5
The principal business of a Merchant Trader will be dealing in the physical rather than in the futures market and its futures trading will be an adjunct, or ancillary, to its daily business. He will in all cases only be permitted to act as principal in futures trading transactions and he will not be able to deal with the public. The capital requirements of a Merchant Trader can be expected to be less rigorous than a company devoted purely to dealing in the futures market.
312)
(Rule
Trade Affiliated Members
14.
No further applications for this membership are to be entertained and all existing memberships will cease upon expiry of existing certificates. No applications for renewal of certificates will be accepted. (Rules 301B-308B)
Capital Requirements
15.
The capital requirements of the new members are to be
specified by the Chief Executive of HKFE. These requirements have not as yet been promulgated. HKFE will advise OCS all
prevailing capital requirements.
It is anticipated that the
new SFC will "arm" itself with appropriate interventionary powers, in the new legislation, should the capital requirements not be considered adequate at any time. (Rule 313)
Membership of Clearing House
16.
Every member of HKFE who intends to clear trades in
his own name through the Clearing House is required to be registered as a member of the Clearing House. Every Non-Clearing Member is required to enter into a clearing
agreement with a General Clearing Member of the Clearing House. (Rule 429 now re-numbered Rule 430 in Appendix I.)