CLEARING AND SETTLEMENT SYSTEMS
ORDINANCE
“settlement institution” (交收機構), in relation to a clearing and settlement system, means a person providing settlement accounts to the participants and to any central counterparty in the system for the settlement of transfer orders within the system and, as the case may be, for extending credit to such participants and any such central counterparty for settlement purposes;
“system operator” (系統營運者), in relation to a clearing and settlement system, means any person who, for the purposes of the system’s operating rules, is responsible for the operation of the clearing or settlement functions of the system;
“transfer order” (轉撥指令), in relation to a clearing and settlement system, means either of the following instructions—
- (a) an instruction—
- (i) by a participant to place at the disposal of another participant an amount of money by means of a book-entry on the accounts of a settlement institution for the system; or
- (ii) which results in the assumption or discharge of a payment obligation for the purposes of the operating rules of the system; or
- (b) an instruction by a participant either to settle an obligation for the transfer of book-entry securities, or for the transfer of such securities;
“Tribunal” (審裁處) means the Tribunal established under section 34(1).
3. Application
This Ordinance applies to and in relation to—
- (a) a designated system that is established in a place outside Hong Kong;
- (b) a system operator or settlement institution of, or a participant in, a designated system who, being an individual, is outside Hong Kong;
- (c) a system operator or settlement institution of, or a participant in, a designated system that, being a corporation, is incorporated in a place outside Hong Kong; or
- (d) an officer of a corporation that is a system operator or settlement institution of, or a participant in, a designated system who is outside Hong Kong,
as it applies to and in relation to such a system that is established in Hong Kong, such an individual who is in Hong Kong, such a corporation that is incorporated in Hong Kong, or such an officer of a corporation who is in Hong Kong.
