Hong Kong Regulations

LEVERAGED FOREIGN EXCHANGE TRADING (FINANCIAL RESOURCES) RULES - SECT 4

Requirements relating to issued and paid up share capital and liquid capital

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

PART II

FINANCIAL RESOURCES REQUIREMENTS RELATING TO LICENSED LEVERAGED FOREIGN
EXCHANGE TRADERS

(1) A licensed leveraged foreign exchange trader, other than a leveraged
foreign exchange introducing agent, shall have and at all times maintain-

   (a)  issued and paid up share capital of not less than $30000000; and

   (b)  liquid capital of not less than $25000000.

(2) A licensed leveraged foreign exchange trader which is a leveraged foreign
exchange introducing agent shall have and at all times maintain-

   (a)  issued and paid up share capital of not less than $5000000; and

   (b)  liquid capital of not less than $3000000.

(3) For the purposes of determining the issued and paid up share capital of a
licensed leveraged foreign exchange trader under subsections

(1)(a) and (2)(a), there shall be-

   (a)  excluded from share capital any redeemable shares other than approved
        redeemable shares; and

   (b)  deducted from share capital any aggregate net debit balance in the
        profit and loss account and reserves of the licensed leveraged foreign
        exchange trader. (Enacted 1994)