Issue of contract noles.
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75. (1) Every dealer (including an exempt dealer) shall, in respect of every contract for the purchase, sale, or exchange of securities entered into by him in Hong Kong (whether as principal or agent), not later than end of the next trading day after the contract was entered into, make out a contract note which complies with subsection (2) and-
(a) where the contract was entered into as agent, deliver the contract note to the person on whose behalf he entered into the contract; or
(b) where the contract was entered into as principal, relain
the contract note for himself.
(2) A contract note made out by a dealer under subsection (1) shall include-
(a) the name or style under which the dealer carries on his business as a dealer and the address of the principal place at which he so carries on business;
(b) where the dealer is acting as principal, a statement that
he is so acting:
(c) the name of the person (if any) to whom the dealer is
required to give the contract note:
(d) the date of the contract, and the date on which the
contract note is made out;
(e) the quantity and description of the securities that are
being acquired or disposed of;
() except in the case of an exchange, the price per unit of
the securities;
(g) the amount of consideration payable under the contract or, in the case of an exchange, particulars of the securities exchanged sufficient to identify them;
(A) the rate or amount of commission (if any) payable in
respect of the contract;
()
the amount of stamp duty (if any) payable in connexion with the contract and, where applicable, in respect of the transfer:
()) the date of settlement.
(3) Any dealer (including an exempt dealer) who completes a contract for the purchase, sale, or exchange of securities without having complied with subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine of $5,000.
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76. (1) Except as provided in regulations, a dealer (includ- Dealers not ing an exempt dealer) shall col transact in Hong Kong, or hold to engage himself out as being prepared to transact in Hong Kong-
(a) any dealing whereby the dealer confers on any person an option to purchase from or sell to the dealer any securities listed on a stock exchange in Hong Kong: or
(b) any dealing in any such securities which is completed later than the end of the next trading day after the dealing was entered into.
(2) Any dealer who contravenes subsection (1) shall, subject to subsection (3), be guilty of an offence and shall be liable on conviction to a fine of $5,000.
(3) It shall be a defence to any criminal proceedings brought under subsection (2) in respect of a dealing mentioned in paragraph (b) of subsection (1) for the accused to prove that he took all reasonable and practicable steps to secure completion of the transaction within the period permitted by that paragraph.
(4) A contract entered into in contravention of subsection (1) shall not be enforceable by either the dealer or the other contract- ing party.
in option or forward trading
77. (1) Subject to subsection (2), every dealer (including an Dealers in exempt dealer) shall, on being requested to do so by any person provide on whose behalf he has transacted a dealing in securities—
certain information etc. to
(a) provide that person with a copy of the contract note clicot.
relating to the dealing, and a copy of his account with the dealer; and
(b) if the Commissioner on the application of the person so directs, make available for inspection by that person, at all reasonable times during the dealer's ordinary hours of business, the dealer's copy of the contract note and the person's account with the dealer.
(2) Subsection (1) does not require a dealer (including an exempt dealer) to-
(a) provide, or keep available for inspection, a copy of any contract note which relates to a dealing transacted more than 2 years before the date of the request; or
(6) provide a copy of, or keep available for inspection, any acount which relates to a dealing transacted more than 6 years before the date of the request.
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