Hong Kong Ordinances

CLEARING AND SETTLEMENT SYSTEMS ORDINANCE - SECT 30

Duty to report on completion of default proceedings

(1) The system operator and settlement institution of a designated system
shall, not later than 6 days after the completion of any action taken under
the default arrangements of the system in respect of a defaulting participant,
together prepare in writing and give to the persons specified in subsection
(3) a report (“default proceedings report”) on such action taken.

(2) A default proceedings report—

   (a)  shall state the net sum (if any) certified by the system operator or
        settlement institution to be payable by or to the defaulting
        participant, or the fact that no sum is so payable (as the case may
        be); and

   (b)  may contain such other particulars in respect of the action taken as
        the system operator and settlement institution consider appropriate.

(3) The persons specified for the purposes of subsection (1) are—

   (a)  the Monetary Authority; and

   (b)  any relevant insolvency office-holder acting in relation to the
        defaulting participant to whom the report relates or that defaulting
        participant’s estate or, if there is no such relevant insolvency
        office-holder, the defaulting participant to whom the report relates.

(4) Where the Monetary Authority receives pursuant to subsection

(1) a default proceedings report he may publish notice of that fact in such
manner as he considers appropriate to bring it to the attention of creditors
of the defaulting participant to whom the report relates.

(5) A relevant insolvency office-holder or defaulting participant who has
received pursuant to subsection (1) a default proceedings report, shall, if so
requested by a creditor of the defaulting participant to whom the report
relates—

   (a)  make the report (or a copy of it) available for inspection by the
        creditor; and

   (b)  supply to the creditor all or any part of that report (or a copy of
        it), subject to receipt of payment of such reasonable fee as the
        relevant insolvency office-holder or defaulting participant (as the
        case may be) determines.