Page:Clearing and Settlement Systems Ordinance (Cap. 584).pdf/11

CLEARING AND SETTLEMENT SYSTEMS ORDINANCE


 * (c) that there are in place adequate arrangements to monitor and enforce compliance with the operating rules of the system, including arrangements regarding the resources available to the system operator;
 * (d) that there are available to the system financial resources appropriate for the proper performance of the system’s particular functions.

(2) The operating rules of a designated system shall—
 * (a) impose on participants requirements that are no less stringent than the requirements imposed on participants under the other provisions of this Ordinance;
 * (b) provide that if a participant becomes insolvent he may be suspended from the system; and
 * (c) provide for default arrangements which are appropriate and adequate for the system in all circumstances.

(3) No change shall be made to the operating rules of a designated system without the prior approval in writing of the Monetary Authority.

8. Safety and efficiency

(1) In this Ordinance, reference to the safety of a clearing and settlement system includes in particular reference to—
 * (a) the extent to which the operating rules of the system provide for certainty as to the circumstances under which transfer orders effected through the system are to be regarded as settled for the purposes of the system;
 * (b) the reliability and robustness of operation of the system;
 * (c) control over access to the operations of the system; and
 * (d) the integrity of information held within the system.

(2) In this Ordinance, reference to the efficiency of a clearing and settlement system includes in particular reference to—
 * (a) the speed and efficiency with which operations relating to transfer orders within the system are carried out;
 * (b) the overall cost to a participant of his participation in the system, having regard to the services provided by the system to its participants;
 * (c) the reasonableness of criteria for admission as a participant in the system; and
 * (d) generally, the absence of measures having the effect of unfairly limiting, or exploiting the absence of, competition in relation to the functions performed by the system.