The Ordinance bans people from establishing, operating, or knowingly helping operate a covered commodity exchange in Hong Kong, with fines for breaches and police/court powers to search, secure premises, and enforce closure orders.
To prohibit the establishment of further commodity exchanges in Hong Kong. [3 August 1973](Format changes—E.R. 2 of 2019) 1. Short title This Ordinance may be cited as the Commodity Exchanges (Prohibition) Ordinance. 2. Interpretation 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. 3. Application 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) 4. Prohibition on establishment or operation of commodity exchange (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 $500,000 and, in the case of a continuing offence, to a further fine of $50,000 for each day during which the offence continues. 5. Power of entry and search, etc. (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.(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. 6. Power to order closure (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 (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. (Amended E.R. 2 of 2019)(6) Any person who, without the authority of a police officer, enters any premises in respect of which an order under subsection (1) or (4) is in force shall be guilty of an offence and shall be liable on conviction to a fine at level 5. (Amended E.R. 2 of 2019) 7. Amendment of Schedule The Chief Executive may, by notice in the Gazette, amend the Schedule.(Amended 79 of 1999 s. 3) 8. Limitation on commencement of proceedings (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) Editorial Note: # Commencement date: 1 February 1991. Schedule [s. 2]1. Barley2. Cocoa3. Coffee4. Copper5. Cotton6. Gold7. Lead8. Maize9. Oats10. Platinum11. Rice12. Rubber13. Silver14. Oil seeds and vegetable oils15. Sugar16. Timber17. Tin18. Wheat19. Wool20. Zinc21. 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)