10.
The new categories, according to HKFE, have been
created in order to achieve consistency with other
international Exchanges and in order to better define the
activities of members on HKFE. This will also facilitate a
more realistic definition of capital requirements of members based on their respective capacities and hence the risk posed to other members and the marketplace and public at large.
11.
The category Floor Trader bears a close resemblance to
the existing Floor Member in that both categories are only
entitled to trade on their own account. It is also expected that similar lower capital requirements will be required in
relation to a Floor Trader. However, in contrast to a Floor
Member which is only open to individuals, a Floor Trader will
be open also to corporations. (Rule 312)
12.
The categories Floor Futures Broker and Futures
Commission Merchant are new categories. In contrast to the existing Full and Market Members who are classified according to the type of share held and the Market Divisions they can trade in, these members are classified according to their trading activities. (A Full Member holds an ordinary share and trades in all markets and a Market Member holds a standard
share and trades only in one Market Division.) It is expected that the capital requirements of a Futures Commission Merchant
will be the most stringent of all the categories and will
equate to the existing requirements concerning a Full Member.
(Rule 312)
13.
The category Merchant Trader is different to an
existing Trade Affiliated Member ("TAM") in that such member
will -
(a) be a shareholder,
(b)
be a corporation incorporated in Hong Kong,
(c) have floor trading rights and be able to trade in
any market,
(a)
(e)
be entitled to become a clearing member, and
not need to renew membership yearly like a TAM.
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