Whole Section

  • 2.15 Resignation, Suspension and Termination of Members

    • 2.15.1 Member's Suspension or Resignation

      The following requirements apply in relation to a Member's suspension or resignation:

      (a) a Member may request the Exchange to temporarily suspend its Membership. A Member shall provide reasons for its request for voluntary suspension. For the avoidance of doubt, an individual Trading Member shall, in all cases, make a request to the Exchange to suspend his Membership, if he intends to act as an Approved Trader for a corporate Trading Member. The Exchange may grant to the requesting Member a temporary suspension of up to twenty-four (24) months, upon such terms and conditions as the Exchange deems fit;
      (b) a Member may cease to be a Member by virtue of giving the Exchange written notice of its wish to resign from Membership (a "Resignation Notice");
      (c) a Member which gives the Exchange a Resignation Notice must provide the Exchange with such information concerning the circumstances of the resignation as, in the opinion of the Exchange, is necessary for the Exchange to determine whether:
      (i) to accept the resignation;
      (ii) to postpone the effective date of the resignation; or
      (iii) without prejudice to the courses of action available to the Exchange under subparagraphs (i) and (ii) above, any other measures should be taken by the Exchange before or after the resignation takes effect;
      (d) notwithstanding anything to the contrary herein, the Exchange may, in its absolute discretion, refuse to accept a Resignation Notice given by a Member or may postpone the effective date if it considers it necessary for the protection of Customers, or otherwise in the interests of the Markets. If the Exchange does so, the Exchange may waive the Member's liability for some or all Exchange fees, levies and charges arising in respect of the period following the date on which its Resignation Notice would otherwise have taken effect.
    • 2.15.2 Summary Powers of Suspension of Trading Privileges of Members

      Notwithstanding and without prejudice to the powers of the Appeals Committee and the Disciplinary Committee, the Exchange may suspend in whole or in part a Member's trading privileges for up to a period of one (1) year upon the occurrence of any of the following events:

      (a) a Member's failure to pay any fees, levies or charges as contemplated under Rule 2.12;
      (b) a Member's application for Membership contains material errors or omissions or is misleading in a material respect;
      (c) a Member fails to satisfy the Exchange that it meets such financial requirements, licensing, risk management or other material obligations as required under this Rules or by the Exchange from time to time; or
      (d) if, in the Exchange's opinion, it is necessary or desirable to protect the financial integrity, reputation or interest of the Markets or to promote the operation of a fair, orderly and transparent market.
    • 2.15.3 Termination of Membership

      The Exchange shall have the power to terminate any Membership upon the occurrence of any of the following events:

      (a) upon the death, mental incapacity, bankruptcy or filing of a bankruptcy petition by any individual Trading Member;
      (b) if a corporate Member becomes insolvent or calls a meeting of its creditors, or enters into an arrangement or composition under insolvency laws or suffers winding up, dissolution or other similar event;
      (c) revocation of a licence by the Relevant Regulatory Authority with respect to the Member's engagement in any Regulated Activity; or
      (d) in the case of a Bank Trading Member, revocation of its licence under the Banking Act 1970 or removal of its exemption from holding a CMS licence under the Act.

      Amended on 25 August 200925 August 2009, 16 July 201216 July 2012, 1 April 20141 April 2014 and 18 January 2022.

    • 2.15.4 Effect of Suspension or Termination

      In the event of suspension or termination of trading privileges, the Exchange may direct the affected Member to Close Out any Open Positions or take such other steps that the Exchange deems fit for the protection of Customers or the maintenance of a fair, orderly and transparent market. The affected Member shall cooperate fully with the Exchange with respect to such directions. A suspension or termination of trading privileges does not in any way affect the liabilities of the Member to the Exchange and other Members and all such liabilities shall subsist until satisfied or discharged.

    • 2.15.5 Accrued Obligations Survive

      A Member which ceases to be a Member shall remain subject to this Rules and to the jurisdiction of the Exchange in respect of acts and omissions while it was a Member and in respect of any investigation or disciplinary proceedings relating thereto (including the application of any Sanction imposed) as if it was a Member.

    • 2.15.6 Exchange to Inform Clearing House

      The Exchange shall promptly inform the Clearing House of the resignation, termination or suspension, as well as of the lifting of such suspension, of the Membership of any Member.