Hong Kong Regulations

LEVERAGED FOREIGN EXCHANGE TRADING (BOOKS, CONTRACT NOTES AND CONDUCT OF BUSINESS) RULES - SECT 19

Taping

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

(1) A licensed trader shall install at its place of business a centralized
tape recording system to record all telephone conversations conducted by it or
its representatives with prospective clients, clients and recognized
counterparties.

(2) All telephone lines used by staff of the licensed trader responsible for
making calls within the meaning of section 39(2) of the Ordinance, confirming
orders, executing contracts, transferring funds, or carrying out instructions
incidental thereto, shall be routed through the centralized tape recording
system.

(3) Tapes from the centralized tape recording system shall be kept for at
least 2 months.

(4) A licensed trader shall ensure that access to tapes of the centralized
tape recording system, whether in use or in storage, is strictly controlled.

(5) A licensed trader shall-

   (a)  use its best endeavours to ensure that the centralized tape recording
        system functions properly at all times; and

   (b)  carry out random checks at intervals of not less than once every week
        to ensure that the provisions of the Ordinance and any rules made
        thereunder have been complied with. (Enacted 1994)