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  • CSD-6.3 CSD-6.3 Emergency Powers of CBB

    • CSD-6.3.1

      Where the CBB has reason to believe that an emergency exists, or considers 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 clearing house or licensed central depository to take such action as it considers necessary to maintain or restore safe and efficient operations of the clearing facilities operated by the licensed clearing house and of the custodian services provided by the licensed central depository.

      Amended: April 2016

    • CSD-6.3.2

      Without prejudice to Paragraph CSD-6.3.1, the actions which the CBB may direct a licensed clearing house or licensed central depository to take include:

      (a) Ordering the liquidation of all positions or part thereof, or the reduction of such positions;
      (b) Altering conditions of delivery of transactions cleared or settled, or to be cleared or settled through the clearing facility;
      (c) Fixing the settlement price at which transactions are to be liquidated;
      (d) Requiring margins or additional margins for transactions cleared or settled, or to be cleared or settled through the clearing facility; and
      (e) Modifying or suspending any of the business rules of the licensed clearing house or licensed central depository.
      Amended: April 2016

    • CSD-6.3.3

      Where a licensed clearing house or licensed central depository fails to comply with any direction of the CBB under Paragraph CSD-6.3.1 within such time as is specified by the CBB, the CBB may:

      (a) Set margin levels for transactions cleared or settled, or to be cleared or settled through the clearing facility 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 other action as the CBB considers necessary to maintain or restore safe and efficient operations of the clearing facilities operated by the licensed clearing house and the services offered by the licensed central depository.
      Amended: April 2016

    • CSD-6.3.4

      In this section, "emergency" includes:

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

    • CSD-6.3.5

      The CBB may modify any action taken by a licensed clearing house or licensed central depository under Paragraph CSD-6.3.1, including the setting aside of that action.

      Amended: April 2016