SECURITIES AND FUTURES (RECOGNIZED COUNTERPARTY) RULES
- CHAPTER 571B

SECURITIES AND FUTURES (RECOGNIZED COUNTERPARTY) RULES - LONG TITLE  
Empowering section VerDate:01/04/2003



(Cap 571, section 397(1))

[1 April 2003]  L.N. 12 of 2003

(L.N. 186 of 2002)



SECURITIES AND FUTURES (RECOGNIZED COUNTERPARTY) RULES - SECT 1
(Omitted as spent) VerDate:01/04/2003




(Omitted as spent)


SECURITIES AND FUTURES (RECOGNIZED COUNTERPARTY) RULES - SECT 1
Commencement VerDate: 



These Rules shall come into operation on the day appointed for the 
commencement of the Securities and Futures Ordinance (Cap 571).



SECURITIES AND FUTURES (RECOGNIZED COUNTERPARTY) RULES - SECT 2
Interpretation VerDate:01/04/2003



In these Rules, unless the context otherwise requires-
"currency futures contract" (貨幣期貨合約) means a futures contract in respect 
of any currency;
"dealing in futures contracts" (期貨合約交易) has the meaning assigned to it by 
Part 2 of Schedule 5 to the Ordinance;
"equivalent corporation" (等同法團) means a corporation that-

        (a)	carries on a business in a specified jurisdiction in an 
activity which, if carried on in Hong Kong, would constitute dealing in 
futures contracts, under an authorization (however described) by an 
authority or regulatory organization in that jurisdiction; and

        (b)	has and maintains shareholders' funds of not less than 
$30000000 or its equivalent in any foreign currency as calculated by-

        (i)	adding together the corporation's-
(A)	issued and paid-up share capital; and
(B)	retained profits and reserves with aggregate net credit 
balances; and

        (ii)	subtracting from the sum calculated under subparagraph (i) the 
corporation's accumulated losses and reserves with aggregate net debit 
balances;
"specified bank regulator" (指明銀行規管當局) means-

        (a)	an authority specified in column 3 of Schedule 1 as an 
authority in a specified jurisdiction set out opposite to it in column 2 
of Schedule 1 with responsibility for regulating banks in that 
jurisdiction; or

        (b)	any successor of such authority;
"specified jurisdiction" (指明司法管轄區) means a jurisdiction specified in 
column 2 of Schedule 1.
"currency futures contract" (貨幣期貨合約)
"dealing in futures contracts" (期貨合約交易)
"equivalent corporation" (等同法團)
"specified bank regulator" (指明銀行規管當局)
"specified jurisdiction" (指明司法管轄區)


SECURITIES AND FUTURES (RECOGNIZED COUNTERPARTY) RULES - SECT 3
Institutions that are recognized counterparties VerDate:01/04/2003



For the purposes of paragraph (c) of the definition of "recognized 
counterparty" in section 1 of Part 1 of Schedule 1 to the Ordinance, the 
following institutions are recognized counterparties-

        (a)	a corporation licensed for dealing in futures contracts that 
deals in currency futures contracts on any specified futures exchange;

        (b)	an equivalent corporation that deals in currency futures 
contracts on any specified futures exchange, except where such corporation 
ceases to be authorized to carry out such dealing as a result of the 
action of the authority or regulatory organization that regulates it in 
the specified jurisdiction in which it is incorporated and regulated;

        (c)	a bank that is incorporated in a specified jurisdiction and 
regulated by a specified bank regulator in that jurisdiction, except where 
the bank ceases to be authorized to operate as a bank as a result of the 
action of the specified bank regulator;

        (d)	a corporation that has issued debt instruments which continue 
to attract a qualifying credit rating; and

        (e)	an institution-

        (i)	in respect of which the Commission is satisfied that 
recognition as a counterparty-
(A)	is appropriate; and
(B)	would not prejudice the interest of the investing public; and

        (ii)	which is specified in Schedule 2.



SECURITIES AND FUTURES (RECOGNIZED COUNTERPARTY) RULES - SCHEDULE 1
SPECIFIED JURISDICTIONS AND SPECIFIED BANK REGULATORS VerDate:01/04/2003



[section 2]

Item	Specified jurisdiction	Specified bank regulator
1.	Australia	Australian Prudential Regulation Authority
2. 	Canada	Office of the Superintendent of Financial Institutions
3. 	The Federal Republic of Germany	Bundesaufsichtsamt fur das Kreditwesen
4.	The French Republic	La Commission Bancaire
5.	Japan	Financial Services Agency
6.	The Swiss Confederation	Eidgenossische Bankenkommission
7. 	The United Kingdom of Great Britain and Northern Ireland	Financial Services 
Authority
8.	The United States of America	Board of Governors of the Federal Reserve System
		The Office of the Comptroller of the Currency




SECURITIES AND FUTURES (RECOGNIZED COUNTERPARTY) RULES - SCHEDULE 2
SPECIFIED INSTITUTIONS THAT ARE RECOGNIZED COUNTERPARTIES VerDate:01/04/2003



[section 3]

1.	Bear Stearns Forex Inc.
2.	HSBC Broking Securities (Asia) Ltd.