Hong Kong Ordinances

SECURITIES AND FUTURES ORDINANCE - SECT 55

Clearing participant to be party to certain transactions as principal

(1) Where a clearing participant-

   (a)  in his capacity as such enters into any transaction (including a
        market contract) with a recognized clearing house; and

   (b)  but for this subsection, would be a party to that transaction as
        agent, then, notwithstanding any other enactment or rule of law, as
        between, but only as between, the clearing house and any other person
        (including the clearing participant and the person who is his
        principal in respect of that transaction), the clearing participant
        shall for all purposes

(including any action, claim or demand, either civil or criminal)-

        (i)    be deemed not to be a party to that transaction as agent; and

        (ii)   be deemed to be a party to that transaction as principal.

(2) Where-

   (a)  2 or more clearing participants in their capacities as such enter into
        any transaction; and

   (b)  but for this subsection, any such clearing participant would be a
        party to that transaction as agent, then, notwithstanding any other
        enactment or rule of law, any such clearing participant to whom
        paragraph (b) applies shall for all purposes

(including any action, claim or demand, either civil or criminal), except as
between, but only as between, him and the person who is his principal in
respect of that transaction-

        (i)    be deemed not to be a party to that transaction as agent; and

        (ii)   be deemed to be a party to that transaction as principal.