Hong Kong Regulations

LEVERAGED FOREIGN EXCHANGE TRADING (BOOKS, CONTRACT NOTES AND CONDUCT OF BUSINESS) RULES - SECT 14

Restricted use of margin collateral

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

(1) A licensed trader shall ensure that margin deposits and other assets of
its clients and recognized counterparties are properly safeguarded and are
held separately from the assets of the licensed trader.

(2) A licensed trader shall not use the margin collateral of its clients as
security for loans or advances made to it or to any other person. (Enacted
1994)