Page:Clearing and Settlement Systems Ordinance (Cap. 584).pdf/16

CLEARING AND SETTLEMENT SYSTEMS ORDINANCE

Division 2—Certificate of finality 16. Monetary Authority may issue certificate of finality

(1) Where a clearing and settlement system has been designated under Part 2, the Monetary Authority shall determine in accordance with subsection (2) whether the following criteria are met as regards that system, namely—
 * (a) ultimate settlement of transfer orders is effected within the system itself; and
 * (b) there is compliance with the requirements stipulated in section 7(1).

(2) In making a determination under subsection (1) the Monetary Authority—
 * (a) shall have regard to such information relating to the system as may be submitted to him by the system operator for the purposes of this section; and
 * (b) may in addition have regard to such other information in his possession relating to the system as he considers relevant,

but the Monetary Authority shall not be under any obligation to undertake any enquiries for the purpose of making the determination.

(3) If the Monetary Authority determines that the criteria specified in subsection (1) have been met as regards a designated system, he shall issue in respect of the system a certificate certifying to that effect (“certificate of finality”) and specifying a date and time from which the certificate shall have effect.

(4) If the Monetary Authority finds himself unable to make a determination in the terms mentioned in subsection (3) as regards a designated system, he shall inform the system operator in writing accordingly giving particulars of the respect in which any of the criteria specified in subsection (1) have not been met or of the further information he requires in order to make a determination in relation to such criteria.

(5) Except for the period of any suspension under section 17(1), a certificate of finality in respect of a designated system remains in effect until it is revoked or until the designation of the system for the purposes of this Ordinance has been revoked.

(6) Except as otherwise provided, the following provisions of this Part apply to and in relation to any designated system in respect of which a certificate of finality is in effect; and in Divisions 3, 4 and 5 of this Part, a reference to a designated system is a reference to such a designated system.

(7) The Monetary Authority shall publish in the Gazette notice of any certificate of finality issued under this section.