Common use of Market integrity Clause in Contracts

Market integrity. 4.2.1 In the First MOU, HKEx and the SFC acknowledged that, with the coming into effect of the Merger Ordinance, there was a need to formalize new arrangements as soon as reasonably practicable for the effective discharge of their respective responsibilities in relation to SFC oversight of HKEx and its subsidiaries, supervision of Exchange Participants and market surveillance to reduce any areas of duplication of function, to facilitate a smooth and cooperative working relationship and to enable the SFC more effectively to discharge its statutory obligation of supervision and that the SFC had supplied HKEx with a draft of a proposed Memorandum of Understanding covering these matters as a basis of further discussions. The parties agreed to work together in good faith and in a spirit of mutual cooperation to consider that draft and to finalize as quickly as reasonably practicable an appropriate Memorandum of Understanding. 4.2.2 Before the signing of the Memorandum of Understanding referred to in clause 4.2.1, the parties agreed that each of them would continue to observe the then existing Memoranda of Understanding, arrangements and practices delineating their respective areas of operation and the information-sharing arrangements between them, including those arrived at in an exchange of correspondence in relation to disciplinary arrangements and information-sharing immediately prior to the coming into force of the Merger Ordinance. 4.2.3 Pursuant to a Memorandum of Understanding dated 20 February 2001, the SFC and HKEx established arrangements between them with respect to SFC oversight and supervision of Exchange Participants and market surveillance.