Hong Kong Regulations

LEVERAGED FOREIGN EXCHANGE TRADING (ARBITRATION) RULES - SECT 5

Commencement of proceedings

Caution: This is a past version. See the current version here.

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)