Application for HKEx Participantship and Trading Right
Professional Financial Advisory Services
Hong Kong, as a leading global international financial centre, is home to Hong Kong Exchanges and Clearing Limited ("HKEX") – the core operator and the sole authorized exchange for its securities and derivatives markets. Any broker-dealer intending to operate a brokerage business for products available on HKEX, using the trading facilities of The Stock Exchange of Hong Kong Limited ("SEHK") and/or Hong Kong Futures Exchange Limited ("HKFE"), must be admitted and registered as an Exchange Participant of the respective exchange. This status is a mandatory prerequisite and a statutory requirement for conducting such brokerage activities and gaining direct access to the market for trading.
Types of Exchange Participantship
| Types of Exchange Participantship | Provided Sales Services |
|---|---|
| Stock Options Exchange Participants | Deal in stock options Brokers that intend to offer stock options. |
| Futures Exchange Participants | Deal in all futures and options, with the exception of stock options. |
| Stock Exchange Participants | Deal in securities products such as equity securities, equity warrants, Exchange Traded Products, derivative warrants and Callable Bull/Bear Contracts, etc. |
Trading Rights
An Exchange Participant must also hold at least one Trading Right in the Stock Exchange or Futures Exchange. All new Trading Rights are issued by the respective exchanges and are non-transferable.
Key Requirements for Exchange Participant
Become a licensed corporation (Type 1 regulated activity)
Comply with the financial resources requirements specified in the Securities and Futures (Financial Resources) Rules made by the SFC under the SFO and where applicable, the financial resources requirements made under SEHK Rule 408.
Pay the application fee and deposit
What Altum Capital can do for you
Review and assess the qualifications of the Applicant's professional team (including: accounting, settlement, risk management, and compliance personnel).
Submit the completed and signed application form to HKEX on behalf of the Applicant.
Respond to any questions and inquiries raised by HKEX on behalf of the Applicant during the process.
Assist the professional team in preparing for meetings with HKEX.
Assist in following up on system and connectivity testing with HKEX.
Upon approval of the trading right application, provide the client with all correspondence records with HKEX and the Operations and Risk Control Plan for future reference and archiving.
Timeline
For the application, the expected timeframe is approximately 4 to 5 months.
| Application Procedure | Time required |
|---|---|
| For preliminary document preparation. | 1 month |
| For HKEX and the SFC to process the application (including handling the application documents, arranging meetings with the applicant, and conducting system connectivity tests). | 3 - 4 months |