Hong Kong Regulations

LEVERAGED FOREIGN EXCHANGE TRADING (EXEMPTION) RULES - SECT 3

Qualifying class

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

(1) A corporation belongs to the class referred to in section 2(a) only if-
(L.N. 559 of 1994)

   (a)  (i) it has a qualifying credit rating; or

        (ii)   its shares are wholly-owned, directly or indirectly, by another
               corporation, or by a partnership, which has such a rating; and

   (b)  (i) its principal business is not in leveraged foreign exchange spot
        transactions; or

        (ii)   the average principal amount of each transaction in its
               leveraged foreign exchange spot trading, calculated for each
               financial year of the corporation, is not less than $7.8
               million.

(2) For the purposes of subsection (1)(b)(ii), the average principal amount
shall be computed by dividing the aggregate of all principal amounts of
leveraged foreign exchange spot transactions carried out by the relevant
corporation during the relevant financial year by the total number of such
transactions for that year. (Enacted 1994)