Hong Kong Ordinances

CLEARING AND SETTLEMENT SYSTEMS ORDINANCE - SECT 27

Preservation of rights, etc. in underlying transactions

(1) This Part shall not operate to limit, restrict or otherwise affect—

   (a)  any right, title, interest, privilege, obligation or liability of a
        person resulting from the underlying transaction in respect of a
        transfer order which has been entered into a designated system; or

   (b)  any investigation, legal proceedings or remedy in respect of any such
        right, title, interest, privilege, obligation or liability.

(2) Nothing in subsection (1) shall be construed to require—

   (a)  the unwinding of any netting effected by the system operator of a
        designated system, whether pursuant to its default arrangements or
        otherwise;

   (b)  the revocation of any transfer order given by a participant which is
        entered into a designated system; or

   (c)  the reversal of a payment or settlement made under the operating rules
        of a designated system.