### Securities and Futures Ordinance 《證券及期貨條例》

101K. Designation of trading platforms
(Not yet in operation)
(1) On application by a person in the prescribed manner and on payment of the prescribed fee, the Commission may, with the consent of the Monetary Authority and after consultation with the Financial Secretary—
(a) designate the person, in accordance with the designation rules and by a written notice served on the person, as a trading platform for the purposes of this Part; or
(b) refuse, in accordance with the designation rules, to designate the person.
(2) A person may be designated only if—
(a) at the time of designation, the person—
(i) is a recognized exchange company; or 
(ii) is a person authorized under section 95(2) to provide automated trading services; and
(b) the requirements prescribed by the designation rules have been met.
(3) A designation may be for—
(a) OTC derivative transactions generally; or
(b) a class or description of OTC derivative transactions specified in the designation.
(4) A person outside Hong Kong or in Hong Kong may be designated under this section.
(5) The Commission may, with the consent of the Monetary Authority and after consultation with the Financial Secretary, in accordance with the designation rules and by a written notice served on a person, do the following with regard to a designation—
(a) impose conditions;
(b) amend or revoke a condition;
(c) impose additional conditions;
(d) revoke the designation.
(6) Before exercising a power under subsection (1)(b) or (5)(d), the Commission must give the person concerned a reasonable opportunity of being heard.
(7) If the Commission amends or revokes a condition or imposes an additional condition under subsection (5)(b) or (c), the amendment, revocation or imposition takes effect at the time of the service of the notice or at the time specified in the notice, whichever is the later.
(8) If the Commission revokes a designation under subsection (5)(d), the revocation takes effect at the time of the service of the notice or at the time specified in the notice, whichever is the later.
(9) If, under this section, a person is designated or a designation is revoked, the Commission must publish notice of that fact in the Gazette.
(10) A notice published under subsection (9) is not subsidiary legislation.

### Securities and Futures Ordinance 《證券及期貨條例》

101M. Rule making power—fees
(1) The Chief Executive in Council may, after consultation with the Monetary Authority, make rules to require and provide for the payment to the Monetary Authority of the fees for using the electronic system referred to in section 101L(7)(b).
(2) Rules made under this section may provide—
(a) that the amount of any fees may be fixed by reference to a scale set out in the rules;
(b) for the payment of different fees by or in relation to persons or cases of different classes or descriptions;
(c) for the time and manner of payment of the fees;
(d) that the payment of any fees may, either generally or in a particular case, be reduced, waived or refunded;
(e) that the Monetary Authority may recover any outstanding amount of the fees as a civil debt due to the Monetary Authority; and
(f) for any other matters relating or incidental to a matter mentioned in paragraph (a), (b), (c), (d) or (e).
(3) This section is in addition to and not in derogation of sections 29 and 29A of the Interpretation and General Clauses Ordinance (Cap. 1).

### Securities and Futures Ordinance 《證券及期貨條例》

101N. Rule making power—clearing obligation
(1) The Commission may, with the consent of the Monetary Authority and after consultation with the Financial Secretary, make rules—
(a) generally for the purposes of the clearing obligation; and
(b) without limiting paragraph (a), to prescribe the particular matters set out in this section.
(2) Rules made under this section—
(a) may specify for the purposes of paragraph (b)(iv) of the definition of prescribed person in section 101A, a class or description of persons; and
(b) must provide in relation to a person of such a class or description that the person is subject to the clearing obligation only if the person is a counterparty to a specified OTC derivative transaction.
(3) Rules made under this section—
(a) may specify generally, or with reference to a class or description of transactions, the OTC derivative transactions that are subject to the clearing obligation; and
(b) without limiting paragraph (a), may provide that an OTC derivative transaction is subject to the clearing obligation—
(i) even if a counterparty or more than one counterparty is a person outside Hong Kong;
(ii) except in relation to a person of a class or description specified under subsection (2), even if a prescribed person is not a counterparty to the transaction; or
(iii) even if the transaction is entered into or conducted wholly or partially outside Hong Kong.
(4) Without limiting subsection (3), OTC derivative transactions may be specified under that subsection with reference to any factor relating to an OTC derivative transaction, including—
(a) the underlying subject matter of the transaction;
(b) the features or characteristics of the transaction; and
(c) the persons involved in the transaction.
(5) Rules made under this section may specify—
(a) the circumstances relating to a specified OTC derivative transaction in which the clearing obligation—
(i) applies;
(ii) does not apply; or
(iii) is taken to have been complied with;
(b) the criteria (including thresholds) for the application of the clearing obligation; and
(c) different circumstances and criteria for different prescribed persons or different OTC derivative transactions.
(6) Rules made under this section may specify—
(a) the manner in which a specified OTC derivative transaction is to be cleared with a designated CCP;
(b) the period within which the clearing obligation must be complied with;
(c) the circumstances in which a specified OTC derivative transaction that is cleared otherwise than with a designated CCP is treated, for the purposes of the clearing obligation, as having been cleared with a designated CCP;
(d) that a prescribed person may clear a specified OTC derivative transaction with a designated CCP directly or through a third party; and
(e) that a subsidiary specified under section 101C(5) that is a counterparty to a specified OTC derivative transaction may clear the transaction with a designated CCP directly or through a third party.