Malaysia legislation
Section 19
Section 19
(2)
An application under subsection (1) shall be in a prescribed form and accompanied by—
(a)
a copy of the constitution of the company; and
(b)
such other documents and information as may be required by the Minister for the purposes of approval under subsection (1).
(3)
The requirements referred to in subsection (1) are—
(a)
that the objects contained in the constitution of the company include a provision for the establishment and operation of a commodity exchange;
(b)
that at least ten members of the company will carry on business dealing in commodities independently or in competition with each other;
(c)
that the company shall—
(i)
maintain to the satisfaction of the Minister an adequate and properly equipped place of business;
(ii)
establish and operate commodity markets only at places approved by the Minister;
(iii)
establish or make arrangements for the establishment of a clearing house for the registration and settlement of futures contracts and the day-to-day adjustment of the financial position of such contracts;
(iv)
make arrangements to guarantee that futures contracts registered by the clearing house shall be fulfilled in the event of default by either of the two parties to such contracts;
n made to him establishment and odity exchange applies with the
1) shall be in a company; and nation as may the purposes subsection (1)
e constitution vision for the a commodity company will commodities on with each tion of the and properly odity markets the Minister; nents for the house for the t of futures adjustment such contracts;
arantee that by the clearin the event two parties to
(d)
that the constitution of the company provides for the making of rules applicable to the exchange company in its capacity as an exchange organisation and rules of commodity markets;
(e)
that the company shall make arrangements for the establishment of a Compensation Fund under Part IX;
(f)
that the constitution of the exchange company shall have been approved by the Commission.