Hong Kong Regulations

SECURITIES AND FUTURES (LEVERAGED FOREIGN EXCHANGE TRADING) (ARBITRATION) RULES - SECT 18

Statement of defence or counterclaim

(1) The respondent shall send a statement of defence to the claimant and to
the arbitrator in accordance with sections 13(3) and (4) and 33, within 14
days from the date on which the statement of claim is sent to the respondent.

(2) The statement of defence shall reply to the particulars of the statement
of claim referred to in section 17(3)(b), (c) and (d).

(3) The respondent may-

   (a)  annex or otherwise attach to the statement of defence documents on
        which the respondent relies in defence; or

   (b)  add a reference to the documents or other evidence that the respondent
        intends to submit.

(4) In the statement of defence, or at a later stage in the arbitration
proceedings if the arbitrator decides that the delay is justified under the
circumstances, the respondent may-

   (a)  make a counterclaim arising out of the same dispute; or

   (b)  rely on a claim arising out of that dispute for the purpose of a
        set-off.

(5) Section 17 applies to a counterclaim and a claim relied on for the purpose
of a set-off in the same manner as it applies to a statement of claim.