Good Faith Deposit
10
I
t
17.
Members are empowered to collect good faith deposits
from their clients. This would be in addition to any amount of initial margin or security. (Rule 501(d))
Emergency and Extraordinary Situations
18.
Where circumstances arise which, in the opinion of the Board, affect orderly trading in any market, the Board may suspend trading in that market for one business day. Suspension of trading can only be extended by a resolution of the Board passed at a meeting of the Board and only by one business day at a time. The Chief Executive is given power to suspend for one business day only if it is not possible to convene a meeting of the Board immediately. Prior notice of
suspension of trading will be given to the Commission.
19.
The power of requiring open contracts to be invoiced
back at prices determined by the Market Division Committee (i.e. in cases of emergency) has been deleted from the new
rules. The new Chief Executive of HKFE considers the market
should always be left to find its own prices.
20.
In the event of substantial fluctuations in the
market, HKFE and the Clearing House may jointly require members to close out all open positions so that HKFE would only be open for liquidation orders. (Rules 801-804)
Exchange of Information
21.
HKFE may disclose information concerning a member or his clients to the Clearing House and to the Commission. The
surveillance functions of HKFE and the Clearing House will be merged so that information available to HKFE or the Clearing House will be freely exchanged. (Rule 438 now re-numbered rule
439 in Appendix I.)
No comments yet.
Private notes are available after approval.