Hong Kong Ordinances

CLEARING AND SETTLEMENT SYSTEMS ORDINANCE - SECT 5

Revocation of designation

(1) The Monetary Authority may at any time, by notice published in the
Gazette, revoke the designation of a designated system if—

   (a)  he is satisfied that the system is not a clearing and settlement
        system as is described in section 4(2); or

   (b)  the system has ceased to be or to be likely to become, in his opinion,
        a clearing and settlement system whose proper functioning is material
        to the monetary or financial stability of Hong Kong, or to the
        functioning of Hong Kong as an international financial centre, for the
        purposes of section 4(1).

(2) Not less than 14 days before revoking the designation of a designated
system, the Monetary Authority shall by notice published in the Gazette give
notice of his intention to revoke the designation and shall specify in the
notice the grounds under subsection (1) on which he intends to do so; and any
system operator or settlement institution of the designated system who so
requests by notice in writing given to the Monetary Authority before the
revocation takes effect shall be allowed an opportunity by the Monetary
Authority to be heard or to make representations as to why the grounds for
revocation specified in the notice given under this subsection have not been
made out.

(3) A revocation of the designation of a designated system effected under this
section shall not operate so as to affect any settlement of a transfer order
effected through the system prior to the revocation taking effect.