Hong Kong Regulations

SECURITIES AND FUTURES (FINANCIAL RESOURCES) RULES - SECT 34

Amounts receivable in respect of leveraged foreign exchange trading

(1) A licensed corporation licensed for Type 3 regulated activity shall
include in its liquid assets, in respect of any trading by it in leveraged
foreign exchange contracts-

   (a)  any amount receivable from a recognized counterparty; and

   (b)  the amount of any cash deposited by it with the recognized
        counterparty.

(2) A licensed corporation licensed for Type 3 regulated activity shall
include in its liquid assets the amount of any floating profits in respect of
outstanding foreign exchange agreements and leveraged foreign exchange
contracts to which it is a party.