “Chairman of the
Tribunal” (審裁處主席) means the person appointed as such under
section 34(3); “clearing and settlement system” (結算及交收系統)
means a system established for—

   (a)  the clearing or settlement of payment obligations; or

   (b)  the clearing or settlement of obligations for the transfer of
        book-entry securities, or the transfer of such securities;
        “collateral security” (附屬抵押品), in relation to a clearing
        and settlement system, means any realizable assets provided, whether
        under a charge or a re-purchase or similar agreement or otherwise
        (including money provided under a charge), for the purpose of securing
        rights and obligations potentially arising in connection with
        participation in the system; “default arrangements”
        (違責處理安排), in relation to a clearing and settlement system,
        means the arrangements in place within the system for limiting
        systemic and other types of risk in the event of a participant
        appearing to be, or likely to become, unable to meet his obligations
        in respect of a transfer order; and, without affecting the generality
        of the foregoing, includes any arrangements for—

   (a)  the netting of obligations owed to or by the participant;

   (b)  the closing out of open positions held by the participant; or

   (c)  the realizing of collateral security securing obligations owed by the
        participant; “defaulting participant” (違責參與者), in
        relation to a clearing and settlement system, means a participant in
        respect of whom action has been taken by the system operator or
        settlement institution under the system’s default arrangements;
        “designated system” (指定系統) means a clearing and settlement
        system that has been designated for the purposes of this Ordinance by
        the Monetary Authority under section 4(1); “directors’ voluntary
        winding up statement” (董事自動清盤陳述書) means a
        statement made under section 228A(1) of the Companies Ordinance (
        Cap 32), and a reference to such a statement taking effect is a
        reference to it being delivered for registration as specified in
        section 228A(3) of that Ordinance; “disposition of property”
        (財產產權處置), in the context of a disposition made to or by a
        participant in a designated system, includes a payment made to or by
        the participant in the designated system or in a clearing and
        settlement system, wherever located, that is utilized by the
        designated system to effect payments; “Monetary Authority”
        (金融管理專員) means the Monetary Authority appointed under
        section 5A of the Exchange Fund Ordinance ( Cap 66); “netting”
        (淨額計算), in relation to a clearing and settlement system, means
        the conversion of the various obligations owed to or by a participant,
        as between that participant and all the other participants in the
        system, into one net obligation owed to or by the participant;
        “obligations” (義務), in the context of the default arrangements
        under a clearing and settlement system, means obligations resulting
        from the issue and receipt of transfer orders between participants, or
        otherwise resulting from action taken under the operating rules of the
        system; “officer” (高級人員), in relation to a corporation,
        means a director, manager or secretary of, or any other person
        involved in the management of, the corporation and, where the
        corporation is a system operator or settlement institution of a
        designated system, means in addition the chief executive of the
        designated system; “operating rules” (運作規則), in relation
        to a clearing and settlement system, means the rules or terms that
        govern the functioning or operations of the system; “participant”
        (參與者), in relation to a clearing and settlement system, means a
        person who for the time being is a party to the arrangement by which
        the system is established; “relevant insolvency office-holder”
        (有關破產清盤人員) means—

   (a)  the Official Receiver appointed under section 75 of the
        Bankruptcy Ordinance ( Cap 6);

   (b)  a person acting under the laws of Hong Kong in relation to a company
        as its liquidator, provisional liquidator, receiver or manager or an
        equivalent officer;

   (c)  a person acting under the laws of Hong Kong in relation to an
        individual as his trustee in bankruptcy or interim trustee of his
        property or an equivalent officer; or (Amended 18 of 2005 s. 48)

   (d)  a person appointed under the laws of Hong Kong pursuant to an order
        for the administration in bankruptcy of an insolvent estate of a
        deceased person; “resolution for voluntary winding up”
        (自動清盤決議) means a resolution under section 228(1)(c) of the
        Companies Ordinance ( Cap 32); “settlement account”
        (交收帳戶), in relation to a clearing and settlement system, means
        an account at a settlement institution used to hold funds or
        securities (or both) and to settle transfer orders between
        participants in the system; “settlement institution”
        (交收機構), in relation to a clearing and settlement system, means
        a person providing settlement accounts to the participants and to any
        central counterparty in the system for the settlement of transfer
        orders within the system and, as the case may be, for extending credit
        to such participants and any such central counterparty for settlement
        purposes; “system operator” (系統營運者), in relation to a
        clearing and settlement system, means any person who, for the purposes
        of the system’s operating rules, is responsible for the operation of
        the clearing or settlement functions of the system; “transfer
        order” (轉撥指令), in relation to a clearing and settlement
        system, means either of the following instructions—

   (a)  an instruction—

        (i)    by a participant to place at the disposal of another
               participant an amount of money by means of a book-entry on the
               accounts of a settlement institution for the system; or

        (ii)   which results in the assumption or discharge of a payment
               obligation for the purposes of the operating rules of the
               system; or

   (b)  an instruction by a participant either to settle an obligation for the
        transfer of book-entry securities, or for the transfer of such
        securities; “Tribunal” (審裁處) means the Tribunal established
        under section 34(1).