Hong Kong Regulations

SECURITIES AND FUTURES (CLIENT SECURITIES) RULES - SECT 9

Treatment of securities collateral by intermediaries licensed or registered for dealing in futures contracts and their associated entities

(1) This section applies to-

   (a)  an intermediary licensed or registered for dealing in futures 
        contracts; and

   (b)  an associated entity of such intermediary.

(2) Without prejudice to section 7(3), with a standing authority, an
intermediary or an associated entity to which this section applies may deposit
any of the securities collateral in question with-

   (a)  a recognized clearing house; or

   (b)  another intermediary licensed or registered for dealing in 
        futures contracts, as collateral for the discharge and satisfaction of
        the intermediary's settlement obligations and liabilities.