Hong Kong Regulations

SECURITIES AND FUTURES (CONTRACTS LIMITS AND REPORTABLE POSITIONS) RULES - SECT 7

Compliance by certain persons

(Past version on 01/04/2003).

(1) In their application to a person holding or controlling futures contracts
or stock options contracts for any other person, the prescribed  limits and
reportable positions apply separately to any futures contracts or stock
options contracts held or controlled by the first person—

   (a)  for his own account; and

   (b)  for each other person.

(2) For the purposes of subsection (1), a person shall not be regarded as
holding or controlling futures contracts or stock options contracts for
another person if he has discretion in relation to those futures contracts or
stock options contracts.

(3) For the purposes of subsection (2), a person shall be regarded as having
discretion in relation to futures contracts or stock options contracts he
holds or controls for another person if—

   (a)  he may originate orders to acquire or dispose of any of the futures
        contracts or stock options contracts under a general authorization
        from the other person, whether the authorization is pursuant to a
        written agreement, power of attorney or otherwise; and

   (b)  such authorization enables the first person to make specific
        acquisitions or disposals without requiring further consent or
        instruction from the other person. (L.N. 35 of 2004)