FINANCIAL RESOURCES RULES (EXEMPTION) (NO. 2) NOTICE 2000
- CHAPTER 24L

FINANCIAL RESOURCES RULES (EXEMPTION) (NO. 2) NOTICE 2000 - LONG TITLE  
Empowering section (Repealed 5 of 2002 s. 406) VerDate:01/04/2003







FINANCIAL RESOURCES RULES (EXEMPTION) (NO. 2) NOTICE 2000 - LONG TITLE  
Empowering section VerDate:12/08/2000



(Cap 24, section 29AA)
 
[12 August 2000]
 
(L.N. 254 of 2000)



FINANCIAL RESOURCES RULES (EXEMPTION) (NO. 2) NOTICE 2000 - SECT 1
(Repealed 5 of 2002 s. 406) VerDate:01/04/2003







FINANCIAL RESOURCES RULES (EXEMPTION) (NO. 2) NOTICE 2000 - SECT 1
Exemption of dealers and securities margin financiers VerDate:12/08/2000




(1)	Subject to subsection (2), dealers or securities margin 
financiers registered under the Securities Ordinance (Cap 333) and dealers 
registered under the Commodities Trading Ordinance (Cap 250) are exempted 
from section 5(2)(b) of the Financial Resources Rules (Cap 24 sub. leg.) 
insofar as they hold long positions in shares of Cable and Wireless HKT 
Limited ("HKT shares") as their house positions or as collateral deposited 
by their margin clients.

(2)	In relation to such a dealer or securities margin financier, 
the exemption under subsection (1) applies on condition that the long 
positions in each HKT share shall be valued in accordance with the 
following bases as stipulated under the Scheme of Arrangement between 
Cable and Wireless HKT Limited and Pacific Century CyberWorks Limited and 
related announcements made by the 2 companies-

        (a)	Share Alternative: each HKT share will receive 1.1 new shares 
of Pacific Century CyberWorks Limited ("PCCW shares"); or

        (b)	Combination Alternative: each HKT share will receive 0.7116 new 
PCCW share and HK$7.23 (or US$0.929) in cash.

(3)	From 17 August 2000, subject to subsection (4), dealers or 
securities margin financiers registered under the Securities Ordinance 
(Cap 333) and dealers registered under the Commodities Trading Ordinance 
(Cap 250) are exempted from section 15(a) of the Financial Resources Rules 
(Cap 24 sub. leg.) insofar as they hold long positions in HKT shares as 
their house positions or as collateral deposited by their margin clients.

(4)	In relation to such a dealer or securities margin financier, 
the exemption under subsection (3) applies on condition that-
"subject to section 5(10), (11), (13), (14) and (15) of the Financial 
Resources Rules (Cap 24 sub. leg.)-

        (a)	shares specified in Schedule 1 to those Rules at market value, 
less the applicable haircut amounts calculated by reference to the haircut 
percentages specified in either Part I or II, as he elects (there is no 
obligation to inform the Commission of any such election), and Part III, 
of Schedule 1 to those Rules; and

        (b)	HKT shares valued in accordance with subsection (2)(a) or (b), 
less the haircut amounts calculated by reference to the haircut percentage 
of 15%,
shall be included in the liquid assets of a dealer or securities margin 
financier provided he is the beneficial owner thereof.".



FINANCIAL RESOURCES RULES (EXEMPTION) (NO. 2) NOTICE 2000 - SECT 2
(Repealed 5 of 2002 s. 406) VerDate:01/04/2003







FINANCIAL RESOURCES RULES (EXEMPTION) (NO. 2) NOTICE 2000 - SECT 2
Cessation of exemption notice VerDate:12/08/2000




(1)	The exemption under section 1(1) shall cease to have effect on 
17 August 2000.

(2)	The exemption under section 1(3) shall cease to have effect on 
22 August 2000.