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

42. Production of records, etc. by recognized clearing house
(1) The Commission may, by notice in writing served on a recognized clearing house, require the clearing house to provide to the Commission, within such period as the Commission may specify in the notice—
(a) such books and records kept by it in connection with or for the purposes of its business or in respect of any clearing and settlement arrangements for any transactions in securities, futures contracts or OTC derivative products; and
(b) such other information relating to its business or any clearing and settlement arrangements for any transactions in securities, futures contracts or OTC derivative products,
as the Commission may reasonably require for the performance of its functions. (Amended 6 of 2014 s. 6)
(2) A recognized clearing house served with a notice under subsection (1) which, without reasonable excuse, fails to comply with the notice commits an offence and is liable on conviction to a fine at level 5.

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

43. Withdrawal of recognition of clearing house and direction to cease to provide facilities
(1) Subject to subsections (3), (4) and (5), the Commission may, after consultation with the Financial Secretary, by notice in writing served on a recognized clearing house—
(a) withdraw the company’s recognition as a clearing house with effect from a date specified in the notice for the purpose; or
(b) direct the clearing house to cease to provide or operate with effect from a date specified in the notice for the purpose such clearing or settlement facilities as are specified therein.
(2) The Commission may by the notice served under subsection (1) permit the recognized clearing house to continue, on or after the date on which the withdrawal or direction is to take effect, to carry on such activities affected by the withdrawal or direction as the Commission may specify in the notice for the purpose of—
(a) closing down the operations of the clearing house; or
(b) protecting the interest of the investing public or the public interest.
(3) The Commission may only serve a notice under subsection (1) in relation to a recognized clearing house that—
(a) fails to comply with any requirement of this Ordinance or with a condition imposed under section 37;
(b) is being wound up;
(c) ceases to operate as a clearing house; or
(d) requests the Commission to do so.
(4) Except where responding to a request under subsection (3)(d), the Commission shall not exercise its power under subsection (1) in relation to a recognized clearing house unless it has given the clearing house a reasonable opportunity of being heard.
(5) Except where responding to a request under subsection (3)(d), the Commission shall give the recognized clearing house not less than 14 days’ notice in writing of its intention to serve a notice under subsection (1) and the grounds for doing so.
(6) Where the Commission withdraws a company’s recognition as a clearing house under subsection (1)(a), it shall cause notice of that fact to be published in the Gazette.
(7) Where the Commission directs under subsection (1)(b) a recognized clearing house to cease to provide or operate any clearing or settlement facilities, it shall cause notice of the particulars of the direction to be published in the Gazette.
(8) A notice served under subsection (1)(a) shall not take effect—
(a) subject to paragraph (b), until the expiration of the period within which an appeal against the notice may be made under section 44; or
(b) if an appeal against the notice is made under section 44, until the appeal is withdrawn, abandoned or determined.
(9) A notice served under subsection (1)(b) shall take effect immediately.

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

44. Appeals
(1) A company served with a notice under section 43(1) may appeal against the notice to the Chief Executive in Council not later than 14 days after the date of service of the notice or such longer period (if any) as the Commission specifies in the notice.
(2) The decision of the Chief Executive in Council on an appeal under subsection (1) shall be final.

45. Proceedings of recognized clearing house take precedence over law of insolvency
(1) None of the following shall be regarded as to any extent invalid at law on the ground of inconsistency with the law relating to distribution of the assets of a person on insolvency, bankruptcy or winding up, or on the appointment of a receiver over any of the assets of a person—
(a) a market contract;
(b) the rules of a recognized clearing house relating to the settlement of a market contract;
(c) any proceedings or other action taken under the rules of a recognized clearing house relating to the settlement of a market contract;
(d) a market charge;
(da) the provision of market collateral; (Added 6 of 2014 s. 59)
(e) the default rules of a recognized clearing house; or
(f) any default proceedings.
(2) The powers of a relevant office-holder in his capacity as such, and the powers of a court acting under the law of insolvency, shall not be exercised in such a way as to prevent or interfere with—
(a) the settlement in accordance with the rules of a recognized clearing house of a market contract; or
(b) any default proceedings.
(3) Subsection (2) shall not operate to prevent a relevant office-holder from recovering an amount under section 51 after the completion of a matter referred to in paragraph (a) or (b) of that subsection.

46. Supplementary provisions as to default proceedings
(1) A court may, on an application by a relevant office-holder, make such order as it considers appropriate altering or releasing him from compliance with the functions of his office that are affected by the fact that default proceedings are pending or could be taken, or have been or could have been taken.
(2) The functions of the relevant office-holder referred to in subsection (1) shall be construed subject to an order made under that subsection.
(3) Section 12, 14 or 20 to 20K of the Bankruptcy Ordinance (Cap. 6), sections 181, 183, 186 and 254 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) and sections 670 and 673 of the Companies Ordinance (Cap. 622) do not prevent or interfere with any default proceedings. (Amended 28 of 2012 ss. 912 & 920)

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

47. Duty to report on completion of default proceedings
(1) A recognized clearing house shall, upon the completion by it of any default proceedings, make a report on such proceedings stating in respect of each defaulter—
(a) any net sum certified by the clearing house to be payable by or to the defaulter; or (Amended 6 of 2014 s. 60)
(b) the fact that no sum is so payable,
(as the case may be) and the clearing house may include in that report such other particulars in respect of such proceedings as it considers appropriate.
(2) A recognized clearing house which has made a report pursuant to subsection (1) shall supply the report to—
(a) the Commission; and
(b) (i) any relevant office-holder acting in relation to—
(A) the defaulter to whom the report relates; or
(B) that defaulter’s estate; or
(ii) if there is no relevant office-holder referred to in subparagraph (i), the defaulter to whom the report relates.
(3) Where the Commission receives pursuant to subsection (2) a report made pursuant to subsection (1), it may publish notice of that fact in such manner as it considers appropriate to bring it to the attention of creditors of the defaulter to whom the report relates.
(4) Where a relevant office-holder or defaulter receives pursuant to subsection (2) a report made pursuant to subsection (1), he shall, at the request of a creditor of the defaulter to whom the report relates—
(a) make the report available for inspection by the creditor;
(b) on payment of such reasonable fee as the relevant office-holder or defaulter (as the case may be) determines, supply to the creditor all or any part of that report.
(5) In subsections (2), (3) and (4), report (報告) includes a copy of a report.