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

Chapter III : Exchanges

Licensing of exchange

9. General requirements applicable to applicant for exchange licence

 

1) Subject to subsection (2), an applicant for an exchange licence must-
a) have the financial resources, and the management and human resources with appropriate experience, necessary for the operation of an exchange in terms of this Act;
b) have made arrangements for the proper supervision of all transactions effected through the exchange so as to ensure compliance with the exchange rules;
c) have the infrastructure necessary for the sustained operation of an exchange in terms of this Act;
d) maintain security and back-up procedures to ensure the integrity of the records of transactions effected through the exchange;
e) have insurance, a guarantee or compensation fund or other warranty in place to enable it to provide compensation, subject to the exchange rules, to clients; and
f) make provision, to the satisfaction of the registrar, for the clearing and settlement of transactions effected through the exchange and for the management of trade and settlement risk.

 

2) The registrar may, with reference to the nature of an exchange, determine to what extent an applicant must comply with the requirements referred to in subsection (1).

 

3) The registrar may prescribe any of the requirements referred to in subsection (1) in greater detail.