Hong Kong Ordinances

SECURITIES AND FUTURES ORDINANCE - SECT 35

Contract limits and reportable open position

(1) Without prejudice to section 398(7) and (8), the Commission may make rules
to-

   (a)  prescribe limits on, or conditions relating to, the number of futures
        contracts which may be held or controlled, directly or indirectly, by
        any person, whether or not such contracts are traded on a recognized
        futures market or through the facilities of a recognized exchange
        company;

   (b)  prescribe limits on, or conditions relating to, the number of options
        contracts which may be held or controlled, directly or indirectly, by
        any person, whether or not such contracts are traded on a recognized
        stock market or recognized futures market or through the facilities of
        a recognized exchange company;

   (c)  require a person holding or controlling a reportable position to lodge
        a notice of that reportable position with a recognized exchange
        company or the Commission;

   (d)  prescribe the manner in which and the period within which a notice of
        a reportable position is to be lodged;

   (e)  prescribe the information by which a notice of a reportable  position
        is to be accompanied.

(2) The Commission shall consult the Financial Secretary before making rules
under subsection (1)(e).

(3) Subsection (1) does not prohibit the Commission from prescribing different
limits or conditions, or different reportable  positions, for different types
or classes of futures or options contracts, or from exempting specified
futures or options contracts.

(4) Without limiting the generality of subsection (1) and without prejudice to
section 398(7) and (8), the Commission may make rules for the purposes of this
section to prohibit a person from-

   (a)  directly or indirectly entering, during a specified period, into
        transactions of a specified class in excess of a specified amount; or

   (b)  directly or indirectly holding or controlling positions of a specified
        class in excess of a specified position limit.

(5) Rules made under this section may provide that a person who, without
reasonable excuse, contravenes any specified provision of the rules that
applies to the person commits an offence and is liable to a specified penalty
not exceeding-

   (a)  on conviction on indictment a fine at level 6 and a term of
        imprisonment of 2 years;

   (b)  on summary conviction a fine at level 3 and a term of imprisonment of
        6 months.

(6) In this section "reportable position" (須申報的持倉量) means an
open position in futures or options contracts the number or total value of
which is in excess of a number or total value specified by rules made under
this section.

"reportable position" (須申報的持倉量)