Hong Kong Regulations

LEVERAGED FOREIGN EXCHANGE TRADING (BOOKS, CONTRACT NOTES AND CONDUCT OF BUSINESS) RULES - SECT 11

Statement of account

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

(1) A licensed trader shall, within 7 trading days of the end of each calendar
month, provide to each of its clients a monthly statement of account which
shall include-

   (a)  all contracts entered into with or on behalf of the client during that
        period;

   (b)  the net equity balance of the account as at the beginning of that
        period;

   (c)  all income credited to and charges levied against the account during
        that period;

   (d)  all movements of cash and margin deposits during that period;

   (e)  all floating profits and floating losses calculated as at the end of
        that period and the prices used for such purposes;

   (f)  all interest income and expenses accrued at the end of that period and
        the interest rates used for such purposes;

   (g)  the net equity balance of the account as at the end of that period;

   (h)  the minimum margin requirement for all open positions as at the end of
        that period;

   (i)  the amount of margin excess or margin shortfall as at the end of that
        period;

   (j)  a list of all open positions as at the end of that period; and

   (k)  a list of the balances of all holdings of cash and other assets held
        in the client's account as at the end of that period.

(2) A licensed trader shall, upon a client's request, disclose to the client
the financial condition of its business by-

   (a)  providing him with a copy of its latest accounts as filed with the
        Commission under the Leveraged Foreign Exchange Trading (Financial 
        Resources) Rules ( Cap 451 sub. leg.); and

   (b)  disclosing any material changes since its latest accounts which may
        adversely affect its financial condition. (Enacted 1994)