Which entities have disciplinary powers over their participants similar to the SFC?

• A. HKEX
• B. Exchanges
• C. Clearing houses
• D. All of the above

Answer: (D)

Disciplinary powers are built into market infrastructures to enforce rules and protect market integrity. An exchange like HKEX enforces conduct rules for its members and can impose sanctions such as fines, trading suspensions, or expulsion through its own disciplinary process. Clearing houses likewise have rules governing their members and clearing participants; breaches of clearing and settlement rules or risk-management requirements can lead to penalties, suspension from clearing services, or loss of clearing membership. These bodies act directly to maintain orderly markets and proper risk controls, independently of the regulator. So, alongside the SFC, both exchanges and clearing houses have similar disciplinary authority over their participants.