1964_COMMODITIES_TRADING_ORDINANCE — Page 29

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CAP. 250] Commodities Trading [1989 Ed.

44. Interpretation

PART V

ACCOUNTS AND AUDIT

In this Part, unless the context otherwise requires--

"client" means a person on whose account a dealer carries on any trading in commodity futures contracts as an agent;

"dealer" does not include a director, partner or employee of a corporation or firm, as the case may be, who is accredited to the corporation or firm as a dealer.

45. Accounts to be kept by dealers

(1) A dealer shall

(a) cause to be kept such accounting and other records as will sufficiently explain the transactions, and reflect the financial position, of the business of trading in commodity futures contracts carried on by him, and will enable true and fair profit and loss accounts and balance sheets to be prepared from time to time; and

(b) cause those records to be kept in such a manner as will enable them to be conveniently and properly audited.

(2) The records referred to in subsection (1) shall be kept-

(a) in writing in the English language; or

(b) in such a manner as to enable them to be readily accessible and readily converted into written form in the English language.

(3) Without prejudice to the generality of subsection (1), a dealer shall cause records to be kept-

(a) in sufficient detail to show particulars of-

(i) all amounts received and paid by the dealer, including amounts paid to and disbursed from a segregated account;

(ii) all purchases and sales of futures contracts made by the dealer, and the charges and credits arising from them; and

(b) in sufficient detail to show separately particulars of all transactions by the dealer with, or for the account of—

(i) the clients of the dealer; and

(ii) the dealer himself.

(4) A dealer shall retain-

(a) for a period of not less than 7 years, the records kept in accordance with this section; and

(b) for a period of not less than 2 years—