LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - CHAPTER 451C LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - LONG TITLE Empowering section (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - LONG TITLE Empowering section VerDate:30/06/1997 (Cap 451 sections 7(5) and 73) [1 September 1994] L.N. 482 of 1994 (L.N. 439 of 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 1 (Omitted as spent) VerDate:30/06/1997 PART I PRELIMINARY (Omitted as spent) (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 2 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 2 Interpretation VerDate:30/06/1997 In these Rules, unless the context otherwise requires- "Arbitration Panel" (仲裁委員會) means the Arbitration Panel established by section 4; "claimant" (申索人) means the party making the claim in respect of the dispute being referred to arbitration; "clerk" (書記) means the clerk to the Arbitration Panel referred to in section 4(6); "client" (客戶) means any person who has entered into a client agreement with a licensed trader; "client agreement" (客戶協議書) means a written agreement between a client and a licensed trader that complies with section 5 of the Leveraged Foreign Exchange Trading (Books, Contract Notes and Conduct of Business) Rules (Cap 451 sub. leg.); "discretionary account agreement" (全權委託戶口協議書) means a written agreement between a client and a licensed trader that complies with section 8 of the Leveraged Foreign Exchange Trading (Books, Contract Notes and Conduct of Business) Rules (Cap 451 sub. leg.); "dispute" (爭議) means any dispute between a client and a licensed trader relating to or arising out of a client agreement, a discretionary account agreement or any transaction that is regulated by the Ordinance; "HKIAC" (香港國際仲裁中心) means the Hong Kong International Arbitration Centre; "licensed trader" (持牌買賣商) means a licensed leveraged foreign exchange trader for the purposes of the Ordinance; "party" (當事人) means a party to a dispute; "respondent" (答辯人) means the party against whom a claim is made in respect of the dispute being referred to arbitration. (Enacted 1994) "Arbitration Panel" (仲裁委員會) "claimant" (申索人) "clerk" (書記) "client" (客戶) "client agreement" (客戶協議書) "discretionary account agreement" (全權委託戶口協議書) "dispute" (爭議) "HKIAC" (香港國際仲裁中心) "licensed trader" (持牌買賣商) "party" (當事人) "respondent" (答辯人) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 3 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 3 Purpose of these Rules VerDate:30/06/1997 These Rules govern the resolution of disputes that arise between a licensed trader and its client, where- (a) under an agreement between them, the client is entitled to elect to refer disputes between them to arbitration; (b) such a dispute arises; and (c) the client requires, or agrees, that the dispute be referred to arbitration. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 4 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 4 Constitution of Arbitration Panel VerDate:30/06/1997 (1) For the purposes of resolving disputes in accordance with these Rules, there shall be established a panel to be known as the Arbitration Panel. (2) The Arbitration Panel shall consist of members, including a chairman and a deputy chairman, who are appointed by the Financial Secretary. (3) Directors and employees of the Commission shall not be eligible for appointment as members of the Arbitration Panel. (4) A member of the Arbitration Panel shall hold office for such period as the Financial Secretary may determine and may resign his office at any time by letter sent to the Financial Secretary. (5) If the office of chairman of the Arbitration Panel is vacant or the chairman of the Arbitration Panel is unable to act as chairman of the Arbitration Panel due to illness, other incapacity or absence from Hong Kong, the deputy chairman of the Arbitration Panel or, failing him, such other member of the Arbitration Panel as the Financial Secretary may appoint, shall act as chairman in his place. (6) The Arbitration Panel shall have a clerk, whose functions shall be performed by a person whom the Commission may from time to time appoint and until such person is appointed, such functions shall be performed by the HKIAC. (7) A list of members of the Arbitration Panel may be obtained from the clerk who shall prepare and maintain such a list. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 5 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 PART II LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 5 Commencement of proceedings VerDate:30/06/1997 PART II RULES RELATING TO THE COMMENCEMENT OF PROCEEDINGS (1) Where the claimant is a client, he may commence arbitration proceedings by sending to the licensed trader with whom he has a dispute, a letter signed by him or on his behalf, requiring the dispute between him and the licensed trader to be settled by arbitration in accordance with these Rules. (2) Where the claimant is a licensed trader, arbitration proceedings may be commenced by- (a) the licensed trader sending to the client with whom it has a dispute a letter (containing the particulars described in subsection (7)(b), (d) and (e)), signed by it or on its behalf, proposing that the dispute between it and the client be settled by arbitration in accordance with these Rules; and (b) the client sending to the licensed trader a letter, signed by him or on his behalf, within 14 days of receipt of the letter under paragraph (a), agreeing to the proposal. (3) If the client does not send a letter under subsection (2)(b) agreeing to the proposal by the licensed trader to refer a dispute to arbitration within the time prescribed- (a) the proposal shall lapse and be of no further effect; and (b) the client shall not be entitled to refer the same dispute to arbitration. (4) Where court proceedings have commenced, a party may nevertheless require that the dispute be settled by arbitration, by sending a letter signed by him or on his behalf to the other to that effect within 14 days after the commencement of those proceedings, provided that he shall not have refused an earlier request for arbitration in respect of the same dispute. (5) For the purposes of subsection (4), a party shall only refer to the client. (6) Arbitration proceedings shall be deemed to commence on the date on which the letter referred to in subsection (1) or (4) or, where applicable, the letter referred to in subsection (2)(b), is received by the licensed trader under section 34. (7) A letter sent under subsection (1) or (4) above shall include- (a) a demand that the dispute be referred to arbitration; (b) the names and addresses of the parties; (c) a reference to the arbitration clause or the separate arbitration agreement that the client is relying on; (d) a reference to the agreement out of or in relation to which the dispute arises; and (e) a brief summary of the dispute, the remedy sought and an indication of the amount of money involved. (8) Where the claimant is a body corporate or a partnership, any letter sent under this section shall be completed and signed on its behalf by one of its directors or partners, as the case may be. (9) Copies of any letter sent under this section shall be delivered to the clerk for filing. (10) No party shall, during the arbitration of any matter, pursue any suit, action or proceedings against any other party in respect of the dispute referred to arbitration under these Rules. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 6 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 6 Initial deposit VerDate:30/06/1997 (1) When a copy of the letter requiring or requesting arbitration, as the case may be, is delivered to the clerk for filing, the party sending the letter shall deposit with the clerk a sum of $1000. (2) Where a licensed trader requests arbitration and the client refuses to agree to arbitration, the deposit referred to in subsection (1) shall be returned to the licensed trader as soon as practicable after deducting any amount, if any, reasonably incurred by the Arbitration Panel in relation to the matter. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 7 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 7 Representation VerDate:30/06/1997 (1) The parties may conduct arbitration proceedings in person or be represented by any other person of their choice, whether or not that person is legally qualified. (2) Where a party is a body corporate or a partnership, it may be represented by a director or a partner, as the case may be, or any other person of its choice authorized by it, whether or not that person is legally qualified. (3) The names and addresses of the persons referred to in subsections (1) and (2) shall be sent in writing to the other party, with a copy sent to the clerk for filing, as soon as they have been decided on. (4) A party shall immediately notify the clerk and the other party or parties of any change of representative, or any change of particulars of the representative. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 8 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 8 Oaths and affirmation VerDate:30/06/1997 All evidence shall be under oath or affirmation. LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 9 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 Part III LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 9 Selection of arbitrator VerDate:30/06/1997 Part III THE ARBITRATOR (1) The chairman of the Arbitration Panel shall select an arbitrator from the Arbitration Panel to conduct the arbitration as soon as practicable after- (a) the arbitration has commenced as provided in section 5(6); and (b) a deposit has been received by the clerk in accordance with section 6(1). (2) The parties shall provide such information as may be required by the chairman of the Arbitration Panel to assist him in his selection of an arbitrator. (3) The chairman of the Arbitration Panel shall have full discretion in the selection of an arbitrator under these Rules. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 10 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 10 Challenge of arbitrator VerDate:30/06/1997 (1) The parties may challenge an arbitrator if circumstances exist to give rise to justifiable doubts as to the arbitrator's impartiality or independence. (2) A party who proposes to challenge an arbitrator shall send his challenge to the clerk, in writing, setting out the reasons for such challenge, with a copy to the other party, within 14 days of the notification of the appointment of the arbitrator in question or, if later, of his becoming aware of the circumstances giving rise to doubts about the arbitrator's suitability. (3) Where the other party concurs with the challenge posed or the challenged arbitrator withdraws from the appointment, the challenged arbitrator shall vacate his office and the provisions relating to the selection of an arbitrator shall apply in full for the purposes of selecting a new arbitrator. In neither case does this imply acceptance of the validity of the grounds for the challenge. (4) Where the other party does not concur with the challenge and the challenged arbitrator does not withdraw, a decision on the challenge shall be made by the chairman of the Arbitration Panel. (5) If the chairman of the Arbitration Panel upholds the challenge, a new arbitrator shall be selected in accordance with the provisions of section 9. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 11 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 11 Replacement of arbitrator VerDate:30/06/1997 (1) In the event of the death or resignation of the arbitrator during the course of the arbitration proceedings, a new arbitrator shall be selected in accordance with the provisions of section 9. (2) If an arbitrator is unable to act due to illness or other incapacity or is absent from Hong Kong, the procedure in respect of the challenge and replacement of an arbitrator shall apply. (3) If the arbitrator is replaced, any hearings held previously shall be repeated unless both parties and the new arbitrator concur to proceed on the basis of notes taken at such prior hearings. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 12 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 12 Remuneration of arbitrator VerDate:30/06/1997 The arbitrator shall be paid such remuneration and allowances as the Financial Secretary may determine. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 13 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 PART IV LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 13 Conduct of proceedings VerDate:30/06/1997 PART IV RULES RELATING TO THE ARBITRATION PROCEEDINGS (1) The arbitrator may, notwithstanding other provisions of these Rules and subject to the widest discretion allowed by law, conduct the arbitration in such manner as he considers appropriate and shall have the power to adopt, whenever possible, a simplified or expedited procedure and to conduct proceedings to ensure the just, expeditious, economical and final determination of the dispute, provided that the parties are treated with equality and that at any stage of the proceedings each party is given a full opportunity of presenting his case. (2) The arbitrator may, in his discretion, decide whether to hold hearings for the presentation of evidence by witnesses, including expert witnesses, or for oral argument, or to conduct the proceedings only on the basis of documents and other materials. (3) All documents or information to be supplied to an arbitrator shall be delivered to the clerk for transmission to the arbitrator, save where documents or information are submitted during a hearing. (4) All documents and information that are to be supplied to an arbitrator shall be delivered to the clerk as follows - (a) where a party submits documents or information during a hearing, one copy shall be delivered to the clerk by that party immediately after the hearing; and (b) in all other cases, a party shall supply 2 sets of all documents or information to the clerk. (5) The arbitrator may appoint any legally qualified person to advise him on any matter relating to the arbitration. (6) Without prejudice to subsection (5), the arbitrator may seek advice from the representative of the HKIAC who is attending the proceedings under the provisions of section 17 on any matter relating to the practice and procedure of an arbitration. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 14 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 14 Shorthand notes VerDate:30/06/1997 (1) Shorthand notes of proceedings before an arbitrator may be taken by a person appointed by the arbitrator and any party to the proceedings shall be entitled to inspect and take copies of the transcript of such notes on payment of the shorthand writer's charges. (2) If no shorthand notes are taken, the arbitrator shall take a note of the proceedings, and the provisions of this section as to inspection and supplying of transcript shall also apply to such notes. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 15 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 15 Designation of time and place of arbitration VerDate:30/06/1997 (1) The arbitrator shall designate a time and place in Hong Kong for the arbitration to take place. (2) Notice of the time, date and place for the initial hearing shall be sent by the clerk to the parties, in accordance with section 34, at least 21 days prior to the date fixed for hearing and notice for each hearing thereafter shall be given as the arbitrator may determine. (3) The arbitrator may conduct hearings, hear witnesses and hold meetings for consultation at any place he considers appropriate, having regard to the circumstances of the arbitration. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 16 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 16 Language VerDate:30/06/1997 (1) The arbitrator may order that any documents annexed to written statements and any supplementary documents or exhibits submitted in the course of proceedings, if not in an official language, to be accompanied by a translation into an official language, such translation to be certified if not agreed. (2) Unless the arbitrator otherwise orders, witnesses shall be entitled to give their evidence in the language of their choice and the arbitrator may order the translation of that evidence, if not given in an official language, into an official language by a suitably qualified person. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 17 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 17 Attendance VerDate:30/06/1997 In addition to the clerk, a representative of the HKIAC shall be entitled to be present throughout the proceedings. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 18 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 18 Statement of claim VerDate:30/06/1997 (1) Unless a statement of claim was contained in the letter requiring or requesting arbitration, as the case may be, the claimant shall send his statement of claim in writing to the respondent and to the arbitrator in accordance with section 13(3) and (4), within 14 days from the date the arbitration is deemed to have commenced under section 5(6). (2) A copy of the agreement, and the arbitration agreement if not contained in the agreement, shall be annexed to the statement of claim. (3) The statement of claim shall include the following particulars- (a) the names and addresses of the parties; (b) a statement of the facts supporting the claim; (c) the points at issue; (d) the remedy sought. (4) The claimant may annex to his statement of claim all documents he considers relevant or may add a reference to the documents or other evidence he intends to submit. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 19 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 19 Statement of defence or counterclaim VerDate:30/06/1997 (1) The respondent shall send a statement of defence in writing to the claimant and to the arbitrator in accordance with section 13(3) and (4), within 14 days from the date the statement of claim is received by him under section 34. (2) The statement of defence shall reply to the particulars of the statement of claim referred to in section 18(3)(b), (c) and (d). (3) The respondent may annex to a statement of defence documents on which he relies for his defence or may add a reference to the documents or other evidence he intends to submit. (4) In his statement of defence, or at a later stage in the arbitration proceedings if the arbitrator decides that the delay was justified under the circumstances, the respondent may make a counter-claim arising out of the same agreement or rely on a claim arising out of the same agreement for the purpose of a set-off. (5) The provisions of section 18 in relation to particulars of the claim shall apply to a counter-claim and a claim relied on for the purpose of a set-off. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 20 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 20 Amendments and further statements VerDate:30/06/1997 (1) During the arbitration proceedings, either party may amend or supplement his claim or defence except where the arbitrator considers it inappropriate to allow such amendment, having regard to the scope of the arbitration clause or the arbitration agreement, as the case may be, the delay in making it, the likelihood of prejudice to the other party or any other relevant circumstances. (2) The arbitrator may require or accept further written statements, in addition to the statement of claim and the statement of defence, and shall fix the periods of time for communicating such statements. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 21 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 21 Time period for the communication of statements VerDate:30/06/1997 The time period fixed by the arbitrator for the sending of written statements (including the statement of claim and statement of defence) shall not exceed 21 days unless, at the request of a party, the arbitrator is satisfied that an extension is justified in the circumstances. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 22 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 22 Evidence VerDate:30/06/1997 (1) Each party shall have the burden of proving the facts relied on to support his claim or defence. (2) The arbitrator shall determine the admissibility, materiality, relevance and weight of any evidence and may, if in his opinion the interest of justice is served, admit evidence irrespective of the rules governing the admissibility of evidence in court. (3) The arbitrator may, if he considers it appropriate, require a party to deliver to him and to the other party, within a period of time stipulated by him, a summary of the documents and other evidence which that party intends to present in support of the facts in issue set out in his statement. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 23 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 23 Hearing of witnesses VerDate:30/06/1997 (1) If witnesses are to be heard, each party shall give a written notice to the arbitrator and to the other party at least 14 days before the hearing of- (a) the names and addresses of the witnesses; (b) the subject matter of their testimony or, at the request of the arbitrator, transcripts of witness statements or expert reports; and (c) the languages in which such witnesses will give their testimony. (2) The arbitrator may arrange for translations or recordings to be made at a hearing as he considers appropriate. (3) Hearings shall be held in public unless the arbitrator decides otherwise. (4) The arbitrator may require the retirement of any witness or witnesses during the testimony of other witnesses. (5) Evidence of witnesses may also be presented in the form of written statements signed by them. (6) The arbitrator is free to determine the manner in which witnesses are examined. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 24 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 24 Default VerDate:30/06/1997 (1) If, within the period of time fixed by the arbitrator, the claimant fails to file his claim without showing sufficient cause for such failure, the arbitrator may issue an order for the termination of the arbitration proceedings in accordance with the provisions of section 28. (2) If, within the period of time fixed by the arbitrator, the respondent fails to file his statement of defence without showing sufficient cause for such failure, the arbitrator may, as he thinks fit, make an order in favour of the claimant or an order for termination in accordance with the provisions of section 28. (3) If one of the parties, duly notified under these Rules, fails to appear at a hearing or fails to produce any document in his possession when required to do so without any valid excuse, the arbitrator may proceed with the arbitration and such proceedings shall be deemed to have been conducted in accordance with the requirements of section 13(1). (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 25 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 25 Consolidation of proceedings VerDate:30/06/1997 (1) Where in relation to 2 or more arbitration proceedings it appears to the chairman of the Arbitration Panel- (a) that some common question of law or fact arises in both or all of them; (b) that the claims are in respect of or arise out of the same transaction or series of transactions; or (c) that for some other reason it is desirable to make an order under this section, the chairman may order those arbitration proceedings to be consolidated on such terms as he thinks just or may order them to be heard at the same time, or one immediately after another, or may order any of them to be stayed until after the determination of any other of them. (2) Where the chairman of the Arbitration Panel orders arbitration proceedings to be consolidated under subsection (1) he shall, subject to section 10, have power to select the arbitrator. (3) Where the chairman of the Arbitration Panel selects an arbitrator for the consolidated arbitration proceedings pursuant to subsection (2), any appointment of arbitrator that was made for any of the arbitration proceedings forming part of the consolidation shall for all purposes cease to have effect on and from the appointment made under subsection (2). (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 26 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 26 Jurisdiction VerDate:30/06/1997 (1) The arbitrator shall have the power to rule on objections that he has no jurisdiction, including any objections with respect to the existence or validity of the arbitration clause or, as the case may be, the arbitration agreement. (2) A plea that the arbitrator does not have jurisdiction shall be raised not later than in the statement of defence or, with respect to a counter-claim, in the reply to the counter-claim. (3) The arbitrator shall normally rule on a plea concerning his jurisdiction as a preliminary question, but he shall have the power to proceed with the arbitration and rule on such a plea in his final award. (4) An arbitration clause which forms part of an agreement and which provides for arbitration under these Rules shall be treated as being independent of the other terms of the agreement and any decision by the arbitrator or a court of law declaring that an agreement is null and void shall not of itself invalidate the arbitration clause. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 27 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 PART V LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 27 Settlement VerDate:30/06/1997 PART V RULES RELATING TO THE TERMINATION OF PROCEEDINGS (1) If, before the award is made, the parties agree on a settlement of the dispute, the arbitrator shall record the settlement in the form of an arbitration award on agreed terms. (2) The arbitrator is not obliged to give reasons for an award made under subsection (1). (3) An award made under subsection (1) shall be signed by the arbitrator and shall be delivered to the parties and lodged with the clerk for filing. (4) An award made under subsection (1) shall be final and binding on the parties. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 28 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 28 Termination of proceedings VerDate:30/06/1997 (1) If, before the award is made, the continuation of the arbitration proceedings becomes unnecessary or impossible for any reason other than by way of an agreement to settle between the parties, the arbitrator may, either upon his own initiative or at the request of a party, issue an order for the termination of the arbitration. (2) The arbitrator shall state in the order the reasons for the termination. (3) An order made under subsection (1) shall be signed by the arbitrator and shall be delivered to the parties and lodged with the clerk for filing. (4) An order made under subsection (1) shall be final and binding on the parties. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 29 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 29 Form and effect of awards VerDate:30/06/1997 (1) An award shall be a reasoned award made in writing and shall be signed by the arbitrator. It shall contain the date on which and the place where the award was made. (2) In addition to making a final award, the arbitrator shall have the power to make interim, interlocutory or partial awards during the arbitration proceedings. (3) An award made by the arbitrator under this section shall be delivered to the parties and lodged with the clerk for filing. (4) An award made by the arbitrator shall be made public and where the arbitrator considers it appropriate to do so, the award may be published on an anonymous basis. (5) Notwithstanding subsection (4), the Commission shall be notified by the clerk of any award made in respect of a licensed trader and shall be entitled to make use of any findings made by an arbitrator for the purposes of exercising its functions under any Ordinance including, but without limitation, assessing whether the licensed trader is a fit and proper person to be so licensed. (6) An award made by the arbitrator is final and binding on the parties. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 30 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 30 Correction of awards VerDate:30/06/1997 (1) Within 14 days after receipt of the award, either party may, with notice to the other party, request the arbitrator to correct in the award any errors in computation, any clerical or typographical errors or any errors of a similar nature. (2) If the arbitrator considers the request made under subsection (1) to be justified, he shall make the correction within 14 days of receiving the request. (3) The arbitrator may on his own initiative correct any error of the type referred to in subsection (1) within 28 days of the date of the award. (4) Such corrections shall be in writing and the provisions of section 29 shall apply accordingly. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 31 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 31 Additional awards VerDate:30/06/1997 (1) Within 14 days after receipt of an award, either party may, with notice to the other party, request the arbitrator to make an additional award as to claims presented in the arbitration proceedings but omitted from the award. (2) If the arbitrator considers the request for an additional award to be justified and considers that the omission can be rectified without any further evidence, he shall make the additional award within 14 days after receipt of the request. (3) When an additional award is made, the provisions of section 29 shall apply accordingly. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 32 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 32 Costs VerDate:30/06/1997 (1) Whenever the arbitrator makes an arbitration award, including an award on agreed terms and an order for the termination of the arbitration proceedings, he shall make an order for costs. (2) The costs of arbitration shall in principle be borne by the unsuccessful party. (3) Notwithstanding subsection (2), the arbitrator shall be free to apportion costs between the parties if he considers that apportionment is reasonable in the circumstances. (4) The order for costs shall specify- (a) the sum to be paid, which shall include- (i) the amount of fees of the arbitrator; (ii) costs for legal advice or for other assistance such as translation, oral interpretation and shorthand writing required by the arbitrator; (iii) travel and other expenses of witnesses to the extent allowed by the arbitrator; (iv) costs of the successful party, including the costs for representation, to the extent allowed by the arbitrator; (v) the amount of administrative or other costs, incurred by the arbitrator and the Arbitration Panel; (b) the parties to and by whom payment shall be made; and (c) the time limit for making payment. (5) A party against whom such an order is made shall make payment in accordance with the order. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 33 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 33 Deposits of costs VerDate:30/06/1997 (1) At any time during the arbitration proceedings, the arbitrator may require any party to deposit with the clerk such sum or sums to defray the expenses of the arbitration if the arbitrator considers it expedient to do so in the circumstances. (2) The arbitrator shall determine the amount of any deposit, taking into account the amount in dispute, the complexity of the subject matter, the costs incurred or to be incurred by the arbitrator and other relevant circumstances of the case. (3) If payment of the required deposits is not made within 14 days after receipt of the request, the arbitrator may order the termination of the arbitration proceedings in accordance with the provisions of section 28. (4) After the termination of proceedings, the clerk shall, with the assistance of the arbitrator, render an accounting to the parties of the total deposits received under these Rules and, after all the costs required to be borne by a party have been paid, return any unexpended balance of its portion of the deposits to the party in question. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 34 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 PART VI LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 34 Communication and notice period VerDate:30/06/1997 PART VI MISCELLANEOUS (1) Any letter or document sent under these Rules may be made by physical delivery or by registered post addressed- (a) in the case of the Arbitration Panel, to the clerk; (b) in the case of a company within the meaning of the Companies Ordinance (Cap 32), to its registered office; (c) in the case of an overseas company within the meaning of the Companies Ordinance (Cap 32), to the person resident in Hong Kong who is authorized to accept service of process and notices on its behalf for the purposes of Part XI of that Ordinance at his address delivered to the Registrar of Companies under that Ordinance; (d) in the case of a body corporate other than a company or an unincorporated body of persons other than a partnership, to the principal place of business of the body; (e) in the case of a partnership, to its principal place of business; and (f) in the case of an individual, to his habitual residence, place of business or mailing address or, if none of these can be found after making reasonable enquiries, to his last known address. (2) Service by way of registered post shall be deemed to have been received on the seventh day after the date on which the copy was sent to the address in question. (3) Notwithstanding subsection (1), the arbitrator may if he thinks just make an order for any notice or document to be sent in any other way. (4) For the purposes of calculating a period of time under these Rules- (a) the period shall begin to run on the day following the day when the letter or document is received; (b) if the last day of the period is an official holiday or a non-business day at the residence or place of business of the addressee, the period is extended until the first business day which follows; and (c) official holidays or non-business days occurring during the running of the period of time are included in calculating the period. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 35 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 35 Interest VerDate:30/06/1997 The arbitrator shall have the power to order the payment of interest on any damages or costs including the payment of compound interest if appropriate in the circumstances. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 36 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 36 Exclusion of liability VerDate:30/06/1997 (1) An arbitrator shall not be liable to any party for any act or omission relating to an arbitration conducted under these Rules, unless he is found to have been fraudulent or dishonest. (2) The chairman, deputy chairman, members and the clerk of the Arbitration Panel and any representative of the HKIAC entitled to attend arbitration proceedings under section 17 shall not be liable to any party for any act or omission in connection with any arbitration conducted under these Rules unless he is found to have been fraudulent or dishonest. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 37 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 37 Destruction of documents VerDate:30/06/1997 The clerk and the arbitrator may destroy all documents sent to them under these Rules after the expiry of a period of 1 year from the date of the last correspondence received by them relating to the arbitration. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 38 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 38 Confidentiality VerDate:30/06/1997 (1) The arbitrator may in his discretion determine that certain information relating to the arbitration shall be kept confidential. (2) Without prejudice to section 29(5), such confidential information shall not be disclosed by any person without the written consent of the arbitrator. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 39 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 39 Applicable law VerDate:30/06/1997 (1) Hong Kong law shall apply to the arbitration proceedings. (2) In all cases, the arbitrator shall decide in accordance with the terms of the agreement and shall take into account the usages of the trade applicable to the transaction. (3) Pursuant to section 2J of the Arbitration Ordinance (Cap 341), the provisions of that Ordinance shall apply to an arbitration conducted under these Rules save for those matters which have been specifically provided for in these Rules. (Enacted 1994) LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 40 (Repealed 5 of 2002 s. 406) VerDate:01/04/2003 LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 40 Interpretation and enforcement of rules VerDate:30/06/1997 (1) The arbitrator shall be empowered to interpret and determine the applicability of all provisions under these Rules and to take appropriate action to obtain compliance with any ruling made by him whilst arbitration proceedings are being conducted. (2) The arbitrator may modify the requirements of these Rules in relation to the sending of letters and documents or the length of time periods in particular cases where, in his opinion, it is expedient to do so in the interest of justice. (3) A party who knows that any provision of, or requirement under, these Rules has not been complied with and yet proceeds with the arbitration without promptly stating his objection to such non-compliance shall be deemed to have waived his right to object. (Enacted 1994)