Reporting requirements and the responsibilities of reporting set out in these Rules, Regulations and Procedures and in the Securities and Futures Contracts Limits and Reportable Positions Rules and related guidance notes issued by the Commission. Anyhow, you ought to review the Rules and Guidance Note in entirety and consult with your legal counsel in order to ensure that you have a full understanding of your obligations in connection with trading in Hong Kong.
According to the Rules Cap. If you hold or control an open position in futures contracts or stock options contracts in excess of the Reporting Level specified in the Rules Cap. For reportable positions arising from trading in the after-hour trading session, you should combine the positions with trades transacted in the regular trading session on the following business day and report your LOP accordingly. If you are holding or controlling positions directly or indirectly at any Exchange Participants, you should have the obligation to aggregate positions for purposes of applying the prescribed limits and reportable position requirements.
However, the Rules apply separately to the positions held by each of the underlying clients of an omnibus account, except where the omnibus account operator has discretion over the positions in which case the account operator must also aggregate these positions with his own positions. Positions held by different underlying clients should not be netted off for purposes of calculating and reporting reportable positions or determining compliance with the prescribed limits. The SFC takes the view that a person is regarded as having control of positions if, for example, the person is allowed to exercise discretion to trade or dispose of the positions independently without the day-to-day direction of the owner of the positions.
Section 7 of the Rules Cap. Shareholders who do not subscribe for the new shares can sell their nil-paid rights on HKEx.
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In open offers, shares may be offered not in proportion to existing shareholdings, if the open offer has been approved by shareholders or offered under the general mandate. An open offer is non-renounceable and shareholders who do not subscribe for new shares will have their investments diluted. New shares that are not taken up by shareholders during the subscription period of a rights issue or open offer can be disposed of by:.
Existing shareholders are able to apply for unsubscribed shares in excess of their assured entitlements; or. Main Board Rule 7. This practice is closer to international practice, for example in the UK, Singapore and Australia. If unsubscribed shares in rights issues or open offers are to be disposed of, issuers will need to adopt excess application arrangements or compensatory arrangements.
It will be up to issuers to decide whether to adopt excess application or compensatory arrangements. The currently available exemption [1] for connected transactions to connected persons acting as underwriters for rights issues or open offers will be removed. HKEx Listing Rules 7. However, if an underwriter is to be engaged on a rights issue or an open offer by the issuer, the underwriter will need to be:. Issuers must disregard applications from controlling shareholders and their associates that exceed the offer size less the pro-rata entitlement.
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HKEx Listing Rule General mandates will no longer be allowed for placings of warrants and options for cash. Instead, specific mandates will need to be obtained by the issuers. New Rule Besides, according to current market regulations, investors should not sell short a stock unless a stock borrowing agreement is in place.
Investors who borrow stock face an added cost as they are required to pay interest to the lender. As stock futures are cash settled, investors are only required to pay margin to establish a short position. There is no need to find a stock lender so stock borrowing costs can be saved. How are RMB currency products margined?
Are there any collateral management services provided? Clearing Participants still require settling fees and variation adjustment i. Please refer to the product infosheets and related publications for some applications. Apart from high level of price transparency, the exchange acts as the buyer of all sellers and the seller of all buyers. The counterparty you are facing is always the exchange and therefore counterparty risk is reduced when comparing to trading OTC.
Such documentations are not required to trade in futures market and this greatly simplifies the documentation required to enter futures contract. How do investors perform calendar rolling? Calendar spread combos have been used actively in futures trading, especially approaching the end of each calendar month for calendar rolling purposes. How do participants execute block trade? The minimum block trade volume threshold for RMB currency futures and options is 50 contracts. At contract expiration, Exchange Participants, Clearing Participants and their clients can obtain currency exchange services from their corresponding banks to meet the delivery obligations within the two business days from the last trading day to the final settlement day.
Brokers are advised to set up procedures to alert clients regarding the delivery obligations ahead of the last trading day and inform their clients on the settlement procedures upon contract expiration. Any investors are able to trade the products via exchange participants. What are Renminbi RMB currency futures?
RMB currency futures are futures contracts based on the exchange rates between RMB and other currencies. They are the first exchange-traded currency futures settled in RMB. What are the margin levels of RMB currency products? Traded on margin basis, the RMB currency products provide capital efficiency, and reduce market funding costs for trading the products. The margin level of each product is regularly reviewed with reference to historical price volatilities, current and anticipated market conditions.
Investors are reminded that the margin levels may change from time to time due to the change of market conditions and should consult their respective Exchange Participants for the latest margin levels. What are the trading hours of the RMB currency products? Does HKEX have any plan to extend the trading hours? What is the holiday schedule? For RMB currency futures, the trading hours are a. For RMB currency options, the trading hours are a.
As part of the continual product enhancements, HKEX plans to extend the trading hours of the RMB currency products to overlap with the overseas markets in due course.
HK to Consult on SPAC Listing Framework in June – Report
RMB currency products are traded according to Hong Kong holiday schedule. Prior to expiration, position holders can choose to close out expiring positions or roll over to other contract months; or otherwise hold the outstanding positions to expiry for final settlement. On final settlement day, the following procedures apply to the position holders What is the impact of recent regulatory changes in the OTC space?
From 1 March , all in-scope counterparties primarily financial entities and systemically important non-financial entities with uncleared OTC portfolios must exchange variation margin daily. This requirement is relatively new for many users of OTC products, and the requirement to exchange initial margin is being made mandatory in stages over time towards full implementation by September What is the market making arrangements for RMB currency products?
The different types of market makers of RMB currency products include Chinese and regional banks, securities firms and international liquidity providers. Clearing Participants should ensure that their back office systems can support the calculation of spot month charge as part of the margin calculation process.
What is the user group of the RMB currency products? What is the underlying currency pair for these products? When will these RMB currency futures and options be settled? For cash-settled RMB currency futures, the final settlement day is set on the first business day prior to the third Wednesday of the contract month subject to any holiday arrangement. Where can we access real-time data of the products? What are the benefits of trading these commodities futures contracts on HKFE platform? It facilitates hedging and arbitrage in the Asian time zone It gives exposure to a network of over 30 HKFE participants with Mainland backgrounds and their ability to attract Mainland commodity investors Exposure to liquidity from global financial market players who trade commodities.
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What is the margin call arrangement for the new products? What is the margin level of these products? How can I become a Client Connect user? The application of Client Connect is on a company basis. What are the system requirements for using Client Connect? How to setup my login ID and password? Which eServices are available on Client Connect?
HK to Consult on SPAC Listing Framework in June - Report
Various post-trade related functions in Settlement and Depository, Participantship Management and Technical Setup are available in eServices. Which eServices am I entitled to access? What is the settlement arrangement if the RMB bank account has yet to set up? For delivering Clearing Participants, payment will be made on the business day following the date of settlement. What kind of products will be settled in RMB? What is TSF?
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