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  • MAE-4.4 MAE-4.4 Emergency Powers of the CBB

    • MAE-4.4.1

      Where the CBB has reason to believe that an emergency exists, or thinks that it is necessary or expedient in the interests of the public or a section of the public or for the protection of investors, the CBB may direct by notice in writing a licensed exchange or licensed market operator to take such action as it considers necessary to maintain or restore orderly trading in securities or futures contracts or any class of securities or futures contracts.

    • MAE-4.4.2

      Without prejudice to MAE-4.4.1, these activities which the CBB may direct a licensed exchange or licensed market operator to take shall include:

      (a) Terminating or suspending trading on the licensed exchange or licensed market operator;
      (b) Confining trading to liquidation of securities or futures contracts positions;
      (c) Ordering the liquidation of all positions or any part thereof or the reduction in such positions;
      (d) Limiting trading to a specific price range;
      (e) Modifying trading days or hours;
      (f) Altering conditions of delivery;
      (g) Fixing the settlement price at which positions are to be liquidated;
      (h) Requiring any person to act in a specified manner in relation to trading in securities or futures contracts or any class of securities or futures contracts;
      (i) Requiring margins or additional margins for any securities or futures contracts; and
      (j) Modifying or suspending any of the business rules of the licensed exchange or licensed market operator.

    • MAE-4.4.3

      Where the licensed exchange or licensed market operator fails to comply with any direction of the CBB under Paragraph MAE-4.4.1 within such time as is specified by the CBB, the CBB may:

      (a) Set margin levels in any securities or futures contract or class of securities or futures contracts to cater for the emergency;
      (b) Set limits that may apply to market positions acquired in good faith prior to the date of the notice issued by the CBB; or
      (c) Take such action as the CBB may deem fit to maintain or restore orderly trading in any securities or futures contracts or class of securities or futures contracts, or liquidation of any position in respect of any securities or futures contract or class of securities or futures contracts.
      Amended: April 2016

    • MAE-4.4.4

      In this section "emergency" means any threatened or actual market manipulation or cornering, and includes:

      (a) Any act of any government affecting a commodity or securities;
      (b) Any major market disturbance which prevents the market from accurately reflecting the forces of supply and demand for such commodity or securities; or
      (c) Any undesirable situation or practice which in the opinion of the CBB, constitutes an emergency.

    • MAE-4.4.5

      The CBB may modify any action taken by a licensed exchange under Paragraph MAE-4.4.1, including the setting aside of that action.