Hong Kong Regulations

SECURITIES AND FUTURES (LEVERAGED FOREIGN EXCHANGE TRADING) (ARBITRATION) RULES - SECT 5

Commencement of proceedings

PART 2

RULES RELATING TO COMMENCEMENT OF ARBITRATION PROCEEDINGS

(1) Subject to subsection (3), a client may send a notice in writing, signed
by him or on his behalf, to the licensed corporation with which he has a
dispute requiring the dispute to be settled by arbitration in accordance with
these Rules.

(2) Where the client has not sent a notice in writing under subsection (1)-

   (a)  the licensed corporation may send to the client with whom it has a
        dispute a notice in writing (containing the particulars described in
        subsection (7)(b), (d) and (e)), signed by it or on its behalf,
        referring the client to his right to require the dispute to be settled
        by arbitration in accordance with these Rules; and

   (b)  the client may send to the licensed corporation a notice in writing,
        signed by him or on his behalf, within 14 days after the receipt of
        the notice in writing under paragraph (a), requiring the dispute to be
        settled by arbitration in accordance with these Rules.

(3) Where a licensed corporation has sent to a client a notice in writing
under subsection (2)(a) and the client has not sent to the licensed
corporation a notice in writing under subsection (2)(b) within the time
specified in subsection (2)(b), the client is not entitled to require the
dispute to be settled by arbitration in accordance with these Rules.

(4) Subject to subsection (5), despite court proceedings having commenced in
respect of a dispute, the client may require that the dispute be settled by
arbitration, by sending a notice in writing signed by him or on his behalf to
the licensed corporation to that effect within 14 days after the commencement
of the court proceedings.

(5) Where a licensed corporation has sent to a client a notice in writing
under subsection (2)(a) and the client has not sent to the licensed
corporation a notice in writing under subsection (2)(b) within the time
specified in subsection (2)(b), subsection (4) does not apply to that dispute.

(6) Arbitration proceedings are deemed to commence on the date on which the
notice in writing under subsection (1) or (4), or where applicable, the notice
in writing under subsection (2)(b), is sent to the licensed corporation in
accordance with section 33.

(7) A notice in writing sent under subsection (1) or (4) shall include-

   (a)  a demand that the dispute be referred to arbitration;

   (b)  the names and addresses of the parties;

   (c)  a reference to the arbitration clause that the client is relying on,
        where applicable;

   (d)  a reference to the client contract; and

   (e)  a brief summary of the dispute, the remedy sought and an indication of
        the amount of money involved.

(8) Any notice in writing sent under this section by a body corporate or a
partnership shall be completed and signed on its behalf by one of its
directors or partners (as the case may be).

(9) A party who has sent a notice in writing under this section shall send a
copy of the notice to the clerk for filing as soon as reasonably practicable.

(10) During the course of an arbitration under these Rules, neither party may
pursue any suit, action or proceedings against the other in respect of the
dispute referred to arbitration under these Rules.