ADVOKS GLOBAL · KENYA
Capital Markets Act
22B. Powers of the Authority to intervene in the operations of securities and futures exchanges
Edition: 2025-12-11 · In force
22B. Powers of the Authority to intervene in the operations of securities and futures exchanges
(1)The Authority may, where—(a)there is in place, an act of Government affecting securities or commodities;(b)there is a major market disturbance which prevents the market from accurately reflecting the forces of supply and demand for such securities or commodities;(c)there is a threatened or actual manipulation of the market;(d)the Authority considers it necessary or expedient in the interest of the public or for the protection of the interests of the investors,direct, by notice in writing, a securities exchange or a derivatives exchange to take such action as the Authority considers necessary to—(i)maintain or restore the fair, efficient and transparent trading in securities or any class of securities or exchange-traded derivatives contracts or any class of exchange-traded derivatives contracts; or(ii)liquidate any position in respect of any securities or any class of securities or exchange-traded derivatives contracts or any class of exchange-traded derivatives contracts.(2)A notice issued under subsection (1) may include a directive—(a)terminating trading on a securities market or a derivatives market or trading of a specific security or a exchange-traded derivatives contract;(b)suspending trading on a securities market or derivatives market or trading of a specific security;(c)confining trading to liquidation of securities or exchange-traded derivatives contracts' positions;(d)ordering the liquidation of all positions or part thereof or the reduction in such positions;(e)limiting trading to a specific price range;(f)modifying the trading days or hours;(g)altering the conditions of delivery;(h)fixing the settlement price at which exchange-traded derivatives contracts' positions are to be liquidated;(i)requiring any person to act in a specified manner in relation to trading in securities or any class of securities or exchange-traded derivatives contracts or any class of exchange-traded derivatives contracts;(j)requiring margins or additional margins for any securities or exchange-traded derivatives contracts; and(k)modifying or suspending any of the rules of a securities exchange or a derivatives exchange.(3)Where the Authority suspends trading under subsection (2)(b), the suspension shall not exceed a period of three months:Provided that the Authority may, if it considers it necessary, extend the suspension for one further period not exceeding three months at the expiry of which the Authority shall either notify the securities exchange or the derivatives exchange in writing that the suspension has expired, or proceed to cancel the securities exchange or the derivatives exchange license, as the Authority considers appropriate.(4)Where a securities exchange or a derivatives exchange fails to comply with a direction of the Authority within the time specified in the notice issued under subsection (2), the Authority may—(a)set emergency margin levels in any securities or class of securities or any exchange-traded derivatives contracts or class of exchange-traded derivatives contracts;(b)set limits that may apply to market positions acquired in good faith prior to the date of the direction of the Authority; or(c)take such other action as the Authority may consider necessary to maintain or restore fair, efficient and transparent trading in any securities or class of securities or exchange-traded derivatives contracts or class of exchange-traded derivatives contracts, or liquidation of any position in respect of exchange-traded derivatives contracts or class of exchange-traded derivatives contracts.