Commodity Exchanges (Prohibition) Ordinance


Published: 1997-06-30

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Cap 82 - COMMODITY EXCHANGES (PROHIBITION) ORDINANCE 1

Chapter: 82 COMMODITY EXCHANGES (PROHIBITION)
ORDINANCE

Gazette Number Version Date


Long title 30/06/1997


To prohibit the establishment of further commodity exchanges in Hong Kong.


[3 August 1973]


(Originally 54 of 1973)

Section: 1 Short title 30/06/1997


This Ordinance may be cited as the Commodity Exchanges (Prohibition) Ordinance.

Section: 2 Interpretation 30/06/1997


In this Ordinance, unless the context otherwise requires-
"commodity" (商品) means any goods specified in the Schedule;
"commodity exchange" (商品交易所) means a market or exchange at or through which persons regularly offer

commodities for sale or exchange.

Section: 3 Application L.N. 12 of 2003 01/04/2003


This Ordinance applies to every commodity exchange other than-
(a) a market to which the Public Health and Municipal Services Ordinance (Cap 132) applies; (Amended

10 of 1986 s. 32(1))
(b) a market established under the Agricultural Products (Marketing) Ordinance (Cap 277);
(c) a market established under the Marine Fish (Marketing) Ordinance (Cap 291);
(d) a commodity exchange which was in operation on 20 June 1973;
(e) a recognized futures market as defined in section 1 of Part 1 of Schedule 1 to the Securities and

Futures Ordinance (Cap 571); (Replaced 5 of 2002 s. 407)
(f) any activity which under section 19(9) of the Securities and Futures Ordinance (Cap 571) shall not be

regarded as contravening section 19(1)(b) of that Ordinance. (Added 5 of 2002 s. 407)

Section: 4 Prohibition on establishment or operation of commodity

exchange
30/06/1997



(1) No person shall-
(a) establish or operate a commodity exchange to which this Ordinance applies; or
(b) knowingly assist in the operation of any such commodity exchange.

(2) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to
a fine of $500000 and, in the case of a continuing offence, to a further fine of $50000 for each day during which the
offence continues.

Section: 5 Power of entry and search, etc. 30/06/1997


(1) Any police officer not below the rank of superintendent may, without warrant and with the assistance of
such other police officers as may be necessary-

(a) enter and search any premises in which he reasonably suspects that an offence against section 4 is
being or has been committed; and

(b) remove and detain any equipment, books, records, accounts or other documents which he reasonably
suspects to be, or to contain, evidence of the commission of that offence.



Cap 82 - COMMODITY EXCHANGES (PROHIBITION) ORDINANCE 2

(2) Any such police officer may-
(a) break open any outer or inner door of any premises which he is empowered to enter under subsection

(1);
(b) remove by force any person or thing obstructing him in the exercise of his powers under subsection

(1);
(c) detain any person found in such premises until the premises have been searched.


Section: 6 Power to order closure L.N. 362 of 1997 01/07/1997


(1) If any person is charged with an offence against section 4(1)(a), the District Court may, on application by or
on behalf of the Secretary for Justice, order that any premises in which the commodity exchange is alleged to have
been operated be secured until the proceedings for that offence are completed. (Amended L.N. 362 of 1997)

(2) Any person having an interest in the premises in respect of which an order under subsection (1) has been
made who is aggrieved by such order may apply to the District Court for the discharge of the order; and on the hearing
of the application the court may either confirm the order or direct that it be discharged.

(3) Not less than 24 hours before the hearing of an application under subsection (2), notice of the application,
and of the grounds therefor, shall be served on the Secretary for Justice, who shall be entitled to be heard on the
hearing of the application. (Amended L.N. 362 of 1997)

(4) If any person is convicted of an offence against section 4(1)(a), the court may order that the premises in
which the commodity exchange was operated shall be secured for such period as may be specified in the order.

(5) Where an order under subsection (1) or subsection (4) has been made, any police officer, whether or not he
is in possession of the order or a copy of the order, may take such steps as may be necessary to secure the premises in
respect of which the order was made.

(6) Any person who, without the authority of a police officer, enters any premises in respect of which an order
under subsection (1) or subsection (4) is in force shall be guilty of an offence and shall be liable on conviction to a fine
of $50000.

Section: 7 Amendment of Schedule 79 of 1999 01/07/1997


Remarks:
Adaptation amendments retroactively made - see 79 of 1999 s. 3


The Chief Executive may, by notice in the Gazette, amend the Schedule.
(Amended 79 of 1999 s. 3)


Section: 8 Limitation on commencement of proceedings 30/06/1997


(1) Notwithstanding section 26 of the Magistrates Ordinance (Cap 227), an information or complaint relating to
an offence under this Ordinance may be tried if it is laid or made, as the case may be, at any time within 3 years after
the commission of the offence or within 12 months after the first discovery thereof by the prosecutor, whichever
period expires first.

(2) This section shall not apply in relation to an offence committed before the commencement of the
Commodity Exchanges (Prohibition) (Amendment) Ordinance 1991 (8 of 1991).

(Added 8 of 1991 s. 2)

Schedule: SCHEDULE 30/06/1997


[section 2]

1. Barley
2. Cocoa
3. Coffee
4. Copper
5. Cotton
6. Gold



Cap 82 - COMMODITY EXCHANGES (PROHIBITION) ORDINANCE 3

7. Lead
8. Maize
9. Oats
10. Platinum
11. Rice
12. Rubber
13. Silver
14. Oil seeds and vegetable oils
15. Sugar
16. Timber
17. Tin
18. Wheat
19. Wool
20. Zinc
21. Jute (Added L.N. 163 of 1973)
22. Frozen meat, poultry and fish (Added L.N. 163 of 1973)
23. Soybeans (Added L.N. 269 of 1979)