XN000022-1976-08-20 — Page 8

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FRIDAY, AUGUST 20, 1976

COMMODITIES TRADING REGULATIONS, 1976

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THE REGISTRATION PROVISIONS OF THE COMMODITIES TRADING ORDINANCE 1976 TOGETHER WITH THE APPROPRIATE REGULATIONS, 1.E, COMMODITIES TRADING (DEALERS, COMMODITY TRADING ADVISERS AND REPRESENTATIVES) REGULATIONS 1976 WHICH IS PUBLISHED IN THE GAZETTE TODAY WILL BE BROUGHT INTO OPERATION ON OCTOBER 1, 1976.

AFTER OCTOBER 1, 1976, NO PERSON WHETHER AN INDIVIDUAL, CORPORATION OR FIRM (PARTNERSHIP) MAY CARRY ON THE BUSINESS OF TRADING IN COMMODITY FUTURES ON A COMMODITY EXCHANGE, UNLESS HE IS REGISTERED AS A COMMODITY DEALER.

ANY DIRECTOR OR PARTNER OF A CORPORATION OR FIRM WHICH IS REGISTERED AS A DEALER IS ALSO REQUIRED TO BE REGISTERED IF HE IS DULY AUTHORIZED TO ACT ON BEHALF OF THE CORPORATION OR FIRM FOR THE PURPOSE OF TRADING IN COMMODITY FUTURES.

SIMILARLY, ANY PERSON, CORPORATION OR FIRM WHO ACTS AS A COMMODITY TRADING ADVISER IS ALSO REQUIRED TO BE REGISTERED- AND SO ARE PERSONS WORKING AS REPRESENTATIVES OF COMMODITY DEALERS AND COMMODITY TRADING ADVISERS.

HOWEVER, IF A PERSON TRADES IN COMMODITY FUTURES ONLY THROUGH A REGISTERED COMMODITY DEALER, HE NEED NOT REGISTER HIMSELF..

ONE OF THE PRE-CONDITIONS FOR REGISTRATION OF A COMMODITY DEALER IS THAT THE APPLICANT, OR THE CORPORATION OR FIRM TO WHICH HE IS ACCREDITED, MUST BECOME A SHAREHOLDER OF THE HONG KONG COMMODITY EXCHANGE AFTER IT IS ESTABLISHED OR HE MUST BE A MEMBER OF ONE OF THE OVERSEA EXCHANGES LISTED IN THE SECOND SCHEDULE TO THE COMMODITIES TRADING ORDINANCE, 1976.

THE ANNUAL REGISTRATION FEE IS $1,000 FOR A CORPORATION OR FIRM WHICH IS A DEALER OR COMMODITY TRADING ADVISER, $500 FOR A DEALER OR COMMODITY TRADING ADVISER WHO IS AN INDIVIDUAL AND $200 FOR A REPRESENTATIVE.

A COMMODITY DEALER HAS TO PAY TO THE COMMISSIONER A DEPOSIT OF $100,000 IN CASH ON REGISTRATION. HOWEVER, THE FOLLOWING APPLICANTS ARE NOT REQUIRED TO PAY THE DEPOSIT :

(A)

AN APPLICANT THAT IS A CORPORATION OR FIRM, IF ANY DIRECTOR PARTNER OR EMPLOYEE ACCREDITED TO IT AS A DEALER HAS PAID SUCH DEPOSIT=

(B) AN APPLICANT WHO IS A SHAREHOLDER, OR ACCREDITED TO A

SHAREHOLDER OF THE HONG KONG EXCHANGE COMPANY IF THE EXCHANGE COMPANY HAS MADE IN RESPECT OF THE SHAREHOLDER A DEPOSIT TO THE COMPENSATION FUND.

/THE