Securities Services Act, 2004 (Act No. 36 of 2004)

Chapter III : Exchanges

Purchase

(1)	An exchange —

(a)	must enforce the exchange rules and listing requirements;

(b)	must supervise compliance by authorised users with this Act and the exchange rules;

(c)	may issue directives;

(d)	may amend or suspend the exchange rules in terms of section 61, and may amend its listing requirements in consultation with the registrar;

(e)

(i)	must make provision for the clearing and settlement of transactions in listed securities effected through the exchange;

(ii)	may appoint a clearing house licensed in terms of section 66 to perform clearing house services for the exchange in accordance with the exchange rules;

(iii)

must consult with an appointed clearing house when making or amending exchange rules pertaining to clearing and settlement;

(f)	must supervise compliance by issuers of listed securities with the listing requirements, the exchange rules and this Act;

(g)	may do all other things that are necessary for, incidental or conducive to the proper operation of an exchange and that are not inconsistent with this Act.

(2)

(a)	The registrar may assume responsibility for one or more of the functions referred to in subsection (1) if the registrar considers it necessary in order to achieve the objects of this Act referred to in section 2.

(b)	The registrar must, before assuming responsibility as contemplated in paragraph (a)—

(i)	inform the exchange of the registrar’s intention to assume responsibility;

(ii)	give the exchange the reasons for the intended assumption; and

(iii)

call upon the exchange to show cause within a period specified by the registrar why responsibility should not be assumed by the registrar.