Hong Kong Regulations

SECURITIES AND FUTURES (CONTRACT NOTES, STATEMENTS OF ACCOUNT AND RECEIPTS) RULES - SECT 2

Interpretation

In these Rules, unless the context otherwise requires-

"asset management" (資產管理) has the meaning assigned to it by Part 2 of
Schedule 5 to the Ordinance;

"balance" (結餘) includes, where applicable, money ledger balance;

"floating loss" (浮動虧損) means unrealized losses calculated by
marking to  market open positions;

"floating profit" (浮動利潤) means unrealized profits calculated by
marking to  market open positions;

"foreign intermediary" (外地中介人) means-

   (a)  a person who carries on a business of providing financial or
        investment services and is regulated in respect of that business in a
        specified jurisdiction; or

   (b)  a bank that is regulated under the law of a specified  jurisdiction;

"margin ratio" (保證金比率), in relation to each description of
securities collateral, means the percentage of the value of such collateral up
to which a client of an intermediary is permitted to borrow (or otherwise
secure other forms of financial accommodation) from the intermediary against
that particular description of securities collateral;

"margin value" (保證金價值), in relation to each description of
securities collateral, means the maximum amount of money which a client of an
intermediary is permitted to borrow (or otherwise secure other forms of
financial accommodation) from the intermediary against that particular
description of securities collateral;

"margined transaction" (保證金交易) means a relevant contract which
requires a client with whom or on whose behalf an intermediary has entered
into the relevant contract to-

   (a)  pay a margin to the intermediary; or

   (b)  provide security to the intermediary to meet the client's obligations,
        other than under an arrangement where financial accommodation is
        provided to the client by the intermediary;

"marking to market" (按照市值計算差額) means the method or procedure
of adjusting the valuation of open positions to reflect their current market
value;

"net equity" (權益淨額), in relation to a client of an intermediary, means
the balance in the client's account at any given time-

   (a)  plus any floating profit;

   (b)  less any floating loss; and

   (c)  after adjusting for any income credited to and charges levied against
        that account;

"relevant contract" (有關合約) means a contract entered into in Hong Kong
by an intermediary with or on behalf of a client of the intermediary in the
conduct by the intermediary of any of the businesses which constitute-

   (a)  any regulated activity for which the intermediary is licensed or
        registered, that is a contract-

        (i)    for a dealing in securities (except a market contract); or

        (ii)   for a dealing in futures contracts (except a market contract);
               or

   (b)  the regulated activity of leveraged foreign exchange trading for which
        the intermediary is licensed, that is a leveraged foreign exchange
        contract;

"specified jurisdiction" (指明司法管轄區) means a jurisdiction
specified in Schedule 1.

"asset management" (資產管理)

"balance" (結餘)

"floating loss" (浮動虧損)

"floating profit" (浮動利潤)

"foreign intermediary" (外地中介人)

"margin ratio" (保證金比率)

"margin value" (保證金價值)

"margined transaction" (保證金交易)

"marking to market" (按照市值計算差額)

"net equity" (權益淨額)

"relevant contract" (有關合約)

"specified jurisdiction" (指明司法管轄區)